Introduction
On December 16, 2015, Republic Financial Holdings Limited was established in order to facilitate the restructuring of the Republic Group. This restructuring was effected by a Vesting Order under the Financial Institutions Act, Chap 79:09, of the Laws of Trinidad and Tobago, successfully bringing the structure of the Republic Group in line with international best practices to facilitate future growth.
Republic Financial Holdings Limited
Republic Financial Holdings Limited is the financial holding company and parent of all the banks in the Group i.e. Republic Bank Limited, Republic Bank (Guyana) Limited, Republic Bank (Barbados) Limited, Republic Bank (Grenada) Limited, Republic Bank (Ghana) Limited (formerly HFC Bank (Ghana), Republic Bank (Suriname) N.V., and Republic Bank (Cayman) Limited. Republic Financial Holdings Limited is also the parent of the following companies:
Republic Bank Limited 100%
Republic Bank (Barbados) Limited 100%
Republic Wealth Management Limited 100%
Republic Securities Limited 100%
London Street Project Company Limited 100%
Republic Bank (Grenada) Limited 75.71%
Atlantic Financial Limited 100%
Republic Bank (Ghana) Limited 66.54%
Republic Finance & Trust (Barbados) Corporation 100%
Republic Insurance Company (Cayman) Limited 100%
Republic (Suriname) Holdings Limited 100%
Republic Caribbean Investments Limited 100%
Republic Bank Trinidad and Tobago (Barbados) Limited 100%
Republic Investments Limited 100%
Republic Bank (Guyana) Limited 51%
Republic Bank (Cayman) Limited 100%
East Caribbean Financial Holding 19.3%
Republic Bank (Suriname) N.V. 100%
2018 Results
Republic Financial Holdings Limited (RFHL) and its subsidiaries recorded profit attributable to equity holders of the parent of $1.32 billion for the year ended September 30, 2018, an increase of $70.7 million or 5.6% over the profit of $1.25 billion reported in the previous financial year. A full discussion of the Group’s financial performance can be found in the President’s Discussion and Analysis contained on pages 24 to 36 of this report.
The Board of Directors declared a final dividend of $3.15 (2017: $3.15), which brings the total dividend to $715.1 million or $4.40 (2017: $4.40) per share for the fiscal year. This final dividend will be paid on December 3, 2018 to all shareholders of record on November 19, 2018.
Investments:
Republic Bank (Ghana) Limited
As part of ongoing financial sector reform in Ghana, the Bank of Ghana mandated that the paid-up capital of all commercial banks must be increased to a minimum of GH¢400 million (approximately US$91 million) by December 31, 2018. Republic Bank (Ghana) Limited achieved this new threshold through two rights issues in December 2017 and August 2018 respectively. RFHL’s subscription for its entitlement in these rights issues, as well as for any extra shares not picked up by minority shareholders costing US$47.3 million, resulted in the purchase of an additional 397.1 million shares. This increased RFHL’s ownership interest in Republic Bank (Ghana) Limited from 57.11% to 66.54%.
Cayman National Corporation Limited
In September 2018, Republic Bank Trinidad and Tobago (Barbados) Limited, a wholly owned subsidiary of RFHL, made an offer to acquire a minimum of 51% and up to 74.99% of the ordinary shares of Cayman National Corporation Limited, the parent company of Cayman National Bank Limited, at a cost not to exceed US$198 million. As at November 7, 2018, 81.37% of shareholders accepted the offer. The acquisition is now subject to all necessary government and regulatory approvals.
Outlook
Over the next year, two of the world’s leading economic regions are likely to face contrasting fortunes. With the uncertainty around the outcome of ‘Brexit’ negotiations, in six months, both the UK and Europe, which are already experiencing lower levels of growth, will have to contend with what promises to be a contentious and disorganised ‘Brexit’ event. On the other hand, though the fading impetus provided by the tax cuts and the impact of the trade war with China will dampen growth somewhat, the US economy is still likely to significantly outperform its allies across the Atlantic.
As a result of these developments, the US dollar is likely to remain strong compared to other major currencies. Consequently, gold prices are likely to remain depressed and the prevailing global environment could see downward pressure on oil prices.
While we expect some challenges ahead for the Barbados economy, the economic outlook for all other territories where RFHL has a presence, are projected to be on an upward trend. Our diversification strategy, combined with our robust credit policies, solid capital levels and asset base, should allow for the performance achieved in 2018 to continue into the new fiscal.
Ronald F. deC. Harford Chairman, Republic Financial Holdings Limited
To view RFH 2018 Annual Report click HERE