November 1, 2008
The bank has been conservative on a number of fronts including loan quality, loan underwriting, and liquidity management, says Joseph Scott, banking analyst at Fitch.About 70% of Republics $6.30 billion in assets as of April are in Trinidad. Its main domestic rival RBTT acquired this year by Royal Bank of Canada claims assets of $4.99 billion in its home market. More branches 39 to RBTTs 24 give Republic a greater local retail presence. Republic is also more profitable, with an ROA of 3.34% and ROE of 25.98%, versus RBTTs 1.24% and 11.39%, respectively, according to the banks themselves. The next 12 months could well be the period in
Energizing the Base
After an unsuccessful foray into the Dominican Republic, Republic Bank has curtailed regional expansion plans and is focusing on Trinidad and Tobago. It sold its Dominican assets to BHD in October 2007 and has since greatly improved risk management.