Scotia Group quarterly profit wanes to $3b

Scotia Group Jamaica Limited’s profit slowed marginally to $3.13 billion for the first quarter ending January, reflecting a seven per cent dip.

The operator of Jamaica’s second largest bank raked in more at the top line in the quarter, outperforming the year-prior period by 8.5 per cent to deliver $14.9 billion in revenue from its banking, investment services and insurance operations. The improvement resulted from increases in loans and gains from foreign currency activities. But higher costs, in particular salaries, dragged down the group’s profit.

Scotia Group did not focus on the profit slide. Instead, the banking group touted the growth in its overall loan portfolio, which was up 17 per cent, the 24 per cent increase in its mortgage loan line, the 12 per cent growth in customer deposits and the pending distribution of dividends to shareholders.

“This was predominantly due to increases in net interest income, stemming from loan growth in our portfolio,” said Scotia Group President and CEO Audrey Tugwell Henry regarding the first quarter results in remarks at the banking group’s annual general meeting in New Kingston on Thursday.

“We are looking forward to the remainder of the year and building on the momentum that we have achieved in the first quarter,” she said.

On April 17, Scotia Group will distribute 40 cents per share to owners of the stock. While the declaration is in line with the interim payment in the prior quarter, it is higher than the 25 cents per share distributed in the corresponding period in 2023. That distribution was the second lowest quarterly payment since the pandemic, the lowest being a 10 cent distribution towards the end of 2020 which was made amid pressure for the banking sector to safeguard cash to cope with the crisis.

The pending distribution to shareholders in April will amount to around $1.24 billion.

Scotia Group is now a $666 billion operation by total assets, having improved its holdings by 11 per cent in the past year, partly due to growth in its main line of business: loans.

steven.jackson@gleanerjm.com