Scotiabank TT has recorded improvements in income and profit in the second quarter of 2021.
The group said the increase in profitability was driven by effective cost management strategies combined with lower impairment losses.
In a release, the group said it had realised income after tax of $159 million, an increase of $39 million or 33 per cent over the second quarter ended April 30, 2020. For the half-year period ended April 30, 2021, the group realised after-tax profit of $305 million, an increase of $42 million or 16 per cent over the comparative half-year period.
It said for the six months ended April 30, 2021, total revenues of $869 million declined by $46 million or five per cent with net interest income reducing by $43 million or six per cent, as a result of a decline in its loan portfolio during that period.
It said other income has consistently increased over the last three quarters (August 2020 to April 2021) since hitting post-covid lows in July 2020, and has only declined by $3 million or one per cent over the comparative six-month prior period.
In response to the declines in revenue, the group has focussed on controlling its operating expense base, resulting in non-interest expenses reducing by $29 million or seven per cent for the six-month period ended April 30 2021.
Scotiabank TT said its prudent risk management strategies and pro-active measures taken in 2020 to mitigate credit losses have resulted in a significant reduction in its impairment loss expense.
For the six months ended April 30, 2021, net impairment losses on financial assets have declined by $81 million or 71 per cent whilst its ratio of non-accrual loans to total loans currently stands at 2.06 per cent.
It said total assets stood at $27.6 billion, representing growth of $779 million or three per cent compared to the prior year’s period.
The challenging environment has resulted in loans declining by approximately $760 million or five per cent, with its retail loan portfolio being most affected by the economic uncertainty and reduced levels of spending.
The group said it continues to see customers confidently invest with it, as deposits from customers increased by $360 million or two per cent over the prior year. Its insurance segment also continues to show growth in increased policy sales, resulting in a $90 million or six per cent increase in policyholder liabilities over the prior year.
Commenting on the results, newly appointed managing director of Scotiabank TT Gayle Pazos remarked: “Our results to the end of April 2021 have continued a trend of improvement noted in the first quarter.
“Notwithstanding the setbacks experienced in Trinidad and Tobago over the last few months, our team and customers have risen to the challenge and really demonstrated their resilience.
“Our efforts to support customers, employees, and the broader community throughout the pandemic have resulted in us being named the Best Bank 2021 in TT by Global Finance.”
She said the group understood the role it played in helping communities during this time.
“Over 1,000 students have been assisted with access to online learning so that they can continue with their studies. We also committed to continuing to provide meals on a daily basis in supporting our frontline medical personnel who are courageously helping the country battle this pandemic.
“Most recently, we have collaborated with UNICEF on its covid19 vaccination rollout and preparedness programmes.”
Pazos encouraged customers to reach out to the bank if they were in need of assistance.
“While the economic impact of the covid19 crisis is still being felt, we have supported and continue to support you during this time. For those customers who may be experiencing a loss or reduction in income as a result of the covid19 pandemic, please reach out to us so we can provide you with various relief options depending on your personal financial situation.”