Page 48 - RFHL ANNUAL REPORT 2025 ONLINE_NEW

46 • Republic Financial Holdings Limited 2025 Annual Report • EXECUTIVE REPORTS

Group President and CEO’s Discussion and Analysis

The increase in profitability is reflected in the rise in most key ratios in 2025, with the Return On Average Assets (ROA) ratio
increasing from 1.96 percent in 2024 to 1.99 percent in 2025, and the Return On Average Equity (ROE) ratio increasing from 14.80
percent in 2024 to 15.01 percent in 2025.

Earnings Per Share (EPS) also increased from $12.25 in 2024 to $13.44 in 2025, an increase of $1.19 per share. RFHL’s share price
closed at $106.62 as at September 30, 2025, a decline of $5.31 or 4.7 percent over the past year, while the Price/Earnings (P/E) ratio
decreased from 9.1 times in 2024 to 7.9 times in 2025.

Capital structure

Capital adequacy ratio

2025 2024
% %

Basel II
Republic Financial Holdings Limited 14.88 14.75
Republic Bank Limited 16.01 15.70
Republic Bank (Barbados) Limited 15.35 17.10
Republic Bank (Ghana) PLC 16.75 15.59
Cayman National Bank 28.82 27.99
Republic Bank (Guyana) Limited 17.26 19.23
Republic Bank (Grenada) Limited 12.48 12.72
Republic Bank (EC) Limited 14.89 13.79

Basel I
Republic Bank (Suriname) N.V. 26.39 21.03
Atlantic Financial Limited 21.57 66.52
Republic Bank (BVI) Limited 41.67 32.47

The Group’s policy is to diversify its sources of capital, to allocate capital within the Group efficiently and to maintain a prudent
relationship between capital resources and the risk of its underlying business. Capital adequacy is monitored by each member
of the Group, employing techniques based on the guidelines developed by the Basel Committee on Banking Regulations and
Supervisory Practice (the Basel Committee), as implemented by the respective Central Banks for supervisory purposes. In Trinidad
and Tobago, the Basel II Regulations were promulgated in May 2020. Under these regulations, the risk-based capital guidelines
require a minimum ratio of common equity Tier 1 capital to risk-weighted assets of 4.5 percent, a minimum ratio of core capital
(Tier I) to risk-weighted assets of 6 percent, and a minimum total qualifying capital (Tier I plus Tier II) ratio of 12.5 percent, including
a Capital Conservation Buffer (CCB) for the RFHL Group. Core (Tier I) capital comprises mainly of shareholders’ equity.

All companies within the Group maintain capital ratios well in excess of the regulatory requirement and the Group continues to
maintain a strong capital base, reflected in a Group capital adequacy ratio of 14.88 percent, as at September 2025, well in excess of
the 12.5 percent, minimum requirement under Basel II.

In addition to the capital guidelines, an Internal Capital Adequacy Assessment Process (ICAAP) is submitted on an annual basis, to
the respective regulatory bodies in Trinidad and Tobago, the Eastern Caribbean, Barbados and the Cayman Islands.