Audrey Tugwell Henry, President and CEO, Scotia Group Jamaica has released the following report and results for First Quarter Of Fiscal 2023
Scotia Group reports net income of $3.4 billion for the quarter ended January 31, 2023, representing an increase of $2.2 billion or 172.9% over the comparative prior year period. The Group’s performance continues to be anchored by solid growth across all our business lines, prudent risk management and efficient management of our operations.
In keeping with our commitment to deliver shareholder value, the Board of Directors approved a dividend of 25 cents per stock unit in respect of the first quarter, which is payable on April 20, 2023, to stockholders on record as at March 29,2023.
In response to the company’s performance, Audrey Tugwell Henry, President and CEO, Scotia Group commented “I am very pleased to announce extremely strong results for the Scotia Group this quarter.
Our results signal our customers’ confidence in us to support their financial objectives. Throughout our rich history, Scotiabank has built its reputation on trust and expertise and we continue to build on that legacy.
Our growth is a direct result of the successful execution of our Customer First and Winning Team strategic imperatives. Over the period under review, we have seen growing interest in our products and services resulting in strong performances across business lines. Total deposits increased by 8% over prior year as customers continue to place their funds with us. We continue to see growth in both consumer and business loans as a result of the quality of our products coupled with our highly competitive rates.
Our total loan portfolio increased by 19% over the previous year. Commercial loans grew by 17% versus last year as our corporate and commercial banking team worked with their customers to meet their financing needs. Similarly, retail loans grew by 19% year over year, as we supported our retail customers to finance their needs for personal acquisitions including home ownership. Of note, our Scotia Plan Loans increased by 15% and we continue to see impressive growth in our mortgage portfolio which increased by 32% versus the prior year.
Scotia Insurance delivered strong results during the quarter recording a 5% increase in gross written premiums and a 12% increase in creditor life premiums year over year. We believe there is still more opportunity in this area of our business, as we are aware that a significant percentage of Jamaicans are either underinsured or have no insurance to protect them from unforeseen circumstances. Therefore, we continue to educate our customers on the importance and benefits of life insurance and individual retirement solutions when setting their financial objectives.
During the quarter, we piloted our general insurance products which include coverage for home, home contents and automobiles through our newest subsidiary, Scotia General Insurance Agency (SGIA) which operates under the brand name – Scotia Protect. Scotia Protect offers an end-to-end digital experience to ensure customer convenience as well as extremely attractive rates and benefits. The pilot leveraged our experience from digital banking and the results were highly positive. All (SGIA) policies are underwritten by GK General Insurance, and we are very confident that this new business will be highly successful.
Our team at Scotia Investments continues to deliver value to our customers by helping them manage their portfolios to build wealth. In December, we enhanced our digital capabilities by allowing customers to view their portfolio statements via our Scotia mobile banking platform. This feature will greatly enhance customer convenience and allow them to monitor, maintain and easily retrieve up-to-date monthly records of their investments with us.
Our digital strategy underscores every part of our business. Initiatives undertaken during the quarter include further enhancements to our online banking platforms to allow customers to easily pay their taxes to Tax Administration Jamaica.
Utilization of our digital channels continues to grow as customers opt for the convenience and functionality offered across our digital platforms. As at the end of the quarter 45% of all banking customers were enrolled in online platforms. Online banking now represents our most used channel with 39% of total transactions being conducted online and only 2% within our branches.
Digital sales also continues to grow and currently represents 36% of total sales for the Bank. Digital transformation remains a key differentiator for the Group, and we will continue to invest in this area to maintain our competitive advantage.
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