Two years ago, Scotia Group Jamaica saw a 14 per cent increase in its mortgage book of business.

Year to date, it has increased by 25 per cent as those looking to own their homes turn to the safety and security of Scotiabank.

While the economy has been anaemic and interest rates remain elevated, these factors did not inhibit Scotia Group Jamaica’s mortgage business in 2024. It is proving a happy hunting ground.

Speaking at a press briefing on Monday in typical diplomatic style, President and CEO of Scotia Group Jamaica Audrey Tugwell-Henry did not take all the credit for this performance, singling out Head of Retail Perrin Gayle for commendation here.

“Remember we have 28 branches across the island and a team of well trained professionals. We decided a few years ago that homeownership and, by extension, mortgage is important to every Jamaican. Our decision was to help Jamaicans realise that dream, so we built up a mortgage process that was robust, including the risk assessment process. We then moved forward to deliver that product to our clients, bearing in mind we have 750,000 customers in our portfolio. We have been around for a very long time and have built deep relationships,” she explained

“By focusing on that primary need of our clients and having the balance sheet to support it, where we could offer mortgages at a rate clients find attractive, using a process that is simple and straightforward, having the risk-management tools and framework to make the assessment, thus ensuring when we make that evaluation of the client, he or she should be able to met that obligation. It was a number of elements that came together for us. For the period under review, not only did we produce a solid performance by the bank, but even more important for us is helping thousands of clients meet that goal of home ownership,” Tugwell-Henry continued.

“When we talk about deepening the relationship with our clients, it doesn’t get any deeper than helping somebody get into their home. We took a strategic approach in meeting those core financial needs of our clients. We continue to build from strength to strength.”

Scotia Group Jamaica’s loan portfolio increased by $34.8 billion or 13.5 per cent compared to July 2023 with loans net of allowances for credit losses increasing to $291.6 billion. For the same period last year, Scotia posted a figure of $256.9 billion for loans (net of allowances for credit losses). Its core loan book continues to perform with consumer loans up by 12.4 per cent.

Its loan book growth has been impressive. For Q1 this year, loan growth came in at around $6 billion, $6.9 billion in Q2 and $9.3 billion in Q3.

Can it continue to grow this arm of the business at such pace, particularly in an environment which will see interest rates coming down?

The Scotia Group Jamaica boss responded, “When we look at how we positioned ourselves in the market, a number of things come into play. We ticked the box of having a strong balance sheet, which is well managed, and we can support the growth. The other things we have to look at is where are the clients? What is happening in the market? How will the exogenous factors impact us? Assuming the economy continues to do well and people are being employed, yes, we will continue to grow and tick that other box. We fund our own business, so we can tick that box as well. That is why we have been able to manage the pricing. We don’t necessarily have to borrow the money to then on-lend to our clients.

“At the start of the year, when Scotia talked about its global strategy and its area of focus, it was Canada, the United States, Mexico and the Caribbean. Jamaica is an important part of the Caribbean. So when the head of Scotiabank speaks about the Caribbean as being one of its core areas to focus upon, it means the market interrupts that as there will continue to be investments in the Caribbean and there is an expectation of sustainable revenue growth and strong financial performance in the Caribbean. When we look at our five-year plan, growth is part of it and we think about growth from the client’s perspective. We know that we offer a strong, competitive, viable option for Jamaicans. Jamaicans will continue to overwhelmingly opt for Scotiabank. We have the products, the services, the pricing, the professional expertise to continue to meet the needs of our clients.”