REPUBLIC BANK LIMITED
24
ManagingDirector’sDiscussionandAnalysis
The improvement in the Group’s NPL to Gross Loans ratio,
from 3.7% in 2013 to 3.5% in 2014 is driven by an improved ratio
in Trinidad and Tobago (from 1.4% in 2013 to 1.2% in 2014) and
Barbados (from11.7% in2013 to10.5% in2014).Thiswas negated
somewhat by an increased ratio in the Cayman/Guyana/Eastern
Caribbean region, where the NPL ratio increased from 4.7% in
2013 to 7.4% in 2014, fuelled by provisions for the sugar industry
in Guyana and exposure to defaulted debts in Grenada.
The lower level of provision as a percentage of NPL’s in the
subsidiaries is due to the high levels of collateral held, which
reduced the loan provision required.
Net Interest Income
(TT$ Millions)
Trinidad
Barbados Cayman/Guyana
Total
and Tobago
Eastern
Caribbean
Performing Loans
19,280
4,233
3,001
26,513
Non-performing Loans (NPL’s)
239
496
239
974
Gross loans
19,519
4,728
3,239
27,487
Loan Provision
(183)
(150)
(59)
(391)
Net Loans
19,336
4,578
3,181
27,095
Contingency Reserve
194
367
81
642
Non-performing Loans to Gross Loans
1.2%
10.5%
7.4%
3.5%
Loan provision as a % of NPL’s
76.4%
30.3%
24.5%
40.2%
Provision and Contingency Reserves as a %
of Non-performing loans
157.5%
104.3%
58.3%
106.1%
Country (TT$ Millions)
2014
2013
Change
% Change
Trinidad and Tobago
1,571
1,502
69
4.6%
Barbados
300
347
(47)
-13.6%
Cayman/Guyana/Eastern Caribbean
347
332
13
4.0%
Total
2,218
2,181
35
1.6%
LoansandAdvances 2014
Net interest income increased by $35 million or 1.6% in 2014.
This was led by Trinidad and Tobago, where 70.9% of the Group’s
net interest income was earned despite sliding interest rates,
mainly due to increases in the loans and investments portfolios.
Net interest income in Barbados declined by $47 million or
13.6% due to a one-off adjustment, while the Cayman/Guyana/
Eastern Caribbean region experienced growth of 4.0%, driven
by the improved performance in Guyana.
Effective management of interest rate spreads will continue
to be a key focus for the Group in the upcoming financial year as
Central Banks worldwidemay start to relax their accommodative
monetary policies.
