SCOTIA Group Jamaica (SGJ) made $2.3 billion net profit for its July third-quarter 2015 or nearly one-quarter less than a year earlier due in part to lower income.
Over the quarter, SGJ also liquidated a small subsidiary, InterLink Investments Ltd, which contained J$2.3 million in cash and equivalents.
Interest income at SGJ dipped by seven per cent to $7.3 billion in the quarter, which hid efficiency gains at the group. Management held operating expenses flat at $4.9 billion of which salaries and staff benefits made the largest portion.
Jackie Sharp, President & CEO, blamed the fall in profits on shrinking margins and the asset tax disclosed in previous quarters.
“Despite this impact, our group posted commendable results for the quarter, driven by new client acquisition and growth in our key business lines: deposits and lending, insurance, asset management, and improvement in the risk profile of our assets. We continue to execute initiatives to improve operating efficiencies while helping our customers to enhance their experience through the use of more convenient and more cost-effective electronic channels,” she reasoned in statements accompanying the results.
SGJ stated that it improved its retail internet banking platform to allow customers the ability to transfer funds to accounts at any participating financial institution.
It also launched Scotia Vision Achiever, a programme that supports 24 small business owners with business coaching.
Total shareholders’ equity grew to $85 billion or 9.8 per cent higher than a year earlier as a result of internally generated profits.
“We continue to exceed regulatory capital requirements in all our business lines, and our strong capital position also enables us to take advantage of future growth opportunities,” stated SGJ in its financials.
The Group is organised into six main business segments: Retail Banking – incorporating personal banking services, personal deposit accounts, credit and debit cards, customer loans and mortgages; Corporate and Commercial Banking – incorporating non-personal direct debit facilities, current accounts, deposits, overdrafts, loans and other credit facilities and foreign currency transactions; Treasury – incorporating the Group’s liquidity and investment management function, management of correspondent bank relationships, as well as foreign currency trading; Investment Management Services – incorporating investments, unit trusts, pension and other fund management, brokerage and advisory services, and the administration of trust accounts; Insurance Services – incorporating the provision of life and medical insurance, individual pension administration and annuities. Other operations of the Group comprise the parent company and non-trading subsidiaries.