Annual Report 2015
31
ReturnonAssets (%)
3.00
2.50
2.00
1.50
1.00
0.50
0
2011
2012
2013
2014
2015
2.52
2.48
2.16
2.10
1.97
IncomeStatement
All figures are in TT$ Millions
2015
2014
Change
% Change
Profitability
Net interest income
2,453.0
2,218.1
235.0
10.6%
Other income
1,462.4
1,487.0
(24.6)
-1.7%
Share of profits/(loss) of associated companies
39.3
49.1
(9.9)
-20.1%
Operating expenses
(2,027.5)
(1,815.1)
(212.4)
-11.7%
Employee benefits pension and medical contribution
(97.0)
(65.5)
(31.5)
-48.0%
Goodwill impairment expense
(31.5)
(185.0)
153.5
83.0%
Loan impairment expense
(165.3)
(119.9)
(45.4)
-37.9%
Profit before taxation
1,633.5
1,568.7
64.8
4.1%
Taxation
(396.7)
(339.0)
(57.8)
-17.0%
Profit after taxation
1,236.7
1,229.7
7.0
0.6%
Non-controlling interest
(13.1)
(36.3)
23.2
63.9%
Profit attributable to equity holders of the parent
1,223.6
1,193.4
30.3
2.5%
The Central Bank of Trinidad & Tobago increased the ‘Repo’ rate six
times over the past year, from 3.0% in September 2014 to 4.5%
by September 2015. This move, however, had minimal impact on
interest yields in Trinidad and Tobago, as increased competition in
interest rates in the local credit market actually resulted in reduced
loan yields. These reduced rates allowed for improved growth in
the loan portfolio, leading to an increase in interest income from
loans. This increase in interest income from Trinidad and Tobago,
combined with declining deposit interest rates in Grenada and
Barbados, resulted in a 10.6% increase in net interest income for
the Group in 2015. This outpaced the 7.2% growth in average
assets, resulting in an increase in net interest margins from 3.79%
in 2014 to 3.91% in 2015.
Total operating expenses increased by $76.6 million or 3.7% over
the prior year, marginally less than the 5% increase in net interest
and other income. This resulted in a slight improvement in the
efficiency ratio, from 55% in 2014 to 54.36% in 2015.
