Page 125 - 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.
16 Credit loss expense/(recovery) on financial assets
Notes 2025 2024
Advances 4 (b) 27,621 (2,910)
Debt instruments measured at amortised cost (1,446) (172)
26,175 (3,082)
17 Taxation expense
2025 2024
Corporation tax 5,535 7,948
Deferred tax (credit)/charge (575) 939
4,960 8,887
Reconciliation between taxation expense and accounting profit
Income taxes in the Statement of income vary from amounts that would be computed by applying the statutory tax rate for
the following reasons:
2025 2024
Net profit before taxation 20,452 32,521
Tax at applicable statutory tax rates (2025 and 2024: 28 percent) 5,727 9,106
Tax effect of items that are adjustable in determining taxable profit:
Tax exempt income (2,398) (3,024)
Items not allowable for tax purposes 1,631 2,805
4,960 8,887
The effective income tax rate for 2025 is 27.07 percent (2024: 24.43 percent).
