Page 40 - RB GRENADA ANNUAL REPORT 2025_ONLINE

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

Managing Director’s Discussion and Analysis

Regulatory capital
Capital adequacy is monitored by employing techniques based on the guidelines developed by the Basel Committee on Banking
Regulations and Supervisory Practice (the Basel Committee), as implemented by the Eastern Caribbean Central Bank for supervisory
purposes. The risk-based capital guidelines require a minimum of core capital (Tier 1) to risk-weighted assets of 4 percent, with a
minimum total qualifying capital (Tier 2) to risk-weighted assets of 8 percent.

As at September 30, 2025, the Company exceeded the minimum levels required, with Tier 1 capital to risk-weighted assets of 10.55
percent and total qualifying capital to risk-weighted assets of 12.51 percent.

Based on the results for fiscal 2025, the Board of Directors has declared a dividend of $1.20 per share. This represents a cost of $4.53
million and a payout ratio of 29.23 percent.

Capital adequacy tier 1 (%) Capital adequacy tier 2 (%)

15.15
16.00 18.00 16.21
14.00 16.00
12.00 11.21 11.55 11.12 10.55 14.00 11.98 12.49 12.74 12.51
12.00
10.00
10.00
8.00
8.00
6.00
6.00
4.00 4.00
2.00 2.00
0 0
2021 2022 2023 2024 2025 2021 2022 2023 2024 2025

Customer service

This fiscal, we continued to enhance our customer service delivery through the introduction of innovative digital solutions, service
initiatives, and infrastructure improvements. A major milestone was the launch of RepublicOnboard, a cutting-edge platform that
allows customers to open accounts online. Initially available to open E-Free accounts, the platform will be expanded to accommodate
additional account types in the future. RepublicOnboard facilitates account opening for both new and existing customers.

The Business Centre formerly located on Halifax Street, was temporarily relocated to the Carenage, St. George’s.

To promote greater adoption of our digital services, RepublicOnline and RepublicMobile, we piloted the What’s On at Republic
initiative across our mainland branches. This in-branch programme featured live presentations designed to educate customers on
the benefits of internet banking, while also offering real-time troubleshooting support.

Our annual Customer Experience Survey, conducted between June and July, showed an improvement in overall service delivery, with
the score increasing from 4.67 to 4.91. The highest-rated service elements were Accuracy, Courtesy, Professionalism, and Knowledge,
reaffirming our continued focus on quality customer interactions.