Jun 2016 Financial News

Scotiabank's income jumps 19%

Jun 09, 2016

Scotiabank recorded a 19 per cent jump in its net income for the six-month period ending April 30, 2016, with its after- tax profits increasing to $308 million in 2016, compared with $260 million in 2015.

The Canadian bank’s increased profitability was partly due to higher total revenue for the six-month period, with net interest income and other income up by 12 per cent to $787 million. The double-digit profits was also driven by an improvement in the bank’s efficiency ratio, (total non-interest expense/total revenue) which moved from 46.8 in April 2015 to 43.3 in April 2016.

The bank’s return on equity improved from 14.73 per cent in the first six months of its 2015 financial year to 16.75 per cent in the same period in 2016. It’s return on assets also improved.

Speaking at a media briefing and partner appreciation event on Tuesday, Scotiabank’s chairman Brendan King said the bank is in the process of introducing a digital transformation for its customers in T&T.

This will lead to routine transactions—such as balance enquiries, bill payments and remote deposits—taking place outside of branches, either online, online, on mobile devices or at ATMs. King said that Scotiabank’s branch network will continue to be an important channel to serve customers, but will adapt and evolve.

“To this end, we are re-designing our branches to provide financial advice more effectively and to conduct the declining volume of day-to-day transactions more efficiently,” said King.

The digital transformation of the bank will mean less time and hassle to complete mortgage, credit card and small business loan applications He said the new branch formats will be rolled out throughout the Caribbean starting in Barbados within the next six months. He said the new branches will be smaller and staffed diffently.

Asked whether staffing the bank’s smaller branches differently would mean a reduction in the head count at Scotiabank, the bank’s managing director Anya Schnoor spoke of change and the bank growing in different ways. She also said the introduction of new technologies would reduce costs for customers.

Source:
Trinidad Guardian
Thursday June 9, 2016

http://www.guardian.co.tt/business/2016-06-09/scotiabank%E2%80%99s-income-jumps-19