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Scotiabank records drop in profit due to increase in corporation tax

Scotiabank TT Ltd (the Group) has reported income after tax of $309 million for the six months ended April 30, 2018.

This is a decrease of $24 million or seven per cent over the comparative period last year, which the bank said was mainly due to increased corporation tax rates levied on commercial banks at 35 per cent, combined with higher levels of loan loss provisioning.

However in its June 6 statement, Scotiabank said its earnings per share at 175.2 cents, return on equity at 15.82 per cent and return on assets at 2.55 per cent “continue to highlight the Group’s strength.”

Based on this performance, the board approved a second quarter dividend of 50 cents per ordinary share, payable on July 12 to shareholders on record as at June 13.

Scotiabank MD Stephen Bagnarol said the results show the bank “continues to perform in challenging economic circumstances.”

He noted the retail loan portfolio continues to grow and has resulted in a three per cent growth in total revenue.

“Scotiabank remains committed to working with the government and other stakeholders during this period of economic uncertainty to ensure the well-being of our customers and the country as a whole.”

In its message to shareholders, the board said “given the current economic climate, the Group recorded good growth in year to date net interest income of $26 million or four per cent over the prior year, primarily driven by growth in the retail loans portfolio. Total assets increased by $265 million over the same period last year and stood at $24.6 billion.”

Finance Minister Colm Imbert toured Scotiabank’s Operations and Shared Services Company at Ramsaran Park, Chaguanas on April 4.

Speaking about this, Bagnarol said Imbert “commended Scotiabank for establishing our regional hub in this country, employing 750 local citizens, providing banking and back office support to Scotiabank entities in over 15 Caribbean countries. In the last quarter, Scotiabank launched a new customer experience system called The Pulse or El Pulso.”

The Pulse is a powerful digital system that allows the bank to continuously gather feedback from customers. It enables the bank to better understand customers’ needs and prioritise investments to improve their banking experience.

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