Scotia — Page 58

Insider trades

June 27, 2013 by IC Insider.com

A director of Lasco Distributors Limited sold 200,000 of the company’s shares on June 14, 2013.

A director of Lasco Manufacturing Limited sold 200,000 of the company’s shares on June 13 & 14, 2013

Blue Power Group Limited advised that two senior managers sold a total of 159,995 shares during the period June 17 – 21, 2013.

Scotia Group Jamaica Limited advised that a senior manager purchased 2,792 SGJ shares on June 24, 2013.

A senior manager of Sagicor Investments Jamaica advised that they sold 20,000 S shares on June 21, 2013.

A related party to Honey Bun (1982) advised that they sold 5,000 Honey Bun shares on June 25, 2013.

Filed Under: Company News, General Business News Tagged With: Blue Power, Honey Bun, Sagicor, Scotia

Low loan demand squeezes BNS TT

June 25, 2013 by IC Insider.com

Scotia Bank Trinidad & Tobago hit a new 52 weeks high recently in the price of its stock, so what is happening at the bank to warrant the move in the stock price? Last year the stock was selling at $60.86 in April and on June 24, 2013 it sold at $70.01, a 15 percent rise, yet profits have not been growing all that well. However, the bank raised its dividend from 32 cents per share quarterly last year to 40 cents this year.

Interestingly, the fortune of the Trinidad bank and that of its Jamaican counterpart are tracking similar paths. In Jamaica, profits for Scotia Group have not grown from 2009, almost the same has happened in the Trinidad bank, with no growth since 2011. It looks as if the trend will continue for the Trinidad bank this year as well.

For the six months to April this year, Scotia Trinidad profits just barely budged above the results for the same period in 2012. Net Interest income fell from $462 million in 2012 to $443 million in 2013 but other income rose from $172 million to $224.5 million. The bank was able to keep a lid on expenses which rose from by $24 million to $314 million leaving a profit before tax of $353 6 million some $10 million more than that earned in 2012.

After allowance for taxation of $83 million, net profit rose to $273 million up slightly from $268.7 million in 2012. In the latest April quarter, after tax profits grew by only $1.9 million to reach $128.9 million.

The bank seems to have a good grip on loan quality as provisioning bad loans is very low at just $8 million for the six months, an improvement over the $10.5 million in 2012.

Return on Equity | The bank boasts a return on equity of 17.27 percent for the six months period, down from 18.47 percent for the full twelve months for 2012 financial year, which ended in October.

Where is the growth? | For profits to really grow attractively, the bank must grow its loans and assets at a faster pace than it has been doing since 2009. Loans to customers climbed by to $10 billion up from $9.96 billion in October but is flat with April 2012. Deposits did better as these rose to $13.47 billion up from $12.77 billion in April and $12.9 billion in October last year. Loans on the books in October last year contracted compared to the previous year by $700 million or 7 percent. Assets grew by 4 percent in 2012, 5 percent in 2011 and one percent in 2010 down from 11 percent in the previous year. The bank reported of assets of $18.4 billion and equity capital of $3.2 billion.

The bank operates in an economy that is yet to recover from the recession that started in 2008. A lot of the growth a few years prior to 2008 was induced by a major boost in the construction sector, which left newly built units that took awhile to either occupy or sell. This has been a serious drag on the construction sector and by extension, slowed growth in the economy. Without economic growth, bank lending will be slow, which is the main area for growth in income. GDP performance is as follows: 2009, minus 3.3 percent, 2010, 0 percent 2011, minus 1.3 percent, 2012, a positive 1.7 percent. The construction sector fared even worse falling by 7 percent in 2009, 28 percent in 2010 and 8 percent in 2011.

Stock outlook | Against this economic background, it appears that investors cannot expect to see electrifying growth in profits for some time. They also have to be aware that interest rates on savings are at very low levels and any upturn could affect the valuation of stocks on the Trinidad stock market further down the road.

