Profit for the quarter of Republic Bank’s first quarter to December 2013 just barely rose to $303 million, up from $296 million in 2012 as net revenues inched up by 2.4 percent to $860 million from $840 in 2012. Operating cost rose faster than revenue gains, ending up at $449 million compared to $421 million in the prior period. It was not all gloom, as loan provision fell to just $2 million compared to $17 million in 2012 and share of associated profit came to $12.7 million versus just $44,000 in 2012.
Profit attributable to Republic’s shareholders came in at $291 million versus $285 million in 2012. For the full year to September 2013, the banking group reported profit of $1.17 billion. Territorially, in the latest quarter Trinidad accounted for $434 million in pretax profit up from $431 million in 2012. Barbados pretax profit contribution was down marginally to $39.4 million from $39.8 million and other territories contributed $63.6 million compared to $63.2million in 2012.
Loans grew by 6.5 percent annualized in the quarter, which is a slower pace than the 7.3 percent growth year over year to December. The difference is not great, but Republic will need to pick-up lending growth to start getting a reasonable growth in profits. There is much scope for increased lending with loans of only $25.6 billion lent out of a total balance sheet of nearly $58 billion in assets and deposits of $545.8 billion.
The Trinidad economy is estimated to have grown by 2.8 percent in 2013. Most likely growth will pick up in 2014. An improving economy should lay the foundation for an uptick in lending over and above what the bank achieved for the last fiscal year and help to move profit up at a faster pace than in the December quarter.
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