Scotia Investments (SIJL) reported net income of $1.79 billion results for the year ended October 2014, down $205 million from the last year. Net income for the quarter was $450 million, down $54 million from the previous quarter, and $123 million from the corresponding quarter last year.
Earnings per share for the year ended at $4.23 compared to $4.71 in 2013. The Return on Average Equity fell was from 16.55 percent in 20123 to 13.6 percent.
Net interest income for the year was $2.3 billion, down $519 million or 18 percent below last year and for the quarter, $499 million, down $81 million or 14 percent below the July quarter.
Non-interest income, which includes fee income, securities trading gains and net foreign exchange trading income, was $1.89 billion for the year, is up $237 million or 14 percent; and $487 million for the quarter, down $61 million compared with the July last quarter.
Total Operating Income, comprising net interest revenue and other income was $4.17 billion, a reduction of $281 million relative to prior year. Total Operating Income for the quarter of $986 million was down $233 million over the corresponding quarter last year.
Total operating expenses for the year was $1.62 billion, up $33 million or 2 percent compared to 2013. Expenses amount to $364 million for the October quarter, down $32 million or 8 percent against the July 2014 quarter, and it is also down 19 percent, against the 2013, October quarter.
Total on balance sheet assets amount to $72 billion and show a reduction of $1.4 billion compared to last year. At the end of October 2014, total funds under management stood at $151 billion, $96 billion or 64 percent represents off-balance portfolio, compared to 60 percent last year. The Scotia Premium Money Market Fund grew to $10 billion by the end of the year. For 2014, funds managed through the unit trusts and mutual funds increased by 17 percent year over year, due to both growth in volume and appreciation in value of the funds. Management states that “the change is consistent with our strategic initiative to focus on the growth of our unit trusts and mutual fund portfolios.”
Shareholders’ equity stood at $13.6 billion as at October 31, 2014, an increase of $1.15 billion or 9 percent compared to last year. Net asset value per share is $32.14 and the stock price $23.40 with the PE ratio just above 5 times 2014 earnings. With interest rates falling and the funds under management rising SIJL should put into a better performance in 2015.
Scotia Investments in transition
Scotia Investments reports down profits
Scotia Investments Reports profit of $1.34 billion for the nine months to July and net profit for the quarter, of $504 million. For the year to July, profit is down $82 million or 6 percent from the same period last year, but up $89 million or 21 percent above the $415 million earned in the April quarter and down from $563 million in the 2013 quarter.
Earnings per share (EPS) for the period, is $3.17 compared to $3.36 for the same period last year, and should end up in the $4.40 range, by this October year end. Return on Average Equity (ROE) is 13.87 percent, down from 16.10 percent last year.
Operating Income, comprising net interest revenue and other income of $3.19 billion for the nine months, is down $48 million from the same period last year. Total operating income for the quarter was $1.13 billion, up $58 million or 5 percent recorded last quarter, Net income for the quarter of $580 million was flat quarter over quarter, but is down $113 million or 16.3 percent from the July 2013 quarter, due to a big jump in interest cost. Net interest income after impairment losses for the nine months period is $1.8 billion, down $288 million or 14 percent below the same period last year.
Non-Interest Income|Non-interest income, amounts to $1.4 billion for the period, up $240 million or 21 percent over the year to July 2013 and $549 million for the quarter, up $55 million or 11 percent compared with the last quarter; due primarily to gains on financial assets. The 2014 outturn represent an increase over the earnings of $486 million generated in 2013 July quarter. Non-interest income, includes fee income, securities trading gains and net foreign exchange trading income.
Total operating expenses for the period were $1.26 billion, up $50 million or 4 percent compared with the same period last year; $396 million for the quarter, down $47 million or 11 percent from last quarter due mainly with increased asset tax but the cost is up from the $366 million incurred in the 2013 quarter.
“Overall, our fund management business has grown 9 percent year over year; and our flagship money market fund, The Scotia Premium Money Market Fund has experienced a 105 percent increase year over year, with a net asset value of over $9 billion,” Lissant Mitchell, CEO of Scotia Investments said.
“Total assets of $73 billion remained flat year over year and quarter over quarter; consistent with our strategic initiative to focus on growth of our off-balance sheet portfolios. Assets under management including the company’s custody book were $135 billion as at the end of the period, up $21 billion or 18 percent above last year and $6 billion or 5 percent over last quarter. The growth was driven by the improved net asset values on managed funds.” The Investment Bankers reported to shareholders.
The company’s stock traded at $21.40 on Friday with a PE ratio of 4.75 that is low but presently reflects overall market conditions. There is not much supply on sales at current prices. The forward PE is lower than the above. The company’s performance is not electric presently but lower interest rates on government paper that has be falling since May and continue growth in their asset portfolio should have improve profits for 2015. As such the Buy Rated accolade remains.
