Scotia Investments grows profit in second quarter
Scotia Investments Jamaica Limited bucked the trend of reduced profits in the second quarter posting $339 million net income after tax.
That's a near seven per cent improvement relative to the April 2015 period.
More dramatic than its profit rise was the company's cash and equivalents, which skyrocketed to $8.3 billion or by 150 per cent, relative to $3.3 billion a year earlier.
Scotia Investments described the performance as "very good" and "pleasing".
"For the remainder of the financial year, we will continue to aggressively execute on our strategic mandate to increase our asset management, trading and capital markets businesses, whilst working consistently to provide relevant financial solutions to our diverse customer base. This being done as we maintain our focus on reducing the structural costs within the business," stated Lissant Mitchell, CEO of Scotia Investments, in a statement accompanying the results.
Concurrently, the company earned $468 million in total comprehensive income net profit in addition to unrealised gains for the three-month period or 61 per cent higher than the $289 million a year earlier.
Scotia Investments will pay its usual quarterly dividend of 45 cents per share on July 21.
For its half-year results, the core asset management and brokerage businesses grew 12 per cent in commission and trading income for the period, when compared to the same period last year. The company said that it further managed its total operating expenses, recording a six per cent reduction.
Total revenues over six months, comprising net interest revenue and other income, totalled $1.58 billion, a reduction of $91.8 million or 5.50 per cent below the corresponding period last year; and $849.73 million for the second-quarter, up $120.18 million or 16.47 per cent compared to the previous quarter.
Other revenue, which includes fee income, securities trading gains and net foreign exchange trading income, hit $834.57 million for the six-month period, up $92.58 million or 12.48 per cent above the corresponding period last year; and $480.78 million for the quarter, up $127 million or 35.90 per cent increase over the previous quarter.
Total assets of $68.62 billion represented a marginal increase of $0.4 billion year-over-year and $0.22 billion below the previous quarter, which is consistent with Scotia Investments "strategic initiative" to focus on the growth of asset management and brokerage businesses versus the balance sheet.
Total equity rose to $14.43 billion as at April 2016, up from $13.8 billion the previous year.