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Businessuite 2022 Top Trinidad and Tobago Company – US$ Profit After Tax |
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NR |
NR |
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NR |
NR |
NR |
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US$000 |
US$000 |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
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Company |
2022/2021 |
2021/2020 |
1 |
1 |
1 |
1 |
1 |
1 |
TT |
Republic Financial Holdings Limited |
$214,669 |
$149,710 |
President’s Discussion And Analysis
Republic Financial Holdings Limited (RFHL) recorded profit attributable to equity holders of the Parent of $1.3 billion for the year ended September 30, 2021, an increase of $404 million or 44.7% over the profit of $904 million reported in the prior year. These results reflect lower Credit loss expenses, increases in Other income and declines in expenses.
The 2021 results are however $189 million or 12.6% lower than the 2019 core profit of $1.5 billion as the Group continues to be impacted by the financial consequence of the Novel Coronavirus (COVID-19) pandemic, mainly resulting from decreased economic activity and narrower margins due to reduced interest rates for loans and investments.
Based on these results, the Board of Directors has declared a final dividend of $3.00 per share for the year ended September 30, 2021. When combined with the interim dividend of $1.00 per share, this brings the total dividend for the year to $4.00 per share, an increase of $1.30 over the amount declared for 2020. At a share price of $136.31 as at September 30, 2021, this results in a dividend yield of 2.93% on an RFHL share.
The Group earned Net interest income of $3.97 billion for year ended September 30, 2021, a decrease of $25 million or 0.6% below the prior year. The increase from 2019 is primarily the result of the acquisition of new subsidiaries in the intervening period.
Average total assets increased by $10.8 billion or 11.3% in the fiscal, with the Net interest margin declining from 4.17% in 2020 to 3.72% in 2021.
• In T&T, Net interest income declined by $44 million, being a combination of a $121 million decrease in Interest income and a $77 million decrease in Interest expenses. The decrease in Interest income was generated primarily from reduction in interest rates on advances, mainly as a result of a reduction in the prime lending rate driven by the CBTT’s reduction in the Repo rate by 150 basis points (bps) in March 2020. The average yields on investments and liquid assets were also lower than prior year.
The $77 million decrease in Interest expense stemmed from lower yields on Republic Investments Limited funding, reduction in the interest rate on the US$150 million subordinated debt security held by Republic Bank Limited and the repayment of loans and other debt securities.
In Barbados, Net interest income declined by $22 million, the net result of a $29.3 million decline in Interest income and a $7.4 million decline in Interest expense. The $29.3 million decline in Interest income was mainly the result of a decline of $14.7 million on interest on advances, resulting from lower yields and lower average advances balances in Barbados, combined with a decline of $13.6 million in Interest income from the investments portfolio. The decline in Investment income was the result of lower yields on the investment portfolio balances on the Barbados Offshore bank due to the maturity of higher-yielding investments.
• The Cayman Islands decline of $34 million in Net interest income, was the net effect of a decrease in Interest income of $77 million and a decline of $43 million in Interest expense. This decrease was the result of reduction in yields in the Cayman market.
• In Suriname, the decline of $64 million was the net effect of $76 million decline in Interest income and $12 million decline in Interest expenses, mainly due to the devaluation in the Surinamese dollar (SRD) against the US dollar. In SRD terms,
Net interest income increased.
• In Ghana, the $36 million increase in Net interest income resulted from a combination of an increase in Interest income of $15.1 million emanating from increased interest Income on investments and a decline in Interest expenses of $21.7 million stemming from reduction in rates on customer deposits.
• In BVI, the increase of $75 million was the impact of twelve months income in the current year compared to four months in the prior year.
• There was also an increase of $28 million in the Eastern Caribbean due to increased portfolio balances for Advances and Investment securities.
President And Chief Executive Officer
Nigel M. Baptiste, BSc (Hons.) (Econ.), MSc (Econ.), ACIB
Chairman
Vincent A. Pereira, BSc (Chem.), MBA, Dip. (Petroleum Eng.)
https://rfhl.com/wp-content/uploads/2022/03/RFHL-AR-2021.pdf