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Scotia Group Reporting Net Income Of JA$3.13B For Quarter Ended January 2024

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Audrey Tugwell Henry, President and CEO of Scotia Group Jamaica has released the following Report for the First Quarter Of Fiscal 2024

Scotia Group reports net income of $3.13 billion for the quarter ended January 31, 2024. In furtherance of our objectives to return value to our shareholders, the Board of Directors have approved a dividend of 40 cents per stock unit in respect of the first quarter, which is payable on April 17, 2024, to stockholders on record as
at March 26, 2024 (Q1 2023 – 25 cents). The Group’s performance continues to be anchored by solid growth across our business lines, prudent risk management and efficient management of our operations.

Our asset base grew by $64.2 billion or 10.7% to $665.9 billion as at January 2024 and was underpinned by the excellent performance of our loan portfolio which increased by 17.4% at the end of the quarter. Deposits by the public increased $47.3 billion or 11.6% to $456.7 billion, signaling our clients’ continued confidence in the strength and safety of the Scotia Group.

In response to the Group’s performance, Scotia Group President and CEO, Audrey Tugwell Henry said “We are very proud to deliver another solid performance for the quarter to our shareholders. Our business lines performed well and we will build on this momentum throughout the fiscal year. We continue to distinguish
ourselves in the market by the expertise of our team as well as the quality of the solutions we provide, and we are very pleased that clients are increasingly choosing the Scotia Group as their financial partner. This was evidenced by healthy growth in both total deposits and total loans during the period under review.

The commercial business had a standout quarter with a year over year increase of 17% in the loan portfolio.

We are very pleased to see the steady growth taking place in the market and Scotia Group is uniquely wellpositioned to support our corporate and commercial clients as they develop and expand their businesses.

Similarly, in our retail business, we recorded a 12% increase in personal (Scotia Plan) loans and a 24% increase in mortgages versus the prior year. Our performance is indicative of the service improvements we have made as well as the excellent value that our lending products offer to our clients.

Scotia Investments continues to make a valuable contribution to the Group. Assets Under Management grew by 9% year over year. Our Scotia Premium US$ Indexed Fund, Scotia Premium Fixed Income Fund, Scotia Premium Growth and Premium Short Term JMD funds continue to deliver best-in-class performances ranking
in the top two among similar funds.

In December 2023, Scotia Jamaica Life Insurance Company (SJLIC) introduced an innovative new product – Scotia Solace. Solace is a fully digital final expenses plan that can be purchased using our Scotia Mobile App in just a few minutes. This product offers significant convenience and value, and we are confident that it will resonate well with the market. SJLIC’s Gross Written Premiums for the period grew by 9% versus the prior year period

Our newest subsidiary Scotia General Insurance Agency marketed under the brand name ScotiaProtect, offers extremely competitive rates for Scotiabank clients including interest-free installment payments for home, auto or content insurance. Gross written premiums for the quarter were just over $170 million with over 1,000 policies sold.

Refreshed Global Strategy
In December 2023, our global bank outlined its new strategic priorities under the leadership of our new Global President and CEO, Scott Thomson. We were very pleased to welcome Scott along with Scotiabank Group Head of International Banking, Francisco Aristeguieta to Jamaica in January 2024 where they met with important stakeholders, outlined the vision and reaffirmed the Bank’s commitment to Jamaica and the Caribbean. Our new strategy is relevant and timely and leverages the strengths of our longstanding institution.

For More Information CLICK HERE

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Higher Operating Costs And Margin Pressures Impacted Main Event’s Overall Q1 Profitability.

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Entering 2025 with a strategic focus on expanding revenue streams, strengthening client relationships, and maintaining financial discipline, the Company achieved revenue growth.
However, higher operating costs and margin pressures impacted overall profitability.

The Company reported revenues of $585.03M, representing a 3% or $17.28M increase over the $567.75M recorded in Q1 2024. This growth was primarily driven by a significant increase in revenue contribution from a previously underperforming segment, reflecting the success of targeted expansion efforts. While revenue remains below prior peak levels, the Company continues to recalibrate and drive demand through expanded service offerings and strengthened client engagements.

Gross profit for the quarter stood at $301.67M, reflecting a 4% decline from $315.82M in Q1 2024. This decline resulted from higher direct costs associated with event execution, infrastructure upgrades, additional non-recurring costs incurred during the period, and increased labour costs related to service delivery. Consequently, the gross margin contracted to 51.56% from 55.63% in the prior year. The Company remains focused on managing costs effectively to support long-term profitability.

Operating expenses increased to $218.72M, up 7.5% from $206.35M in Q1 2024. This rise was attributed to planned administrative enhancements, a significant one-off expenditure for the Company’s 20th Anniversary celebration, higher personnel costs, increased security and fuel expenses, and a 51% increase in amortisation expenses to $11.36M due to renegotiated lease agreements and the addition of a new lease.

Operating profit stood at $87.48M, a 24% decline from $115.28M in Q1 2024. Increased finance costs, stemming from renegotiated lease agreements and new lease additions, also impacted results.
Net profit for the quarter amounted to $73.67M, a 27% decrease from $100.25M in Q1 2024, influenced by lower gross margins, increased operational costs, and higher impairment charges. As a result, earnings per share (EPS) fell from $0.33 in Q1 2024 to $0.25 in Q1 2025.

Total assets grew by 6.4%, reaching $1,306.01M, up from $1,227.37M in Q1 2024. This increase was primarily driven by a 53% rise in receivables, reflecting expanded customer engagements, with several balances stemming from events executed near the period’s end. Short-term deposits increased to $250.24M from $236.50M, while cash and bank balances declined by 30% to $131.74M from $188.91M due to timing differences in collections and reinvestments.

Shareholders’ equity strengthened to $956.17M, reflecting a 5% increase over $912.66M in Q1 2024. This growth was primarily supported by retained earnings, demonstrating the Company’s ability to generate and reinvest profits efficiently.

Payables increased by 47%, rising to $229.58M from $156.38M in Q1 2024, mainly due to the timing of event executions towards the end of the quarter, resulting in higher accrued expenses related to supplier payments.

While the macroeconomic environment remains uncertain, the Company remains optimistic about the upcoming quarters. The focus will be on enhancing operational efficiencies to manage cost structures effectively and strengthening revenue streams through deeper market penetration and strategic partnerships. Additionally, the Company intends to use owned-events as a driver of revenue growth.
Our continued success is a testament to the dedication, creativity, and resilience of our exceptional team. Their ability to adapt and innovate in a dynamic industry ensures that we consistently exceed expectations and deliver outstanding experiences. Their dedication was especially evident during the holiday period, where they worked tirelessly to execute high-quality events, ensuring continued excellence in service delivery. We also recognise and appreciate the unwavering guidance of our Board; whose strategic leadership continues to drive our company’s growth and long-term vision.

Solomon Sharpe Chief Executive Officer

For More Information on Main Event Entertainment Group Limited (MEEG) Unaudited Results, Q1 – Three Months Ended January 31, 2025 (Revised) Click Here

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