Mixed reactions from shareholders at Scotiabank's AGM

SHAREHOLDERS had mixed reactions to Scotiabank’s financial results, which were revealed to them during the bank’s annual general meeting (AGM) at the Hyatt Regency, Port of Spain, on March 11.

Despite the bank reporting increases in profits after tax, some shareholders questioned the level of performance of the bank, with one questioning whether the bank’s performance has plateaued.

The board revealed that Scotiabank reported a net income after tax of $658 million for the year ending October 31, 2024.

The result was an increase, according to the board, of one per cent or $3 million.

Chief Financial Officer Reshard Mohammed said it was the third successive year the bank posted a profit before tax of more than $1 billion.

"The 2024 performance was characterised by strong growth in lending activities across key segments," Mohammed said.

He added that total revenue for the year was $1.9 billion, a $67 million or four per cent increase over the same period the year before.

The group’s total assets stood at $31.5 billion for the year, a $1.8 billion or six per cent increase over the year before.

However, Mohammed noted that changes in market conditions and inflationary pressures offset the bank’s growth.

While shareholders commended the bank’s performance, one shareholder, Sheldon Edwards, raised the question of the percentage of profits noted in the bank’s financial report.

He said the $3 million increase in profit posted in the bank’s financial reports was not one per cent but actually 0.48 per cent.

Mohammed admitted that the actual percentage was rounded off.

Edwards then questioned the company’s performance, noting that other banks had much higher profit margins while Scotiabank's profits had been "flat."

"When you are in the banking and finance sector and you are reporting a lack of profits or no growth, like this, it's unsustainable," he said.

Another shareholder, Aaron Housein asked about dividends and earnings per share, noting the bank had recorded a 26 per cent increase in earnings per share and dividends over the last five years.

"Clearly bankers have not made any great profits, it’s just marginally increasing dividends. How does the bank plan to grow in the next five years if the intention is only staying in TT, where the economy will be weaker for the next few years?"

In response, Mohammed explained that profits in other banks were higher because they are holdings companies and therefore reported profits from their assets outside of TT.

Meanwhile, Scotiabank’s financial report is based on TT alone.

He added that despite the figures being restated in accordance with the new international financial reporting standards, resulting in different figures than what was previously stated, the bank remains committed to growing.

"We are constantly looking for ways of improving financial performance," Mohammed said. "We continue to look at the key operating metrics to ensure we are going to be improving those things like return on assets, return on equity and operating efficiency. Rest assured that the management team and the board have the fullest commitment to ensuring a sustainable growth of profitability in future."

At the AGM, the board also announced that Anya M Schnoor, who joined the bank in 2006, has retired effective March 11.

Scotiabank chairman Derek Hudson said she has been appointed in a new role as executive vice president for global insurance.

"Thank you very much for your invaluable contribution to Scotiabank TT over the last 12 years. It has been absolutely tremendous," Hudson said.

The board also recommended Jabar Singh be appointed to the board of directors.

"Mr Singh is the president and CEO of Scotiabank Colpatria and leads the Caribbean and Central American region. He is a seasoned leader with extensive experience across the bank's various business lines and countries," Hudson said.