Republic Financial Holdings Ltd (RFHL), the parent company of Republic Bank, has announced a profit attributable to shareholders of $774 million for the nine-month period ended June 30, 2020.
This was a decline of $458 million or 37.2 per cent below the corresponding period last year. These results reflect the financial impact so far of the Covid-19 pandemic on the Group, mainly resulting from decreased economic activity, narrower margins due to reduced lending interest rates, waiver of fees and commissions and the setting aside of additional credit provisions to cover potential future losses, the banking group said in a statement yesterday.
“The ongoing uncertainty surrounding the current and potential impacts of the Covid pandemic demands that the group continues to exercise prudence as we navigate the way forward in the best interest of all our stakeholders,” the statement said.
In announcing the results RFHL chairman Vincent Pereira said, “Total assets stood at $105.3 billion at June 30, 2020, an increase of $19.9 billion or 23.2 per cent over the total assets at June 30, 2019.
“This increase was, in the main, 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 which added $12.7 billion and the acquisition of Scotiabank’s operations in the British Virgin Islands on June 1, 2020 which added a further $3.1 billion to the group’s asset base.”
He said, “We remain committed to our clients during this difficult time. In addition to the measures already instituted by the group, we are working closely with all our business clients to identify appropriate financing structures to facilitate the continued success of their respective businesses and with our retail clients to agree suitable loan repayment structures.”