Increased profits for Republic Bank

Republic Bank Limited is reporting US $194 million in profits for the year ended September 30 3015.

According to a statement from the bank this represents an increase of US $4.8 million or 2.5% over the same period last year, with total group assets increasing by US $1.1 billion or 11.2% over the prior period to US $10.5 billion as at September 30, 2015.

In announcing the results, Republic Bank’s Chairman, Ronald F. deC. Harford, said the 2.5% growth in profits was driven by a US $37.3 million or 10.6% increase in net interest income, arising from a US $0.9 billion or 21.8% growth in the loan portfolio and the recovery of US $19.6 million after tax on a non-performing facility.

“This was offset by an increase in operating expenses of US $33.7 million and impairment expenses of US$17.3 million. The increase in operating expenses is attributable mainly to the consolidation of HFC Bank (Ghana) Limited and Republic Bank (Suriname) N.V, which amounted to US $14.2 million,” Harford said.

Republic Bank’s chairman Ronald Harford

He noted that impairment expenses of US $8.3 million was recorded by HFC to bring its loan provisions in line with the Group’s policy and US $9 million was booked by Republic Bank (Cayman) Limited in relation to loans and goodwill impairment.

During the financial year, Republic Bank completed two acquisitions as part of its overall strategy to expand the Group.

In May, the Bank increased its shareholding in HFC to 57.11% and on July, 31, the Bank acquired a 100% shareholding in RBC Royal Bank ( Suriname) N. V, which was renamed Republic Bank ( Suriname) N.V.

These two purchases added a further US $9 billion to the Bank’s asset base and will be accretive to shareholders from 2016.

Harford added that approval to create Republic Financial Holdings Limited, the umbrella company under which all the Bank’s main subsidiaries will be held, was obtained by shareholders on June 22, 2015.

“Shareholder’s approval had been secured to commence the holding company from October 1, but due to a delay in obtaining all of the requisite approvals a new date will be agreed with the Minister of Finance,” he said.

He added that the holding company structure will better enable the Group to segregate and isolate the risk among the various group companies. This in turn, will allow for more efficient deployment of capital and bring the Group in line with the international best practice.

The Board of Directors has declared a final dividend of US $0.49 for the year ended September 30, 2015 payable to all shareholders on December 1, 2015.

This brings the total dividend for the fiscal year to US $0.69.

Harford noted that while economic challenges are likely to feature through 2016, it is expected that the Group will continue to perform satisfactory through prudent management and strong balance sheet.

Source: PR

5 Responses to Increased profits for Republic Bank

  1. alex Alleyne November 7, 2015 at 10:03 pm

    yeah, from all of we MORTGAGE money.

  2. Tony Webster November 8, 2015 at 4:00 am

    @Alex: Sorry buddy…I gotta share a few thoughts with you.
    ONE: no-one forced you to choose to place your mortgage with any particular bank: it was you, who made that choice.
    TWO: you got the mortgage, thus releasing you from a life-time of paying rents.
    THREE: because our banks are solvent; well-run; profitable; sound; and well-regulated by our Central Bank, …any funds you might have deposited, are safe. You could take these all out on Monday…and put them under your mattress.
    What, exactly, is your beef?

    BTW: Republic Bank is the re-incarnated Barclays Bank International, a la Trinidad. it is a vibrant, vigourous, and forward-thinking bank. It has untold thousands of trinny shareholders, all of whom had the faith in themselves , to invest in it. They are all now smiling on the way…”to the bank”.

    Kudos to the Trinny investors, and even more kudos to my (former) Barclays colleagues, who had the guts to stay on after it went “local”…and to create a legendary example… of Caribbean “cajones”.

  3. Alex Alleyne November 8, 2015 at 7:03 am

    @Tony, I had a few shares in there hoping to cash in some way down the road, remember they kicked us all out after they took over…….Maybe my lot was too small.

  4. Andrew the Voice November 8, 2015 at 7:31 am

    is Tony Webster a barbadian.
    Seems like this guy puts down most barbadian comments.
    People are entitled to their opinion good or bad, but please man give them a break.

  5. Mac10 November 8, 2015 at 10:13 am

    How much of this profit is from lowering the interest rate payed to investors???????


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