Republic Bank Records $1.22 Billion Profit at Year’s End

Port of Spain, Trinidad: November 5, 2015: For the year ended September 30, 2015, Republic Bank Limited has recorded profit attributable to shareholders of $1.22 billion. This represents an increase of $30.3 million or 2.5% over that period reported in 2014. Total Group assets increased by $6.6 billion or 11.2% over the prior period to $66 billion as at September 30, 2015.

In announcing the results, Republic Bank’s Chairman, Mr. Ronald F. deC. Harford, said, that the 2.5% growth in profits was driven by a $235 million or 10.6% increase in net interest income, arising from a $5.9 billion or 21.8% growth in the loan portfolio and the recovery of $123.4 million after tax on a non-performing facility.

“This was offset by an increase in operating expenses of $212.4 million and impairment expenses of $108.8 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 $89.4 million,” Mr. Harford said.

He noted that impairment expenses of $52.1 million (net of minority interest) was recorded by HFC to bring its loan provisions in line with the Group’s policy and $56.7 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 2015, the Bank increased its shareholding in HFC to 57.11% and on July, 31, 2015, 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 $5.5 billion to the Bank’s asset base and will be accretive to shareholders from 2016.

Mr. 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, 2015, but due to a delay in obtaining all of the requisite approvals, a new date will be agreed with the Minister of Finance.”

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 $3.10 for the year ended September 30, 2015 (2014:$3.00) payable to all shareholders on December 1, 2015, on record at November 16, 2015. This brings the total dividend for the fiscal year to $4.35.

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 a strong balance sheet.

Mr. Harford expressed his gratitude to management, staff and customers of the Group, for the Bank’s overall performance.