TT, the bright spot in RBC Caribbean operations

This country has proved to be a bright spot in RBC Caribbean’s operations, with the local bank posting a net income of $191.3 million for the financial year ending October 2017, a whopping 59 percent increase over the previous year’s $119.8 million.

The overall Caribbean performance, on the other hand, was $520.2 million, a 45 percent plummet from the nearly $1 billion the group posted the previous year.

“We were able to improve earnings through improved asset quality from our sound risk management practices and lowered structural costs,” TT managing director Darryl White said in his report, published in Newsday yesterday.

Revenue was up $55.7 million, driven mainly by higher loan volumes, especially mortgages.

The bank has been pushing to reduce its in in-bank operations, recently announcing plans towards a digital push, encouraging customers to use its mobile app, online banking and automated teller services instead.

In the wider Caribbean, RBC’s St Maarten operations took a major hit when Category 5 hurricane Irma slammed into the tiny territory.

In its notes to the consolidated financial statements, the bank said losses are still difficult to ascertain; It has, however, allocated a general impairment allowance of $356.5 million.

The group also divested of its Bahamas holdings in June 2017, resulting in a significant decline in its total Caribbean asset base, now $66.2 billion, down from $85.3 billion in 2016.