16% rise in Scotia Group Q2 profit

Scotia Group reports a 14 percent increase in profit compared to the period in 2016. The banking group added $718 million more in profit to $5.7 billion for the six months to April 2017 over 2016.
Net income for the second quarter rose 16 percent to $3.4 billion, versus $2.94 billion in the same period in 2016. Total revenues for the April quarter amounted to $16.7 billion while in 2016 the group generated revenues of $11 billion while revenues for the six months ended at $23 billion versus $21 billion.
“The positive movement was achieved through increased loan and transaction volumes across our business lines,” the Group stated in a report accompanying the results. Net interest income after impairment losses for the six month period was $12.2 billion, $399 million or 3 percent above the same period in 2016
“Net fees and commission income amounted to $4.4 billion, driven by higher transaction volumes and the growth in our credit card, merchant services, and asset management business. Insurance revenue increased by 31% given the growth in core insurance business and actuarial reserve release from changes in assumptions on valuation of the portfolios. Net gains on foreign currency activities and financial assets amounted to $1.3 billion based on trading volumes,” the Group stated.
Operating Expenses amounted to $11.1 billion for the six month period, an increase of $300 million or 3 percent compared to prior year. Salaries and staff benefit costs increased by $201 million, which was offset by lower other operating expenses of $87 million. Asset tax increased by $112 million or 12% to $1.1 billion due to the increase in the Group’s assets.
Impairment losses on loans amounted to $975 million, up $367 million from last year as higher write-offs on unsecured retail loan portfolio grew by $7 billion or 4 percent year over year, with loans after allowance for impairment losses, increasing to $164.2 billion.