RFHL RECORDS US$117.3 MILLION IN HALF YEAR PROFITS
Republic Financial Holdings Limited (RFHL) and its subsidiaries recorded profit attributable to shareholders of the parent of US$117.3 million for the period ended March 31, 2019.
This figure was impacted by two significant one-off items, the net impact of which positively increased profits by US$13.9 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 US$42.6 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 US$28.7 million due to the remeasurement of deferred tax assets at the lower tax rate.
Mr. Harford went on to say “Total assets stood at US$12.5 billion at March 31, 2019, an increase of US$2.3 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 US$1.7 billion and is expected to significantly enhance Group’s profitability when its results are included in the year-end financial statements. CNC reported net profits in fiscal 2018 of US$26.2 million. We are very 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, we 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 US$0.19 (2018: US$0.19) per share payable on May 31, 2019.
Mr. Harford said “We expect to improve on the core profitability achieved for the first half of the year with the acquisition of CNC.”