Scotia Group reports growth of 24 percent in net profit to $11.2 billion for the nine months to July, but importantly, profit jumped a strong 37 percent in the July quarter, over that of 2017 to $4.4 billion as net revenues climbed in the quarter by $940 million and costs were effectively flat.
While the results are impressive, especially in light of recent years of weak growth, the improvement is boosted by what could be considered as one-off income. The nine months profit that grew by $2.2 billion over the similar period in 2017, inclusive of gains on the sale of a subsidiary of $750 million. In addition, the group enjoyed above average foreign exchange trading gains, partially as a result of the relatively sharp slippage in foreign exchange rate of the Jamaican dollar. Excluding, the exceptional income profit would be modestly up from the results of the prior year.
The year’s operations was impacted by lower cost and lower income in some areas while income for some other segments grew. Total revenues excluding impairment losses on loans for the nine months to July increased 10.7 percent to $33 billion, over the prior year. “While there were increased loan and transaction volumes across the business lines, this was offset by reduced net interest margins as a result of lower interest rates,” the group’s CEO and President, David Noel stated in the report to shareholders. Net interest income after impairment losses for the period was $17.9 billion, compared to $18.44 billion the same period in 2017. For the quarter, net interest income declined by nearly $460 million before loan impairment losses, to $6.3 billion and by $427 million after to $5.68 billion.
David Noel new Scotia Group’s CEO.
Net fees and commission income was $6.1 billion, down $477 million or 7 percent compared to last year, impacted by the ongoing shift from branch transactions to online and mobile transactions which Scotia states, “attract lower fees,” Insurance revenue increased by $135 million to $2.4 billion or 6 percent, due to growth in core insurance business and actuarial reserve releases from changes in assumptions on valuation of the portfolios. Net gains on foreign currency activities and financial assets amounted to $4.6 billion, up $2.5 billion, more than 100 percent compared to last year based on increased market activities and revaluation gains. For the quarter, net fees and commission income dipped to $2 billion from $2.17 billion, gains on foreign trading jumped sharply from $570 million to $1.95 billion due partially to the sharp depreciation of the Jamaican dollar. Gains in financial assets rose from $228 million to $598 million but insurance revenue fell from $567 million to $525 million.
Operating Expenses of $16.3 billion for the nine months, increased $145 million or just 1 percent compared to prior year. Salaries and staff benefit costs declined $414 million, while other operating expenses grew by $575 million. For the quarter cost rose from $5 billion to $5.07 billion as staff cost dipped slightly to $2.45 billion from $2.68 billion.
Loans and advances grew 6.3 percent, with loans after impairment losses increasing to $176.9 billion since the end of the previous fiscal year in October but grew a stronger 3.7 percent between April and July quarter. Impairment losses on loans were down $310 million or 21 percent from last year, due to lower provisioning requirements on a reduced non-accrual loan portfolio as the quality of credit portfolio continues to improve.
An interim dividend of 48 cents per stock unit payable on October 24, was declared. Scotia is trading on the Jamaica Stock Exchange at $62 on Tuesday with a PE of 13.5 times 2018 earnings from continuing operation around $4.50 per share.
The Jamaica Stock Exchange climbed more than 5,000 points after 25 minutes of opening with the All Jamaican Composite Index surging to just under 9,000 points from big resistance point of 400,000. 
More records got shattered in trading on The Jamaica Stock Exchange on Monday as the All Jamaica Composite Index (AJI) reached a new high during the trading session at 389,650.08 points, with less than 37 minutes before the close. 
Berger Paints ended at $21.45 after gaining 44 cents with 5,025 stock units trading, Grace Kennedy lost 40 to end at $58, trading 26,924 shares, Kingston Properties rose 25 cents in concluded trading 7,450 shares at $6, Mayberry Investments fell 80 cents and settled at $8 in trading 31,000 units, NCB Financial Group fell $3 and ended trading 147,486 shares at $126, 
The Junior Market recorded gains of 5.39 points at the close of trading on Monday, to end at record close of 3,402.48, within 3 minutes of opening, to take out the old record of 3,392.58 on Monday. 