Filed Under: Company News, Company Results Tagged With: Scotia, TTSE

New president at Scotia International

June 13, 2013 by IC Insider.com

Rick Waugh announces his retirement from Scotiabank effective January 31, 2014. Brian Porter, former chairman of Scotiabank Jamaica, to take on role of President and CEO effective November 1, 2013.

(TORONTO) May 31, 2013 – Scotiabank Chief Executive Officer Rick Waugh today announced his intention to retire as CEO effective November 1, 2013 after 10 years in the role and 43 years with the Bank. He will remain a Director of the Board and assume the role of Deputy Chairman of the Bank until January 31, 2014.

The Board of Directors has appointed Brian Porter to the role of President and Chief Executive Officer effective November 1, 2013. Brian was appointed to the role of President on November 1, 2012, and just prior to that was Group Head, International Banking, overseeing all of the Bank’s personal, small business and commercial banking operations in more than 55 countries outside of Canada. Brian was also Scotiabank’s Group Head of Global Risk Management and Treasury. He joined Scotiabank in 1981, and has held a variety of other management positions, including Deputy Chairman of Global Banking and Markets.

“Rick Waugh has guided Scotiabank through a period of tremendous growth, generating exceptional returns for shareholders and employees during some very turbulent times. His focus on customers, diversification, emerging markets and risk management along with his strong values, has shaped the growth and direction of the Bank over the last ten years,” said John Mayberry, Chairman of the Board.

The Board expressed its confidence in Brian Porter appointing him President in November 2012. Mayberry added, “We are pleased to take the next step in succession today by confirming him in the role of President and CEO effective November 1, 2013. Brian has a tremendous range of experience across the Bank, including the critical role of Chief Risk Officer. The Board is confident in Brian’s ability to continue to produce strong results and build on the straightforward and proven business model that has worked so well for customers, shareholders and employees.”

“I want to congratulate Brian Porter on his appointment to President and Chief Executive Officer,” said Rick Waugh, CEO, Scotiabank. “He has had an exceptional career at Scotiabank. Brian and the management team bring the right experience, values and culture to ensure our Bank’s continued success.”

“It is a distinct privilege to have been entrusted with the role of President and Chief Executive Officer, and I would like to thank the Board of Directors and Rick Waugh for their confidence in my ability to continue to deliver superior, consistent and predictable results for all of our stakeholders,” said Brian Porter, President, Scotiabank.

Scotiabank is a leading multinational financial services provider and Canada’s most international bank. With more than 83,000 employees, Scotiabank and its affiliates serve some 19 million customers in more than 55 countries around the world. Scotiabank offers a broad range of products and services including personal, commercial, corporate and investment banking. In December 2012, Scotiabank became the first Canadian bank to be named Global Bank of the Year and Bank of the Year in the Americas by The Banker magazine, a Financial Times publication. With assets of $754 billion (as at April 30, 2013), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com.

Filed Under: Company News, General Business News Tagged With: Scotia

Scotia Investments one time dent

May 31, 2013 by IC Insider.com

Add your HTML code here...

The Government of Jamaica debt exchange cost shareholders $238 million as Scotia Investments participation resulted in the write-off of premium that was originally booked on the bonds that were swapped. The effect after tax would translate to a third less. Net profit for the half year to April was $858 million, down $176 million or 17 percent from the same period last year. Earnings per share was $2.03 compared to $2.45 for the same six month period last year.

Profit for the quarter was $371 million, down $115 million or 24 percent below the $487 million earned in the previous quarter and also below the $536 million earned in 2012. Had it not been for the debt exchange, profits in the quarter would have close to that earned in the similar quarter of 2012.

Net Interest | After impairment losses Net Interest for the six months was $1.39 billion, remaining relatively flat over the same period last year and for the quarter it was $625 million, $137 million or 18 percent below the results of the previous quarter as well as below the 2012 quarter of $706 million. Interest earnings continue to be impacted by lower yields on the securities portfolio and would have suffered from lower yields on government bonds based on the debt swap. Gains on foreign currency trading and the impact of the movement of the Jamaican dollar on holding of foreign exchange denominated investments would have helped to cushion some of the effects of the lower interest yields.

