2017 Annual Report 1 still soaring Our history began with a duty... a duty to our customers and our nation. Nearly two centuries later, through local, regional and global economic storms, and evolving governments and societies, that duty still calls to us and we hold to our promise to answer it. As our customer needs have changed, we have tailored our products and services to suit, ever ensuring that we stay in touch with the minds and hopes of those who continue to help us achieve our success - our stakeholders and our staff. As a holding company, we reaffirm our commitment to live by the values that turn the wheels of our organisation. 2 2017 Annual Report 1 The Group at a Glance About Us Network Operating Countries Republic Financial Holdings Limited (RFHL) is the registered owner of all of the banks in The Republic Group – Republic Bank Limited, Republic Bank (Guyana) Limited, Republic Bank (Barbados) Limited, Republic Bank (Grenada) Limited, Republic Bank (Suriname) N.V., HFC Bank (Ghana), Republic Securities Limited, and other subsidiaries. In keeping with international Branches 118 best practice, this holding company was formed with the aim of offering increased operational efficiencies and optimum management of the Group; ultimately leading to greater value for our shareholders and clients while enabling greater strategic focus and diversification. ABMs 296 Our Vision Total Assets (US$Million) Republic Financial Holdings, 2017 10,312 the Caribbean Financial Services Group of Choice for our Staff, 2016 10,064 Employees 5,484 Customers and Shareholders. Cayman Ghana We set the Standard of Excellence 2015 9,935 in Customer Satisfaction, Suriname 2014 9,431 Employee Engagement, Sources of Revenue Barbados Social Responsibility and Shareholder 2013 9,128 Trinidad & Tobago Value, while building successful societies. Grenada 0 4,000 8,000 12,000 Guyana Shares 2016 - 2017 59% Advances Our Mission Profit After Tax (US$Million) 19% Fees & Commissions Earnings per Share Share Price Our mission is to provide 2017 197 14% Investment Securities Personalised, Efficient 5% Exchange 2016 US$0.88 2017 US$1.16 2016 US$16.56 2017 US$15.23 and Competitively-priced 2016 142 4% Other Financial Services Dividend Yield PE Ratio 2015 186 and to implement Sound Policies 2016 3.95% 2017 4.32% 2016 18.8 2017 13.1 which will redound to the benefit 2014 195 of our Customers, Staff, Shareholders and the Communities we serve. 2013 187 Corporate Social Responsibility 0 100 150 200 Through our social investment initiative, the Power to Make A Difference, we have formed powerful connections Core Values within communities with the aim of safeguarding the welfare and ensuring the sustainable success of these beautiful nations. For more than a decade, through relationships with Non-Governmental Organisations (NGOs) and Community Based Organisations (CBOs), we have worked together to help enhance the quality of lives of the differently able; support healthcare programmes and disability awareness initiatives; provide opportunities for young people to realise their truest potential through sport, education, culture and the arts; and raise the bar for community investment through a wide-reaching, comprehensive staff volunteerism programme. Customer Focus Integrity Respect for the Professionalism Results Individual Orientation 2 2017 Annual Report 3 Table of Contents Corporate Information 1 4 Corporate Information Corporate Social Responsibility Notice of Meeting 6 Power to Make A Difference 62 Corporate Information 7 Consolidated Financial Summary 8 A Guide to the Group Financial Calendar 9 5 Financial Statements 2 Financial Reporting Requirements 70 Board of Directors and Executives Independent Auditors’ Report 71 Consolidated Statement of Financial Position 80 Board of Directors 12 Consolidated Statement of Income 82 Directors’ Report 18 Consolidated Statement of Comprehensive Income 83 Chairman’s Review 21 Consolidated Statement of Changes In Equity 84 President’s Discussion and Analysis 25 Consolidated Statement of Cash Flows 85 Notes to the Consolidated Financial Statements 87 3 The Group Subsidiaries Subsidiaries 38 Corporate Governance 56 facebook instagram twitter youtube progressing through technology 4 2017 Annual Report 5 Notice of Meeting Corporate Information Annual Meeting Notes Directors Registered Office NOTICE is hereby given that the Second Annual Meeting of Republic Persons Entitled to Notice Chairman Republic House Financial Holdings Limited will be held at the Ballroom of the Hilton In accordance with Section 110(2) of the Companies Act Chap. 81:01, Ronald F. deC. Harford, CMT, FCIB, FIBAF, FCABFI, LLD 4th Floor Trinidad and Conference Centre, Lady Young Road, Port of Spain on the Directors of the Company have fixed November 