1 Annual Report 2020 2 REPUBLIC BANK (GRENADA) LIMITED ANNUAL REPORT 1 While we were at home being safe, the world started to look differently. For us, it was a time of change as well. We had to adapt to our transformed lives. We found new ways to work, to learn, to be together. We found a new perspective on ourselves, our neighbours, our country and the world. As a Group, we affirmed the hope that we could maintain the lives we built. So we found solutions to serve the unique needs of this time. We found ways to support our customers’ financing, increased our digital offerings, and changed our in-branch approach to be socially distant yet fully committed. At every step, and across all our territories, we kept a positive outlook. For we wanted all our communities to keep believing that a great future is, and always will be, ours. 2 REPUBLIC BANK (GRENADA) LIMITED ANNUAL REPORT The Bank at a Glance About Us Total Assets ($ Million) 2,000 Republic Bank (Grenada) Limited is the largest 1,792.28 1,011.58 952.04 922.77 886.16 bank in Grenada, with an asset base of $1.79 billion and a network that includes eight branches and 18 ATMs. Having faithfully served 1,500 our nation for four decades, The Bank has built a solid reputation as both a comprehensive financial services provider and an outstanding 1,000 corporate social responsibility citizen through our Power to Make A Difference programme. We have won the Eastern Caribbean Central Bank (ECCB) Best Corporate Citizen Award nine 500 times in the award’s 21-year history. 0 2020 2019 2018 2017 2016 Operating Branches Profit After Tax ($ Million) 12 8.28 10.44 7.88 6.15 5.46 Carriacou 9 Sauteurs Gouyave 6 Grenville 3 Melville Street Halifax Street Grand Anse Republic House 0 2020 2019 2018 2017 2016 3 Share Price ($) Network 2020 45.00 2019 45.00 210 8 18 employees branches ATMs Dividend Yield (%) 2020 0 Sources of Revenue (%) 2019 4.44 Other Liquid Income 2.96 4.85 Assets Exchange 7.79 Earnings EPS ($) Investment 2020 3.04 Securities Advances 9.75 63.18 2019 6.41 Fees & Profit After Tax ($ Million) Commissions 11.47 PE Ratio 2020 14.80 2019 7.02 Corporate Social Responsibility Through our social investment initiative, the Power to Make A Difference, we have formed powerful connections within communities with the aim of safeguarding the welfare and ensuring the sustainable success of this beautiful nation. For more than a decade, through relationships with Non-Governmental Organisations (NGOs) and Community Based Organisations (CBOs), we have worked together to help enhance the quality of life of the differently able, support healthcare programmes and disability awareness initiatives; provide opportunities for young people to realise their truest potential through sport, education, culture and the arts; and raise the bar for community investment through a wide-reaching, comprehensive staff volunteerism programme. 4 REPUBLIC BANK (GRENADA) LIMITED ANNUAL REPORT The Table of Contents Corporate Information 6 Notice of Meeting 8 Corporate Information 9 Bank Profile 10 Financial Summary Board of Directors 12 Board of Directors 17 Directors’ Report 18 Chairman’s Review 21 Managing Director’s Discussion and Analysis Management 36 Executive Management 37 Management 39 Statement of Corporate Governance Practices Corporate Social Responsibility 42 Power to Make A Difference Financial Statements 50 Management’s Responsibility for Financial Reporting 52 Independent Auditor’s Report 60 Statement of Financial Position 61 Statement of Income 62 Statement of Comprehensive Income 63 Statement of Changes In Equity 64 Statement of Cash Flows 66 Notes to the Financial Statements 5 finding the perfect balance we reduced our branch footprint and services in the best interests of our clients and staff, while our staff remained operational to better serve you. CORPORATE INFORMATION 6 REPUBLIC BANK (GRENADA) LIMITED ANNUAL REPORT Notice of Meeting Virtual Annual Meeting Notes NOTICE is hereby given that the Thirty-Seventh Annual This year, out of an abundance of caution, to proactively General Meeting of Republic Bank (Grenada) Limited will address the unprecedented public health impact of the be held virtually and streamed live to all Shareholders on global novel coronavirus (COVID-19) pandemic and to Thursday, December 17, 2020, at 9:00 a.m. for the following mitigate risks to the health and safety of our communities, purposes: shareholders, employees and other stakeholders, we will hold a Virtual Annual General Meeting (“the Meeting”), Agenda which will be conducted via live webcast. Special business 1 To confirm the adoption of By-law No. 3 of Republic Attendance at the meeting Bank (Grenada) Limited which amends and restates the All Shareholders will have an opportunity to participate in 1994 By-law No. 1 of the National Commercial Bank of the online Meeting, from any geographic location, using any (Grenada) Limited. smartphone, tablet, computer or other electronic device. Shareholders will NOT be able to attend the Meeting in Ordinary business person. 