An 86 percent surge in profit after taxation at Scotia Group pushed the July 2021 quarter profit to $2.8 billion over $1.55 billion reported in 2020, a period heavily impacted by a massive provision for credit losses amounting to $2.57 billion. Profit after tax for the nine months to July climbed 31 percent to $7.29 billion compared to $5.56 billion last year, helped by the drop in credit loss provisioning in the current year.
Scotia Group headquarters in Kingston.
Net interest income fell 8.4 percent for the third quarter to $5.7 billion from $6.2 billion in 2020 and slipped 9 percent to $17 billion for the nine months to July from $18.7 billion in 2020. Expected credit losses for the latest quarter of $584 million was a fraction of the 2020 provision. For the nine months expected credit losses dropped sharply to $1.99 billion from $5.25 billion in 2020. Falling interest rates on investments, reduction in lending and growth in funds deposited by the public would have negatively impacted the results. The recent increase in interest rates by the Bank of Jamaica could benefit the group with investments and loans that could generate higher income and widen the net interest income margin.
Net fees and commission income rose to $1.95 billion from $1.65 in 2020 in the third quarter but fell slightly from $5.08 billion in 2020 to $4.99 billion in 2021 for the nine months. Gains on foreign currency activities slipped from $1.75 billion in July 2020 quarter to $1.65 billion and rose 17 percent to $6.2 billion from $5.3 billion for the nine months. Insurance revenues grew to 35 percent in the latest quarter to $696 million from $516 million and fell in the nine months to $2 billion from $2.4 billion. Other revenues brought in $1 billion for the nine months compared to just $39 million for the prior period and are attributable primarily to gains realized on the extinguishment of debt facilities.
Loans advanced to customers that stood at $222 billion at the end of July last year declined modestly to $216 billion at the end of July this year but is up slightly from $214.7 billion at the end of April this year. The report to shareholders stated that mortgage loans recorded growth of 11 percent year over year and is similar to increase up to the April quarter. Growth in loans is essential for the group is it is an area that contributes most to the rise in profits and creates stability in earnings.
Audrey Tugwell Henry Scotia group’s CEO
Segment results show the problem local banks have with retail banking. That segment generates the most income for Scotia but contributes the least in profits. For the nine months to July, Retail Banking contributed $1.3 billion to profit on revenues of $14 billion and in 2020, the segment contributed a loss of $975 million from revenues of $14.5 billion. Treasury generated $1.3 billion in segment profits from $2.9 million in revenues to third parties against $1.46 billion from revenues of $3.1 billion in 2020. Corporate Banking resulted in a profit of $3.5 billion on revenues of $8.44 billion and profit of $3.23 billion on revenues of $8 billion in 2020. Investment Banking delivered a profit of $1.85 billion on revenues of $2.6 billion and profit of $1.3 billion on revenues of $2.29 billion in 2020 and Insurance produced profit of $2.12 billion on revenues of $3.1 billion and profit of $2.5 billion with revenues of $3.48 billion in 2020.
Customer deposits grew 10.7 percent to $371 billion to July, from $335 billion for the comparable quarter of 2020. Investment securities rose from $141 billion at the end of July 2020 to $146 billion after dipping to $116 billion at the end of the 2020 fiscal year and cash resources stood at $147 billion, up from $116 billion at the end of July 2020.
Shareholders’ equity ended at $116 billion at the end of July this year, up from $110 billion as of July 2020.
Earnings per share stood at 90 cents for the July quarter and $2.34 for the nine months this year and should end up around $3.50 for the entire year; for 2022, and earnings should exceed $4 per share. At the close of trading on the Jamaica Stock Exchange Main Market to stock at $39 at the start of the final week of September.
While the stocks trade at 11 times the current year’s earnings, 2022 should see growth in profits, thus reducing the valuation most likely below ten times 2022 earnings.
So far to October, CPJ gained 90 percent and should exceed 100 percent this coming week and Caribbean Cream is up 67 percent ahead of second quarter results due in two weeks. Another TOP 15 stock this year, Caribbean Cement, surged on Friday to close at $120 after trading at a record high of $146.12, just short of IC Insde.com forecast in April this year in the report, captioned “Carib Cement Q1 profit triples” that the stock that last traded at $75 on the Main Market of the Jamaica Stock Exchange is projected to get to $150 in the next twelve months.
Elsewhere, in the Junior Market, AMG Packaging fell from $2.10 to $1.70, 
This past week, the average gains projected for the TOP 10 Junior Market stocks moved from 214 percent to 203 percent and Main Market stocks moved from 166 percent to 180 percent.
