Durrant Pate/Contributor

Scotia Group did not ride 2025 as high as it did in 2024, ending with dwindling profitability of J$19.9 billion for the year ended October 31, representing a J$256.3 million or 1.3 per cent decline over the J$20.15 billion recorded last year. 

The fourth quarter was less than impressive with J$5.13 billion, down from the J$ 6.16 billion posted for October 2025 and was even lower than the J$5.55 billion posted for the previous quarter in July 2025. The group’s asset base grew by J$68.8 billion or 9.8 per cent to J$773.8 billion as at October 2025 and was underpinned by the excellent performance of its loan portfolio. 

Aligning with the objective to return value to shareholders, the board of directors has approved a dividend of 45 cents per stock unit in respect of the fourth quarter, which is payable on January 21, 2026, to stockholders on record as at December 30. Scotia’s credit quality remains strong with no material changes year over year in total non-accrual loans (NALs), which as at October 2025 totalled J$4.8 billion, down from J$5 billion as at October 2024. 

The group’s NALs represent 1.3 per cent of gross loans (October 2024 – 1.6 per cent) and 0.6 per cent of total assets (October 2024 – 0.7 per cent). Of note, Scotia’s NALs as a percentage of gross loans continue to be below the industry average (September 2025 – 2.7 per cent). The group’s accumulated credit loss provisions (ACLs) for loans as at October 2025 were J$5.9 billion, representing 123.3 per cent coverage of total non-performing loans.

Revenue performance

Total revenues excluding expected credit losses for the year ended October 31 grew by J$4.3 billion to J$67.6 billion, reflecting an increase of 6.8 per cent over the previous year. This was primarily driven by the strong growth in the banking group’s loan portfolio, resulting in an increase in net interest income of J$3.7 billion or eight per cent, coupled with an increase in other revenue of five per cent. Other income, defined as all revenue other than interest income, increased by J$1 billion or five per cent. 

• Net fee and commission income of J$7.2 billion was on par with prior year. 

• Net insurance revenue increased by J$846.2 million or 33.2 per cent, driven by higher contractual service margin releases, lower insurance expenses in keeping with the performance of the portfolio, as well as an increase in transaction volumes stemming from further deepening of our client relationships. 

• Net gains on financial assets amounted to J$526.5 million, reflecting a year-over-year increase of J$109.5 million or 26.3 per cent, given improved market performance. 

However, operating expenses ballooned to J$35 billion as at October 2025, reflecting an increase of J$5.6 billion or 19 per cent when compared to prior year. Of note, annual asset taxes recorded during the year totalled J$1.7 billion, an increase over 2024 of J$98.6 million or 6.4 per cent. Excluding the reduction in the net pension credit on Scotia’s defined benefit plans and provisions recorded in relation to operational efficiency projects, operating expenses increased by J$3.9 billion or 12.5 per cent year-over-year. 

Additionally, higher billings associated with cash-in-transit services and deposit processing, as well as investments in technology, also contributed to the increase noted in operating expenses. Scotia Group Jamaica says it continues to expand its digital capabilities geared towards simplifying and streamlining processes to make it easier for clients to do business.

Business performance 

The management reports that all business lines delivered consistently strong performances during the quarter and throughout the year, resulting in total revenues of J$67.6 billion, a 6.8 per cent increase over prior year. During the fourth quarter, the banking group recorded non-recurring expenses totalling J$817 million, which included charges related to efficiency efforts, a write-down of physical assets and credit provisions related to Hurricane Melissa. 

The management believes it was prudent to take additional provisions, considering the unprecedented impact of the hurricane. Total deposits increased to $529.8 billion, reflecting a significant year-over-year growth of 11.3 per cent, signalling sustained client confidence in the group. Furthermore, the Scotia Plan Loan portfolio expanded by an impressive 16 per cent, while the mortgage portfolio recorded a substantial 20 per cent growth over the previous year, demonstrating the strength in meeting client needs to finance the acquisition of key assets. 

The commercial banking segment continues to advance on its strategic objective to grow primary client relationships. This approach, the Audrey Tugwell-Henry led management has delivered steady growth in deposits, which increased by 10 per cent year-over-year, underpinned by rising transaction volumes through our secure digital channels. Additionally, commercial loan growth year-over-year reflects the group’s ongoing support for the business sector with capital deployed to facilitate investments in the productive economy. 

Scotia Investments Jamaica Limited (SIJL) delivered a robust performance with Assets Under Management increasing by 12 per cent year-over-year. SIJL also improved account accessibility through the Scotia Caribbean Banking App and online banking platform, where clients can now view their investment portfolios.  Scotia Jamaica Life Insurance reported a significant increase in net insurance business revenue of 33 per cent and an increase in gross written premiums of eight per cent over the previous year, driven by the performance of the portfolio. 

Scotia General Insurance Agency also performed well, with gross written premiums increasing by 59 per cent and policy sales up 54 per cent year-over-year. During the period, the group was recognised with an unprecedented number of prestigious awards from both local and international organisations, acknowledging excellent business performance and impact. 

Accolades won in 2025

• Euromoney Best Bank Award 2025
•  Global Finance Awards » Best Bank » Best Corporate / Institutional Digital Bank » Best Consumer Digital Bank » Best Mobile Banking App 
•  World Finance Pension Award – Best Pension Fund in Jamaica and the Caribbean 2025
• The Banker – Bank of the Year 2025 
• Latin Finance – Bank of the Year 2025
• Jamaica Chamber of Commerce – Best of Chamber (Extra Large Enterprise) Award 

These accolades affirm the Scotia Group’s unwavering dedication to delivering superior financial services and its vision of being the leading financial institution in Jamaica.