Scotiabank Trinidad and Tobago Limited has reported an after-tax income of $449 million for the nine months ended July 2026, representing a 15 per cent decrease compared to the same period in 2025.
According to the financial institution's latest disclosures, the $82 million reduction in profitability for the period is primarily attributed to the newly introduced regulatory Total Asset Tax, which took effect in January 2026 as part of the national budget measures.
Despite the year-over-year dip, the bank demonstrated resilience in its third-quarter performance, posting an after-tax income of $148 million. This marks a $7 million, or 5 per cent, increase compared to the prior quarter. Total revenue for the nine-month period held steady at $1.6 billion, remaining comparable to the previous year.
Scotiabank T&T’s Managing Director, Gayle Pazos, praised the bank's continued stability and the underlying momentum within its core portfolios.
"Our commendable 3rd quarter results reflect the strength and stability of our Bank and the continued confidence our customers have in us," Pazos stated. "We have built on the momentum of the 2nd quarter with Total Revenue growth quarter over quarter of 7%, driven by good growth in our Retail Portfolio."
The group's retail banking segment experienced notable growth, with new loans exceeding $2.3 billion over the nine-month period, an 18 per cent increase from the $2 billion recorded in the same period in 2025. Overall, the retail portfolio grew by $900 million, or 7 per cent year-on-year, to reach $15.65 billion.
Conversely, commercial loans saw a decline of 8 per cent, falling to $5.72 billion.
The bank's diversification strategy yielded positive results, with its Insurance and Wealth business lines now contributing 23 per cent of the overall group net income, up from 18 per cent in the previous year. Scotia Life, the bank's insurance subsidiary, recorded an 11 per cent growth in total revenue, while mutual funds under management increased by 7 per cent to close at $1.93 billion.
Non-interest expenses for the period ended July 2026 stood at $749 million, a 16 per cent increase compared to 2025. This $103 million rise was driven substantially by the Total Asset Tax, alongside ongoing investments in digital initiatives and security infrastructure. Despite higher expenses, Scotiabank maintained a productivity ratio of 48.0 per cent, which the bank noted remains the lowest in the local banking sector.
On the credit front, net impairment losses on financial assets decreased slightly by 1 per cent to $95 million. The bank’s non-performing loans to total loans ratio remained below 2 per cent, highlighting positive financial health in its customer portfolio.
Shareholders will benefit from an improved dividend payout ratio of 83 per cent, with a third-quarter dividend of 70 cents per share bringing the year-to-date total to 210 cents. Earnings per share were reported at 254.5 cents alongside a strong dividend yield of 6.20 per cent.
Looking ahead, Pazos noted that economic conditions are expected to remain subdued as the year draws to a close. However, she emphasised the bank’s commitment to navigating these headwinds through a focus on digital accessibility and customer experience, noting a digital adoption rate of 59 per cent.
Pazos also highlighted recent engagements with the Government to foster economic growth. The Managing Director recently met with Finance Minister Davendranath Tancoo and senior international Scotiabank executives to discuss collaboration opportunities and building a more resilient economy.
"The discussion was positive and reinforced the importance of continued partnership between the Government and the private sector," Pazos noted.
The group's total assets stood at $30.7 billion as of July 2026, a 4 per cent decrease from the prior year. During the quarter, the institution was also recognised as Trinidad and Tobago’s Best Bank 2026 by Euromoney.
