December 13, 2024

Scotia Group Jamaica Limited (SGJ)

Unaudited financials for the nine months ended July 31, 2024:

Scotia Group Jamaica Limited (SGJ) for the year ended October 31, 2024, reported a 18% increase in Interest income totalling $48.34 billion compared to $40.84 billion in the corresponding period last year. Interest income for the fourth quarter had a 15% increase to close at $12.64 billion compared to $11.03 billion for the comparable quarter of 2023.

Interest expense amounted to $2.04 billion (2023: $1.38 billion), this represents an increase of 48% year over year. Consequently, net interest income increased by 17% to $46.30 billion compared to $39.46 billion for the year ended October 31, 2023. The company booked net interest income of $12.10 billion for the fourth quarter versus $10.57 billion reported for the similar quarter of 2023.

Expected credit losses increased by 74% to close at $4.16 billion (2023: $2.40 billion). As a result, net interest income after impairment losses on loans increased by 14% from $37.06 billion in 2023 to $42.15 billion in the period under review.

Total insurance finance expenses for the year ended October 31, 2024, amounted to $2.78 billion, a 52% increase relative to $1.83 billion reported in 2023, while net insurance revenue increased by 40% from $1.82 billion in 2023 to $2.55 billion in 2024. Also, Net fee and commission income amounted to $7.23 billion (2024: $6.74 billion).

Consequently, Total operating income for the year ended October 31, 2024, amounted to $59.12 billion, a 11% increase relative to $53.07 billion reported in 2023. Total operating income for the fourth quarter amounted to $15.70 billion (2023: $13.55 billion).

Total operating expenses totalled $29.42 billion a 6% increase from the corresponding period last year. (2023: $27.63 billion).

Profit before taxation for the year ended October 31, 2024, amounted to $29.70 billion, a 17% increase relative to $25.44 billion reported in 2023. Profit before taxation for the fourth quarter amounted to $8.84 billion (2023: $6.75 billion).

Taxation for the year ended October 31, 2024, had a 16% increase to reach $9.55 billion (2023: $8.21 billion). As such, Net Profit for the year amounted to $20.16 billion, a 17% increase from the $17.23 billion reported in 2023. For the fourth quarter, Net Profit was $6.16 billion (2023: $4.67 billion).

Consequently, Earnings per share for the year amounted to $6.48 (2023: EPS: $5.54), while Earnings per share for the quarter totaled $1.98 (2023: EPS: $1.50). The twelve-month trailing EPS was $6.48, and the number of shares used in these calculations was 3,111,572,984.

Notably, SGJ’s stock price closed the trading period on December 13, 2024, at a price of $51.03 with a corresponding P/E ratio of 7.88x.

Balance Sheet Highlights

The company’s assets totalled $705.02 billion (2023: $664.74 billion). The growth in total assets was primarily driven by a $43.93 billion or 16% uptick in the company’s loans portfolio to close at $312.76 billion (2023: $268.83 billion).

Shareholder’s equity was $138.47 billion (2023: $126.55 billion), representing a book value per share of $44.50 (2023: $40.67).

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