Scotia Group Jamaica Limited has grown net profit by 22 per cent to $8.74 billion over nine months, more than $3 billion of which was made in the quarter ending July 31.

Revenue came in at just under $26 billion, up $4.9 billion. Net interest income was up by more than $5 billion to $21.5 billion.

The results put the banking group on track to new record profit for 2009 of an annualised $11.6 billion by Sunday Business estimates.

The bank is also tracking ahead of rival National Commercial Bank, whose annualised net income is estimated at $9.8 billion, based on its nine-month result of $7.34 billion.

BNS will pay interim dividend of 34 cents per share to stockholders based on the current results, amounting to some $1.06 billion. With its 72 per cent ownership, the majority of those funds would flow to Canadian parent, Scotiabank.

Scotia Group Jamaica president Bruce Bowen attributes the bank's solid performance to its strong balance sheet, particularly its capital and liquidity positions, topped by efforts to improve customer service.

'performing' loans

Shareholder equity grew to $46 billion.

Total assets were reported at $308 billion, including $93 billion of 'performing' loans, which grew more than 16 per cent in a year, the bank said.

"Scotiabank's ranking as one of the top ten most stable banks in the world, combined with the group's reputation in Jamaica for safety and security, has allowed us to grow our business, even in the present challenging economic environment," Bowen said.

"We have responded to the economic downturn by working with those customers that are experiencing temporary cash-flow challenges, while at the same time managing credit exposure through careful risk selection."

The bank is still grappling with an expanding bad-loan portfolio, which, at $3.7 billion was $1.07 billion heavier than a year ago at July 2008, and represents a $102 million increase since the last quarter ending April 2009, notwithstanding its aggressive customer-assistance programme to reschedule existing loans and help steer them through their cash-flow difficulties.

"Scotia Group's non-performing loans now represent 3.81 per cent of total loans and 1.19 per cent of total assets," the bank said in a statement accompanying the release of its earnings report Friday, "compared to 3.14 per cent and 0.91 per cent, respectively, one year ago."

In the current nine-month period, BNS contributed 51 per cent to profit; the insurance subsidiary, 33 per cent; Scotia DBG, 11 per cent; and the building society 4.35 per cent.

"By focusing on our customers while maintaining prudent risk management and expense control, we believe that Scotia Group is well positioned to both weather the uncertainties over the coming year, and to take advantage of opportunities when the economy stabilises," the bank said.

business@gleanerjm.com