File
Shoppers walk past an RBTT Bank branch at Tropical Plaza, Constant Spring Road, St. Andrew. Two bids have been made to acquire parent company RBTT Financial Holdings, but shareholders still have not been given details of the offers on the table.

Linda Hutchinson-Jafar, Business Writer

RBTT Financial Holdings' annual general meeting (AGM) in Port of Spain was devoid of intense questioning by shareholders on the two offers of a possible merger or partnership that are now on the table before the board of directors.

At the start of the AGM, Group Chairman Peter July formally announced the bank's annual financial results and reiterated earlier statements that the board needed extended time to deliberate on the two offers it received.

"He told them there was nothing else he could add to that, so nothing more was said on that, not even by any of the shareholders," said a source at the bank.

"It was really a straightforward meeting, nothing out of the ordinary."

However, a RBTT shareholder told Sunday Business that it was more apt to describe the AGM as "controlled".

Canadian powerhouse

FirstCaribbean International Bank (FCIB), which is 91.5 per cent-owned by the Canadian powerhouse CIBC, is said to have made the initial offer of a merger with RBTT, Trinidad and Tobago's largest banking group.

The identity of the second financial institution continues to be kept under wraps.

"I found it was too controlled," said shareholder and businessman George Aboud, referring to the AGM.

"People from the media were blocked from taking information, then were sent out the room, technical issues that were raised were cut short and the information was not as forthcoming as people would have liked."

The Port of Spain businessman said "substantial" shareholders did not take part in the AGM, which was mainly attended by those with small holdings, who left the meeting no more informed than before about the deals.

RBTT Financial Holdings runs a profitable operation, but profit growth has not been robust. In its financial year ended March 31, 2007, the group recorded pre-tax earnings of US$192.3 million, an increase of six per cent over the prior year's profit of US$182 million.

Profit attributable to shareholders increased by US$6.1 million or 4.0 per cent to US$151.8 million, with earnings per share moving from US$0.42 as restated to US$0.44, an increase of five per cent.

Improvemanagement

"For too many years, RBTT seems to have been preparing to sell-off," said Aboud.

"But if they improve manage-ment, the bank will be able to function more effectively. There would be no need for any discussions on a merger or anything like that."

The businessman has previously raised questions about whether the sale of RBTT to FCIB was in the best interest of RBTT shareholders.

He has also called on the Central Bank of Trinidad and Tobago and the Securities and Exchange Commission to formally intervene in the situation on behalf of the local finance community and the shareholders of RBTT Bank.

Final stages

FirstCaribbean, formed in 2001 out of the merger of Canadian Imperial Bank of Commerce's and Barclays' Caribbean operations, and RBTT Holdings were said to be in the final stages of a merger agreement prior to the announce-ment of a second offer.

RBTT Financial Holdings earned after-tax profits of US$36.5 million for the first quarter ended June 30, 2007, a five per cent improvement over the same period last year.

The investment banking business had a slow first quarter, recording after-tax profit of US$36.5 million which was 5.0 per cent better than the matching quarter of 2007.

But RBTT expects an improved deal flow in the second quarter.

"The group's earnings momen-tum is expected to improve over the remaining fiscal period given the consistent earnings trend of the retail and commercial business segment in the last two quarters."

The retail bank had a strong performance across all its markets its asset and trust business continued to be adversely impacted by the lack of buoyancy on the local stock exchange, and the resultant negative effect on fee income derived from funds under management.

FCIB also has continued its good performance as indicated by its first-half results reported for the period ended April 30, 2007.

Income before tax and minority interest was up 39.4 per cent to US$135.2 million.

At the bottom line, net income attributable to equity holdersof the company increased by 43.5 per cent to US$120.5 million.

For the first six months of FY2007, the bank recorded EPS of US$0.079 or TT$0.498, a sub-stantial increase of 43.5 per cent over the six-month period for 2006.

business@gleanerjm.com