Mon | Sep 25, 2017

Scotia Investments checks profit slide

Published:Wednesday | December 14, 2016 | 12:00 AM
Lissant Mitchell, CEO of Scotia Investments Jamaca Limited.

Scotia Investments Jamaica Limited (SIJL) recorded its first annual rise in profits in four years.

The company made $1.35 billion at year end October 2016, up 32 per cent. This translates to earning per share of $3.19 compared to $2.42 a year earlier.

CEO Lissant Mitchell said the company's performance to a 36 per cent increase in non-interest revenues.

The 2016 profit out-turn, however, is well its five-year high. In 2012, Scotia Investments made $2.01 billion, which has fallen steadily to $1.02 billion in 2015 performance, before breaking the streak this year.

SIJL previously explained its fluctuating profits as resulting from its strategy to transition away from interest earning income to revenues derived from fees.

In the current period, annual net interest income fell from $1.7 billion to $1.5 billion, while fees and commissions rose from $1 billion to $1.2 billion.

Total net operating revenue climbed from $3.2 billion to $3.5 billion.

Net interest income now accounts for less than half of total operating revenue, after factoring impairment losses.

The company said it experienced growth in key business lines with net gains on financial assets increasing by 86 per cent compared to the previous year, while fee and commission income increased by $148 million or 13 per cent.

ROBUST GROWTH

"The company continues to execute its strategy of growing the asset management business, which achieved robust growth of $124 million in revenues for the year when compared to prior year, while the net asset value of assets under management increased by $14.6 billion or 13 per cent over prior year," said Mitchell.

Its portfolio of assets under managed is now valued at $180 billion.

During the year, Scotia Investments wound up two subsidiaries, Billy Craig Investments Limited and DB & G Corporate Services Limited, September 30. The two entities contributed pretax losses of $1.9 million during the year.

steven.jackson@gleanerjm.com

Scotia Investments

Net profit 2012-2016

2012 $2.01 billion

2013 $1.99 billion

2014 $1.85 billion

2015 $1.02 billion

2016 $1.35 billion