Republic Bank Records US$184 Million Profit

Accra, Ghana: November 18, 2013: Republic Bank Limited, the Caribbean-based bank which owns a 40% stake in HFC Bank Ghana, has recorded profit attributable to equity holders of US$184 Million for the year ended September 30, 2013. This is an increase of US$1.7 Million or 1.0%, when compared with the corresponding period in 2012.

In announcing the results, Republic Bank’s Chairman, Mr. Ronald F. deC. Harford said that he was particularly encouraged by the increase in loans and advances of US$300 Million or 8.2% following an increase of 6.6% in 2012. Harford stressed that he remained optimistic that this growth would continue in 2014. Total assets stood at US$9.1 Million at September 30, 2013, an increase of US$1.0 Billion or 11.6% over the prior period.

The Board of Directors declared a final dividend of US$0.47 (2012:$0.47) payable to shareholders on December 02, 2013. This will bring the total dividend for the fiscal year to US$0.67, in line with 2012.

Harford also noted that difficult economic conditions persisted in the tourism-dependent countries, with profitability in Barbados declining by US$3.7 million or 29.6% and losses being recorded in the Eastern Caribbean. The Group recorded a loss of US$11.9 million on its investment in Eastern Caribbean Financial Holdings Limited, the parent company of the Bank of Saint Lucia, while impairment expenses of US$8.3 million were booked as a result of the Government of Grenada defaulting on its indebtedness. This default contributed to the Bank’s subsidiary in Grenada recording a loss of US$2.9 million (Republic Bank’s share US$1.5 million). Improved performance in Trinidad and Tobago and Guyana offset this decline, leading to a marginal increase in the Group’s overall profitability.

Harford added that, “the commodity-exporting economies of Trinidad and Tobago and Guyana are expected to drive our performance in the coming year, while tourism-dependent economies of Barbados and the Eastern Caribbean are expected to face ongoing challenges with little or no growth.” He expressed his confidence that the Group’s current level of profitability will remain robust.