Republic Bank records $1.2b profit for 2012

Republic Bank has recorded profit attributable to shareholders of $1.2 billion for the financial year ended September 30, 2012. Chairman Ronald Harford said this represents a 3.3 per cent increase over profits reported for 2011. Total assets now stand at $51.6 billion.

Noting the bank’s successes, Harford said for the third consecutive year, Republic Bank has been named the Best Bank in T&T by LatinFinance. He said: “This is an award of which we are, indeed, proud. Also, in the Banker Magazine’s ranking of the top 1,000 World banks of 2012, Republic Bank received a country ranking: 1 and a world ranking: 671. We are honoured and encouraged by these accolades from such esteemed institutions.”

Managing director David Dulal-Whiteway said the Group’s assets now stand at $51.6 billion, a 9.4 per cent improvement over last year. “Though economic conditions remained tough in most of the countries in which we operate, our ability to generate these results was founded in our tight adherence to the basic principles of banking, especially with regard to treasury and risk management,” he said

Republic’s directors declared a final dividend of $3 per share, and an interim dividend: $1.25 per share. This represents a total dividend per share of $4.25, which, on a share price of $105.51 as at the close of the financial year, equates to a dividend yield of 4.03 per cent for shareholders.

In published results, the bank said, “This yield, together with the capital appreciation on our share over the past year of $12.42, represents a total return of 17.9 per cent to our shareholders who have purchased and kept our shares over the entire year.

“The strength of our organisation continues to be reflected in our growing asset base, which stood at $51.6 billion as at September 30, 2012. This growth in total assets was largely fuelled by an increase in advances of $1.5 billion or 6.6 per cent from 2011,” Dulal-Whiteway said.

“This compares favourably with the meager growth in advances we witnessed last year (0.1 per cent), and we take this as a favourable indicator of the market’s increased credit demand. Growth in deposits of 12.1 per cent is an accurate reflection of the burgeoning liquidity in the domestic economy.

The continued outstripping of loan growth by deposit growth has resulted in 31.9 per cent of our assets now being held in cash or Treasury bills earning less than 0.25 per cent.

“The Group’s 3.3 per cent increase in profit attributable to equity holders of the parent to $1.2 billion has to be viewed against the backdrop of the high liquid environment, narrowing net interest margins and aggressive competition for business. We are, therefore, pleased with our performance in the prevailing business climate,” he said.