CAPITA FINANCIAL SERVICES INC. (ST. LUCIA BRANCH) Notes to the Financial Statements March 31, 2024 (expressed in Eastern Caribbean dollars) 36 20 Financial Risk Management ...continued Credit-related commitments The primary purpose of these instruments is to ensure that funds are available to a customer as required. Commitments to extend credit represent unused portions of authorisations to extend credit in the form of loans. With respect to credit risk on commitments to extend credit, the Branch is potentially exposed to loss in an amount equal to the total unused commitments. However, the likely amount of loss is less than the total unused commitments, as most commitments to extend credit are contingent upon customers maintaining specific credit standards. The Branch monitors the term to maturity of credit commitments because longer-term commitments generally have a greater degree of credit risk than shorter-term commitments. Maximum exposure to credit risk before collateral held or other credit enhancements Credit risk exposures relating to on-balance sheet assets are as follows: 2024 $ 2023 $ Cash resources (note 4) 5,511,967 5,197,502 Loans and advances to customers: Consumer loans 15,692,072 16,296,765 Business loans 2,480,431 1,507,215 Mortgages 12,201,163 12,019,641 Interest receivable 887,983 576,627 31,261,649 30,400,248 Due from related companies (note 6) 1,325,266 675,567 Credit risk exposures relating to off-statement of financial position items are as follows: - Loan commitments (note 13) 523,838 1,510,217 38,622,720 37,783,534 The above table represents a worst-case scenario of credit risk exposure to the Branch at March 31, 2024 and 2023, without taking account of any collateral held or other credit enhancements attached. For statement of financial position assets, the exposures set out above are based on gross carrying amounts as reported in the statement of financial position.
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