Scotiabank's half-year profit drops to $309 million

Scotiabank Trinidad and Tobago Ltd (Scotiabank) today reported income after taxation of $309 million for the six months ended 30 April 2018, a decrease of $24 million or 7% over the comparative period last year.

The bank says this reduction in profitability was mainly due to increased corporation tax rates levied on commercial banks at 35%, combined with higher levels of loan loss provisioning.

A statement issued by Scotiabank today says that despite the decline in profitability year over year, Earnings per Share at 175.2 cents, Return on Equity at 15.82% and Return on Assets at 2.55% continue to highlight the group’s strength.

The Board of Directors has approved a 2nd quarter dividend of 50 cents per ordinary share payable on 12 July 2018 to shareholders on record as at 13 June 2018.

In commenting on the results, Stephen Bagnarol, Managing Director said: "The Bank continues to perform in challenging economic circumstances. Our retail loan portfolio continues to grow and has resulted in 3% growth in total revenue."

Scotiabank says it remains committed to working with the government and other stakeholders during this period of economic uncertainty to ensure the well-being of our customers and the country as a whole.

It notes that Finance Minister Colm Imbert visited its Shared Services centre based in Trinidad and commended Scotiabank for establishing a regional hub in this country, employing 750 local citizens, providing banking and back office support to Scotiabank entities in over 15 Caribbean countries.

The bank's total revenue, comprising of net interest income and other income was $899 million for the period ended 30 April 2018, $25 million higher when compared to the same period last year.

Net Interest Income for the period ended 30 April 2018 was $637 million, $26 million or 4% higher when compared to same time last year driven mainly by growth in retail loans portfolio and higher investment returns driven by our investment strategies.

Other Income for the same period was $262 million, $1 million lower than the prior year mainly due to lower insurance revenues.

Total Assets were $24.6 billion as at 30 April 2018 representing growth of $265 million over 30 April 2017.

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