ICTOP10 is not intended to be a selection of the best stocks in the market but the most likely to be the biggest winners within fifteen months. ICInsider.com ranks stocks to separate the bigger winners from the rest, allowing investors to focus on potentially huge gains, helping to keep out emotional attachments to stocks that often result in the making of costly mistakes.
As was the case on Thursday, trading ended with seven securities changing hands, with prices of four rising, one declining and two ending unchanged.
Margaritaville popped 0.6 of a cent to 11 US cents after trading 1,000 units, Proven Investments rose 0.7 of one cent to close at 24.7 US cents after trading 884,152 stocks. Sterling Investments remained at 2.09 US cents, 781 stock units crossing the exchange, Sygnus Credit Investments US$ share rose 0.01 of a cent to 13 US cents, 21,761 stocks changing hands and Transjamaican Highway rallied 0.01 of one cent to 0.97 US cents after trading 50 shares.
The All Jamaican Composite Index declined 202.09 points to 456,489.84, the Main Index shed 312.21 points to 414,577.75 and the JSE Financial Index lost 0.64 points to end at 101.04.
At the close, Barita Investments dived $4.84 to$103.25 after trading 623,197 shares, Berger Paints lost 48 cents to end at $14 in switching ownership of 59,491 stock units, Caribbean Cement spiked $8, in closing at $120 with 29,739 stocks clearing the market after the price hit a record $146.12 in mid-morning trading. Caribbean Producers rose 75 cents to $5.50 in exchanging 568,310 units, Eppley dropped $7.50 to finish at $32.50 with a transfer of 3,144,676 shares, Eppley Caribbean Property Fund fell $4.25 to $42.50 in an exchange of 1,100 stocks. First Rock Capital lost 30 cents in closing at $13 with 8,977 shares crossing the exchange, GraceKennedy popped 20 cents to $99.20, after 1,815,401 units crossed the market, Guardian Holdings fell $3 to $582, with 5,213 stocks changing hands. Jamaica Producers shed 55 cents to $23.20 in trading 4,491 shares, Kingston Properties rallied 50 cents to settle at $9 with the swapping of 170 stock units, Mayberry Jamaican Equities rose 74 cents to $9, with 1,262 units changing hands. Palace Amusement surged $130 to $900 in transferring 26 units, PanJam Investment shed $1 to close at $63 after trading 5,320 shares, Proven Investments declined $1.25, to $32.50 with 7,072 stock units changing hands. 
Sagicor Group dipped 70 cents to $57.30, with 31,390 stocks crossing the market, Sagicor Real Estate Fund gained 40 cents to finish at $8.40 in trading 500 stock units, Salada Foods shed 83 cents to close at $6.07 in an exchange of 55,074 stocks. Scotia Group fell $1.15 to $37.60, with 46,115 shares clearing the market, Seprod slipped 59 cents to $62.50 in switching ownership of 4,365 units, Sygnus Credit Investments lost 37 cents to close at $15.98 with the swapping of 82,282 stocks and Victoria Mutual Investments lost 20 cents after ending at $5.45 in trading 35,256 shares.
Market activity led to 36 securities trading compared to 34 on Thursday and ended with 10 rising, 18 declining and eight, closing unchanged.
At the close, Access Financial popped $2.90 to $20 with the swapping of 2 shares, AMG Packaging climbed 9 cents to $1.70, with 185,800 stock units crossing the market, Blue Power rallied 40 cents to $3.37 in switching ownership of 25,998 units. Cargo Handlers rose 79 cents to $7.79 after exchanging 447 stocks, Caribbean Cream spiked $1.01 to $7 while exchanging 50,966 shares, but the stocks had 100000 units on offer at $6.50 at the close, Consolidated Bakeries fell 10 cents to $1.70, with 2,488 stocks crossing the exchange. Dolphin Cove gained 14 cents to end at $10, with 958 stock units changing hands, Elite Diagnostic dropped 5 cents to close at $3 after exchanging 247,582 units, Fontana lost 9 cents in closing at $6.50 with an exchange of 33,339 stocks. Future Energy Source declined 16 cents to $2.70 in exchanging 730,160 shares, General Accident rose 15 cents to $5.45 1n trading 3,693 stock units, Indies Pharma shed 52 cents to end at $3.23 with 1,070 units changing hands. ISP Finance popped $1.50 to close at $25, with 500 stock units clearing the market, Jamaican Teas shed 10 cents to $4 in an exchange of 4,701,946 units, Jetcon Corporation lost 15 cents after ending at $1.01 and trading 19,000 stocks. 
