CAPITA FINANCIAL SERVICES INC. (ST. LUCIA BRANCH) Notes to the Financial Statements March 31, 2024 (expressed in Eastern Caribbean dollars) 37 20 Financial Risk Management ...continued Management is confident in its ability to continue to control and sustain minimal exposure of credit risk to the Branch resulting from both its loan and advances portfolio and debt securities based on the following: • 86% of the loans and advances portfolio is categorised in the top two grades either Pass and Special Mention of the credit quality analysis (2023 - 88%); • Mortgage loans, which represent 40% of the portfolio, are backed by collateral; • 82% of the loans and advances portfolio considered as Pass are neither past due nor impaired (2023 - 81%). Credit quality analysis The following table sets out information about the credit quality of financial assets measured at amortised cost. Unless specifically indicated, for financial assets, the amounts in the table represent gross carrying amounts. For loan commitments, the amounts in the table represent the amounts committed. Explanation of the terms ‘Stage 1’, ‘Stage 2’ and ‘Stage 3’ are included in Note 2(b) (v). 2024 Stage 1 $ Stage 2 $ Stage 3 $ Total $ Loans and advances to customers at amortised cost: Pass 26,137,139 107,938 – 26,245,077 Special Mention 30,275 394,261 – 424,536 Substandard 185,509 – 340,681 526,190 Doubtful – – 281,129 281,129 Loss – – 2,896,734 2,896,734 26,352,923 502,199 3,518,544 30,373,666 Loss allowance (93,922) (25,476) (489,679) (609,077) Carrying amount 26,259,001 476,723 3,028,865 29,764,589 2023 Stage 1 $ Stage 2 $ Stage 3 $ Total $ Loans and advances to customers at amortised cost: Pass 24,254,671 1,218,731 555,009 26,028,411 Special Mention 24,049 105,190 – 129,239 Substandard 488,942 505,420 396,519 1,390,881 Doubtful – – 1,394,127 1,394,127 Loss 26,072 – 854,891 880,963 24,793,734 1,829,341 3,200,546 29,823,621 Loss allowance (105,582) (83,065) (495,599) (684,246) Carrying amount 24,688,152 1,746,276 2,704,947 29,139,375
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