Republic Bank has recorded an annual net profit attributable to shareholders of of $948.4 million for 2009.

This was a decline of $255.4 million or 21.2 per cent over 2008, Republic Bank chairman Ronald Harford said yesterday.

The bank’s core profit before tax was $1.76 billion, an increase of 11.3 per cent over the $1.58 billion reported last year.

Harford noted in a statement that provisions of $446.4 million was made for non-performing loans.

This was as a result of the ’changed circumstances of some of the bank’s customers’ and contributed to the reduction in profit, the statement said.

Harford said: ’The Group maintains a strong and stable core revenue flow and continues to have a very strong balance sheet with a Tier II capital adequacy ratio of 24.2 per cent; well above the required minimum of eight per cent.’

But he noted: ’The year ahead will be another challenging one for the economies in which we operate. But, even as times are challenging, there will be opportunities for those who are prepared. The Group is well positioned to seek out and take advantage of these opportunities.’

The Republic Bank Group’s asset base grew over the period by $879.7 million or 2.1 per cent and now stands at $42.4 billion.

The board of directors has declared a final dividend of $2.23 to be paid on November 30 bringing the total dividend for the year ended September 30, 2009 to $3.38, the same as last year.