Scotiabank Trinidad & Tobago

Contrast of two ScotiaBanks

December 26, 2017 by IC Insider.com

Scotia Group head quarters in Kingston.

The economies of Trinidad and Tobago and that of Jamaica have been performing in opposite directions in recent years. While Trinidad continues to be in deep recession, Jamaica has been recording mostly moderate growth.
In such environments, it would be expected that businesses would be doing better in the one that is growing and poorly in the other.
The performance of Bank of Nova Scotia’s subsidiaries in each of the countries, shows differing fortunes, with the Scotiabank Trinidad enjoying an increase in loans in its latest results to October and the Scotia Group in Jamaica remaining flat, year over year at $166.5 billion. Banks make the bulk of their profits from lending money. Lending not only generates interest on the amounts lent but fees associated with loans such as commitment fees and in a number of cases annual review fees.
For Scotia Group Jamaica, profit after tax rose just 7.7 percent for the year to October, resulting in $12.17 billion attributable to the Group’s shareholders. For the October quarter profit, rose to $3.36 billion from $3.1 billion in 2016.
Net interest income grew by $1.27 billion to $26.64 billion for 2017 versus $25.38 billion in 2016, but a sharp climb in bad loan provisioning of $746 million, reduced the impact of the rise in net interest income. Other income grew by $1.6 billion for the year to $15 billion.
Trinidad’s Scotiabank’s profit before Taxation increased by 11 percent and 5 percent after an increase in corporation tax rate in that country. Profit for the October quarter, dipped to $151 million due to increased taxation, from $158 million in 2016. Earnings per share ended the year at $3.73 for a PE ratio of 16.35.
Total Revenue, comprising Net Interest Income and Other Income amounted to $1.7 billion for the period ended October 2017, an increase of $117 million or 7 percent over the comparable period in 2016. Net Interest Income for the period ended October 2017 was $1.2 billion, $115 million or 10 percent higher than for 2016, driven mainly by growth in the retail loans and investment securities portfolios. Other Income for the same period was $481 million, $2 million higher than the prior year mainly driven by revenues earned from the credit cards portfolio.
Loan Loss Expense for the period ending October 2017 was $106 million, an increase of $29 million over the prior year for the Trinidadian bank. Loans advanced to Customers, closed the period at $13.9 billion, an increase of $681 million or 5 percent compared to 2016. Retail loans grew by $645 million or 6 percent over 2016.
Total Non-Interest Expenses 2017 was $686 million, down from $691 million in 2016 for Trinidad.
The big question, what resulted in the Trinidadian company enjoying growth in loans in a declining economy while Scotia Group operating in an economy that is growing could only hold the loan portfolio steady, for the most profitable area of operation?

Filed Under: Company News, Company Results Tagged With: BNS, Scotia Group, Scotiabank Trinidad & Tobago

Loans & profit up at T&T’s Scotiabank

September 6, 2015 by IC Insider.com

Trinidad’s Scotiabank reported improved results to July, with profits of $157 million in the July quarter, up by 12 percent on the $140 million generated in 2014 and much slower 7 percent increase to $417 million for the nine months against $390 million in 2014.
Earnings per share for the quarter is 89 cents and year to date $2.36, earnings for the full year should end around $3.40 up from $3.18 in 2014, placing the PE just over 18 time earnings based on the stock price of $62.50 it last traded at on the Trinidad & Tobago Stock Exchange. For 2016 earnings should end up around $4 per share all things being equal. All things may not be equal, with reports of negative economic growth in the first quarter of this year and low oil prices, that could result in lower consumption and weaker economic activity.
The July quarterly profit gain is down on the 18.4 percent reported for the April but much more than the $125 million earned in that quarter. For the July quarter revenues jumped sharply by $31 million over April and operating expenses dived by $13 million while loan loss provision was down by nearly $5 million.
Net interest income is up 11 percent to $251 million for the July quarter and a slower 7 percent for the nine months from a year ago to $711 million. Total net revenues climbed 9.3 percent to $378 million for the quarter and 8.2 percent for the nine months to July to $1.08 billion. Expenses fell in the July quarter, to $152 million, from $156 million, is up for the year to date, to $481 million from $466 million. Loan loss provisions are down in the quarter to just $4.5 million and for the nine months $30 million was booked versus $19 million in 2014.
Growth in the loan portfolio is one of the main contributor to increased profit. With only moderate growth in loans in the July quarter over April, loans which grew to $12.8 billion in April now stands at $13 billion and is up 11.3 percent over July 2014 and 11 percent over October 2014. If the bank can maintain this level of growth in loans into 2016 then profits should continue to increase double digit growth levels.
The bank will be paying a 40 cents dividend on October 9 to shareholders on record at September 11, the stock now generates a dividend yield of 2.5 percent.

Filed Under: Company News, Company Results Tagged With: Scotiabank Trinidad & Tobago, TTSE

4 TTSE stocks rose 3 fell Tuesday

March 17, 2015 by IC Insider.com

Trading on the Trinidad Stock Exchange with 16 securities changing hands of which 4 advanced, 3 declined and 9 traded firm with a total of 252,342 units, valued at $2,209,695.
At the close of the market, the Composite Index rose 1.11 points to close at 1,153.78, the All T&T Index gained 1.97 points to close at 1,978.60 and the Cross Listed Index increased by a mere 0.03 points to end at 43.10.
Gains| Stocks increasing in price at the close are, First Citizens Bank trading 2.981 shares to close with a gain of 2 cents at $35.26, Guardian Holdings with 71,200 shares changing hands, for a value of $1,037,220, gained 59 cents to end at a new 52 weeks’ high, of $14.65. Sagicor Financial Corporation trading 490 shares to close with a gain of 4 cents at $5.20, Trinidad Cement with a volume of 51,480 shares traded for $136,422, closed with a gain of 15 cents to end at $2.65.
Declines| The stocks declining at the end of trading are, Agostini’s contributing 283 shares with the price closing 2 cents lower at $17.38, Angostura Holdings added 27,500 shares valued at $398,750 falling 39 cents to close at $14.50 and Scotiabank with 130 shares trading closed down a cent at $62.
Firm Trades| Stocks closing with prices unchanged at the end of trading are, Clico Investment Fund trading 4,681 shares valued at $105,374 to end at $22.50, Flavorite Foods trading 18,607 shares at $4.80, Grace Kennedy trading 1,453 units at $3.59, Jamaica Money Market Brokers while contributing 50,000 shares, closed unchanged at 43 cents. Massy Holdings traded 502 shares to close at $63.37, National Enterprises saw trading in just 11,315 shares valued at $196,297 to close at $17.35, Prestige Holdings traded 1,453 shares to close at $9.91, Scotia Investments traded 10,000 shares in closing at $1.50, and West Indian Tobacco trading 303 units and closed at $125.04.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 6 stocks with the bid higher than their last selling prices and 4 with offers that were lower.