$684m profit for Scotiabank in 2022

Scotiabank boasted of a $684 million profit for the 2022 fiscal year ending in October, at its annual general meeting held at the Hyatt Regency in Port of Spain.

Chairman Derek Hudson, while addressing stakeholders, said the after-tax profit represented a 13 per cent increase when compared to the bank’s 2021 performance.

He said one of the main highlights of the 2022 financial year was the overall loan growth of 10 per cent.

“With solid growth from our business lines – retail banking at 9 per cent and commercial banking at 16 per cent – we achieved a loan growth of $1.6 billion, one of the highest growth rates we have ever achieved.”

Vice president, chief financial officer and chief administrative officer Reshard Mohammed said, for 2022, Scotiabank declared total dividends of 330 cents – a 25 per cent increase over the last financial year – excluding the special dividend of 85 cents in 2021.

“Our healthy dividend payout ratio of 85 per cent illustrates our commitment to provide healthy cash returns to our shareholders,” Mohammed said.

He added that Scotiabank’s dividend yield has been consistently over 4 per cent, one of the highest in the industry.

Scotiabank’s share price also increased by $15.30 or 24 per cent over the prior year, Mohammed said.

“Over the last five years the share price appreciation coupled with the dividend payouts have resulted in our shareholders receiving compounded annual returns in excess of 10 per cent per year, one of the best returns in the local equity market.”

The 2023 fiscal year seems to be following the same trajectory as Scotiabank released its financial results for the quarter ended January 31, indicating that the bank earned $189 million after tax, as compared to $185 million for the same period last year.

A media release from Scotiabank said the improvement in profitability resulted in a return on equity from 17.27 per cent to 17.35 per cent.

Total revenue went up to $498 million – a five per cent or $23 million increase – as compared to the same period last year.

Growth in loans drove net interest income to $340 million.

Vice president Gayle Pazos said, despite covid19, Scotiabank continued to perform well.

“We have, during this time, taken steps to reposition and strengthen the foundation of the bank, bringing stability and resilience that will serve us for years to come.”

The bank’s efforts have resulted in recognition in several areas including being named as one of the best workplaces in the Caribbean and Central America for 2022 by Great Place to Work. It was also given accolades from Global Finance, Latin Finance and the Banker, who named the it best bank of the year.

Global Finance also awarded Scotiabank the best digital bank and it received the Brandon Hall Gold award for employee engagement.