Scotiabank Trinidad & Tobago is reporting improved results in the July quarter, than the year before and for the April 2014 quarter. Net income after tax for the latest quarter, amounted to $140 million an increase on the $134 million earned for the same period last year. The improvement was helped by rising net income and recovery of bad loans, with the latter amounting to $8 million versus a loss of $3 million in 2013.
For the nine months to June, profits fell to $390 million from $404 million, but it represents an improvement over the decline in the six months results, with profits of $250 million versus $270 million in 2013. The second quarter results of $105 million compared with $128 million, was one of the factors pulling down the results, as net revenues fell compared with the prior year. In the latest quarter, while net interest income has not declined, it hardly grew, other income grew a bit from $100 million to $132 million for the quarter and for the nine months by $30 million to $467 million, with all the increase coming in the last quarter.
Total assets ended the period at $20.2 billion up from $19.5 billion at the year end, but encouragingly, for the bank, the main income generator, loans, grew from $10.576 billion at the end of the 2013 year, with a small increase to $10,847 in April, but it jumped sharply to $11.47 million in July. This growth should help in improve income generation going forward. The bank will need to keep close to the last quarter pace, to help move profits forward, in a serious way.
With the July quarter showing some signs of improvement, earnings going forward should end up around the $3.50 range in 2015, if the pace of loan growth continues. With the price of the stock having pulled back below $60, it could be an attractive buy in the months ahead. At the close of trading there was still no buying interest in the stock and it looks set to decline some more, as investors seem to be ignoring the improved third quarter numbers.
Scotiabank Trinidad improved results
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[…] Scotiabank reported an 11.75 percent increase in their loan portfolio for the year to October as loans reached $11.8 billion. Most of the growth took place after April and helped to push up revenues and profit in the second half of the year. At mid-year to April loans, climbed from $10.575 billion at the end of October last year to $10.85 billion, growing by only 2.6 percent, well below the yearly growth to October. At the fiscal mid-point, profits were down in both the April quarter and the half-year, versus the prior year periods. Net income after tax for the July quarter, amounted to $140 million, an increase on the $134 million earned for the same period last year. For the nine months to June, profits fell to $390 million from $404 million, but it represented an improvement over the decline in the six months results, with profits of $250 million versus $270 million in 2013. The second quarter results of $105 million compared with $128 million, in 2013, was one of the factors pulling down the results, as net revenues fell compared with the prior year. With things starting to look up from the June quarter, the bank rolled out a respectable 11 percent increase in their October quarter profit after tax to hit $170 million versus $153 million in the same quarter in 2013 and a slight increase in the full year results which moved from $557 million to $560 million. Loan loss provision rose from $4 million in 2013 to hit $28 million in 2014 and $9 million for the October 2014 quarter. Non-interest expenses were held tightly with virtually no increase in the October quarter with $173 million versus $172 million in 2013 and for the full year $639 million versus $612 million. Banks make the bulk of their income from lending. If good loans are growing profits will usually grow if not, profits will tend to be much harder to grow. Loans grew 10 percent between July and October or 20 percent annualised but the growth in the October quarter was a more tepid 3 percent or at the rate of 12 percent per annum. This lower rate could well be a more sustainable level going forward, which will be enough to result in increasing profit at a reasonable pace. Based on the last quarter results, investors should be looking at earnings per share climbing from $3.17 this year to be in the $4 region next year, as the bank overcomes the poor first half of the 2014 fiscal year. The major concern, has to be the impact that the sharp fall in world oil prices will have on the Trinidad’s economy and the effect on the bank. That is something worth watching. Additionally, interest rates have been moved up, by the country’s Central Bank and could go higher, in the 2015. Rising interest rates can be negative for stocks. […]
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[…] advanced 2 cents, to $22.72, First Citizens Bank traded 1,011 shares at $36.77, with a 1 cent gain. Scotiabank traded 125 units and gained 19 cents to close at $59.01 and West Indian Tobacco added 4,250 shares […]
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[…] forward and the gains that could accrue to the company if trading levels and stock values pick up. Scotia Trinidad and West Indian Tobacco were restored to the list with expected higher earnings in 2015 than in 2014 […]
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[…] Enterprises contributed 24,500 shares with a value of $428,260, while gaining a cent, to $16.48. Scotiabank traded 3,046 shares valued at $179,166 and advanced by 12 cent to end at $58.82 and Trinidad Cement […]
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[…] Fund with 40,340 shares valued at $911,514 trading, advanced by 10 cent, to end at $22.60, Scotiabank’s stock price increased by 15 cents, to end the day at $58.70, while trading 1,120 shares. The bid at […]
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[…] are, National Enterprises traded 17,166 units valued at $299,890, gained 2 cents to end at $17.47, Scotiabank gained 10 cents, to end at $58.36 while 100 shares traded and Scotia Investments contributed 20,954 […]
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[…] Clico Investment Fund with 26,301 shares valued at $581,487 and advanced by 1 cent to $22.11 and Scotiabank contributed 9,586 shares with a value of $557,018, increasing 5 cents to end the day at $58.12, as […]
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[…] in price at the close are, ANSA McAl with 1,495 shares advanced by 2 cents to end at $12.75, Scotiabank contributed 7,666 shares with a value of $445,155, to close $58.07 and Unilever Caribbean increased […]
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[…] are, Angostura Holdings that gained 5 cents, to end at $12.55 while 1,724 units were traded and Scotiabank gaining just a cent, to end at $58.01 with 1,371 units changing hands. Declines| The stocks […]
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[…] gains to investors, in the months ahead, with the potential to reach 500 percent. Next in line is Trinidad Cement with 300 percent. Scotiabank has fallen to $58 from a high of $73.12 earlier this year. At the close […]
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[…] Scotiabank took another hit, in moderate trading on the Trinidad Stock Exchange on Friday, as the stock hit a new 52 weeks low of $59.50. Investors continued to focus on reduced profit for the year to date, and ignoring the improvement, in the July quarters net profit as well as the strong increased lending in the quarter. Overall trading saw 9 securities changing hands of which 1 advanced, 3 declined and 5 traded firm with 159,183 units changing hands, with a value of $463,895. The Composite Index lost 0.87 points to close at 1,143.27, the All T&T Index fell by just 1.67 points to close at 1,972.49 and the Cross Listed Index declined by a mere 0.01 points to end at 41.12. Gains| First Citizens Bank recorded the sole price increase, climbing 4 cents to end at $36.50. Declines| The stocks declining at the end of trading are, Grace Kennedy with 783 shares trading, falling 1 cent to $3.75, Scotiabank with 2,329 shares traded for $138,576, lost 49 cents to close at $59.50 and Trinidad Cement with 200 shares landed 3 cents down, at $2.19 Firm Trades| Stocks closing with prices unchanged at the end of trading are, Angostura Holdings with 100 shares at $12.75, Clico Investment Fund with 10,420 shares valued at $229,243 remained at $22, Guardian Holdings contributed 1,100 shares at $13.49, Jamaica Money Market Brokers with 142,771 shares changing hands for a value of $62,819 closed at 44 cents, followed by National Commercial Bank with 1,000 shares to close at $1. IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 4 stocks with the bid higher than their last selling prices and 3 stocks with offers that were lower. […]
[…] new 52 weeks high. National Enterprises gained 3 cents while trading 7,317 units to end at $17.50, Scotiabank had 868 units trading and increased 19 cents to end the day at $59.20 and Trinidad Cement […]