Scotia Q3 profit sinks 63%

Scotia Group, with its commercial banking, investments and insurance operations showed the negative impact of the COVID 19 virus from the April quarter with flat revenues and lower profit in the at period but, profit after tax fell sharply for the July quarter by 63 percent, from $4.2 billion in 2019 to $1.55 billion in 2020.

Scotiabank at a new 52 weeks’ low on TTSE.

Profit after tax had dropped from $3.2 billion in April 2019 quarter to $2.2 billion in the current year’s period, reflecting the first period of disruption caused by the Virus had on businesses.
For the nine months to July, net income of $5.56 billion, compares adversely to $9.8 billion for the corresponding 2019 period.
For the April 2020 quarter, revenues were in line with the prior year’s quarter at $11.2 billion but lower than the January quarter by $500 million.
Total revenues, for the nine months ended in July at $34 billion, a reduction of $1.9 billion or 5 percent, compared to 2019. For the July 2020 quarter, gross revenues fell from $12.4 billion in 2019 to $11 billion, with non-interest income contributing $1.1 billion to the decline.
Administrative and other expenses were essentially flat at $5.8 billion year over year, but a $2 billion increase in provision for expected loan loss, helped push profit down in the quarter, to $1.55 billion from $4.2 billion in 2019. Importantly, while loans amounting to $221 billion at the end of July, grew 12 percent year over year, loans declined modestly from $223 billion at the end of April, the result of the increased credit loss provisioning.
Overall, loans advanced to customers, grew 12 percent largely due to the strong performance of the Commercial Banking unit, increasing 24 percent versus the prior year. Retail loan grew 5 percent year over year driven by strong mortgage growth of 16 percent. Customer deposits grew 10 percent to $335 billion, from $303.6 billion in the previous year.
Scotia Group traded at $45 on the Jamaica Stock Exchange Main Market on Thursday.

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