Scotiabank records drop in profit in second quarter

Scotiabank TT Ltd has reported a $12 million decrease in profits for this second quarter, which ended in April. In 2022, it recorded $356 million after tax, compared to this year, in which it recorded $344 million.

In a release, Scotiabank said notwithstanding the lower profitability, it has seen an improved return to its shareholders, with year-to-date dividends of $1.40, compared to $1.30 paid in 2022.

It also reported a decline in return on equity, which stood at 16.8 per cent last year, compared to 15.9 per cent this year, and in return on assets, which was 2.6 per cent last year, compared to 2.4 per cent this year.

The group financial performance recorded total revenue as $974 million, an increase of $22 million or two per cent over last year. Return on equity was 15.93 per cent compared to 16.79 per cent and return on assets was 2.44 per cent compared to 2.61 per cent. Its total equity was $4.4 billion, an increase of $71 million or two per cent when compared to last year.

Commenting on the results, Gayle Pazos, managing director of Scotiabank, said, “Despite inflationary pressures impacting our expense profile, I am pleased with the group's core performance.

"Operational revenue continues to improve, with net interest income improving by 16 per cent year over year and four per cent over the last quarter. Retail and commercial loans collectively grew by $1.5 billion or 9 per cent, demonstrating the strength of our business lines, the confidence that our customers continue to place in us and our commitment to our market.”

Its net interest income for the period was $695 million, an increase of $98 million or 16 per cent, driven by growth in loans to retail and corporate/commercial customers combined with improved yields on the group’s investment portfolio.

She added that Scotiabank has launched new tools and offered dedicated support to Scotia Access customers at the touch of a button through the Scotia app.

“We are first to the local market with this digital functionality, enabling our Scotia Access customers to have instant messaging, voice and video calling with their designated advisers within our secured banking platform,” said Pazos.

She said customers continue to embrace the platforms, since there has been a record digital adoption of 51.7 per cent, while digital transactions stood at $2.4 million, a 20 per cent increase year over year.

Pazos added, “We see ourselves as an important part of the economic and social fabric of the communities in which we operate and we take our responsibility seriously. As part of our Environmental, Social and Governance (ESG) strategy, our aim is to help educate the public and our employees on some of the most pressing environmental issues we face and raise awareness of the opportunities that exist in our day-to-day lives to make more sustainable choices.”

As part of the company’s commitment for this year’s Earth Day, on April 22, it and its partners led seedling distribution drives in local communities which made a positive contribution to food sustainability and carbon capture.