Scotia surges with headline profits of $17.2 billion Loop Jamaica

The content originally appeared on: Jamaica News Loop News

Scotia Group has reported headline profits $17.2 billion for the year ended October 31, 2023, representing an increase of 67 per cent over the previous year in a performance buoyed by growth across all its business lines. 

“We are extremely proud to deliver a stellar year’s performance to our shareholders,” said Audrey Tugwell Henry, President and CEO.

She attributed the positive results to the effective alignment and robust implementation of strategic imperatives, particularly emphasizing a winning team culture and commitment to assisting customers in achieving their financial goals.

Tugwell Henry highlighted the significance of deliberate actions taken across all facets of the business to establish Scotia Group as the preferred financial institution in Jamaica.

In the retail sector, Scotia reported substantial growth, with mortgages seeing a 25 per cent increase compared to the previous year. The success is attributed to market demand, competitive rates, and an efficient mortgage process. Commercial banking also posted outstanding results, with commercial loans rising by 12 per cent year-over-year.

Notably, the group achieved a 21.6 per cent reduction in expected credit losses for the year, totalling $661.5 million compared to the prior year. Credit quality remains robust, with well-provisioned resources for both performing and non-performing loans.

Scotia’s deposit book witnessed a 12.7 per cent growth, reflecting customers’ trust in the institution to manage their finances. Total loans also increased by 14.6 per cent year over year.

The life insurance arm, Scotia Jamaica Life Insurance Company, reported an impressive 105 per cent increase in net insurance revenues year over year. This success is attributed to product enhancements for flagship products such as ScotiaCriticare and the approved retirement scheme, ScotiaBRIDGE.

Scotia’s newest subsidiary, Scotia General Insurance Agency (ScotiaProtect), generated $400 million in annualised premiums in its inaugural year of operation.

Despite challenging macroeconomic conditions, Scotia Investments made a substantial contribution to the group’s overall performance. Assets under Management increased by $11 billion year over year.

The group’s asset base expanded by $70.3 billion or 11.8 per cent, reaching $664.7 billion at the close of the fiscal year.