Sep 2016 Financial News

Scotia Investments records $356m 3Q profit

Sep 19, 2016

Scotia Investments Jamaica Ltd (SIJL) has reported profit of $356 million for its third quarter ending July 2016, an increase of $73 million or 25.8 per cent over the comparable period in 2015.

The growth in profit was attributable to fee and commission income which increased by $48.9 million to $324.9 million year over year, in addition to foreign exchange trading commission and gains on financial assets which grew five times as great to $157 million for the three months ending July. However, the company – a subsidiary of Scotia Group Jamaica Ltd – burned $37 million more in operation expense to post $402 million for the period.

“We are pleased to report that the company recorded strong performance for the nine-month period to date, buoyed by a 27 per cent increase in non-interest revenues when compared to the same period last year,” CEO Lissant Mitchell stated in statements accompanying the company financials.

“The asset management business, a key business line for the company, continues to show solid growth with a 15 per cent growth in the net asset value of assets under management, and 11 per cent growth in the associated revenues,” he continued.

Assets under administration, including the company’s custody book, grew to $177.34 billion as at July 31, 2016, an increase of $25.72 billion or 16.96 per cent year over year. According to SIJL, the increases were noted in over 85 per cent of the products offered.

Scotia Premium US Dollar Indexed Fund, launched in the second quarter of the financial year, recorded $1.75 billion in net asset value as at July 31, 2016. Assets under administration also increased significantly by $8.43 billion, or five per cent over last the quarter.

“We have seen success in growing our total revenues, whilst managing our operating expenses reflecting an improvement in our productivity ratio to 52.97 per cent, down from the 55.01 per cent in the previous year, which is in keeping with one of our stated strategic objectives,” Mitchell told shareholders.

“For the remainder of the financial year, we will continue executing on our mandate to offer the best suite of products and portfolio management solutions to our customers, while effectively managing operational costs to ensure added value to our shareholders and staff,” Mitchell continued.

The investment arm of Scotia Group offers money market investment products, unit trust and mutual funds, stock brokerage and equity trading services, pension and asset management and cambio services.

Source:
Jamaica Observer
Sunday September 18, 2016    

http://www.jamaicaobserver.com/business/Scotia-Investments-records--356m-3Q-profit_74200