Scotiabank TT records $502m profit, down 4%

Scotiabank TT recorded a profit after tax of $502 million for the nine months ended July 31, as compared to $521 million for the same comparative period last year. This represents a four per cent, or $19 million, decrease in net profit.

The group, in its summary consolidated financial statements, said as the local economy slowly recovers from the impact of record inflation in early 2023, business activity continues to improve in both its energy and non-energy sectors, coupled with a steady demand for retail banking products.

The group recorded an increase in total revenue of $19 million or one per cent, driven mainly by substantial growth in net-interest income of $144 million, or 16 per cent, over the comparative prior year period.

“We achieved higher loan volumes in our retail and commercial portfolios, coupled with increased yields on the group’s investment portfolio,” the release said.

Growth in net-interest income was partially offset by a decline in other income of $125 million or 24 per cent over the same comparative prior year period due to lower trading revenues, aligned with prevailing market conditions.

Non-interest expenses increased by $52 million or ten per cent compared to last year, reflective of a combination of inflationary impacts on cost structure, higher activity-related costs and increased technological costs.

The group said these costs are aligned with its delivery of enhanced digital capability as well as improved quality and security of banking services to customers.

Maintaining a strong balance sheet, the group's total assets increased by $522 million, or two per cent.

“We continue to build on the momentum with another solid quarterly performance, recording strong asset growth across all core business lines with loans to customers growing by $1.4 billion or eight per cent year over year,” Gayle Pazos, managing director of Scotiabank TT, said.

The group also boasted of its 41 per cent productivity ratio and highlighted the various accolades it received this year – TT’s Best Consumer Digital Bank 2023 by Global Finance (New York) for the third consecutive year, Best Mobile Banking App and TT’s Best Bank by Euromoney.

Scotiabank TT has announced a dividend of $0.70 per share, payable to shareholders by October 9.