BASSETERRE, St. Kitts – DUE the unprecedented presence of COVID-19, like many other financial entities the world over, Republic Financial Holdings Limited (RFHL), parent company of Republic Bank, has realised significant financial losses for the year 2020.
The popular financial holding company recorded a near 50 percent profit decline over that of 2019 when the books were balanced for the year ended September 30.
In a statement, RFHL Chairman Vincent Peirera announced a US$101.06M decline over that of 2019.
He revealed that this year the bank recorded US$134.93M; a 42.8% drop.
Peirera had a more optimistic view of the drop, explaining that the results are creditable despite reflecting the negative impact of the novel Coronavirus (COVID-19).
He attributed the large decline to “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”.
“Total assets stood at US$15.57 billion at September 30, 2020, an increase of US$2.51 billion or 19.2% over that of the prior year. 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 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. We are very pleased to welcome our new staff members and clients to the Republic family,” Peirera was quoted as saying in a press statement.
The financial institution expanded its operation into the Eastern Caribbean in 2019 and received push-back from some territory governments, while one regional institution flagged it as being uncompetitive for the takeover of Scotiabank.
However, in looking forward beyond the ongoing pandemic, the Chairman noted that the financial holding company and its subsidiaries are well positioned to rebound when the current challenges are over.
“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.”
