Scotia Group posts higher profit, bullish on business

Scotia Group Jamaica Limited grew its earnings by nearly one fifth to $5 billion in the April quarter.

It came on the back of improved revenue of $15.6 billion compared to $14.6 billion a year earlier.

“All business lines continue to perform well and made significant contributions to the group,” said President and CEO Audrey Tugwell Henry.

The increase in profitability in the second quarter, January to April, was primarily fuelled by higher net interest income, which grew 8.5 per cent year over year, alongside a 13 per cent rise in other revenue.

The group’s retail loan portfolio grew 14 per cent over the previous year, and its mortgage portfolio by 24 per cent. Commercial loan volumes climbed by seven per cent.

Over six months ending April, profit haul grew to $9.2 billion, up 7.8 per cent year-on-year.

“We look forward to the second half of the fiscal year; we are optimistic about the opportunities in the market,” Tugwell Henry said.

The growth in earnings was driven by loan and investment portfolio performances, contributing to an asset-base expansion of $87 billion, or 12.9 per cent, to $763.5 billion as of April.

Investment banking subsidiary, Scotia Investments Jamaica Limited, grew its assets under management by 12 per cent. Scotia Investments’ corporate solutions unit served as lead arranger for Fontana Pharmacy’s $950 million bond raise.

Scotia Jamaica Life Insurance Company reported a 76 per cent jump in net insurance revenue, while Scotia General Insurance Agency posted a 64 per cent increases in gross written premiums and a 55 per cent rise in policy sales.

At the end of the quarter, Scotia Group’s cash resources stood topped $195 billion, up 3.7 per cent. Its capital grew by 23 per cent to $156 billion, boosted by higher fair value gains on investments and strong internal earnings generation.

“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,” the banking group said.

Scotia Group will pay interim dividend of 45 cents per share in mid-July.

steven.jackson@gleanerjm.com