Jan 2006 Financial News

RBTT completing the puzzle

Jan 19, 2006

RBTT, the country’s largest bank, with $5.7 billion in total assets at the end of 2004, up from $4.9 billion the previous year, has earned the distinction of winning Latin Fin-ance’sBank of the Year for Trinidad and Tobago.

According to the magazine, it is Trinidad’s most profitable as well, with a return on equity of 32.5% in 2004. But it is the bank’s willingness to develop new markets, both at home and abroad, which gives it the edge.

RBTT has reached the limits of its growth in retail and commercial banking in Trinidad, said group CEO Jerome Sooklal. "We can only grow organically," he said.

Regulators, it was noted, won’t allow any single bank to control more than 40% of the market. "Acquisitions here would run into the Central Bank." He still sees opportunity in investment banking, such as advising Trinidadian energy companies on the Atlantic LNG natural gas project.

Already a full 40% of RBTT’s profits in the year ending in March came from outside Trinidad. "We’re looking to expand north of Jamaica to the Bahamas and Caymans," Sooklal said..

Now RBTT is eyeing the Dominican Republic and Central America. It opened a merchant bank representative office in Costa Rica in April, to drum up more business like the syndicated facilities it has already led for two Costa Rican hydroelectric projects. "We’d prefer to buy a bank with regional presence, but we’ll start small if we have to," says Sooklal. "We have a feel for these markets - that’s our claim to fame."

Newsday
Business Day
Thursday, 19th January, 2006
http://www.newsday.co.tt/business.php