SCOTIABANK Trinidad and Tobago yesterday reported that the commercial bank recorded income after tax of $304.5 million for the six months ending April 30, 2021, an increase of $42 million or 16 per cent over the comparative half-year period.
“This increase in profitability was driven by effective cost-management strategies combined with lower impairment losses,” the bank said, adding, “The economic and social environment in which we operate remains challenging and continues to impact both business and households in the country.”
For the six months ended April 30, Scotiabank’s total revenues of $869 million declined by $46 million or 5 per cent with net interest income reducing by $43 million or 6 per cent, as a result of a decline in our loan portfolio.
The bank said its other income has consistently increased over the last three quarters (August 2020 to April 2021) since hitting post-Covid lows in July 2020 and has only declined by $3 million or 1 per cent over the comparative six-month prior period.
Scotiabank said that in response to the declines in revenue, it has focused on controlling its operating expense base, resulting in non-interest expenses reducing by $29 million or 7 per cent for the six-month period.
The majority Canadian-owned bank noted that its prudent risk management strategies and pro-active measures taken in 2020 to mitigate credit losses have resulted in a significant reduction in our impairment loss expense.
For the six months ended April 30, 2021, net impairment losses on financial assets have declined by $81 million or 71 per cent, whilst our ratio of non-accrual loans to total loans currently stands at 2.06 per cent.
Total assets stood at $27.6 billion, representing growth of $779 million or 3 per cent compared to the prior year’s period.
The challenging environment has resulted in loans declining by approximately $760 million or 5 per cent, with its retail loan portfolio being most impacted by the economic uncertainty and reduced levels of spending.
The bank’s deposits from its customers increased by $360 million or 2 per cent over the prior year, while its Insurance segment also continues to show growth in increased policy sales, resulting in a $90 million or 6 per cent increase in policyholder liabilities over the prior year.
Commenting on the results, Scotiabank’s new local managing director, Gayle Pazos, remarked: “Our results to the end of April 2021 have continued a trend of improvement noted in the first quarter. Notwithstanding the setbacks experienced in T&T over the last few months, our team and customers have risen to the challenge and really demonstrated their resilience.”
Scotiabank’s second interim dividend for the period ending April 30 is $0.60 a share.