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Scotiabank Trinidad and Tobago’s income declines 25%

Scotiabank Trinidad and Tobago Limited saw its income after taxation decline by a quarter for the just-ended quarter.

The bank reported income of TT$119 million, down TT$39 million from the comparable period last year when it saw TT$158 million in earnings.

Additionally, the Group’s six-month income after taxation also took a similar blow, declining by 24 per cent to TT$262 million, down from the TT$343 million reported last year up April 30, 2020.

Scotiabank said it performance was impacted by two significant adjustments, a TT$22 million in additional provision for credit losses related to certain changes in assumptions in our IFRS 9 economic scenario assessment, and a tax credit recorded by  its insurance subsidiary in 2019.

“Our digital transformation has also given our customers the support they need to help them conduct their business faster, easier and more securely.”

– Scotiabank Trinidad and Tobago Managing Director, Stephen Bagnarol

However, even without those adjustments, the Group would have seen a 10 per cent decline in earnings year over year.

That notwithstanding, the institution’s Board has approved a second dividend of 40 cents per ordinary share, payable by July 10, it said in a media release today.

Regarding the impact of the novel coronavirus (COVID-19), Managing Director Stephen Bagnarol said “The bank is weathering the COVID-19 pandemic crisis in a position of strength as we remain well capitalised. The underlying results of the bank were good; during the quarter, deposits in both retail and commercial continued to grow; and we had good revenue performance as the economic shocks caused by the pandemic were not felt until later in the quarter.

cotiabank Trinidad and Tobago Managing Director, Stephen Bagnarol
(Photo: Trinidad and Tobago Newsday)

“The provisioned credit losses for the second quarter of 2020 resulted in a charge of TT$67 million compared to TT$39 million for the same period in the prior year. This charge for the quarter was primarily driven by an adverse shift in forward-looking economic scenarios related to COVID-19 impacting the performing loan portfolio,” Bagnarol said.

Noting that no one could have anticipated the seriousness or magnitude of the COVID-19 crisis, he said the company’s investments in technology have allowed it to keep its customers and employees connected, with two-thirds of its staff working from home.

“Our digital transformation has also given our customers the support they need to help them conduct their business faster, easier and more securely. These tools, including online banking, mobile banking, next generation ATMs and Scotia Alerts to name a few, are what have been helping customers conduct their banking remotely, keeping them safe and protected during this pandemic. Banking digitally now is really about Staying Home and Staying Safe.”