THE Chairman of Republic Financial Holdings Limited (RFHL), Ronald F. deC. Harford, has announced that the group recorded profit attributable to equity holders of US$198 million for the year ended September 30, 2018.

This represents an increase of US$10.6 million or 5.6 per cent over the profit reported in the previous financial year, the bank said in a release. The group’s operations in the Cayman Islands and the Eastern Caribbean were the major contributors to the increase in profitability, generating US$8.2 million, followed by stronger performances in Suriname and Ghana. Total assets stood at US$10.6 billion at September 30, 2018, an increase of 2.5 per cent over 2017.

According to Harford, in announcing the results he said, “Following the adoption of International Financial Reporting Standard No. Nine (Financial Instruments), the group charged through opening equity US$129.5 million in expected credit losses (ECL) for loans and investments, of which US$98.6 million was accounted for in Republic Bank (Barbados) Limited. The increase in ECL in RBBL was mainly as a result of the government of Barbados restructuring its local currency obligations.”

The Board of Directors has declared a final dividend of US$0.47 (2017: US$0.47), which brings the total dividend to US$107 million or US$0.66 (2017: US$0.66), 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.

“The group continued its expansion activities during the year and in September, 2018, made an offer to acquire a minimum of 51 per cent and up to 74.99 per cent 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 per cent of shareholders accepted the offer. The acquisition is now subject to all necessary government and regulatory approvals.”

Harford said, adding that the shareholding in Republic Bank (Ghana) Limited was increased to 66.54 per cent, with an additional investment of US$47.3 million, which will satisfy the new minimum local regulatory capital requirement and significantly strengthen the bank’s capital base.

The group’s focus remains on building resiliency into its operations and earnings capacity. To this end, the group is implementing a common IT platform across all of its Caribbean subsidiaries which will be the platform for the introduction of a shared support services infrastructure for improved efficiency.

These initiatives, combined with its expansion into new markets through acquisitions, will position the Group for continued improvement in performance. Mr. Harford expressed his appreciation for the continued support of management, staff and customers of the Republic Group.