March 10, 2023
For the three months ended January 31, 2023, Scotia Group Jamaica Limited’s (SGJ) net interest income rose 40% amounting to $9.24 billion, relative to $6.61 billion for the corresponding period in 2022, while interest expenses declined by 10% to total $130.56 million (2022: $145.19 million).
The company reported an expected credit loss of $510.01 million compared to the loss of $569.31 million for the comparable period in 2022. As such, Net interest income for the quarter rose 41% to $9.11 billion relative to the $6.47 billion recorded for the corresponding period in 2022.
The company reported Net interest income impairment losses on loans as $8.60 billion in comparison to $5.90 billion reported in the prior quarter.
Finance expenses from insurance increased 87% from $100.89 million in 2022 to $188.23 million in the quarter under review.
Total other revenue decreased by 9% to $4.36 billion (2022: $3.98 billion). Of this:
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- Net fees and commission income amounted to $1.93 billion (2022: $1.50 billion), a increase of 29% relative to the corresponding period in 2022.
- Insurance revenue rose by 472% and closed the period at $660.65 million relative to a loss of $177.61 million last year.
- Net foreign currency activities decreased by 2% and amounted to $2.07 billion (2022: $2.12 billion). Net gains on financial assets rose to $189.78 million relative to $68.95 million recorded in 2022.
- Other revenue fell significantly from $295.39 million in 2022 to $168.78 million for the period under review.
- As such, total operating income for the quarter increased 41% to total $13.32 billion versus $9.44 billion for the corresponding period in 2022.
Other operating expenses increased by 19% and closed the period at $3.27 billion relative to $2.74 billion in 2022.
Profit before taxation for the period totaled $5.45 billion; this represents a increase of 142% from the $2.25 billion recorded in 2022.
Tax charges for the quarter totaled $2.03 billion (2022: $1.00 billion), as such Net Profit for the quarter totaled $3.42 billion, 173% more than the $1.25 billion posted for the same period in 2022. Profit attributable to shareholders for the quarter amounted to $3.42 billion, 173% more than the total of $1.25 billion a year earlier.
Total comprehensive loss for the period totaled $1.11 billion, compared to the income of $2.38 billion recorded for the same quarter in 2022.
Earnings per share (EPS) for the quarter totaled $1.10 (2022: $0.40), while the trailing twelve months earnings per share totaled $4.45. The total number of shares employed in our calculations amounted to 3,111,572,984 units. Notably, SGJ’s stock price closed the trading period on March 09, 2023 at a price of $34.54 which corresponds to a P/E of 7.76 times.
Balance Sheet Highlights:
As at January 31, 2023, the company’s assets totaled $604.38 billion, 2% more than its value of $591.25 billion last year earlier. The increase in total assets was primarily driven by increases in ‘Loans, After Allowance for Impairment Losses’ which closed at $237.35 billion (2022: $199.75 billion). ‘Retirement Benefits Assets’ tempered the overall movement in the asset base to close the quarter at $14.27 billion (2022: $34.50 billion).
SGJ’s shareholders’ equity at the end of the period amounted to $105.20 billion relative to the $114.25 billion recorded in the prior year. Consequently, the book value per share amounted to $33.81 (2022: $36.72).
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