Republic Bank Limited
148
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
32 BUSINESS COMBINATIONS
(continued)
a) Acquisition of HFC Bank (Ghana) Limited
(continued)
We have however preliminarily identified increased impairment expenses of $91.1 million ($52.1 million after non-controlling
interest) which has been accounted for in the consolidated statement of income. This has resulted in a net loss before taxation
of $83.6 million for HFC Bank (Ghana) Limited. Refer to Note 25.
If the acquisition of HFC Bank (Ghana) Limited had taken place at the beginning of the year, revenue from continuing operations
would have been $378.2 million and the profit from continuing operations for the period would have been $16.2 million.
Transaction costs of $15.1 million have been expensed and are included in operating expenses in the statement of income and
are part of the operating cash flows in the statement of cash flows.
b) Acquisition of Republic Bank (Suriname) N.V.
On July 31 2015, the Group acquired 100% of the outstanding ordinary shares of RBC Royal Bank (Suriname) N.V., renamed
Republic Bank (Suriname) N.V., through the purchase of Royal Overseas Holdings (St. Lucia) Limited, renamed Republic Suriname
Holdings Limited. The acquisition has been accounted for using the acquisition method. The consolidated financial statements
include the results of Republic Bank (Suriname) N.V. as at the acquisition date.
The fair values of the identifiable assets and liabilities of Republic Bank (Suriname) N.V. as at the date of acquisition were:
Fair value recognised
on acquisition
July 31, 2015
Assets
Cash resources
1,441,598
Investment securities
166,756
Advances
1,424,440
Other assets
217,557
3,250,351
Liabilities
Customer deposits and due to banks
2,948,709
Other liabilities
66,226
3,014,935
Purchase consideration transferred
Total identifiable net assets at fair value
235,416
Goodwill arising on acquisition
53,218
288,634
