Thursday July 29th, 2010
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Republic Bank declares $1b profit
Published: 4 Jan 2010
Republic Bank last year beat market expectations and posted a better than expected 41 per cent increase in after-tax profit for the year ending September 30, 2009. Republic Bank’s profits increased from $736 million last year to more than a billion to push its earning per share (EPS) from around $4.58 last year to a record $6.32, according to the bank’s annual report that was released on Thursday. Despite lowering interest rates, tighter spreads and a dramatic reduction in consumer and business credit, the bank posted a $110 million increase in interest income as the performance of its treasury notes and government bonds held as statutory reserves paid handsome dividends for the institution.
Other income and fees also moved significantly upward by $18 million while operating expenses were kept in check—increasing by only $13 million. Seen as a reflection of increasing confidence from its customer base, despite its close association with the CL Financial Group, Republic Bank was able to hold its own, as customer deposits increased by nearly $1.5 billion in 2009. Although the growth in customer deposits was not as strong as the previous year, the bank’s liquidity position improved markedly as cash generated by operating activities increased by more than 500 per cent from just over $400 million to $2 billion in 2009.
Statutory reserve and capital adequacy ratios also improved as the bank strengthen its financial position and increased its liquid assets under management. The capital adequacy ratio improved from 23.9 per cent to 28.3 per cent. This ratio far exceed the Basel Committee’s recommendation of a four per cent minimum for shareholder equity and an additional eight per cent as core capital deposits for a total of 12 per cent. Statutory reserves were also very strong, increasing from $1.5 billion to $2 billion in 2009. The Basel Committee was established by the central-bank Governors of the Group of Ten countries at the end of 1974.
Banks are making a killing
Banks are making a killing with fees, some hidden and some explained. They could shed that mercenary image by simply dropping some of those onerous fees that they charge desperate customers.
trikkeepatbjung
Bank profits are largely
Bank profits are largely derived variously from citizen-consumers' interest payments, bank charges, and exchange margins all government approved.
Additionally, banks enjoy a preferential tax rate.
Bank profits are distributed among the wealthy few who own bank shares.
All of the above is irreproachable since Government enacted law permits it to happen.
In the present profitable operation of Banks, in the teeth of economic difficulties and extreme hardships on the public at large, including over 200,000 citizens who subsist on less that US$2 per day, the Government has purposefully chosen to impose a revised enlarged property tax that will add to the burden of all citizens from the wealthiest to the poorest, that will trickle down sparing none, resulting in property loss both chattel and fixed, rather than increase taxes on Banks and businesses that can well afford the additional burden.
It is clear that Banks and Businesses finance political campaign funding and that Government prefers to tax the poor rather than the rich who support them.
And the Government says it cares... for whom really?
MFRahman
A simple solution. Don't put
A simple solution. Don't put your money in the banks. Buy their stocks...whatever you can afford. This way you own part and share in the profits. So when they make money you are glad and have nothing to complain about.
Will this profit be absorbed
Will this profit be absorbed into Clico's losses?
http://dsaltsman.blogspot.com/
Very likely so. As a member
Very likely so. As a member of the group, profit makers will be expected to assist in keeping the company afloat. At all cost.