Republic Bank rakes in US $195.8M profits at year-end

Republic Bank Financial Holdings, the parent company of Republic Bank Guyana, has recorded US$195.8 million in profits at the end of the financial year on September 30, 2021. This represents an increase of 44.7 per cent over the 2020 profits recorded.

This was announced by the Chairman of the company Vincent Pereira in a press release from the company. Despite the massive recovery in 2021, the press release noted that the company still performed lower than recorded in 2019.

At the end of the year, too, the parent company’s total assets stood at US$16.3 billion at the end of September; this was an increase of US $732.3 million or 4.7 per cent over that of the prior year.

The Board of Directors has declared a final dividend of US $0.45 per share, which brings the total dividend to US$97.7 million or US$0.60 per share for the fiscal year; in 2020, the final dividend stood at US$0.31 per share.

This represents an increase of 48.2 per cent in total dividend payment, reflective of the increase in profitability in the current fiscal year. And, at a closing share price of US $20.40, this dividend represents a dividend yield of 2.93 per cent and the final dividend will be paid on December 1, 2021, to all shareholders of record on November 18, 2021.

Pereira, as quoted in the press release, related that the Group assisted clients through deferral of loan payments, reduced interest rates and discounted fees.

He also noted that the bank participated in initiatives to promote higher vaccination. Resultantly, reduced revenues and increased costs across the Group were recorded. Still, it was noted that the company’s overall performance was bolstered to some extent by the full year’s contribution of our new subsidiary in the British Virgin Islands, notable improvements in Ghana and the Cayman Islands and lower levels of provisioning.

Meanwhile, Pereira also said that in April 2021, the bank joined a group of the leading global commercial banks as founding signatories to the United Nations-convened Net-Zero Banking Alliance. And, in June 2021, US$200 million was announced for Climate Finance Goal to finance activities that reduce the impact of climate change and create environmental solutions in collaboration with our clients.