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Banking conglomerate Scotia Group Jamaica Limited, SGJ, achieved net profit of $4.1 billion for its first quarter ending January 2025, up 34.5 per cent year-on-year.
The operator of Jamaica’s No. 2 commercial bank continues its trajectory towards higher profits but still trails rival NCB Financial Group, which booked first-quarter profit of $5.1 billion for October-December 2024.
“These results signal a strong start to the second year of our five-year strategy,” said SGJ President and CEO Audrey Tugwell-Henry in her report to shareholders.
The strategy focuses on improving customer service, increasing digitalisation, and enhancing operational efficiency. Tugwell-Henry noted that in 2025, the group would build on its momentum, enhance leadership, and develop an inclusive team to strengthen client relationships.
In January, for example, the company introduced sign language training for its front-line teams to better serve hearing-impaired clients.
“Interest in the training programme was extremely well received and will continue for other interested team members next month. We are proud to have delivered another commendable quarter serving our clients and our community,” Tugwell-Henry said.
Businesses increasingly recognise that improving accessibility for individuals with impairments fosters enhanced oratory, tactile, visual, and auditory connections with all, including able-bodied customers, collectively enhancing the client experience.
The financial results reflect the group’s performance across its key business segments, supported by growth in loans, deposits and investments.
The group’s total revenue, excluding expected credit losses, grew 15 per cent to $17.1 billion. This was driven by a 10 per cent increase in net interest income and a 26 per cent rise in other revenue streams, supported by improved loan portfolio performance and higher transaction volumes.
Scotia Group’s asset base totalled $739.2 billion as of January 2025. Total loans increased by 13 per cent, rising from $276 billion to $312.5 billion. Mortgage loans grew impressively by 24 per cent, while consumer and commercial loans rose by 12 per cent and 5.0 per cent, respectively.
Non-accrual loans, or NALs, amounted to $5.1 billion as of January, compared to $4.7 billion a year earlier, and represented 1.6 per cent of gross loans and 0.7 per cent of total assets. NALs are loans that have been delinquent for over 90 days.
“Of note, the group’s NALs as a percentage of gross loans continue to be below the industry average,” said the banking group.
Shareholders equity totalled $150.7 billion, reflecting an increase of $29.3 billion, or 24 per cent higher, compared to January 2024. This growth was primarily driven by bolstered pension plan assets, higher fair value gains on the investment portfolio, and profits.
The board also approved an interim dividend of 45 cents per share for shareholders, payable on April 17.
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