Page 38 - RB GRENADA ANNUAL REPORT 2025_ONLINE

38 • Republic Bank (Grenada) Limited 2025 Annual Report • EXECUTIVE REPORTS

Managing Director’s Discussion and Analysis

Non-performing loans
After declining last fiscal and falling within the Eastern Caribbean Central Bank (ECCB)’s benchmark, the non-performing portfolio
increased by $38.01 million to end the year at $87.01 million from $49.00 million in 2024. The increase was mainly due to two
corporate facilities.

As a result of the significant increase in the non-performing loans portfolio, the non-performing to gross loans ratio increased to 7.09
percent from 4.33 percent in 2024, exceeding the ECCB’s benchmark of 5 percent.

Non-performing loans and advances ($M) Non-performing to gross loans (%)

100.00 8.00 7.09
87.01
80.00 5.60
6.00
58.54 4.33
60.00
49.00
4.00 3.19 2.94
40.00
28.32 27.18
2.00
20.00

0 0
2021 2022 2023 2024 2025 2021 2022 2023 2024 2025

The ratio of Stage 3 Expected Credit Loss (ECL) to non- Stage 3
performing loans increased to 37.39 percent from 20.05 percent Provision to non-performing loans (%)
in 2024. While an increase was recorded, it is still reflecting the
40.00
strong quality of the Bank’s collateral.
37.39
30.00
Investments 20.05
It was another remarkable year for the investment portfolio. All 19.79
20.00 16.64 15.73
maturing investments were reinvested, and maturity proceeds
from some short-term instruments and excess liquidity were
10.00
used to fund additional investments. This assisted with the
$109.87 million or 29.36% growth in the portfolio to end the
fiscal at $484.06 million. The Bank continues to source new 0
2021 2022 2023 2024 2025
investments, mainly from the international market, well
diversifying them in various regions and sectors.

Deposits
Customer deposits increased by $64.08 million or 3.64 percent
during fiscal 2025. The increase was primarily in demand
deposits.