Republic Bank Group earnings on the up

The bottom line of the Republic Bank Group is still growing and has managed to buck the depressed economic conditions in its operating jurisdictions.

Reporting on the last three quarters of the current fiscal year, the Trinidad and Tobago-headquartered, regional financial institution, disclosed that profits attributable to shareholders reached US$155.1 million (BDS$310.2 million). This was almost US$40 million (BDS$80 million) more than for the same period last year, when it totalled US$115.90 million (BDS $231.80 million).

Shareholders in Republic Bank reaped the rewards of this performance as earnings for the fiscal year so far, increased from US$ 0.71 per share to US$0.95 per share.

Republic Group chairman Vincent Pereira acknowledged the impact of the COVID-19 pandemic on countries in which the bank operates.

“Uncertainty of the COVID-19 pandemic continues to impact the economies in which the Republic Financial Holdings Limited Group operates. Vaccination programmes commenced in many countries, but re-openings and recovery of tourist arrivals remained gradual and at times, interrupted by rising COVID-19 cases.

“The group continues to support its customers, communities and staff, through concessions on loan payments, interest rates and fees, increased business support, donations of medical and educational supplies and the rollout of a staff vaccination programme,” Pereira told investors.

Against this backdrop, the banking group, however, recorded a 33.8 per cent increase in profit attributable to equity holders.

“The improved results reflect the impact of the group’s acquisition of the British Virgin Islands (BVI) operations in June 2020, lower provisions for loan losses, and general improvement in operating profitability in Ghana (Africa) and the Cayman National Corporation,” he added.

According to the Republic Holdings chairman, the positive developments were partially offset by a reduction in net interest margins, fees and commission income across its various operating bases.

Pereira stated that lower interest rates, fees, and commission, represented the bank’s decision to maintain concessions to customers from the inception of the pandemic.

Republic Holdings’ total assets now stand at US$16.2 billion (BDS$ 32.4 billion) as at June 30, which was an increase of US$437.7 million (BDS $875.4 million) over the same period in 2020. The bank’s loans and advances portfolio also grew by almost 10 per cent.

The chairman noted: “Despite the uncertainty over the duration of the COVID-19 pandemic, we are confident that the group is well-positioned to continue supporting the recovery efforts of the economies in which we operate. We remain committed to assisting with the vaccination drive across the group’s territories.” Pereira expressed confidence that the “collective creativity and hard work” of people of the region, will result in a re-emergence of more resilient economies. (IMC1)