19
2014 ANNUAL REPORT
ManagingDirector’sDiscussionandAnalysis
David Dulal-Whiteway
INTRODUCTION
For the year ended September 30, 2014, Republic Bank Limited recorded profit
attributable to equity holders of the parent of $1.19 billion, an increase of $23.4
million or 2% from the prior period. For comparative purposes the 2013 profit has
been restated to reflect the retrospective adoption of International Accounting
Standard No. 19 – Employee Benefits (Revised) - (Refer to Note 2.3 (i) pages 57 to
61 of the succeeding Financial Statements). This led to an $18.97 million reduction
in the previously reported 2013 profits, resulting in an adjusted year on year
growth of 3.7%. Total Group assets stood at $59.4 billion at September 30, 2014, an
increase of $1.8 billion or 3.1% over the prior period.
The improved financial performance for the Group is reflective of improved profitability in Trinidad and
Tobago and Grenada, alongside a flat performance in Guyana and a lower contribution from Barbados after
one-off adjustments at the consolidated level.
Profitability for our operations in Trinidad and Tobago increased by $89 million or 9.8%. This was driven
by growth in non-interest income and augmented by gains on the sale of available for sale investments and
improved returns on our 40% investment in HFC Bank (Ghana) Limited. These improvements were somewhat
offset by a $185 million impairment of Goodwill on our investment in Republic Bank (Barbados) Limited, booked
in accordance with the requirements of International Financial Reporting Standards.
While our Guyana subsidiary performed commendably throughout the year, an increase in loan loss
provisions arising out of the bank’s exposure to the sugar industry in the last quarter of the financial year resulted
in a flat performance.
Although challenging economic conditions continue to prevail in Grenada and Barbados, our Grenada
subsidiarymanaged to turn their 2013 loss of $18.2million into a small profit of $2.3million in 2014 – a turnaround
