Scotiabank T&T Ltd (The Group) is reporting improved profits for the first nine months of the year. According to the bank it has realised income after tax of $521 million for the nine months ended July 31, 2022, an increase of $59 million or 13 per cent over the same period ended July 31, 2021.
Income after tax for the quarter was $164 million, $7 million or five per cent more than the quarter ending July 31, 2021.
“Our improvement over the prior year is driven by continued increases in core banking activity as we see a return to normal operating conditions following the lifting of COVID-19 restrictions,” the bank explained in a statement.
It also noted the improvement in profitability has resulted in an increased return on equity from 14.5 per cent in 2021 to 16.2 per cent in 2022 and an increase in return on assets from 2.3 per cent in 2021 to 2.8 per cent in 2022.
Commenting on the results, Managing Director of Scotiabank T&T Ltd Gayle Pazos said, “We are pleased to announce another solid third quarter performance by Scotiabank. We continue to see a steady rise in loans to customers, recording an increase of $1.3 billion or eight per cent over the last nine months and driving total asset growth by six per cent when compared to the same period in 2021.....Of this $1.3 billion, consumer loans represent $818 million, corresponding to our best performance since 2016.”
She added the bank continues to make its products and services more accessible and convenient for customers, noting that this quarter, Scotia launched a “Basic Access” Deposit Account supporting self-employed and micro enterprises customers.
Scotia Insurance also launched a suite of new products—Scotia Elevate, Scotia Platinum and Scotia Legacy.
“These additions to our product offerings will deliver enhanced features to our customers while broadening their deposit capabilities, insurance protection and retirement options,” Pazos added.
Looking forward, she said Scotia is encouraged by the increased economic activity resulting from higher energy commodity prices and the final roll back of COVID-19 measures, albeit tempered by continued inflationary pressures and supply chain issues experienced globally and locally.
Regarding total revenue, comprising net interest income and other income, this was $1.4 billion for the period ended
July 31, 2022, an increase of $133 million or 10 per cent over the last year.
Net interest income for the period was $916 million, $12 million or one per cent lower when compared to the same period last year, driven by a decline in the loan portfolio during 2021, together with continued margin compression due to competitive pricing pressures, the bank said.
Scotia also noted core banking revenues continue to recover, driven by other income growth of $145 million or 39 per cent to $520 million in 2022 as it saw increased activity in both retail and commercial segments.