Republic Financial Holdings Company Records $946 million Profit at Year’s End

Port-of-Spain, Trinidad, November 4, 2016: Republic Financial Holdings Limited (RFHL) and its subsidiaries, recorded profits attributable to equity holders of $946 million for the financial year ended September 30, 2016. This represents a decline of 22.7% over its 2015 performance.

In announcing the results, RFHL Chairman, Ronald F. deC. Harford, explained that, but for three one-off items totalling $236.9 million, the Group’s 2016 performance would have reflected a final profit attributable to equity holders of the Parent of $1.18 billion; 0.7% better than the comparative performance in 2015. As a result, the Board of Directors declared a final dividend of $3.10 for the year ended September 30, 2016 (2015:$3.10). This brings the total year dividend to $4.35; the same as that paid in the prior year. The final dividend will be paid on December 01, 2016, to all shareholders on record as at November 14, 2016. The Chairman identified the three items that adversely affected the Group’s 2016 performance as a goodwill impairment of $107.3 million recognised on the investment in HFC Bank (Ghana) Limited (HFC), a loss of $117.8 million recorded by HFC, of which RFHL’s 57.11% share is $67.8 million and a $61.8 million write-down in RFHL’s 19.3% stake in East Caribbean Financial Holdings Limited.

With respect to the Ghana investment, Harford advised that “The outlook for the Ghana market and our investment remains positive, as we continue our efforts to strengthen the governance and align its systems and procedures towards establishing a platform to benefit from Ghana’s future growth.” He added that, “Given the projected growth rates for the Ghana economy, the stabilisation of the exchange rate, growth in HFC loan and advances on average of 15% per annum in the last two years, and opportunities in the banking sector, the Group projects that performance will improve in the medium term.”

The Chairman outlined two strategic initiatives that were completed during the year. The first was the formation of RFHL – the umbrella company for the Group’s main banking subsidiaries. This holding company structure, established on December 16, 2015, enabled the Bank to segregate and isolate the risk among the various group companies, allowing for a more efficient deployment of capital. The change brought the Bank in alignment with international best practice. The second took place in the last quarter of the fiscal 2016, when RFHL acquired a further 23.12% shareholding in Republic Bank (Grenada) Limited, increasing the total shareholding from 51% to 74.12%. This larger shareholding is in keeping with the Bank’s focus of deepening its footprint across the region and creating a platform for greater operational synergies across the Group.

While economic challenges remain in several of the economies in which the company operates, especially in Trinidad and Tobago, Harford stressed that the Group, “with its strong asset base, solid capital position and robust risk management policies, is well positioned to withstand these challenges.” The Chairman expressed his appreciation for the continued support of management, staff and customers of the Group.