Bruce Bowen President and CEO of the Scotia Group Jamaica Limited

As president and CEO of the Scotia Group Jamaica Limited, Bruce Bowen stands at the helm of Jamaica’s largest and most successful financial institution. And despite navigating the treacherous waters of an anemic global economy, weak consumer and corporate loan demand and volatile financial markets, Bowen can point to a double-digit increase in profits for 2009 that was good enough to earn the No. 7 rank on The List. In 2008, Bowen shared the No. 8 ranking with his predecessor William “Bill” Clarke.

Scotia Group Jamaica Limited employs about 2,000 people and serves about 900,000 customers in Jamaica. In 2009, Scotia Group Jamaica Limited leveraged its financial strength, business line diversity and market position to post net income available to common shareholders of $11.2 billion, an 18.8 percent increase over 2008. The Group’s total assets improved by 12.6 percent to $315.6 billion as the company continued to pursue investment and lending opportunities presented in the market, according to financial statements.

During the year, Scotia Group paid dividends of $1.39 per share, reflecting an increase of 6.9 percent over what was paid in 2008. Total Shareholder’s Equity grew to $45.7 billion as at October 31, 2009, up from $37.9 billion in 2008, making Scotiabank one of the most well-capitalized financial services providers in Jamaica.

In order to “cushion the effects of the ongoing global and local economic crises” and in  recognition of the company’s major role in the Jamaica economy, under Bowen Scotiabank took the lead by reducing interest rates in August 2009. At the time, Scotiabank boasted the lowest prime lending rate among major commercial banks.

“We will continue to look for ways we can play a leadership role in stimulating the productive sector and reducing interest rates in the market,” Scotiabank announced in a prepared statement accompanying third quarter 2009 results.

A highlight of the fiscal year was the launching of a Customer Assistance Programme and proactively restructured loans for customers, whose financial situation had been adversely affected by economic recession, according to the financial statements.

Building on Scotiabank’s standing as one of the 10 Best Banks in the World based on its performance during the global financial crisis, coupled with our own reputation in Jamaica for safety and security, “our Wealth Management and Insurance businesses grew significantly during 2009, and provided strong contribution to the Group’s profitability,” the company said.

Scotia Insurance and Scotia DBG also introduced protection and wealth-building products for their customers. In addition, the private banking service and product offering were enhanced and re-branded under the international standard, Scotia Private Client Group, according to the company’s financial statements.

Bowen took over as president and CEO in 2008 after stops in the Cayman Islands and Trinidad and Tobago and Puerto Rico. The native of Canada had worked in Jamaica six years earlier under William Bill Clarke.

During the year, Bowen had to position Scotiabank in view of the government’s plan for a debt swap scheme that would involve the exchange of almost $700 billion in domestic securities for longer term instruments at reduced interest rates.

Since Scotiabank and other financial institutions earn a sizable portion their revenues from interest payments they receive from government securities and since those payments would be reduced under the government’s debt swap scheme, the change would force financial institutions to look outside the public sector for business.

Bowen said Scotiabank began to aggressively look beyond Government for business from as early as October 2009 after “seeing what was happening,” The Jamaica Observer reported in early 2010.

“The commercial banking sector needs to be managing the margins and looking at overall liability and asset rates,” said Bowen. “We need to focus on business lines that generate non-interest revenue. That doesn’t just mean an increase in fees but it means those business lines — foreign exchange, investment management, investment sales, cash management etc… you’ll see a big push into those areas to generate revenues that’s not dependent on interest.”

If Bowen could pull that off, he would have no trouble keeping and improving his ranking on next year’s list.