Trinidad’s Republic Bank reported slightly improved results to June, with profits attributable to the group of $325 million in the June quarter up on the $308 million generated in 2014 and an increase to $898 million for the nine months against $869 million in 2014.
Earnings per share for the quarter is $2 cents and year to date $5.56, earnings for the full year should end around $7.60 up from $7.39 in 2014, placing the PE at a $113.99 stock price at just over 15 time earnings.
Net interest income is up 8.7 percent to $618 million for the June quarter and a slower 5.4 percent for the nine months from a year ago to $1.79 million. Total net revenues climbed 26.7 percent to $1.1 billion for the quarter and 3.3 percent for the nine months to June to $2.9 billion. Expenses rose in the June quarter, to $554 million, from $454 million, is down for the year to date, to $1.56 million from $1.58 billion. Loan loss provisions are sharply in the quarter to $122 million and for the nine months, $145 million was booked versus $79 million in 2014. The bank reports that increased provisions were done for the new acquired subsidiary, Ghana HFC Bank to bring the provisioning policy in line with the group’s and impairment loans and goodwill for the Cayman Islands subsidiary.
With strong growth in loans in the June quarter over March, loans which grew to $27.6 billion in March now stands at $29.7 billion and is up 11.65 percent over June 2014 and 9.7 percent over September 2014 and 10.76 percent over April. A big part of the growth is the consolidation of the financial statements of the 57 percent controlled, HFC Bank into the group, adding loans of $1.27 billion in the June quarter. The Ghanian bank was previously treated as an associate with 39.87 percent ownership but Republic who acquired an additional 17.25 percent under a mandatory takeover offer, raising the holdings to 57 percent in May this year.
In July Republic completed the acquisition of the bank in Suriname that was previously owned by RBC Royal Bank with assets of $3.3 billion, a small increase to the groups $62.33 billion in assets at the end of June.
Small profit gain for T&T’s Republic
September 6, 2015 by
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[…] shares closed at $1.67, National Enterprises with 914 shares changing hands, closed at $16.50, Republic Bank traded 4,347 shares valued at $486,864 and closed at $112. Sagicor Financial Corporation closed with […]
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[…] 3,870 shares and closed at $35. Guardian Holdings closed with 300 shares changing hands at $13.05, Republic Bank traded 18,175 shares and closed at $112, West Indian Tobacco traded 1,600 shares to close at […]
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[…] changing hands at $3.60. Guardian Holdings with 6,200 shares changing hands, closed at $13.12, Republic Bank closed at $112 with 5,680 shares trading, valued at $636,160 and Scotiabank closed with 8,547 shares […]
[…] Republic Bank reported profit attributable to shareholders of TT$1.22 billion for the year ended September 2015, representing an increase of $30 million or 2.5 percent over that reported for 2014. For the last quarter, Republic shareholders enjoyed net profit of $326 million versus $324 million in the 2014 quarter, from net operating income of $1.06 billion up from $950 million in 2014.Earnings per share for 2015 is $7.59 and for 2014 $7.42 and diluted earnings per share of $7.57 versus $7.39 in 2014 while return on average assets ended at 1.97 percent, down from 2.10 percent in 2014. Return on average equity for 2015 is 14.09 percent compared to 14.33 percent in 2014. “Growth was driven by a 10.6 percent increase of $235 million in net interest income, arising from a $5.9 billion or 21.8 percent growth in the loan portfolio and the recovery of $123 million after tax on a non-performing facility. This was offset by an increase in operating expenses of $212 million and impairment expenses of $109 million,” Ronald deC. Harford, Chairman of the group stated. Harford continuing, indicated the “increase in operating expenses is attributable mainly to the consolidation of HFC Bank (Ghana) and Republic Bank (Suriname) which amounted to $89 million. Impairment expenses of $52 million (net of minority interest) was recorded by HFC to bring its loan provisions in line with Group policy and $57 million was booked by Republic Bank (Cayman) relating to loans and goodwill impairment”. Total Group assets increased by $6.6 billion or 11.2 percent over the prior period to $66 billion at September 2015 which was aided by two acquisitions during the year by increasing their holding in HFC to 57.11 percent and in July and 100 percent shareholding in RBC Royal Bank (Suriname) N.V. These two purchases added $5.5 billion to the total assets. A final dividend of $3.10 for the year ended September 2015 (2014: $3.00) will be paid on December 1, bringing the total dividend for the fiscal year to $4.35, a slight increase over the $4.25 paid in 2014. Republic Bank is headquartered in Trinidad and is listed on the country’s stocks exchange and last traded at $112. […]