REPUBLIC BANK LIMITED
20
Resultsof Operations: Highlights
All figures are in TT$ Millions
2014
2013
Change
% Change
Restated
Financial Position
Total assets
59,371.5
57,612.4
1,759.1
3.1%
Total advances
27,095.4
25,235.5
1,859.9
7.4%
Total investments
8,260.4
8,131.0
129.3
1.6%
Total deposits
43,770.8
42,098.3
1,672.4
4.0%
Total equity
8,746.3
8,516.0
230.3
2.7%
of $20.5 million - due to a reduction in the investment
impairment expense, which had negatively impacted profits in
2013. The profitability in Barbados reflects a one-off adjustment
at the consolidated level in 2014 which resulted in a decline of
$20 million or 36% from the amount reported in 2013.
The Board of Directors has declared a final dividend of $3.00
per share for the year ended September 30, 2014. When added
to the interim dividend of $1.25 per share, this brings the total
dividend for the year to $4.25 per share. At a closing share price
of $121.61 per share, this equates to a dividend yield of 3.49%,
which together with capital appreciation of $11.57 during the
fiscal, represents a total return of 14.38% to our shareholders.
The Bank continues to maintain a strong capital base,
reflected in a tier I and II capital adequacy ratio of 25.77%, well
in excess of the 8% minimum requirement. This excess capital
will allow us to continue to explore our expansion strategy in
the Caribbean and in selected countries in Africa that meet our
risk profile.
The following is a detailed discussion and analysis of the
financial results of Republic Bank Limited. This should be read
in conjunction with the audited financial statements, contained
on pages 49 to 115 of this report. All amounts are stated in
Trinidad and Tobago dollars.
Financial Position
The Group’s total asset base grew from $57.6 billion in 2013 to
$59.4 billion at September 30, 2014, an increase of $1.8 billion
or 3.1%. This growth in assets was largely driven by an increase
of $1.9 billion or 7.4% in advances and an increase of $129.3
million or 1.6% in investments.
While deposits continue to grow this year, by 4% over
the prior period, the rate of growth has decelerated when
compared to the 14% deposit growth experienced in 2013.
Throughout the year, we utilised our excess cash reserves to
finance the growth in interest earning assets which resulted in a
$891.9 million decline in balances Due from Banks.
Total equity increased by $230.3 million to $8.7 billion at
September 30, 2014 as the Group continued to build capital
resources to support future expansion.
Loans and advances
The non-performing loans (NPL’s) to gross loans ratio, at 3.5%
reflects a decline of 20 basis points from the 3.7% recorded
in 2013. This is reflective of the improved quality of the loan
portfolio in Trinidad and Tobago. Total loan provision is 40.2%
of total NPL’s, up from 37.2% in 2013. In order to achieve at least
100% provision for non-performing loans, the policy of the
Group is to provide for these loans by specific and inherent risk
ManagingDirector’sDiscussionandAnalysis
