Thursday 13 December, 2018

Scotia Ja’s profits jump to $3.4 billion in Q1

The Group’s insurance arm was particularly outstanding for the period under review recording growth in gross premium income.

The Group’s insurance arm was particularly outstanding for the period under review recording growth in gross premium income.

Scotia Group Jamaica’s net profit has risen to $3.4 billion for the three months ended January 31, 2018.

This spells an increase of $1.2 billion or 54% over the corresponding period last year.

Net income was generated from total revenues of $11.5 billion, $1.5 billion more than the figure posted for the same period last year. This was due in the main to increased retail loan and transaction volumes. Scotia Group also saw a windfall of $753 million from the sale of one of its subsidiaries.

The Group’s insurance arm was particularly outstanding for the period under review recording growth in gross premium income.

There was also a 14% uptick in funds under management. FX revenues and net gains on financial assets also increased.

Operating expenses amounted to $6.4 billion for the year, an increase of $415 million compared to the prior year.

Salaries and staff benefit costs increased by $189 million, while other operating expenses grew by $184 million.

The Group’s loan portfolio was $167.6 billion, down marginally from $168.2 billion last year due to a decline in Scotia’s foreign currency portfolio.

Total assets increased year over year by $21.9 billion or 5% to $502 billion as at January 31, 2018. The growth was attributable mainly to an overall increase of $11.6 billion from higher cash resources.

David Noel, President and CEO, said “For our first quarter ended January 31, 2018, we are pleased to report strong financial results with year over year growth in profit after tax and total revenue of 54% and 15%, respectively.

David Noel, President and CEO

“Our performance was largely driven by growth in our core business as well as gains from the sale of our microfinancing business (Credi-Scotia). The continued focus on simplifying our operations and reducing our structural cost resulted in a 429 basis point improvement in our productivity ratio and a positive operating leverage of 8.4%.

“A key part of our strategy remains our strong customer focus, to this end, we will be rolling out over the next quarter a new tool called “Pulse”, which will allow us to obtain customer feedback more effectively. The Pulse will keep our customers at the heart of everything we do ultimately allowing us to better meet their needs.”

Earnings per share moved from 70 cents for the current period under review.

For breaking news, download our app at http://bit.ly/GetALoopJM for Android; and at http://bit.ly/GetiLoopJM for IoS.

Get the latest local and international news straight to your mobile phone for free: