Gayle Pazos Managing Director of Scotiabank Trinidad and Tobago Limited, has released the following financial report for the Year ended 31 October 2023.
Scotiabank Trinidad and Tobago Limited (The Group) realized Profit After Taxation of $678 million for the year ended 31 October 2023, a decrease of 1% under the prior year ended 31 October 2022.
Income after tax for the quarter ended 31 October was $176 million, $18 million or 12% over the quarter ended 31 July 2023, marking a strong end to the year, driven by loan growth and improved insurance revenues.
Based on these results, we are pleased to announce a dividend of 70 cents per share for the fourth quarter, bringing the total dividend to 280 cents per share for the year. This represents an Earnings per Share of 384.5c for our shareholders, the second highest in our
history following 2022 at 387.7c.
Our Return on Equity and Return on Assets continue to lead the industry and remain at healthy levels.
Commenting on the results, Managing Director of Scotiabank Trinidad and Tobago Limited, Gayle Pazos remarked:
“I am pleased to report that Scotiabank has once again delivered another year of solid financial results. This is the second successive year that we have posted Net Income Before Tax of over $1 billion, following a record-breaking performance in 2022. Performance in 2023 was supported by $1.3 billion or 7% loan growth across our core business lines. Our strong profitability year over year is a testament to the confidence that our customers have placed in us, as well as the hard work and dedication of our team.
We are wholly committed to our customers and have been working relentlessly to provide digital solutions and optionality – accessibility upgrades, security enhancements and other support features to keep pace with our customers’ changing needs, given the current environment where the digital experience is constantly evolving with artificial intelligence and machine learning.
In 2023, Digital adoption increased to 54% with 75% of total retail customers enrolled on Online Banking, and we were again recognised by Global Finance for our digital leadership, marking the third consecutive year as best Digital Consumer Bank in Trinidad and Tobago. Also, for the first time in our history, Global Finance awarded us Best Mobile Banking App. We are extremely proud of this recognition and pleased to provide our customers with best-in-class technology.”
Group Financial Performance
Revenue
Total Revenue, comprising Net Interest Income and Other Income, was $1.9 billion for the period ended 31 October 2023, an increase of $39 million or 2% over the prior year. Net Interest Income for the period was $1.4 billion, an increase of $168 million or 13%, the best return in our history, driven by our continued credit expansion and decisive management of our investment portfolio.
Other Income of $523 million decreased by $129 million compared to 2022, primarily due to lower trading revenues, aligned with prevailing market conditions. Other Income remains an important component of our profitability and we have seen partial offsetting growth in key segments such as Wealth and Insurance as well as activity-based revenues such as Card Revenues.
Non-Interest Expenses and Operating Efficiency
Total Non-Interest Expenses for the period ended 31 October 2023 was $810 million, higher by $72 million or 10% when compared to the same period in 2022. These increases are partially due to increased technology costs aligned with our delivery of enhanced digital capability, and the challenges of rising price inflation and its impact on direct and activity-based costs.
Managing operational efficiency remains a strategic priority, and our productivity ratio of 41.8% as at 31 October 2023 remains the lowest within the local banking sector.
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