Ltd.

The Bank of St. Vincent and the Grenadines Ltd. (“the Bank”) and its wholly owned subsidiary , Property Holdings SVG Ltd., are incorporated under the laws of St. Vincent and the Grenadines and carry the registration numbers 17 of 2009 and 135 of 2010 respectively The Bank is licensed with the Eastern Caribbean Central Bank to engage in commercial banking activities in St. Vincent and the Grenadines and its subsidiary’s principal activities are the development and management of real estate. The Bank is listed on the Eastern Caribbean Securities Exchange (ECSE) and carries the ticker symbol BOSV

The Group’s principal place of business and registered office is located at Reigate, Granby Street, Kingstown, St. Vincent.

2. Summary of Significant Accounting Policies

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

2.1 Basis of Accounting

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standard Board (IASB) , effective for reporting periods commencing after January 1, 2022.

2.2 Basis of Measurement

The consolidated financial statements have been prepared under the historical cos t convention except for the following material items that are measured at fair value in the consolidated statement of financial position.

• Financial assets and liabilities measured at fair value through profit or loss (FVTPL)

• Financial assets and liabilities designated at fair value through profit or loss (FVTPL)

• Equity instruments designated at fair value through other comprehensive income (FVTOCI)

• Debt instruments measured at fair value through other comprehensive income (FVTOCI)

• Investment properties

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving either a higher degree of judgement or complexity or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 4.

Application of the Going Concern Principle

The Board (including its sub-committees) has assessed the Group’s budgets and cash flow forecasts in considering the Group’s going concern assumption in respect to the existing trends and expected future economic events. This included the impact that projected cashflows will have on t he Group’s liquidity risk, credit risk, interest rate risk, regulatory capital and market risks, as well as other related risks; all of which have remained within the risk parameters of the Group’s risk appet ite framework.

The assessment entailed the consideration of the adequacy of the Group’s capital and liquidity to meet its operations and strategies during economic downturns. This was done by analyzing the impact of the macro economic outlook on the Group’s forecast growth in earnings and assets and liabilities management to determine the impact to the Group’s financial outlook and operations. Multiple scenarios were completed and tested for sensitivity. The assessment undertaken by the Group demonstrated a positive future outlook for the Group. The goi ng concern assumptions continues to apply and is applicable.