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Financial News

Aug 2009 Financial News

Scotiabank after-tax profit $330m

Aug 27, 2009

Scotiabank Trinidad and Tobago Ltd has recorded an after-tax profit of $330 million to its third fiscal quarter at the end of July.

This was an increase of 0.23 per cent over the prior year, the bank said.

"The continuing slowdown in the local economy is affecting our loan portfolio," the bank said in a statement yesterday, adding that it was being prudent by increasing its provision for impaired loans.

"Hence this quarter, further loan loss expenses were accounted for, pushing the total to $59.7 million as at July 31," the statement added.

The bank has created a Customer Assistance Programme (CAP) to offer customer-centric solutions to those who are currently experiencing a loss or reduction in income.

A number of possible solutions are available, including refinancing and rescheduling; interest only payments or payment moratoriums; or fixed payment plans.

"While this situation is unprecedented, this approach reinforces the bank's reputation as an international bank, with a long-standing commitment to the local community and our customers' long term financial well being," the bank said.

Earnings per share measured 187.1 cents, which translated into shareholders being rewarded with dividends of 25 cents per share for the three months to July 31.

This brought total dividends for the year to 75 cents per share.

Performance ratios continue to show a year-over-year decline, as waning profitability coupled with higher asset growth has been a negative factor, the bank said.

Return on Equity dropped from 26.26 per cent to 22.66 per cent, while the bank's return on assets measured 2.84 per cent compared to 3.52 per cent a year earlier.

Source: Trinidad Express
Date Published: Thursday, August 27th 2009