Friday, May 23, 2008

Scotia Jamaica's profit jumps 42% in the second quarter

Published: Friday May 23, 2008

Scotia Group Jamaica Limited yesterday reported J$2.5 billion in net income available to common shareholders for the second quarter ended April 30, reflecting a 42 per cent increase over the corresponding period in 2006.

The current year's net income includes the results of Dehring Bunting & Golding Limited (DB&G), now Scotia DBG Investments Limited, which was acquired by Scotia Group on May 1, 2007. Scotia Group's president and CEO William Clarke, cited strong growth in retail loan demand and strong repositioning in the market with the rebranding of DB&G during the quarter as contributors to the increased earnings.

During the quarter Scotia's total revenue, comprising net interest revenue and other income, was J$9.7 billion - an increase of J$2.6 billion or 37 per cent over the comparative period in 2006.

Net interest income was J$5.4 billion, up J$1.3 billion when compared to last year.

This was as a result of strong portfolio volume growth primarily in its retail portfolio, according to the banking group.

Interest income earned from securities also increased, due to improved interest margins and volume growth in the investment and repurchase agreement portfolios resulting from the acquisition of DB&G in May 2007.

Total assets increased year over year by J$66 billion or 31 per cent to J$282 Billion as at April 30, 2008. The consolidation of Scotia DBG contributed J$43 billion to the growth in assets.

The Group's performing loans were J$82 billion, up J$18 billion or 28 per cent over the previous year, as Scotia continues to experience significant growth in retail lending, and has seen an improvement in the demand for commercial loans.

Deposits grew to J$145.3 billion, up J$18 billion or 14.13 per cent from the previous year.

Scotia Group's capital base grew to J$37 billion, J$8 billion more than the prior year. This was due mainly to an increase of J$3.6 billion in the share capital of Scotia Group in May 2007 and J$3.5 billion in the retained earnings.

Source: Jamaica Observer

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