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Scotia closes the year with $12.4B profit

Thursday, December 07, 2017

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KINGSTON, Jamaica — Scotia Group has recorded an annual profit of $12.4 billion aided by net gains on financial assets according to just released fourth quarter results from the company.

The profit represents an increase in net income of $816 million or seven per cent, compared to the year ended October 31,2016. Scotia posted net profit of $3.4 billion for the fourth quarter, compared to $3.3 billion for the previous quarter. Return on average equity was 12.58 per cent for the year ended October 31, 2017.

“We delivered solid results for the year ended October 31, 2017, with profit after tax increasing by seven per cent during a year where interest rates trended downwards. Our productivity ratio improved by 229 basis points year over year in keeping with effective execution of our strategic objectives,” President and CEO David Noel said. The CEO added that the bank will continue to focus on digital transformation, simplifying operating structure and growing core businesses. “In this regard we have now completed the privatisation of Scotia Investments Jamaica Limited, and most recently we disposed of our shares in Scotia Jamaica Microfinance Company Limited,” he continued.

Scotia, in a statement to shareholders, said it continues to identify convenient and innovative ways to engage customers utilising its digital channels, particularly Scotia OnLine and mobile banking. In fact, the bank said that its digital platforms continue to demonstrate significant growth, with online transaction volumes now surpassing the number of branch transactions.

“This is a shift in the right direction and we will continue to offer platforms to provide greater choice and convenience at a lower cost for our customers,” Noel noted.

Total revenues excluding impairment losses on loans for the year ended October 31,2017 was $41.7 billion, representing an increase of $2.9 billion or seven per cent above prior year. Scotia also reported an increase in retail loan and transaction volumes across its business lines, as well as improved non-interest revenue. Net interest income after impairment losses for the year was $24.5 billion, $522 million or two per cent above the same period in 2016.

Total assets increased year over year by $13.5 billion or three per cent to $490.9 billion as at October 31, 2017. The growth was attributable to an increase of $13.2 billion in investment securities and cash resources. There was also an increase of $9.9 billion in other assets resulting from higher guarantees and retirement benefit asset on defined benefit pension plan scheme.

Scotia's loan portfolio was flat year over year closing at $166.5 billion as at October 31, 2017. The flat performance was driven by an overall decline in the bank's foreign currency portfolio.

Karena Bennett

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