Mar 2016 Financial News

Scotiabank income increases to $566.1m

Mar 09, 2016

Scotiabank T&T’s managing director Anya Schnoor says the bank’s “well defined acquisition strategy” contributed to growth in loan assets and revenue during 2015.

In her report to shareholders at the bank’s annual general meeting at the Hyatt Regency in Port-of-Spain yesterday, she said: “In 2015, we leveraged the ideal of a local bank with global reach and experience, partnering with companies such as Touchstone Exploration (Trinidad) to execute our first ever reserve based lending solution used in T&T.

“Another is our partnership with Trinidad Offshore Fabricators Company Ltd in financing the fabrication of bpTT’s Juniper platform.”

Scotiabank recorded income after tax of $566.1 million for the period ended October 31, 2015—up from $559.9 million for the previous year. Its retail, corporate and commercial banking segment attracted $1.2 million in revenue.

Schnoor said the insurance segment sold more than 11,000 policies for the first time in its history and recorded an 18 per cent growth in gross premium income.

“Net income after tax increased 13 per cent compared to the prior year. The insurance business line now accounts for approximately 20 per cent of group after tax profits,” she said

At the close of 2015, the bank’s asset base had increased to $22.16 billion from $20.68 billion in 2014.

Asked whether the recession and falling oil prices were affecting the bank’s local and regional operations, Schnoor and the Barbados and Jamaica economies are doing a lot better than they were a few years ago and Scotiabank continues to experience growth in those countries.

On the issue of interest rates, she said trends for the past year showed that they “have started to move up somewhat but that is after an extended period of declines in interest rates for a number of years.”

“We are seeing mortgage rates in low single digits, something which T&T hasn’t seen in a long time. The environment may change in the future as interest rates seem to be moving up,” she said.

Newly appointed chairman Brendan King said the T&T market has gone through good times and bad over many years and so has the bank.

“I think the people and businesses here are resilient. I think we have already seen actions being taken to try and mitigate any issues and we stand ready to help our customer through any difficulties that they may face.”

King said the biggest challenge for Scotiabank is “to be prepared for the adjustments that are coming.”

He said for 2016 the bank plans to improve its customer service as it continues to operate in a contracting economy.

Source:
Nadaleen Singh
Trinidad Guardian
Wednesday March 9, 2016

http://www.guardian.co.tt/business/2016-03-08/scotiabank-income-increases-5661m