Scotia Group Jamaica is reporting  net income of J $17.2 billion for the year ended October 31, 2023, representing an increase of $6.9 billion or 67% over the previous year.

 The Group’s performance continues to be anchored by solid growth across all business lines, prudent risk management and efficient management of its operations. In keeping with its commitment to deliver shareholder value, the Board of Directors approved a dividend of 40 cents per stock unit in respect of the fourth quarter, which is payable on January 19, 2024, to stockholders on record as at December 28, 2023.

Commenting on the Group’s results, President and CEO Audrey Tugwell Henry said:  “We are extremely proud to deliver a stellar year’s performance to our shareholders. Our results can be attributed to the alignment and strong implementation of our strategic imperatives, which consisted of 2 main tenets –

• creating a winning team culture where our staff can be their best every day and
• maintaining an unrelenting commitment to helping customers achieve their financial goals.

“The growth in the business has been significant and is underscored by the deliberate actions in every area of our business to be the preferred financial institution in Jamaica. We are committed to delivering a consistent best-in-class service, and relevant innovative financial solutions.

Group Financial Performance

“Our strong performance for the year yielded a return on average equity of 15.15% versus 9.43% in the prior year, a marked improvement of 5.72%. Our asset base grew by $70.3 billion or 11.8% to $664.7 billion as at the end of the fiscal year and was underpinned by the excellent performance of our loan portfolio.

Shareholders’ equity available to common shareholders increased by $20.2 billion or 19.0% when compared to October 2022. We continue to maintain strong capital adequacy, exceeding regulatory capital requirements in all our business lines, and our strong capital position also enables us to capitalize on any growth opportunities which emerge in the market. The Group’s expected credit losses for the year showed a reduction of $661.5 million or 21.6% when compared to the previous year. Credit quality remains very strong, and we are well provisioned for both our performing and non-performing loans. Our non-accrual loans as a percentage of gross loans was 1.64% and was lower than the prevailing industry average of 2.46% as at September 2023.”

Business Line Performance

All business lines within the Group have made a strong contribution to the overall results.  Scotia’s deposit book continues to grow .Total deposits grew by 12.7% when compared with the previous year while total loans increased by 14.6% year over year.2

The  retail business, continues to see significant growth in mortgages which increased by 25% when compared with prior year. 

This continued growth is indicative of the demand in the market, competitive rates as well as Scotia’s very streamlined mortgage process.

Commercial banking also delivered outstanding results with commercial loans increasing over prior year by 12%. Scotia’s relationship managers have consistently delivered positive results by understanding the needs of its  business customers and providing solutions to facilitate their growth and development.

Audrey-Tugwell Henry continued: “As we continue to promote a balanced financial portfolio, our wealth and insurance businesses continue to offer real value to our customers. This year, we re-affirmed the importance of adequate protection through our insurance subsidiaries. Our life insurance arm – Scotia Jamaica Life Insurance Company reported an increase in net insurance revenues of 105% year over year.

Key to their performance were product enhancements for flagship products such as ScotiaCriticare as well as our Approved Retirement Scheme, ScotiaBRIDGE.”

“Our newest subsidiary, Scotia General Insurance Agency (ScotiaProtect), generated $400 million in annualized premiums in its first year of operation as customers positively responded to our strong value proposition.

Scotia Investments made a strong contribution to the Group’s performance despite the challenging macro-economic conditions. Assets under Management increased by $11 billion or 6% year over year. Additionally, all Scotia Investments mutual and unit trust funds continue to deliver good returns to unitholders. Our stable NAV fund, the Scotia Premium Money Market Fund recorded a 1-year return of 7.3%, delivering returns exceeding the inflation rate (5.1%) for the 12-month period. Our Scotia Money Market US$ Fund also delivered returns of over 4% to unit holders over the last 12 months.”