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Scotiabank TT reports 33% jump in income

Scotiabank Trinidad and Tobago has reported that it’s income after tax for the quarter ended April 30, 2021, has increased by 33 per cent when compared with the corresponding period in 2020.

For the second quarter the group realised income after tax of TT$159 million, or TT$39 million more than the figure posted as at April 30, 2020.

“Our prudent risk management strategies and proactive measures taken in 2020 to mitigate credit losses have resulted in a significant reduction in our impairment loss expense”

At the same time, the financial institution realised after-tax profit of TT$305 million for the sixth-month period, which exceeded profit for the comparative period in 2020 by TT$42 million or 16 per cent.

A challenging environment

In a release, Scotiabank Trinidad and Tobago credited the increase in profit to “effective cost management strategies combined with lower impairment losses”, despite the challenges presented by the economic and social environment that has impacted both businesses and households.

As a result, the group saw its net impairment losses on financial assets falling by TT$81 million or 71 per cent for the six-month period. Meanwhile, the ratio of non-accrual loans to total loans stood

Scotiabank – San Fernando branch (Photo: trinigo.com)

“Our prudent risk management strategies and proactive measures taken in 2020 to mitigate credit losses have resulted in a significant reduction in our impairment loss expense,” the group said.

Notwithstanding, the group’s revenues declined slightly due to a reduction in its loan portfolio while deposits and insurance policy sales increased.

For the six months ended April 30, 2021, Scotiabank Trinidad and Tobago recorded revenue of TT869. Year-on-year revenue fell by TT$43 million or six per cent.

“The challenging environment has resulted in loans declining by approximately [TT]$760 million or five per cent, with our retail loan portfolio being most impacted by the economic uncertainty and reduced levels of spending. The Group continues to see customers confidently invest with us as deposits from customers increased by [TT] $360 million
or two per cent over the prior year,” the group outlined. “

“Our insurance segment also continues to show growth in increased policy sales, resulting in a [TT]$90 million or six per cent increase in policyholder liabilities over the prior year,” it added.