REPUBLIC BANK LIMITED
22
ReturnonEquity (%)
ReturnonAssets (%)
SharePrice ($)
Price/EarningsRatio
18.00
16.00
14.00
12.00
10.00
0
3.00
2.50
2.00
1.50
1.00
0.50
0
130.00
110.00
90.00
70.00
50.00
30.00
0
18.00
16.00
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0
2010 2011 2012 2013
2014
2010 2011 2012 2013
2014
2010 2011 2012 2013
2014
2010 2011 2012 2013
2014
2.43
2.52
2.48
2.16
2.10
15.30
16.17
15.48
14.33
72.99
13.3
93.09
14.6
105.51
15.1
110.04
15.3
ManagingDirector’sDiscussionandAnalysis
Income Statement
The Group’s profitability for 2014 increased by $42.4 million or
3.7% over the restated profit for 2013. The growth in average
assets and average equity however outpaced/matched this
growth in profits, resulting in a decrease in the Return on Assets
(ROA) from 2.16% in 2013 to 2.10% in 2014 though the Return
on Equity (ROE) remained constant at 14.33%.
Despite the declining interest rate environment, driven by
increased liquidity and competition in the financial services
industry, net interest income increased by $37.4 million or 1.7%
in 2014, mainly due to increases in the loans and investments
portfolios. The net interest margin declined from 4% to 3.79%.
This marginmay rebound in the coming year as the Central Bank
of Trinidad & Tobago seeks to curb inflationary and exchange
rate pressures by increasing the ‘Repo’ rate from 2.75% to 3% in
September 2014, the first increase since September 2012.
Other income for the Group was $1.49 billion, an increase
of $230.4 million or 18.3%, all due to gains from the sale of
available for sale investments. Our investment in HFC Bank
(Ghana) Limited continues to reap benefits, contributing $43.3
million to Group’s profits.
Core operating expenses increased by $137.3 million or 8.2%
over the prior year, resulting in a deterioration in the efficiency
ratio, from 53.7% in 2013 to 55% in 2014.
14.33
121.61
16.4
