Republic Financial Holdings Limited (RFHL) has recorded a 42.8 per cent decline in profit for the year ending September 30, 2020 compared to the previous financial year.
According to a media release from the entity, a profit of US$134.93 million was made as of September compared to US$235.98 million in the previous financial year, representing a decrease of US$101.06 million.
RFHL Chairman Vincent Peirera chose to look on the bright side when he stated that the results, amid a global pandemic, are still notable.
“These results are creditable despite reflecting the negative impact of the novel coronavirus (COVID-19), mainly through decreased economic activity, lower margins due to reduced interest rates, waiver of fees and commissions under the COVID-19 relief initiatives, increased provisioning to cover potential future losses on the loan and investments portfolios, and impairment of the remaining Goodwill held in our Barbados subsidiary,” he stated in announcing the results.
Peirera also pointed out that total assets stood at US$15.57 billion at September 30, 2020, an increase of US$2.51 billion or 19.2 per cent over that of the prior year. He said this increase was primarily due to the acquisition of Scotiabank’s banking operations in St. Maarten and the Eastern Caribbean (Anguilla, Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines) on November 1, 2019.
The move added US$1.90 billion and the acquisition of Scotiabank’s operations in the British Virgin Islands (BVI) on June 1, 2020 which added a further US$ 0.46 billion to the Group’s asset base.
Meanwhile, the Board of Directors has declared a final dividend of US$0.31 (2019: US$0.49), which brings the total dividend to US$65.64 million or US$0.40 per share for the fiscal year (2019: US$0.67).
This represents a decrease of 40 per cent in total dividend payment, reflective of the decrease in profitability in the current fiscal year. The combination of this dividend and the increase in the share price of US$3.01 during the year, equates to a total shareholder return for the year of 18.5 per cent. The final dividend will be paid on December 1, 2020 to all shareholders of record on November 18, 2020.
Mr. Pereira concluded: “While there continues to be uncertainty over the future direction and duration of the COVID 19 pandemic, we are confident that the Group’s strong capital base, diverse geographic footprint and robust governance culture leaves it well-positioned to support the recovery efforts of the economies within which we operate. We continue to be responsive to the evolving needs of our customers and clients, provide safe working conditions for our employees and support the communities we serve. I thank my fellow directors, committed staff and faithful customers for their dedication over the past year.”
