Apr 2009 Financial News

RBTT Financial Services Group looking to capitalise on Advantages

Apr 21, 2009

The RBTT Financial Services Group has a positive outlook for its performance during this year amid a highly uncertain environment. This is the view expressed by Peter July, Chairman of the Group, in his conclusion of the Chairman Report in the annual report for the firm.

He says, “I conclude this report by reiterating my positive outlook for the combined RBC/RBTT entity. It is an exciting time in which we have the opportunity to capitalise on the many advantages that come with being a member of a distinguished global financial services provider. I am confident that, together, we will elevate the standard of banking in the Caribbean and make an indelible mark in the industry”.

For the fiscal year ended March 31, 2008, the Group recorded pre-tax earnings of $1 309 million, an improvement of 11% over the previous year. This growth was underpinned by a strong growth in net interest income of 10% generated by the Retail and Commercial banking entities.
Pre-tax earnings for the fourth quarter were $401 million, an increase over the comparable period last year of 26%.
This is one of the major points of July in his assessment of the firm’s performance over the past year.

While highlighting the massive amalgamation between RBTT and Royal Bank of Canada the was concluded last year, July notes that profit attributable to shareholders remained flat over last year as the Group’s tax charge increased significantly by $124 million or 50% over the previous year, due to several factors which include higher taxable income generated by retail banking entities, increased provisions for tax assessments and changes to the tax legislation in one jurisdiction. Consequently, diluted earnings per share remained the same as last year at $2.71.

Additionally it is noted by the Chairman that the Retail and Commercial Banking units performed strongly, with pre-tax earnings increasing by 31%. The Investment Banking business arm of the Group recorded a decline in earnings of 5%, while profits from their Trust and Asset Management business fell marginally by 3% in a period of sluggish market conditions.

Total assets of the Group increased by 11% or $5 billion to $53 billion, principally due to growth in loans and advances of 12%. Customer deposits also grew strongly by 13%. The Directors declared a final dividend of 65¢ per share, which was paid on May 28, 2008 to shareholders on record as at May 16, 2008, bringing the full-year dividend to $1.25 per share.


Source:
Barbados Advocate
Tuesday April 21, 2009

http://www.barbadosadvocate.com/newsitem.asp?more=business&NewsID=3151