RBTT Bank Jamaica Limited doled out a half a billion dollars more in salaries last year, including a one-off cost of $150.45 million to staff that 'voluntarily separated' from the company and millions more under a profit-sharing scheme.

But the bigger salary bill, which topped $3.08 billion at year end March 2009, up from $2.59 billion the previous year, also cut into pro-fits for the No. 3 commercial bank.

RBTT made $651 million at the end of the period, down from $739 million year-on-year. Revenues rose to $6.2 billion, from $5.4 billion.

Net profit declined

So while revenues were up 13 per cent, net profit declined by 12 per cent on the back of larger operating expenses and a more expensive salary bill that included the 'separation' charges, a $295 million payout as profit sharing, and $469 million of unspecified benefits.

Also weighing on the numbers was a near doubling of provisions for bad loans, from $91 million to $175 million. And RBTT also reported an increase in impaired loans from $389 million to $447 million at March 2009.

Since Minna Israel took over as managing director in January 2008, at least four top members of the team she inherited have reportedly left the bank: Mary Powell, who was in charge of finance, Lauren Edwards, head of retail banking, Ian Kelly who ran RBTT Securities, and Howard Gordon, who oversaw technology and operations.

Kelly was the latest to go, departing in April. He ran RBTT Securities - an 80 per cent subsidiary of RBTT Jamaica - for about four years.

RBTT has to date not commented on who they have tapped to replace the talent that departed the bank. Israel's communication unit first said the bank needed Trinidad's sign off before releasing the information, when the Financial Gleaner sought comment about three weeks ago, then later said no response would be forthcoming immediately as the bank was going through "a quiet period." The bank eventually responded on May 15, but did not comment on the replacements.

But in the crucial area of finance, The Financial Gleaner learned this week that Grace Wright was handling the portfolio, but was unable to ascertain whether this was a permanent posting. Bank insiders also say some reorganisations are under way.

RBTT Securities, meanwhile, falls under Karen Mitchell, who is said to be acting in the post.

RBTT Jamaica was up to June 2008 owned by the RBTT Financial Group in Trinidad, but is now owned by Royal Bank of Canada under a $2.2 billion merger/acquisition deal that will see the Caribbean banks rebranded Royal Bank by 2011. (See related story on page 23.)

RBTT Jamaica with assets of $61 billion is the third largest of seven banks, but the fourth largest contributor to industry profits, behind FirstCaribbean Jamaica which made $835 million in 2008 off assets of $49 billion.

RBTT's loan portfolio grew substantially within a year from $31 billion to $38 billion, or 22 per cent - in touching distance of No. 4 rival FCIB Jamaica's $39 billion - while customers deposits grew at a far less robust pace, from $33 billion to $36 billion or nine per cent - offering little threat to the $47 billion of deposits commanded by FCIB Jamaica.

The commercial banking sector in Jamaica is more than 70 per cent dominated by the top two players in a market valued by assets at $730 billion.

business@gleanerjm.com