September 9, 2024

Scotia Group Jamaica Limited (SGJ) for the nine months ended July 31, 2024, reported a 20% increase in Interest income totalling $35.71 billion compared to $29.80 billion in the corresponding period last year. Interest income for the third quarter had a 19% increase to close at $12.40 billion compared to $10.44 billion for the comparable quarter of 2023.

interest expense amounted to $1.51 billion (2023: $913.42 million), this represents an increase of 65% year over year. Consequently, net interest income increased by 18% to $34.20 billion compared to $28.89 billion for the nine months ended July 31, 2023. The company booked net interest income of $11.85 billion for the third quarter versus $10.02 billion reported for the similar quarter of 2023.

expected credit losses increased by 75% to close at $2.89 billion (2023: $1.66 billion), while net interest income after expected credit losses increased by 15% from $27.23 billion in 2023 to $31.31 billion in the period under review. Also, total insurance finance expenses for the nine months ended July 31, 2024, amounted to $2.00 billion, an 80% increase relative to $1.11 billion reported in 2023.

Total operating income for the nine months ended July 31, 2024, amounted to $43.42 billion, a 10% increase relative to $39.52 billion reported in 2023. Total operating income for the third quarter amounted to $14.95 billion (2023: $13.70 billion).

SGJ highlighted, “The growth in total revenues was primarily driven by an increase in net interest income stemming from the strong growth in our loan portfolio, higher gains on foreign currency activities, higher fee and commission income as well as higher net insurance revenue.”

Total operating expenses totalled $22.56 billion a 8% increase from the corresponding period last year. (2023: $20.82 billion).

Profit before taxation for the nine months ended July 31, 2024, amounted to $20.86 billion, a 12% increase relative to $18.69 billion reported in 2023. Profit before taxation for the third quarter amounted to $7.85 billion (2023: $7.31 billion).

Taxation for the nine months ended July 31, 2024, had a 12% increase to reach $6.86 billion (2023: $6.13 billion). As such,  Net Profit for the nine months amounted to $14.00 billion, a 11% increase from the $12.56 billion reported in 2023. For the third quarter, Net Profit was $5.46 billion (2023: $5.07 billion).

Consequently, Earnings per share for the nine months amounted to $4.50 (2023: EPS: $4.04), while Earnings per share for the quarter totaled $1.75 (2023: EPS: $1.63). The twelve-month trailing EPS was $6.00 and the number of shares used in these calculations was 3,111,572,984.

Notably, SGJ’s stock price closed the trading period on September 06, 2024, at a price of $42.44 with a corresponding P/E ratio of 7.08x.

Balance Sheet Highlights

The company’s assets totalled $692.21 billion (2023: $643.50 billion). The growth in assets was mainly due to a 14% or $34.79 billion increase in the company’s loan portfolio to close the period at $291.64 billion (2023: $256.85 billion).

Shareholder’s equity was $131.96 billion (2023: $112.58 billion), representing a book value per share of $42.41 (2023: $36.18).

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