Scotiabank TT third-quarter profits fall 42% to $104m

Scotiabank TT Ltd has recorded a $366 million after tax profit for the nine months ended July 31. This is 30 per cent or $157 million lower than the same period last year, the bank said in a statement Wednesday.

For the three months ending July 31, the group recorded $104 million, 42 per cent down from the same time last year. The group’s quarter and year-to-date performance was impacted by over four months of reduced economic activity, the release said, resulting in reduced revenues.

The bank also increased its expected credit losses by over $80 million over the last two quarters “to prudently position the bank for potential future loan losses that could arise due to the impact of covid19 on the TT economy.”

Loans to customers as at July 31 amounted to $16.7 billion, or a nine per cent increase year-on-year, driven by increases in core business activity in both corporate/commercial and retail segments. Deposits from customers also increased by $2.2 billion or 12 per cent year-on-year, with growth being recorded across all segments.

Scotiabank TT’s managing director Stephen Bagnarol said the bank was working with customers to meet needs even in the midst of the covid19 pandemic. “As the pandemic progresses and with the recent increases in the local spread of the virus, helping our customers stay home and stay safe continues to be a priority.”

Seniors, he said, were an important customer group and as such, to help them avoid coming in, the bank introduced an information hub online called Banking with Confidence to help them feel more comfortable banking from home. Scotiabank added that more customers are using online banking, with more people logging on to online or mobile banking in June than in all of 2019.

Bangnarol said the bank expects similar increases for the upcoming months. He said that over the past few months the bank have provided assistance to over 70,000 customers via loan deferrals through its covid19 customer assistance programme, with over 90 per cent indicating they can now resume normal payments.

In corporate and commercial banking only one per cent of customers have continued in a deferral programme.

“This is very positive news and shows the resiliency of the TT economy. For those who are unable to resume their payments, our team is working with them to provide debt consolidation alternatives,” he said. The bank also contributed to covid19 relied, donating $1.2 million and partnering with 17 charities and community groups, helping 14,000 people with food, medical and essential supplies, as well as assisting schools and students with the new requirements as a result of the pandemic.