Feb 2012 Financial News

Scotia records $544m profit for 2011

Feb 24, 2012

Scotiabank Trinidad and Tobago Ltd has posted a $544.3 million after-tax profit for its year ended October 31, 2011.

At the bank's annual general meeting at the Hyatt Regency (Trinidad), Port of Spain yesterday, managing director Richard Young said this was a year-on-year increase of 6.89 per cent.

Shareholders received a 41 per cent share of the bank's profit, although at least one shareholder questioned why this was not 60 per cent like some other financial institutions.

Scotiabank chairman Brian Porter responded that dividends were paid out in a range of below 40 and above 50 per cent at different times in a cycle.

"We are concerned about overall economic outlook. We are comfortable with our capital levels, liquidity levels, risk profiles and we have good debates about dividend payoffs," he said, adding that it may not be sustainable to pay such high dividends in the long run.

Porter said what was of concern was the excess liquidity in the Trinidad and Tobago market.

"We would like to see loan demand grow to more normalised levels and then we will feel more comfortable about increasing the dividends and we believe that is being prudent," he said. Despite low overall domestic loan demand, the bank reported that net loans at the end of fiscal 2011 stood at $10.7 billion, an increase of 2.9 per cent.

Managing director Young said there had been a compounded annual growth rate for shares of 20 per cent over the last ten years, with shareholders now receiving $1.28 per share. He added that the collective market value of the bank's shares was $9.2 billion ($51.95 per share).

"We are very proud of our results in Trinidad and Tobago, as exhibited today by our long-term return to our shareholders. We are executing our strategy and will continue with that," said Porter.


Source:
Trinidad Express
Friday February 24, 2012

http://www.trinidadexpress.com/business/Scotia_records__544m_profit_for_2011-140386013.html