CAPITA FINANCIAL SERVICES INC. (ST. LUCIA BRANCH) Notes to the Financial Statements March 31, 2024 (expressed in Eastern Caribbean dollars) 24 5 Loans and Advances …continued The Branch’s loans and advances portfolio as at March 31, are in the following staging categories. 2024 Stage 1 $ Stage 2 $ Stage 3 $ Total $ Consumer 13,880,159 502,199 1,309,714 $15,692,072 Business 2,239,877 – 240,554 2,480,431 Mortgages 10,232,887 – 1,968,276 12,201,163 Gross loans 26,352,923 502,199 3,518,544 30,373,666 Less: ECL allowance (93,922) (25,476) (489,679) (609,077) 26,259,001 476,723 3,028,865 29,764,589 Add: Interest receivable 887,983 30,652,572 2023 Stage 1 $ Stage 2 $ Stage 3 $ Total $ Consumer 13,599,276 1,100,060 1,597,429 16,296,765 Business 1,163,874 259,170 84,171 1,507,215 Mortgages 10,030,584 470,111 1,518,946 12,019,641 Gross loans 24,793,734 1,829,341 3,200,546 29,823,621 Less: ECL allowance (105,582) (83,065) (495,599) (684,246) 24,688,152 1,746,276 2,704,947 29,139,375 Add: Interest receivable 576,627 29,716,002 In October 2015, the Branch entered into a Deed of Sale and Administration agreement with the Eastern Caribbean Home Mortgage Bank (ECHMB), wherein the Branch sold its rights to 100% of the cash flows arising on a portfolio of loans amounting to $3,256,555. The agreement provides that the Branch could repurchase and replace any loan included in the loan portfolio subject to the mutual agreement of the parties. The Branch has determined that substantially all the risks and rewards of the said loan portfolio have been retained by the Branch and consequently, the loans were not derecognised. The Branch accounted for the transaction as collateralized borrowing and recorded the cash received from such agreement as loans payable reported in the statement of financial position. As of March 31, 2024, the remaining balance is $1,587,530 (2023 - $1,653,084). (See Note 11).
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