Scotiabank TT is reporting a $52 million, or 17 per cent, increase in after-tax income of $356 million for the first six months of its 2022 financial year.
This result was boosted by an after tax-income of $171 million, or an eight per cent increase, for the second quarter ending April 30.
"Our improvement over the prior year is driven by an increase in core banking activity resulting in increased revenues, coupled with continued focus on operational efficiency," the bank said in a statement Wednesday.
Its improved profitability has resulted in an increase in its return on equity from 14.5 per cent to 16.8 per cent, and an increase in its return on assets from 2.2 per cent to 2.6 per cent.
Commenting on the results, Scotiabank TT MD Gayle Pazos said, “Our strong interim results continue to illustrate the strength and resilience of the bank. Loans to customers increased by $1 billion over the last six months, demonstrating our strong sales and service culture as well as our customers’ confidence in our products.
"Our customers continue to embrace our digital channels, with adoption improving year over year leading to a reduction in our non-interest expenses base by four per cent and improvement in our productivity ratio to under 40 per cent in 2022."
Pazos spoke of Scotiabank's third consecutive rating as TT's Best Bank by Global Finance Magazine, which said underscored the hard work of the management and staff.
Scotiabank's total revenue rose ten per cent to $952 million, although net interest income was $599 million, or three per cent lower compared to the same period last year, which its said was driven by a minor decline in the loan portfolio coupled with continued margin compression due to competitive pricing pressures.
It stated its core banking revenues continued to recover, driving other income growth to $353 million, up 42 per cent, which it attributed to renewed activity in the retail and commercial sectors.
It noted the impact of rising price inflation, stating that managing the group’s operational efficiency remains a strategic priority.
"We continue to focus on utilising our digital platform to enhance customer experience and control our operating expenditure profile and this has resulted in our productivity ratio improving to 38 per cent compared to 43 per cent last year."