Scotia Investments disappoints.

ScotiaInvestmentsBuilding280x150Scotia Investments today reported another quarter of disappointing results, with profit after tax of $453 million for the half year to April, this year, representing a decrease of $371 million, when compared with the net income of $824 million for the period ended April last year.
For the quarter, profit after tax amounted to $316 million down from $468 million last year. The reduction in profit is partly attributable to the adoption of IFRIC 21, Levies, which requires a change in the accounting treatment for Asset Tax, as well as the increase in the asset tax rates imposed by the Government of Jamaica in May 2014, to be booked in full when due.
Total revenues for the six months of net interest and other income, was $1.67 billion, a reduction of $389 million or 19 percent below the corresponding period last year; and $856 million for the quarter was 5 percent or $41 million higher than for the comparative quarter in 2014.
Net interest income|Net interest income after impairment losses for the half year, was $929 million, a reduction of $284 million or 23 percent versus the corresponding period last year; and $459 million for the quarter, down $118 million or 20 percent below the April 2014 quarter.
Other revenues, which includes fee income, securities trading gains and net foreign exchange trading income, was $742 million for the period, $104 million or 12 percent below the corresponding period last year; and $397 million for the quarter, down $98 million from the April 2014 quarter.
Operating expenses for the quarter were $411 million, up from the $389 million over the 2014 quarter, due partially to a reduction in the Asset Tax. For the half year the operating expenses for the six months were $973 million, up from the $878 million over the 2014 period, due in part to the imposition and treatment of the Asset Tax which had to be booked in full up front. The asset tax in 2014 amounted to $86 million versus $148 million in 2015.
With the rebound in the local stock market, the company will enjoy increased trading fees from handling stock market trades as well as from unit trust activities, but they had a fall-off in gains on financial assets and foreign exchange gains during the quarter compared with 2014, this reduced the income by $164 million and $199 million for the half year.
Earnings per share ended at 75 cents for the quarter and $1.07 for the six months and should end up around $3 for the full year, which would be well down on last year’s results. The stock is listed on the Jamaica Stock Exchange and traded at $26.28 on Thursday.
The investment bank approved a second interim dividend of 45 cents per stock unit payable on July 16, 2015, to stockholders on record at June 23, 2015.

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