Saturday 14 December, 2019

Scotia nine-month profit up 24 per cent

David Noel, President and CEO said that the "solid performance" over the past nine months benefited from loan growth of 8.0 per cent, and also a 7.0 per cent rise in total revenues and flat expenses.

David Noel, President and CEO said that the "solid performance" over the past nine months benefited from loan growth of 8.0 per cent, and also a 7.0 per cent rise in total revenues and flat expenses.

Scotia Group Jamaica (SGJ) reported net income of $11.2 billion for the nine months ended July 31, 2018, or 24 per cent over the corresponding period last year.

The board of directors also approved an interim dividend of 48 cents per stock unit payable on October 24.

David Noel, President and CEO said that the "solid performance" over the past nine months benefited from loan growth of 8.0 per cent, and also a 7.0 per cent rise in total revenues and flat expenses.

"We continue to simplify our operating model to focus on growing our core businesses, enhancing our digital capabilities, and reducing our structural costs. While we have made good progress on our strategic priorities, we will continue to make the structural changes necessary to improve efficiency, enhance our customer experience, and prepare us for long term success in a changing global environment," he said.

Noel went on to say: “Our digital strategy continues to deliver new milestones as evidenced by a 24 per cent increase in the number of mobile banking customers.”

Total revenues excluding impairment losses on loans for the nine months ended July 31, 2018 was $33 billion, representing an increase of $2.1 billion or 7.0 per cent above prior year. While there were increased loan and transaction volumes across SGJ business lines, this was offset by reduced net interest margins as a result of lower interest rates, due to a stable macroeconomic environment and increased competition, said Scotia. Net interest income after impairment losses for the period was $17.9 billion, down $0.5 billion or 3.0 per cent when compared to the same period in 2017.

Included in the results are gains on the sale of a subsidiary of $700 million Scotia Credit and asset tax expense of $1.1 billion recorded in the first quarter of 2018.

Noel said that non-branch transactions (mobile, online, ATM and Point of sale) continue to grow and now account for more than 85 per cent of all transactions as at July 2018.

The Scotia ATM network and digital channels allow the bank to more efficiently process transactions with lower operating costs, while delivering customer convenience with lower or no fees.

Shareholders’ equity available to common shareholders grew to $112.9 billion, increasing by $16 billion or 16 per cent year over year, as a result of internally generated profits.

"We continue to exceed regulatory capital requirements in all our business lines, and our strong capital position also enables us to manage increased capital adequacy requirements in the future, and take advantage of growth opportunities," said Noel.

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