Scotiabank earns $604m after-tax income

Scotiabank has earned after-tax income of $604 million for the year ended on October 31, an $83 million, or 16 per cent increase, from $521 million for the same period in 2020.

However, the last quarter recorded an eight per cent decline to $142 million, compared to the same quarter in 2020.

The results were reported in Scotiabank’s unaudited financial highlights released on Wednesday.

Managing director Gayle Pazos said the group’s total revenue saw a $48 million or three per cent decline to $1.7 billion but the group reduced its non-interest expense base by $55 million or seven per cent.

The report said the decline was seen mainly in net-interest income, which was affected by a dip in the group’s loan portfolio and interest rate compression, bringing its revenue down to $1.2 billion, seven per cent lower than 2020. But other income improved by about $46 million or about 10 per cent, bringing other income up to $511 million.

“The year 2021 was one of unique challenges faced by the country and our group,” Pazos said. The economic environment remains subdued as consumer demand and investment are below pre-pandemic levels and we continue to experience relatively high levels of covid19 cases.

“Notwithstanding these headwinds the group has recorded improved financial performance driven by lower net impairment losses on loans and reduced operating expenditure,” Pazos said.

Pazos said the group continues to focus on delivering the best customer experience by meeting the customers’ demand for safe and efficient banking. To meet this challenge, Pazos said the group put digital service forward. One such product was Scotia Select Pay which gives customers the flexibility to convert credit card purchases into monthly instalments.

“We have seen over 3.4 million online and mobile transactions and through continued feedback from ongoing customer surveys we continue to enhance both our digital and non-digital offerings,” Pazos said.