Scotia Group reports net income of $14 billion for the nine months ended July 31, 2024, representing an increase of $1.4 billion or 11.4% over the comparative prior period.

Net income for the quarter of $5.5 billion reflected an increase of $41.5 million over the previous quarter. 

Its asset base grew by $48.7 billion or 7.6% to $692.2 billion as at July 2024 and was underpinned by the performance of its loan portfolio.

 Deposits from clients increased by $27 billion or 6.1% to $472.2 billion.

The Board of Directors has approved a dividend of 45 cents per stock unit in respect of the third quarter, which is payable on October 18, 2024, to stockholders on record as at September 26, 2024 (Q2 2024 – 40 cents).

Commenting on the Group’s performance, President and CEO of the Scotia Group, Audrey Tugwell Henry said, “We are very proud of our business performance for the quarter. The Group’s performance continues to reflect growth across our business lines, prudent risk management and efficient management of our operations. Our growth underscores the successful execution of our strategic initiatives and our commitment to delivering relevant financial service solutions to our clients as well as strong returns for our stakeholders.

“This was a challenging quarter as Jamaica navigated the effects of Hurricane Beryl. We are pleased that we were able to offer appropriate financial solutions to assist our clients to manage through the difficult circumstances.

“One of our strategic objectives is to make it easy for our clients to do business with us. To support this objective, we continue to make significant investments in optimising our network. During the quarter we concluded maintenance work on all our ABMs and started the process of rolling out 58 new ABMs to replace older ABMs in our fleet. When completed, this will lead to a marked improvement in overall access and client experience at the channel.

“Additionally, in recognition of the importance of the branch experience to our overall client experience, we were very pleased to complete renovation works at our University of the West Indies, Port Maria, Falmouth and Portmore branches in recent months.”

The group’s strong business and financial performance have earned international recognition and accolades. During the quarter, the institution was recognised as Best Bank for 2024 by the acclaimed Global Finance and Euromoney publications. Additionally, the Bank also won Best Digital Bank by Global Finance Magazine.

The Scotia Group boss continued,” As we move into our final quarter of the financial year, we remain optimistic about the future, as our team of professional Scotiabankers continues to deliver best-in-class financial products and services to our clients.”

Business Performance

All business lines reported strong performances during the reporting period despite the challenges in the market. 

Total loans have grown steadily throughout the year and increased by 13.5% versus prior year. This includes a 12% increase in Scotia Plan Loans and an impressive 25% increase in the mortgage portfolio.

Improvements in service delivery along with competitive interest rates have positively contributed to these results and we look forward to maintaining this performance throughout the remainder of the fiscal year. Commercial loans also performed well resulting in a 5% increase year-over-year due to steady demand for our high-quality commercial solutions.

Scotia Investments Jamaica Limited’s (SIJL’s) Assets Under Management increased by 12% over prior year, demonstrating both its management expertise and investor confidence. SIJL continues to support clients in growing their wealth through various initiatives. 

During the quarter, SIJL hosted a Global Investment Advisory Summit which brought together key investment experts to discuss global and local economic opportunities and investment advice.

Both of the group’s insurance businesses yielded commendable results during the quarter. Scotia Jamaica Life Insurance Company (SJLIC) delivered net insurance revenue totalling $1.7 billion, representing a year-over-year increase of 10%. Gross Written Premiums increased by 6% while the number of policies sold increased by a strong 22% versus the prior year. 

Scotia Protect continued to assist clients with the protection of their assets through its home, contents and auto insurance products.

The business turned its attention to financial education efforts during the quarter, encouraging adequate asset protection especially as the frequency and severity of natural disasters are expected to increase. Sales at Scotia Protect increased by 148% while Gross Written Premiums increased by 157% when compared with the previous year.