Scotia Group had another financially successful quarter ending April this year, with profit climbing a solid 31 percent to $5.4 billion and earnings per share (EPS) of $1.74, up from $4.1 billion in 2023, with EPS of $1.32. For the six months to April, profit rose 14 percent to $8.54 billion with earnings per share (EPS) of $2.74, from a profit of $7.49 billion in 2023 and EPS of $2.41.
Scotia Group head quarters in Kingston.
Total comprehensive income climbed to $6.65 billion in the quarter from $4.79 billion in 2023. For the half year, it fell to $2.76 billion from $3.6 billion in 2023 as other comprehensive income suffered a loss of $5.78 billion in the 2024 period and $3.86 billion in 2023 as a result of an $11 billion increase in defined benefit obligations in 2024 and $9.3 billion in 2023.
Total revenues rose 20 percent for the quarter, to $16.9 billion from $14.1 billion and climbed a solid 18 percent for the year to date, to $33.3 billion from $28.3 billion in 2023. Interest income rose 18 percent in the April quarter to $11.7 billion from $9.9 billion in 2023 and 20.4 percent for the six months to $23.3 billion from $19.4 billion.
The critical and the single most important area of the group’s operation of lending helped to deliver a 17.6 percent increase in a net interest income of $11.24 billion in the second quarter of this year, from $9.56 billion in the prior year and, it rose 18.4 percent to $22.35 billion in the six months from $18.87 billion in the 2023 half year.
According to the group directors, “Our loan portfolio increased by $35.5 billion or 14.4 percent compared to April 2023, with loans net of allowances for credit losses increasing to $282.3 billion. Our core loan book continues to perform well with mortgages increasing year over year by 24 percent, consumer loans by 13 percent, credit cards by 15 percent and commercial loans by 8 percent.” Loans grew 2.2 percent in the January quarter over October, with the pace picking up to 2.25 percent in the April quarter over January, this year, for an annualized growth rate of 10 percent.
Deposits by the public increased by 6 percent or $27 billion to $464 billion. Investment securities increased marginally to $156.5 billion from $151.6 billion last year.
Net income from foreign currency trading, fees, commission and other income went up 22 percent from $3.6 billion to $4.4 billion in the April quarter and rose 14 percent from $7.7 billion in the half year in 2023 to $8.4 billion in the current year.
Insurance activities delivered profits of $530 million for the latest quarter, up from $493 million in the previous year. For the half year, it moved to $1.05 billion, from $1.03 billion in the comparative period in 2023. Foreign currency trading gains amount to $2.23 billion in the latest quarter compared with $1.94 billion in 2023 and for the year to date, $4.56 billion in the six months to April versus $4 billion in 2023.
Credit impairment losses jumped sharply to $1 billion in the April quarter from $665 million last year to $2 billion in the half year, compared with $1.75 billion in 2023.
Segment results show Retail Banking with revenues of $11.06 billion compared with $10.1 billion in 2023 and delivered segment profit of $1.6 billion versus $2.1 billion in 2023. Corporate and Commercial banking had a 13 percent growth in third party revenues to $7.9 billion and net segment results of $7.2 billion compared with revenues of $6.9 billion in 2023 as net results surged sharply over the $5.2 billion in 2023. Treasury generated revenues of $7.7 billion up from $5.8 billion with a net position of $1.13 billion in 2024 compared with $1.03 billion in the prior year.
Investment Management Services generated revenues of $1.5 billion and a net result of $780 million in 2024, with revenues of $1.56 billion in 2023 and a net outturn of $806 million in 2023. Insurance services had a mild increase in revenues to $2.08 billion in 2024 as net results slipped to $2.05 billion, compared with revenues of $2.45 billion in 2023 and net segment results of $2.15 billion.
Salaries and staff benefits rose 12.8 percent to $2.96 billion from $2.63 billion in 2023 and for the half year, it rose by 13 percent from $5.23 billion to $5.9 billion.
Scotia Group traded at a $58 on Friday.
Other operating expenses fell marginally from $3.28 billion to $3.23 billion in the quarter and increased slightly in the nine months to $6.7 billion from $6.55 billion in the previous year. Overall, total operating expenses moved from $6.57 billion in the second quarter last year to $6.78 billion. For the six months to April, it moved by 7 percent to $15.46 billion from $14.4 billion in 2023.
Taxation on profit amounted to $2.38 billion in the April quarter up from $1.89 billion in 2023 and it rose 15 percent to $4.47 billion in the half year from $3.89 billion in 2023.
Shareholders’ equity ended the period at $127 billion, up from $108 billion at the end of March 2023.
IC Insider.com computation projects earnings of $6.50 to $7 per share for the fiscal year ending October 2024, with a PE of 6.5 times the current year’s earnings based on the price of $44.41 the stock traded on the Jamaica Stock Exchange. Net asset value ended the period at $4.78 with the stock selling at xxx book value.
The company declared a dividend of 40 cents which in line with payment in April versus 35 cents in July 2023.