Non-Interest Income | Non-interest income, which includes fee income, securities trading gains and net foreign exchange trading income, was $669 million for the period, down $8 million or 1 percent compared to the same period last year; and $324 million for the quarter, down $21 million or 6 percent over the $345 million recorded last quarter.

Total operating expenses for the quarter was $417 million, 3 percent below the previous quarter. Year-to-date operating expenses was $845 million, representing an increase of 29 percent or $188 million over same period last year. This variance was mainly reflected in staff related costs and other operating expenses associated with the newly imposed asset tax.

Managed Funds | The investment bank is reporting that the Scotia Premium Money Market Fund surpassed the $3 billion mark in just over 18 months since its launch; and the Caribbean Income Fund surpassed the US$75 million mark. The company is placing more emphasis on pooled investment funds so as to move away form the repos investment where the company takes the risk on the underlying investments while granting investors fixed rates of return for a specified period.

As these funds grow either from new investments inflows in or by improvement in values as a result of income or growth in the underlying assets in the funds, management fees earned will increase going forward. This is where the company is planning much of its growth.

As interest rates stay low, investors will be looking at ways of boosting their income and in some cases with flexibility. The low rates favour increased stock market activities, increased values for stocks and more fees for Scotia Investments as their brokerage arm enjoy more trading income from trading stocks for clients as well as for the equity fund they manage.

Assets under management including the Company’s custody book were $109.5 billion as at the end of the quarter, up $10.8 billion or 11 percent above the same period last year and $2.7 billion or 2.5 percent over the previous quarter. The growth was driven by increased net asset values in managed funds. The company would most likely be holding stocks in its portfolio that would benefit from a stock market rally.

Stock Outlook | The price earnings ratio for the stock is around 6 at $27, the last selling price and a net asset value of $34, placing the stock in the undervalued category.

Filed Under: Company News, Company Results Tagged With: BNS, Scotia

Scotia Group’s profit surprise

May 29, 2013 by IC Insider.com

Scotia Group Jamaica was the one exception of the financial institutions to buck the trend of lower profit resulting from the write-off of fair value investments gains from the debt swap of Government of Jamaica bonds in February.

The banking group reported improved results for the second quarter of the 2013 financial year to April, with net income of $2,930 million, $210 million above the previous quarter and $214 million above the quarter ended April, 2012. For the six months ended April, 2013, net profit was $5,651 million compared to $5,364 million for the same period last year. Profit available to shareholders was $5.47 billion, resulting in earnings per share of $1.76, this is after the group took a one time charge of $397 million for the write-off of fair value securities gains.

Net interest income | After impairment losses for the period, Net Interest Income was $11.13 billion, up $341 million or 3% compared to the same period last year. For the quarter, interest income and interest cost declined but net income fell compared with the January 2013 quarter by $470 million and was marginally up on the similar quarter for 2012 by $48 million. The reduction in interest rates that obtained after the debt swap would have been a major contributing factor to the decline. A partial switch in the portfolio from Jamaican dollar denominated investments to foreign currency ones would also be a contributing factor as foreign exchange gains climbed to $955 million versus $526 million in the first quarter.

Other Revenue | For the six months Other Revenue was $5.5 billion, up $858 million or 18.6% compared with prior year due to increased insurance revenue and fee income gains on securities trading as well as higher gains on foreign currency trading and investments.

Operating Expenses | $9.11 billion for the quarter, an increase of $1 billion or 13% over prior year. Staff related costs represented $439 million (10.2% increase), other operating expenses increased by $606 million reflecting primarily inflationary increases, devaluation of the Jamaican dollar and the impact of new tax measures.

Non-performing loans | (NPLs) at April stood at $5 billion, $440 million less that at April 2012, an increase of $270 million over January this year, the increase is a charge against the income for the year to date. During the six months period in 2012, the bank recovered a large corporate loan that was classified as non-performing during 2011, resulting in a net charge in 2012. Total NPLs is down to 3.88% of total gross loans compared to 4.83% last year and 3.82% as at January 2013 due greatly to the growth in the loan portfolio.

