Aug 2012 Financial News

Republic Bank in Suriname talks

Aug 29, 2012

PARAMARIBO—The state-owned Hakrinbank says it is seeking a “strategic partnership” with the Trinidad-based Republic Bank Ltd amid reports that the Desi Bouterse government is planning to sell some of its controlling shares in the local financial institution. Hakrinbank said that “after consultations between our bank and the Surinamese government in its capacity as majority stakeholder” it has started negotiations with Republic Bank and that the talks “are progressing smoothly”. Hakrinbank made the announcement about the strategic partnership in its bi-annual report indicating that operational costs and investments expenditures have been increasing significantly. According to the bank competition in the local financial sector has increased and Hakrinbank said that its policies were aiming at improving the quality of its service, increasing efficiency and profitability. But legislators have warned against the move citing the international financial crisis.

Deputy Speaker of the House and a former Hakrinbank board of director, Ruth Wijdenbosch, said that given the present international financial crisis it would be inappropriate to sell the assets of the local bank. Wijdenbosch has called on the government to inform Parliament and the public as to the policy to privatize the bank. “The legislative should have a say in this. These are assets of the Surinamese people”, the opposition legislator said. If the acquisition talks are succesfull Republic Bank will be the second regional bank to enter the Surinamese market. It will follow the former Royal Bank of Trinidad and Tobago that was involved in the takeover of the ABN-Amro Bank here a few decades ago.
Republic Bank spokesperson, Anna-Maria Garcia Brooks was not available for comment last night.

For the nine month period ending June 30, the bank’s most recent financial report, Republic recorded net profit attributable to shareholders of $845.5 million, an increase of 5 per cent over the comparable period in 2011. The bank’s total assets grew by 8.8 per cent for the nine-month period, surpassing the $51 billion mark as of June 30, according to comments by Republic Bank chairman Ronald Harford accompanying the results. Yesterday, Republic Bank’s share price closed at $101.29, up $0.05. This means that the 51.7 million Republic Bank shares owned by the insolvent insurer, Clico, equal to 32.3 per cent of the bank, were worth $5.23 billion yesterday. (CMC)


Source:
Trinidad Guardian
Wednesday August 29, 2012

http://www.guardian.co.tt/business/2012-08-29/republic-bank-suriname-talks