RBTT sees profits soar with $324.3M

For the six-month period ended September 30, RBTT Financial Holdings Limited has recorded a profit of $324.3 million, compared to $323.3 million in the previous year. This, despite the unusual occurrence of Hurricane Ivan in September, and its negative impact on regional economies, particularly that of Grenada. Shareholders’ Equity also grew by six percent from $3.1 billion to $3.3 billion.

The strong earnings momentum reported in first quarter was affected by charges made against earnings of $104 million in second quarter, of which $74 million related to unrealised mark to market losses caused by the downgrading of the sovereign credit rating of Grenada in September and October 2004. This is included in Other Income. It was also considered prudent to establish a provision of $30 million against possible future losses arising from the disaster in Grenada, which is included in non-interest expenses, the Bank said.

Excluding these unexpected charges and the corresponding effect on taxation and minority interest, the profit attributable to shareholders would have been $392 million, in line with the business forecast and representing growth of 21.4 percent over the comparable period in the previous year. None of the operations in other markets has been materially affected as a result of the hurricane and the Group’s balance sheet continues to reflect solid growth with assets increasing by $2.0 billion or 6.1 percent over the six-month period, loans accounting for $1.4 billion or 70 percent of this growth.

The Group has a strong capital base and a solid and diversified earnings stream, and it is expected that barring further unforeseen developments, operating profits will increase over the remaining two quarters of this fiscal year. The Board of Directors has declared an interim dividend of 41? per share (2003 — 39?) to be paid on November 29, 2004 to shareholders on record as at November 8, 2004.