Published: Friday December 5, 2008
Scotia DBG Investment Limited (SDBG) has, for the first time, recorded net pro-fit above one billion dollars, a performance chief executive officer Anya Schnoor has credited to growth in funds under management and growth by acquisition.
ScotiaDBG reported net profit of $1.2 billion at financial year ending October 31, 2008.
"This reflects a credible performance for Scotia DBG," said Schnoor.
"Despite a challenging fiscal year both in Jamaica and the financial markets worldwide, we managed to produce a record year of profitability."
Schnoor and her team grew profit by 81 per cent, due in part to the merger of Scotia Jamaica Investments Management Limited (SJIM) into Scotia DBG, and general growth in product lines the company reported.
Schnoor has indicated that the company will continue to build on the strategies that worked so well in the year just ended.
"During 2009, the focus will be on expanding our distribution channels in partnership with the overall Scotia Group, looking for ways to make the organisation more efficient and bringing to the market products and services which meet the demands of our clients," she told the Financial Gleaner.
Net profit increase
The increase in net profit generated earnings per share of $2.93.
Net interest income for the reporting period amounted to $1.96 billion.
Gains were also reported on securities and foreign currency trading bringing the company's total operating income to approximately $2.6 billion.
According Scotia DBG, which is among the top ten brokerage houses, the focus going forward will be on the continued restructuring of the operation.
The company has already sold its Trinidad branch to Scotiatrust and Merchant Bank Trinidad and Tobago Limited, but did not disclose the price.
The Trinidad operation repre-sented less than one per cent of the company's revenue.
With the acquisition of SJIM by Scotia DBG funds under management moved to $84.5 billion, while its branch network grew from seven to 19 access points, leveraging on its connection with parent company Scotia Group Jamaica.
The company has approved a dividend of 27.5 cents per stock unit, totalling $116 million, payable in January to shareholders on record as at the end of December.