(Photo: Republic BanK)

Republic profits slump 37% amid COVID-19

(Photo: Republic BanK)

Republic Financial Holdings Limited (RFHL) has reported a 37 per cent reduction in profit to shareholders for the nine-month period ended June 30.

Republic Financial Holdings said its profits were down 37% as COVID-19 affected ecoomic acivity. (Photo: CNC3)

RFHL’s chairman, Vincent Pereira, said profit for the period stood at $774 million, down $458 million or 37.3 per cent when compared to the corresponding period last year.

Pereira said the results are due to the financial impact of the coronavirus (COVID-19) on the Group which has contributed to decreased economic activity, smaller margins due to reduced lending interest rates, waiver of fees and commissions and the reservation of additional credit provisions to cover possible future losses.

Chairman of Republic Financial Holdings Limited Vincent Pereira

In a release, the financial group, which is the parent company of Republic Bank, shared that the ongoing uncertainty around current and potential COVID-19 impacts will see the organisation continue to exercise prudence as it moves forward in the interest of all stakeholders

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 (BVI) on June 1, 2020 which added a further $ 3.1 billion to the Group’s asset base.”

Head office for Republic Bank in Trinidad and Tobago. (File photo)

Additionally, the chairman said the Group is committed to supporting clients during this time and that it will work closely with business clients “to identify appropriate financing structures to facilitate the continued success of their respective businesses”, in addition to its already announced measures. Further, he said the institution will work with retail clients to agree on suitable loan repayment structures.

“Republic Financial Holdings Limited remains committed to balancing the interests of all our stakeholders in the territories in which we operate and to assisting in the recovery of the economies of these territories,” Pereira concluded.