REPUBLIC BANK LIMITED
112
Notes to theConsolidatedFinancial Statements
For the year ended September 30, 2014. Expressed in thousands of Trinidad and Tobago dollars ($’000), except where otherwise stated
26 Equity compensation benefits
(continued)
b) Stock option plan
(continued)
The fair value of the stock options have been determined using a binomial option-pricing model. The assumptions used in the calculation of
the fair value are as follows:
Grant date
December 18, 2013 to February 25, 2014
Number granted
362,833
Exercise price
$104.41
Share price at grant date
$115.77 to $117.50
Risk free interest rate
2.0% per annum
Expected volatility
15.0% per annum
Dividend yield
3.75% per annum
Exercise term
Option exercised when share price is twice the exercise price
Fair value
$17.90 to $18.84
The expected volatility is based on historical volatility of the share price over the last five years.
The weighted average share price for share options exercised during the year was $84.77. For options outstanding at September 30,
2014 the exercise price ranged from $72.99 to $104.41 and the weighted average remaining contractual life was 9.0 years.
The total expense for the share option plan was $8.150 million (2013 : $6.538 million).
27 Dividends paid and proposed
2014
2013
Declared and paid during the year
Equity dividends on ordinary shares:
Final dividend for 2013: $3.00 (2012: $3.00)
483,375
482,834
First dividend for 2014: $1.25 (2013: $1.25)
201,876
200,194
Total dividends paid
685,251
683,028
Proposed for approval at Annual General Meeting
(not recognised as a liability as at September 30)
Equity dividends on ordinary shares:
Final dividend for 2014: $3.00 (2013: $3.00)
484,989
483,333
28 Contingent liabilities
a) Litigation
As at September 30, 2014 there were certain tax and legal proceedings outstanding against the Group. No provision has been made as
professional advice indicates that it is unlikely that any significant loss will arise or that it would be premature at this stage of the action to
determine the eventuality.
