Republic Bank Limited
146
For the year ended September 30, 2015. Expressed in thousands of Trinidad and Tobago dollars ($’000) except where otherwise stated
Notes to theConsolidatedFinancial Statements
4
Financial
30 SUBSIDIARY COMPANIES
(continued)
Country of
Equity
Name of company
incorporation
interest
Atlantic Financial Limited
St. Lucia
100.00%
International Business Company
Republic Suriname Holdings Limited
St. Lucia
100.00%
Investment Company
Republic Bank (Suriname) N.V.
Suriname
100.00%
Commercial Bank
HFC Bank (Ghana) Limited
Ghana
57.11%
Commercial Bank
Republic Bank (Grenada) Limited
Grenada
51.00%
Commercial Bank
Republic Bank (Guyana) Limited
Guyana
51.00%
Commercial Bank
31 STRUCTURED ENTITIES
The Group sponsors several structured entities which are not consolidated as the Group is not deemed to be in control of those
entities. The Group considers itself to be sponsor of a structured entity when it facilitates the establishment of the structured entity.
The Group may hold an interest in some of these entities but does not provide any financial support to these entities.
These structured entities include Mutual Funds and Retirement Benefit Plans which are financed through the issue of units to investors
in the funds. The Group generates fees from managing the assets of these funds on behalf of the third party investors. For the year
ended September 30, 2015, the Group earned $12.7 million (2014: $12.5 million) in management fees from the retirement plans and
$77.1 million (2014: $95.7 million) from the mutual funds.
The Group holds an interest of $22.5 million (2014: $21.6 million) in sponsored funds as at September 30, 2015. The maximum
exposure to loss in these funds is the carrying value of the assets held by the Group. These values are all included in the Investment
securities portfolio of the Group as at September 30, 2015.
32 BUSINESS COMBINATIONS
a) Acquisition of HFC Bank (Ghana) Limited
Over the period November 2012 to September 2013, the Group acquired 39.87% of the outstanding ordinary shares of HFC
Bank (Ghana) Limited, a company based in Ghana and listed on the Ghana Stock Exchange. In May 2015, the Group acquired
17.25% of the outstanding ordinary shares and obtained control of HFC Bank (Ghana) Limited. The acquisition has been
accounted for using the acquisition method. The consolidated financial statements include the results of HFC Bank (Ghana)
Limited for the five-month period from the acquisition date.
