Republic announces $783.2 million half-year profit

Republic Financial Holdings Limited (RFHL) and its subsidiaries have announced after-tax profit of $783.2 million for the period ended March 31, 2019.

RFHL says that this figure was impacted by two significant one-off items, the net impact of which positively increased profits by $93.1 million.

Firstly, the bank in Trinidad and Tobago amended the terms of its post-retirement medical benefits plan in line with market, resulting in a write-back net of deferred taxes of $284.9 million.

Secondly, Barbados reduced its corporation tax rate from 30% to a range between 1% and 5%, which resulted in a charge to our income statement of $191.8 million due to the remeasurement of deferred tax assets at the lower tax rate.

On a normalized basis, the Group’s core profit was $690.2 million, $39.8 million or 6.1% more than the prior period,” Group Chairman, Ronald F. deC. Harford said.

Harford added: “Total assets stood at $83.5 billion at March 31, 2019, an increase of $15.1 billion or 22% over that of March 2018. This increase follows RFHL’s acquisition of a 74.99% shareholding in Cayman National Corporation (CNC) on March 13, 2019. The CNC acquisition increased RFHL’s asset base by $11.1 billion and is expected to significantly enhance Group’s profitability when its results are included in the year-end financial statements."

He said that CNC reported net profits in fiscal 2018 of $175 million and said RFHL is pleased to welcome CNC to the Republic Group.

RFHL previously announced the commencement of the process to acquire Scotiabank’s banking operations in Guyana, St. Maarten and the Eastern Caribbean (including Anguilla, Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines).

Over the last quarter, Harford said, RFHL continued engaging the various regulators, whose approvals are required for the acquisition, through meetings and/or providing information. 

The Board of Directors has declared an interim dividend of $1.25 (2018: $1.25) per share payable on May 31, 2019.