Page 109 - RB GRENADA ANNUAL REPORT 2025_ONLINE

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Notes to the Financial Statements

For the year ended September 30, 2025. Expressed in Thousands of Eastern Caribbean dollars ($’000), except where otherwise stated.

4 Advances (continued)

b ECL allowance for advances to customers
The table below shows the staging of advances and the related ECLs based on the Bank’s criteria as explained in Note
18.2.4 and policies on whether ECL allowances are calculated on an individual or collective basis are set out in Note 18.2.6.

Commercial
and
Retail corporate Credit
2025 lending lending Mortgages Overdrafts cards Total

Gross loans 103,801 216,228 858,585 23,789 25,054 1,227,457
Stage 1: 12 Month ECL (97) (442) (1,199) (181) (2,101) (4,020)
Stage 2: Lifetime ECL (10) (54) (2,253) (98) (377) (2,792)
Stage 3: Credit impaired financial
assets – Lifetime ECL (2,946) (20,800) (4,337) – (4,449) (32,532)

As at September 30, 2025 100,748 194,932 850,796 23,510 18,127 1,188,113

Stage 1: 12 Month ECL
ECL allowance as at October 1, 2024 38 506 851 149 1,454 2,998
ECL on new instruments issued
during the year 36 96 164 – – 296
Other credit loss movements,
repayments etc. 23 (160) 184 32 647 726

As at September 30, 2025 97 442 1,199 181 2,101 4,020

Stage 2: Lifetime ECL
ECL allowance as at October 1, 2024 7 312 1,775 81 111 2,286
ECL on new instruments issued
during the year – 23 23 – – 46
Other credit loss movements,
repayments etc. 3 (281) 455 17 266 460

As at September 30, 2025 10 54 2,253 98 377 2,792

Stage 3: Credit impaired
financial assets – Lifetime ECL
ECL allowance as at October 1, 2024 3,002 1,543 1,798 – 3,484 9,827
Charge-offs and write-offs (489) – (2,899) – – (3,388)
Credit loss expense 1,256 19,707 7,691 – 1,720 30,374
Recoveries (823) (450) (2,253) – (755) (4,281)

As at September 30, 2025 2,946 20,800 4,337 – 4,449 32,532

Total 3,053 21,296 7,789 279 6,927 39,344

Of the total ECL of $39.3 million, 82.7 percent was on an individual basis and 17.3 percent was on a collective basis.