Balance Sheet | Total assets increased year over year by $33 billion or 9.46% to $382 billion as at April this year. Loans grew by $16.2 billion to $127.26 billion. Customer liabilities (deposits, repo liabilities and policyholder’s funds) grew to $294 billion, an increase of $28 billion over last year. As per the management report, “This growth was mainly reflected in the deposit portfolio as we continued to acquire new customers and see increased balances from existing customers.”

Bruce Bowen, President and CEO said, “Scotia Group generated strong results for Q2 with continued growth in all of our key business lines. Our culture of prudent risk management and strong liquidity enabled us to weather the challenges in the market during the quarter. Looking forward, the National Debt Exchange (NDX) has reduced margins and recent tax measures have increased operating costs. To offset these effects we are focused on deepening our relationship with clients and growing our customer base, while improving operating efficiencies and maintaining tight control of expenses.”

Bowen went on to say, “In times of turmoil in the financial sector Scotiabank is known for providing Jamaicans a safe place to bank. With the addition of Scotia Investments, Scotia Jamaica Life Insurance and Scotia Jamaica Building Society, and our commitment to providing a great customer experience, I believe that we can truly help our customers be financially better off. If we focus on our customers we are in an excellent position to build market share during this difficult economic period.”

Filed Under: Company News, Company Results Tagged With: BNS, JSE Company, Scotia

Dividends coming

May 27, 2013 by IC Insider.com

Scotia Group | Scotia Group Jamaica approved a second interim dividend of 40 cents per stock unit payable on July 4, 2013, to stockholders on record at June 14, 2013. The ex-dividend date is June 12, 2013. The group previously paid its first dividend of 40 cents per stock for the fiscal year at the end of March. In 2012, the group paid 37 cents in each quarter but it was raised to 40 cents commensurate with a payment that was made in January this year. The group pays dividends on a quarterly basis.

Scotia Investments | Scotia Investments Jamaica approved a second interim dividend of 45 cents per stock unit payable on July 4, 2013, to stockholders on record at June 14, 2013. The ex-dividend date is June 12, 2013. The company previously paid its first dividend of 45 cents per stock for the fiscal year at the end of March. In 2012, the group paid 40 cents in each quarter but it was raised to 45 cents with a payment that was made in January this year. Scotia Investments, which is majority owned by Scotia Group Jamaica, pays dividends on a quarterly basis.

JSE Pref | The Jamaica Stock Exchange Limited approved quarterly preference share dividend of $0.0290 per share payable on May 31, 2013 to shareholders on record as at May 24, 2012. The ex-dividend date is May 21, 2013. This will be the last dividend for these shares as they will be redeemed by the end of May.

Proven consideration | The Board of Directors of Proven Investments Limited will consider making a dividend payment to both its ordinary and preference shareholders at a meeting to be held on May 29, 2013.

Filed Under: Company News, Dividends Tagged With: BNS, Dividends, Proven, Scotia

D&G will pay 10¢ dividend

May 17, 2013 by IC Insider.com

Desnoes & Geddes (D&G) will be paying the second interim dividend relating to this fiscal year which ends in June of $0.10 per share payable on June 25, 2013 to shareholders on record as at June 7, 2013. The ex-dividend date is June 5, 2013.

D&G just reported a rise in profits to 37 cents per shares for the 9 months to March after taking a hit for staff separation of $152 million in the March quarter. The proposed payment brings the total dividend for the year to 30 cents. Demand for the shares has increased since the announcement was made of a likely second dividend and the release of the quarterly results. The stocks traded as high as $5 from around $4.15 that it has been trading at for months.

Both Scotia Group and Scotia Investments are expected to announce dividends on the 24th of May. Based on past practices, the former should be paying 40 cents per share and the latter 45 cents per share. The payments will most likely take place at the early part of June.