Scotiabank announces another strong performance

The content originally appeared on: Trinidad and Tobago Newsday

Scotiabank building on Independence Square, Port of Spain. – File Photo by Ayanna Kinsale

SCOTIABANK Trinidad and Tobago Ltd’s (Scotiabank TT) six month profit for the period ending April 30, 2024 has increased by $11 million or three per cent over the corresponding six-month period ending April 30, 2023.

The local arm of Canada-based Scotiabank reported profit after tax of $324 million for the six months ended April 30, 2024, compared to $313 million in 2023.

Earnings per share (EPS) increased to 183.5 cents, “driven by the increase in profitability,” the bank said in a news release on June 11.

The bank announced a dividend of 70 cents per share for the second quarter.

Chairman Derek Hudson, in his note to shareholders on June 11, said, “The group recorded an increase in total revenue of $33 million or four per cent, driven mainly by growth in net interest income of $39 million or six per cent. This increase was achieved through continued strong growth in loan balances in both retail and commercial segments.

“The increase in net interest income was partially offset by declines in other income of $5 million or two per cent, arising from lower trading revenues.

“The group continues to navigate the impact of inflation, while also maintaining a focus on investing in our people, technology and customer experience. Non-interest expenses increased by $34 million or nine per cent over the prior year.

“Despite this increase, our productivity ratio stands at 43 per cent and remains the best in class in the local banking sector.”

He said total assets increased by $1.7 billion or six per cent.

Scotiabank TT’s largest interest-earning asset, loans to customers, increased by $1.3 billion or seven per cent.

Hudson said, “This growth was achieved whilst still maintaining a high level of credit quality, resulting in a small decline in the net impairment loss on financial assets and a ratio of non-performing loans to total loans below two per cent of the total portfolio.

“The increase in total assets was funded by an increase in deposits from customers of $1.3 billion or six per cent, demonstrating consumer confidence in our stability, and competitive rate offerings across all business segments.”

Managing director of Scotiabank TT Gayle Pazos, in a news release on June 11 said, “I am pleased to announce another strong performance by the group, with net income after tax increasing by $11 million or three per cent over the same period in 2023. This was driven by growth in core revenues, especially in the area of net loans to customers which grew by $1.3 billion resulting in increased loan interest income.

“Correspondingly, deposits from customers also grew by $1.3 billion or six per cent, reflecting the continued confidence our customers place in us as we provide solutions to their financial needs.”

She also said, “This quarter, the group was recognised as TT’s Best Bank 2024 by Global Finance Magazine.

“We are extremely proud of this achievement, highlighting not only the financial performance of the group over the last year, but also the continued digital advancements that our group has made. Our customers continue to embrace our digital channels, with digital transactions increasing by 615,000 or 22 per cent year over year, elevating our digital adoption rate to 55.1 per cent. Digital sales now account for 31 per cent of total retail products including lending, deposits and credit cards.”

She thanked the bank’s team team their continued support and contribution during the last quarter, saying, “Your dedication and commitment are the foundation of the continued success of our bank.”