20, 2017 as the 9-17 Park Street, Port of Spain Monday December 18, 2017 at 9:30 a.m. for the following purposes:- Record Date for the determination of shareholders who are entitled to President and Chief Executive Officer Trinidad and Tobago, West Indies 1 To receive the Audited Financial Statements of Republic Financial receive notice of the Annual Meeting. A list of such shareholders will be Nigel M. Baptiste, BSc (Hons.) (Econ.), MSc (Econ.), ACIB Holdings Limited for the year ended September 30, 2017 and the available for examination by shareholders at the Office of the Registrar Group Head Office Reports of the Directors and Auditors thereon. during usual business hours. Directors Republic House 2 To take note of the Dividends paid for the twelve-month period Shazan Ali, BSc (Hons.) (Mechanical Eng.) 4th Floor ended September 30, 2017. Proxies Dawn Callender, FCCA, CPA, MBA 9-17 Park Street, Port of Spain 3 To elect Directors. Shareholders of the Company entitled to attend and vote at the Terrence W. Farrell, PhD, LLB, LEC Trinidad and Tobago, West Indies 4 To re-appoint the Auditors, Ernst & Young and to authorise the Meeting are entitled to appoint one or more proxies to attend, and Alison Lewis, MOM, BA (Econ. and Mgmt.) Tel: (868) 625-4411, 623-1056 Directors to fix their remuneration. in a poll, vote instead of them. A proxy need not be a shareholder. William P. Lucie-Smith, MA (Oxon), FCA Fax: (868) 624-1323 5 Any other business. Any instrument appointing a proxy must be received at the Registrar’s Russell Martineau, CMT, SC, LLM (Lond.) Swift: RBNKTTPX Office not less than 48 hours before the Meeting. Shareholders who Robert Riley, CMT, BSc (Agri. Sc.), LLB (Hons.), EMBA Email: [email protected] return completed proxy forms are not precluded, if subsequently they Kristine Thompson, B.Comm., MBA Website: www.republicfinancialholdings.com By order of the Board so wish, from attending the Meeting instead of their proxies and voting Gregory I. Thomson, BSc (Math and Physics), MBA in person. In the event of a poll, their proxy votes lodged with the Registrar Registrar, will be excluded. Executive Management Trinidad and Tobago Central Depository Limited Chief Financial Officer 10th Floor, Nicholas Tower Kimberly Erriah-Ali Dividend Parasram Salickram, FCCA, ACMA, CGMA, CA, CFA, FRM 63-65 Independence Square, Port of Spain Corporate Secretary A final dividend of $3.15 declared for the financial year ended September Trinidad and Tobago, West Indies 30, 2017 will be payable on December 4, 2017 to shareholders at the Chief Risk Officer November 8, 2017 close of business on November 20, 2017. Farid Antar, ACIS, ACIB, Cert. (Int’l. Marketing), Dip. (Business Mgmt.) Attorneys-at-Law Pollonais, Blanc, de la Bastide & Jacelon Republic Financial Holdings Limited Chief Internal Auditor Pembroke Court This is the Second Annual Meeting of Republic Financial Holdings Riah Dass-Mungal, BSc (Acct.), FCCA 17-19 Pembroke Street, Port of Spain Limited since the Republic Bank Limited Vesting Order (Legal Notice Trinidad and Tobago, West Indies #215 of 2015) and the change of name from Republic Bank Limited to Group General Counsel/Corporate Secretary Republic Financial Holdings Limited. Kimberly Erriah-Ali, LLB (Hons.), LEC, MBA J.D. Sellier & Company 129-131 Abercromby Street, Port of Spain Documents Available for Inspection Trinidad and Tobago, West Indies No service contracts were granted by the Company or Subsidiary Companies to any Director or Proposed Director of the Company. Hobsons Sagicor Centre 21-25 Independence Avenue, San Fernando Trinidad and Tobago, West Indies Auditors Ernst & Young 5-7 Sweet Briar Road St. Clair, Port of Spain Trinidad and Tobago, West Indies 6 2017 Annual Report 7 Consolidated Financial Summary A Guide to the Group Financial Calendar All figures are in thousands of Trinidad and Tobago dollars ($’000) Dividend Payments 2017 2016 2015 2014 2013 Final dividend for year ended September 30, 2017 December 2017 Dividend for half year ending March 31, 2018 May 2018 Total assets 68,892,879 66,859,543 66,001,576 59,371,516 57,612,365 Results Advances 35,464,448 34,292,693 33,007,998 27,095,407 25,235,517 Publication of results for first quarter to December 31, 2017 February 2018 Publication of results for half year to March 31, 2018 May 2018 Customers’ deposits 50,402,800 49,631,274 49,711,582 43,770,760 42,098,310 Publication of results for third quarter to June 30, 2018 August 2018 Publication of results for year ending September 30, 2018 November 2018 Stated capital 780,950 765,950 739,125 704,871 649,932 Report and Accounts mailing November 2018 Annual Meeting December 2018 Equity 10,146,005 9,542,695 9,410,609 8,746,323 8,516,034 Actual number of shares in issue 162,445 162,274 161,999 161,663