The Board of Directors of the Grenada Development Bank (GDB) is aware of a recent article circulating online and on social media which is replete with inaccuracies and veiled innuendo and as such the following is provided to correct the record.
The article is correct on one point: the bank recorded a loss in 2024. However, it gives a misleading impression of why that loss occurred and includes several unsupported claims about the bank, its governance, and its general manager.
Why the bank made a loss in 2024
The 2024 loss was primarily due to 2 significant accounting matters.
1. Software write-off
The bank wrote off built-up costs relating to a banking software project that began before the current general manager’s appointment. After testing and review, management determined that the system would not properly meet the bank’s needs and the prudent decision was therefore taken to stop the project and write off the cost.
This affected the bank’s 2024 results, but it was the right decision to protect the institution. The bank has since moved to upgrade its existing loan management system to improve efficiency, reporting, security, and customer service.
2. Loan Loss provisions
The second major reason was an increase in provisions for possible loan losses.
Several large loans issued before 2023 became non-performing. Under international accounting rules (IFRS 9), the bank must make provisions for potential losses on such loans. These provisions reduce reported profit.
The foregoing means the 2024 loss was largely driven by accounting treatment, subsisting legacy loans prior to 2022, and prudent financial reporting — not by a collapse in the bank’s operations.
Governance and Oversight
All and or any allegations of poor governance or improper management are rejected in their entirety. The bank continues to operate under proper oversight, regulatory supervision, legal requirements, and established approval processes.
The Ministry of Finance has been kept informed of board changes, and the appointment of additional directors is being addressed through the appropriate process.
The bank has also strengthened key areas, including risk and compliance, credit, accounting, and collections/recoveries.
Appointment of the General Manager
The board firmly rejects the statement/suggestion/claim that the general manager was “handpicked” for the role. His appointment followed a competitive recruitment process, including assessment by a 7-member interview panel and professional reference checks, including overseas references.
Mr Royston Cumberbatch is a qualified finance professional with over 2 decades of experience in accounting, banking, financial management, investment operations, and institutional transformation, including work with major financial institutions in the United Kingdom and leadership experience in Grenada.
2025 Performance
While the bank will not comment in detail on unaudited figures, management reports for 2025 show improved financial performance following the exceptional issues that affected 2024.
The 2025 financial statements are being finalised and will be subject to the normal audit process.
The bank remains focused
The Grenada Development Bank remains fully operational and continues to support businesses, homeowners, students, farmers, entrepreneurs, and communities across Grenada, Carriacou, and Petite Martinique.
The board remains focused on:
- strengthening governance
- reducing non-performing loans
- upgrading systems
- mobilising development funding
- obtaining Green Climate Fund Accreditation
- improving public reporting; and
- ensuring the long-term sustainability of the bank
It is as a result of the foregoing that responsible public discussion based on facts, fairness, and accuracy as it pertains to the bank is encouraged.
The bank reserves all rights in relation to any false, defamatory, or misleading statements made about the institution, its board, management, or staff.
Board of Directors
Grenada Development Bank
