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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)

c Restructured/Modified loans
Within the retail portfolio, management will in the normal course of business modify the terms and conditions of facilities
in the case of difficulties by the borrower. These modifications rarely result in an impairment loss and if it does, it is not
material.

The Bank occasionally makes modifications to the original terms of large commercial and corporate loans as a response
to the borrower’s financial difficulties, rather than taking possession or to otherwise enforce collection of collateral. These
modifications are made only when the Bank believes the borrower is likely to meet the modified terms and conditions.
Indicators of financial difficulties include defaults on covenants, overdue payments or significant concerns raised by
the Credit Risk Department. Once the terms have been renegotiated, any impairment is measured using the original
Effective interest rate as calculated before the modification of terms.

Restructured loans are carefully monitored. Restructured large commercial and corporate loans are classified as Stage 2
and amounted to $17.6 million as at September 30, 2025 ($5.3 million as at September 30, 2024).

5 Investment securities

2025 2024

a Designated at Fair value through profit or loss
Equities 696 696

b Debt instruments at amortised cost
Government securities 69,366 32,144
State-owned company securities 55,359 24,032
Corporate bonds 358,637 317,317

483,362 373,493

Total investment securities 484,058 374,189