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
Republic US$140m acquisitions
Trinidad’s Republic Bank is in a quiet acquisition mood, having made an offer to takeover of 60 percent of HFC Bank of Ghana it does not own, that is likely to cost up to US$102 million. At the start of April Republic announced, along with Royal Bank of Canada, an agreement to acquire RBC Royal Bank (Suriname) N.V. (“RBC Suriname”), subject to customary closing conditions, including regulatory approvals.
“As we continue to focus our Caribbean operations on markets in which we can be a leading competitor for the long-term, we have made the decision to sell RBC Suriname to Republic Bank Limited,” said Kirk Dudtschak, executive vice-president and head, RBC Caribbean Banking. “This transaction supports the successful repositioning of our Caribbean business for the future and allows us to focus on markets where we can strengthen our operational capabilities and where we see opportunities for growth.”
Republic Bank in a release to the Trinidad Stock exchange disclosed a purchase price of US$39.8 million. RBC Canada reported that, the purchase price approximately reflects the book value of RBC Suriname and expects the transaction to result in a loss of C$23 million largely related to an estimated write-down for the proportionate share of RBC Suriname goodwill and other intangibles. In 2014, RBC Canada sold off its Jamaican operations to Sagicor Group.
Republic’s David Dulal-Whiteway, Managing Director said the acquisition fits in perfectly with his bank’s regional expansion strategy, and once completed, will expand the group to 8 territories in the Caribbean. According to Dulal-Whiteway, RBC Suriname operates a six branch network, with assets of approximately US$525 million and 199 employees.
Republic has assets of US$9.4 billion and made an offer to acquire all of the shares held by minorities in HFC Bank in Ghana under a mandatory takeover rule of the Ghana Security Exchange. Republic already holds 40 percent of the bank.
Ghana Stock market down for week
Ghana Stock Exchange at the end of the week ending Jul 11, could be regarded as exhibiting mixed personalities, with the indices being down, but at the end of the week a few more stocks were up in price that those that fell.
The overall market took a breather from its recent gains by week end, as the main index having started at the week at 2,392.68 points, ended at 2,365.72 points. The Financial index closed at 2,144.52, down from 2,163.13 at the end of the previous week. For the week, 8 stocks recorded gains versus 7 that declined. A total of 1,314,746 units traded during the week.
Of the 38 listings, 18 had bids and 22 offers, as the market continues to reflect lack of interest in a large portion of the market.
Stocks with the major prices changes during the week are, Benso Oil Palm Plantation up 8 percent, Mega African Capital up 6 percent and Produce Buying Company up 6 percent but Camelot Ghana fell 7 percent followed by Guinness Ghana Breweries down 6 percent and HFC Bank down 6 percent.
Ghana Market returns close to peak
The Ghana stock market closed Friday July 4 just slightly below the peak to February 21, with the GSE Composite Index up 11.54 percent for the year to date and GSE financial stock index gaining 21.08 percent.
For year to date for the week ending February 21, the GSE Composite Index was up 12.85 percent and the GSE financial stock index gained 21.36 percent. The market had declined after peaking with the Main index falling back to a 4.59 percent gain and 6.32 percent for the GSE financial stock index after the country’s currency fell sharply versus the US dollar and Treasury bill rates climbed to more than 24 percent.
The main market closed at 2352.45 points on Friday 27 of June, closed up by July 4 at 2,392.68. The GSE financial stock index finished 2,163.13 compared to 2,102.52 on June 27.
8 stocks rose for the week and 4 declined, a big improvement over the previous week, when 9 fell to only 4 hat rose. By the end of the week 13 stocks rose in price for the year to date and 14 fell.
HFC Bank, the subject of an offer by Trinidad’s Republic to acquire the majority ownership, had the greatest gain at 51 percent followed by Ecobank Transnational Incorporation, with 47 percent, Ecobank Ghana 31 percent and Total Petroleum 29 percent. The greatest losers were African Champion Industries down 50 percent, Trust Bank down 31 percent, Pz Cussons Ghana 29 percent and Produce Buying Company down 24 percent.
Republic Bank seeks dismissal of court action
Republic Bank is seeking dismissal of court action brought against it by some disgruntled shareholders of the bank to prevent it from proceeding with a mandatory offer to acquire the majority of the banks shares.
The Securities and Exchange Commission, has been named as a co-defendant in proceedings brought on behalf of HFC Bank in the High Court of Ghana. These proceedings seek an injunction to prevent Republic Bank from continuing the process for a mandatory offer to all shareholders of HFC Bank Ghana to acquire the majority of the shares under the securities regulations having acquired 40 percent of the Bank in 2013.
In a release to the Trinidad & Tobago Stock Exchange on which the bank’s shares are listed, Republic stated that on June 16, in a hearing of Republic Bank’s application to dismiss the action, before his Lordship Justice Koomson at Commercial Court B, Accra, Ghana, the matter was adjourned for parties to file written submissions and set down for ruling on Monday, June 23.
Republic Bank said it is disappointed that these legal proceedings have been resorted to, as they have delayed the mandatory takeover process. Republic Bank is confident, however, that the matter will be successfully resolved, thereby allowing shareholders to exercise their rights to consider whether to sell their shares or not.
Ghana stocks up for week
strong>Stocks on the Ghana Stock Exchange ended the week higher than at the close of the previous week but the week closed with only 4 stocks rising to 9 declining. 11.4 million shares traded during the week, with Monday enjoying the highest volume with 8.1 million units and Friday with 1.8 million units.
The GSE Composite Index closed the week higher at 2,358.73 compared with 2,362.67, the Ghana Stock exchange financial services index closed at 2,099.80 up from 2,066.58. For the year to date the GSE Composite Index is up 9.94 percent and the GSE financial index 17.5 percent.
Enterprise Group lost 30 percent during the week to close at GH¢1.85, Ghana Oil Company gained 11 percent and HFC Bank 10 percent.
Ghana stocks up for another week
Ghana Commercial Bank 2013 annual general meeting – the bank’s stock rose 27% for the week
The Ghana stock market continues to recover from the decline the market suffered since peaking in February. During the week the market closed with the composite index at 2,343.98 with 11 stocks rising while 7 declined, a marked change over the previous week when the composite index closed the previous at 2,319.12 points with the prices of 8 stocks climbing and 7 declining.
The financial services index closed the week at 2,066.58 up from 2,033.20 the week before. During the week, 1,868,436 shares were traded, down from 3,235,500 units in the week before. At the end of trading there were bids for 18 securities and offers for 28, an indication of weakness in the overall market.
Gains| The stocks closing with strong gains include, Benso Oil Palm Plantation that rose by 6 percent to close at GH¢2.48, Ecobank Ghana gained GH¢0.55 or 8 percent to reach GH¢7.05, Ecobank Transnational Incorporation gained GH¢0.03 or 15 percent to close at GH¢0.23, Ghana Commercial Bank closed at GH¢5.35 as the price jumped by 27 percent or GH¢1.14, HFC Bank closed up GH¢0.11 to GH¢1.45 for an 8 percent gain, Produce Buying Company gained 8 percent to GH¢0.14, Sic Insurance gained 14 percent to close at GH¢0.42, Societe Generale Ghana was up 11 percent to GH¢0.92 and Sam Wood gained 33 percent to end at GH¢0.04.
The big losers are Enterprise Group with a loss of GH¢0.57 to close at GH¢1.42 for a 29 percent decline, Mega African Capital lost 11 percent in value to close at GH¢3.10 and Mechanical Lloyd ended at GH¢0.29 down by 12 percent.