Lasco Distributors fell 49 cents to $3.50, with 23,144 shares crossing the market, Lasco Manufacturing declined 30 cents to end at $4.50 after swapping 22,583 shares, Limners and Bards dropped 35 cents to $3.50 in trading 15,895 stocks. Mailpac Group fell 6 cents to $3.84 after exchanging 418,371 stock units, Main Event lost 8 cents to close at $4.20 while trading 1,037 units and Medical Disposables climbed 15 cents to $5.15 after 46,950 units crossed the market.
At the close, 20 securities traded compared to 18 on Thursday, with seven rising, five declining and eight remaining unchanged. The Composite Index dipped 1.48 points to 1,429.21, the All T&T Index lost 2.86 points to end at 1,929.85 and the Cross-Listed Index ended at 125.23.
Guardian Media remained at $3.01 while trading 1,485,184 stocks, JMMB Group closed at $2.22 in switching ownership of 3,011,424 units, Massy Holding jumped 50 cents in closing at $83, with 2,523 shares clearing the market. National Enterprises fell 9 cents to $3.20, with 1,496 shares crossing the market, National Flour Mills ended at $1.90 after trading 5,000 stock units, Prestige Holdings remained at $7, with 150 stocks crossing the market. Republic Financial Holdings traded 204 units at $135.76, Scotiabank dropped $1.50 in closing at $60.50 after switching ownership of 2,955 stock units, Trinidad & Tobago NGL remained unchanged at $17.40, with 2,500 stocks crossing the exchange. Trinidad Cement rose 4 cents to $4 with the swapping of 10,550 units and West Indian Tobacco gained 1 cent to close at $30.95 with 23,164 shares changing hands.
Jamaica’s sole cement producer Caribbean Cement hit a record high of $147.12 in today’s early trading and was suspended after the JSE circuit breaker was triggered. The stock, which closed on Thursday at $112, has risen 31 percent for the day. 
Productive Business Solutions gained 15 cents to 90 US cents with two stocks changing hands. Proven Investments rallied 1 cent to close at 24 US cents, with the swapping of 25,215 stock units, Sterling Investments advanced 0.09 of a cent to 2.09 US cents with 720 units passing through the market, Sygnus Credit Investments USD share declined by 0.01 of a cent to end at 12.99 US cents with a transfer of 12,208 stocks and Transjamaican Highway lost 0.01 of a cent to close at 0.96 US cents with 10,000 shares crossing the exchange.
The market closed lower than August, measured by the market indices but recorded gains for a fifth straight day, with the All Jamaican Composite Index climbing 4,591.49 points on Thursday to 456,691.93. The Main Index gained 3,991.06 points to end at 414,889.96 and the JSE Financial Index popped 0.96 points to end at 101.68.
Trading averages 356,664 units at $7,866,600, compared to 364,516 shares at $3,267,741 on Wednesday and month to date, an average of 335,669 units at $7,507,338, compared to 334,642 units at $7,489,764 on Wednesday. August closed with an average of 480,039 units at $8,561,549.
PanJam Investment climbed $1 to $64 after trading 7,022 units, Portland JSX rose $1 to close at $9 in exchanging 1,670 stocks, Proven Investments popped $1.59 to $33.75 in switching ownership of 17,756 units. Sagicor Group advanced $2 to $58 with 1,047,226 shares clearing the market, Sagicor Real Estate Fund shed 50 cents to $8 after 5,485 stock units crossed the market, Salada Foods rose 75 cents in closing at $6.90 with the swapping of 60,713 shares. Scotia Group gained 35 cents to finish at $38.75 after exchanging 33,237 stocks, Stanley Motta picked up 23 cents to $5.80 in switching ownership of 87,104 units and Sygnus Credit Investments rose 85 cents to $16.35 with 270,538 stock units crossing the exchange.
Massy Holdings fell 50 cents to $82.50, with 80 stock units crossing the exchange, National Enterprises traded 525 units at $3.29, National Flour Mills ended at $1.90 with the swapping of 1,046 shares. One Caribbean Media dropped 4 cents to close at $4.26, with 2,500 stock units crossing the market, Prestige Holdings closed at $7, with 1,045 units changing hands, Republic Financial Holdings dipped 66 cents to $135.76 with an exchange of 1,780 stocks. Scotiabank rose $1.75 to end at $62 after trading 7,420 shares, Trinidad & Tobago NGL remained at $17.40, with 8,126 shares crossing the exchange and Unilever Caribbean declined 2 cents to close at $16.20 after 2,077 stocks cleared the market.
