The Republic Bank Group has reported a near 40 per cent decline in profits which is being blamed on the COVID-19 pandemic.
Recently appointed chairman Vincent Pereira, announced in the bank’s nine-month unaudited financial results for the period ending June 30, that the massive falloff represented the widespread economic damage being caused by shutdowns in countries where Republic Bank operates.
The chairman said: “Republic Bank Holdings and its subsidiaries recorded profit attributable to shareholders of the parent of US$115.86 million for the nine-month period . . . a decline of US$68.56 million or 37.2 per cent below the corresponding period last year.
“These results reflect the financial impact so far of the novel coronavirus pandemic on the group, mainly resulting from decreased economic activity, narrow margins due to reduced lending, interest rates, waiver of fees and commissions and the setting aside of additional credit provisions to cover potential future losses.”
Pereira told shareholders there continued to be great uncertainty in the market regarding the current and potential impact of the global health crisis and so the banking group “continues to exercise prudence as we navigate the way forward in the best interest of all our stakeholders”.
The Port-of-Spain-based Republic Bank Holdings, which late last year and earlier this year completed the acquisition of several Scotia Bank operations across the region, reported total assets of US$15.76 billion and this represented an increase of US$2.98 billion or 23.2 per cent.
And as the bank enters the final quarter of its 2020 financial year, Pereira said the bank remains committed to its clients during what is expected to be a challenging period for individual and corporate clients.
“In addition to the measures already instituted by the Group, we are working closely with all our business clients to identify appropriate financing structures to facilitate the continued success of their respective businesses and with our retail clients to agree to suitable loan repayment structures,” the bank chairman pointed out. (IMC1)