Finetuning the Bancassurance model?

In their 2002 annual reports, March 2002 for RBTT and September 2002 for Republic Bank, the two institutions stated healthy performances for the financial year end 2002. Chairpersons of both banks agreed that 2002 was challenging for operations. September 11th terrorists attacks on the US impacted negatively on global, regional and domestic economies reflected in a general slow down of business activity, low demand for credit and a higher incidence of non performing assets. The “tentative business environment created by the political impasse arising out of the 18-18 results of the General Elections in December 2001,” had the effect of slowing local growth and demands. Despite these challenges both banks increased performance from the last period.

RBTT’s March report quoted after tax earnings  of TT$491M and earnings per share of TT$1.42. The total dividend declared for the year was 60 cents per share.  Group Assets at Balance Sheet date stood at TT$27.7 billion, representing an increase of TT$8.7 billion or 45% over the previous year.  Acquisitions in Jamaica, Netherlands Antilles and Aruba accounted for TT$8.4 billion and TT$0.3 billion came from organic growth. The Return on Average Equity of 24.4% while the Return on Assets was 2.1%. Republic produced after tax profits of TT$444.7M. Earnings per share climbed at TT$2.8,  an increase of 7.54% over the last year and the total dividend for the year is TT$1.25. Total assets for the Group stand at TT$19.2 billion an increase of 9.84% over last year.  Return on average assets was 2.43% and Return on average equity was 17.33%. RBTT has a more diversified regional portfolio than Republic. 50% of the RBTT Group’s total asset base resides in Trinidad and Tobago (T&T) with the other 50 in Dutch speaking, Jamaica and Other Caribbean territories.  44% of total liabilities were incurred and 58% of operating profits were made in T&T. Republic is very much oriented in T&T and its figures reflect the focus of the bank. 62% of its operating profit is generated within T&T and 78% of assets and liabilities are related to the T&T operations.  RBTT is way ahead of Republic in the expansion and territorial game.

Maxine Attong is a financial and management consultant
E-mail :  enhanceink@hotmail.com