2 To receive the Audited Financial Statements of the Company for the year ended September 30, 2020, and Registration for the meeting the Reports of the Directors and Auditors thereon. Registered Shareholders and duly appointed proxy holders 3 To elect Directors. who wish to participate in the Meeting will be able to listen 4 To re-appoint KPMG as Auditors, and to authorise the to the Meeting, ask questions and vote, all in real time, Directors to fix their remuneration. provided they are connected to the Internet and adhere 5 Any other business. fully to the following steps: 1 Shareholders are required to register during the period By order of the Board November 18, 2020, to 12:00 noon on December 16, 2020. 2 To register, shareholders must visit www.republicgrenada.com and click on the web Melissa Jankie banner “Annual Meeting of Shareholders 2020”. Corporate Secretary 3 Select “Register to Attend Meeting” which will then prompt the validation process. November 17, 2020 4 Shareholders would be required to provide their full name, address, date of birth and email address. 5 Shareholders will receive an email with login credentials that will facilitate access to the Meeting on December 17, 2020. We recommend that Shareholders afford themselves ample time to complete the log-in process in advance of the commencement of the Meeting by logging in at least 15 minutes before the Meeting is scheduled to commence. If any log-in difficulty is encountered, please call the technical support number on the log-in page. Rules of conduct approved by the Board of Directors for the Meeting will be posted on www.republicgrenada.com before the Meeting commences. CORPORATE INFORMATION 7 Further information about accessing/attending the Meeting Resolution to confirm By-law No. 3 of Republic Bank virtually can be found on: (Grenada) Limited being an amendment and restatement www.republicgrenada.com; of the 1994 By-law No. 1 of The National Commercial Bank or, by emailing: of (Grenada) Limited [email protected] The 1994 By-law No. 1 of the National Commercial Bank or, by calling telephone numbers: of (Grenada) Limited does not provide, inter alia, for the 1 (473) 444-2265 extension 7310 or 1 (473) 405-5065 holding of remote/virtual meetings of the Directors and/ between 8:00 a.m and 4:00 p.m. or Shareholders. The Board of Directors had, at its meeting Shareholders attending the Meeting must be confirmed as of October 22, 2020, approved the amendment and a shareholder on record as at November 17, 2020. restatement of the said By-law of the Company to permit, inter alia, greater use of technology in the conduct of the A list of Shareholders on record will be available for Company’s business which the Board of Directors has examination by shareholders at the Registered Office of deemed is in the best interest of the Company and its the Company during usual business hours, from November Shareholders. 18, 2020. Since April 10, 2006, the Company changed its name to Persons entitled to Notice Republic Bank (Grenada) Limited, but this change is not Pursuant to sections 108 and 110 of the Companies Act reflected in By-law No. 1. 1994 as contained in Chapter 58A of the 2020 Continuous Revised Edition of the Laws of Grenada, the Directors of the Moreover, there were other minor amendments related to Company have fixed November 17, 2020, as the Record Date the utilisation of technology and other updates made to By- for the determination of Shareholders entitled to receive law No. 1 to streamline same, inter alia, with new legislation notice of the Annual Meeting. Only shareholders on record relative to the conduct of the business of the Company, at the close of business on November 17, 2020, are therefore which the Board of Directors deemed necessary to effect. entitled to receive notice of the Annual Meeting. All amendments are shown in blue in the Amended and Proxies Restated By-law No. 3 of Republic Bank (Grenada) Limited Shareholders of the Company entitled to attend and vote document, limited copies of which can be collected from at the Meeting are entitled to appoint one or more proxies the Registered Office, Republic House, Grand Anse St. to attend, and in a poll, vote instead of them. A proxy need George, Grenada. The amended By-laws have been filed with not be a shareholder. A copy of the Proxy Form can be the Corporate Affairs and Intellectual Property Office, Mt downloaded from www.republicgrenada.com and may be Wheldale Gap, Upper Lucas Street, St. George’s, Grenada and filled and sent via email to [email protected] Shareholders may request copies from there.