613,186 units for an average of $3,682,880 and on the prior trading day, an average of 670,895 units for an average of $4,049,556. Trading in August, averaged 244,613 units at $1,348,298 for each security traded.
Honey Bun ended at $4.05, with 25,386 units, Indies Pharma lost 5 cents and closed with 1,098,497 shares changing hands at $3.95. Iron Rock concluded trading of 81,500 shares for 50 cents higher at $4, Jamaican Teas settled with a loss of 5 cents at $4.60, exchanging 38,064 shares, Jetcon Corporation gained 6 cents to close at $3.96, with 250 stock units changing hands. KLE Group finished trading 91,858 shares at $3, Knutsford Express closed $1.20 higher at $12.70, exchanging 1,800 shares, Lasco Distributors ended at $4, with 32,479 shares, Lasco Financial gained 10 cents to $5.60, trading 110,888 stock units. Lasco Manufacturing finished at $3.90, with 6,289 units, Main Event settled with a loss of 1.80 cents at $5.20, in the exchange of 14,000 shares, Stationery and Office finished trading 15,900 stock units at $9 and tTech ended at $6, changing 309,410 shares. In the junior market preference segment, Derrimon Trading ended with a loss of 26 cents at $2.25, with 5,100 stock units changing hands.
The Jamaica Stock Exchange main market, continues to shatter daily records, with 11 consecutive record close up to Friday, as the all Jamaica composite Index pushes 1,000 points nearer to the 400,000 mark. 
Portland JSX put on 60 cents in trading 7,377 shares and ended at $9, Sagicor Group rose 69 cents and settled at $39.85, trading 48,812 shares. Seprod added 90 cents to end at $46.90 in trading 11,025 units and Sygnus Credit Investments jumped 91 cents in trading 483,665 shares close at $13.71.
The Junior Market recorded gains of 31.89 points at the close of trading on Friday, to end at record close of 3,397.09 after it traded briefly at an intraday record high of 3,408.31 points, within 3 minutes of opening, to take out the old record of 3,392.58 on Monday. 
Trading in August, averaged 244,613 units at $1,348,298 for each security traded.
GWest Corporation closed at $2.15, with 31,044 stock units trading, Indies Pharma closed with 1,012,184 shares changing hands to close of $4, Jamaican Teas settled at $4.65, trading 37,374 shares. Jetcon Corporation ended trading 20,677 stock units with a loss of 10 cents at $3.90, Knutsford Express closed at $11.50, with 500 shares changing hands, Lasco Distributors ended 23 cents higher at $4, after 15,470 shares traded, Lasco Financial concluded trading 133,305 stock units with a gain of 5 cents to $5.50. Lasco Manufacturing finished at $3.90, with 19,158 units changing hands, Main Event settled $1 higher at $7, with 68,715 shares changing hands, Medical Disposables ended trading 18,135 shares with a loss of $1.15 at $6.80, Paramount Trading traded 106,383 shares at $2.60 and Stationery and Office finished trading at $9, with 15,339 stock units being exchanged.
Newly listed Junior Market stock, Indies Pharma jumped to a record $4 on Thursday, in recording gains of 167 percent since the IPO issue in July, at $1.50 per share. 
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading had 5 stocks ending with bids higher than their last selling prices, 4 closed with lower offers.
At the end of trading, the prices of 20 stocks rose, 4 declined and 6 closed trading, unchanged. The main market ended with 11,678,084 units valued at $147,689,924 changing hands, compared to 3,156,915 units valued at $54,279,819, on Wednesday.
PanJam Investment gained $1 and closed at $55 trading 7,285 stock units, 
The day’s volume was led by, Sagicor Real Estate Fund with 8,692,402 shares and 74.4 percent of main market volume, followed by JMMB Group 7.50% preference share closing with 980,000 units and just 8.4 percent of the day’s volume and Carreras with 522,434 units just 4.47 percent of volume traded.