Jan 2007 Financial News

RBL Releases First Quarter Results

Jan 26, 2007

Republic Bank Limited has commenced quarterly financial reporting and has reported commendable growth in its first quarter. Its Earnings Per Share (EPS) rose by a substantial 45.36 per cent to $1.41 (Q1-FY07) from $0.97 (Q1-FY06).

The Group reported Profit Before Taxation of $328.01 million compared to $233.03 million in the comparable first quarter of fiscal 2006. This showed an impressive growth of 40.76 per cent.

The Effective Tax Rate for the period under review was 24.23 per cent compared to 24.97 per cent in the first quarter of fiscal 2006. Profit After Taxation amounted to $248.54 up by 42.15 per cent on the corresponding period last financial year.

Profit Attributable to Shareholders stood at $226.27 million up by $71.52 million or 46.22 per cent on the comparable period for FY2006.

The Chairman has noted that the growth in core operations was a healthy 24.4 per cent (adjusting for change in value of shareholding in FirstCaribbean International Bank (FCIB)). He also pointed out that the strong performance in core operations was a reflection of the Bank’s focus on service and the Retail and Banking business.

The Bank is still considering the implications of the mandatory offer made by CIBC Investment (Cayman) Limited to acquire the remaining issued common shares of FCIB.

The shares of RBL are currently trading at a price of $79.45. We have forecasted an EPS of $5.30 for the fiscal year ended September 30, 2007. Thus, at this forecasted EPS and the current price, these shares are trading at a multiple of 14.99 times. At this time we continue to recommend a HOLD on this share.



Gia Singh
WISE Research Team