Scotia reports $119M profit for second quarter 2020
Pictured: Scotiabank, Independence Square, Port-of-Spain. Photo by Alina Doodnath.
Scotiabank Trinidad and Tobago Limited has recorded a profit after tax of $119 million for the second quarter ended April 30, 2020.
The figure, however, represents a 25 percent decline or $39 million for the same period in 2019.
Year to date, the Group has realised profit after tax of $262 million – a decrease of $81 million or 24 percent from the corresponding period in the previous year.
The YTD performance was impacted by adjustments of $22 million in additional provision for credit losses related to certain changes in assumptions in its IFRS 9 economic scenario assessment, and a tax credit recorded by the insurance subsidiary in 2019.
Excluding the impact of these adjustments, the Group’s year to date performance declined by 10 percent over the previous year. Return on Equity decreased to 12.76 percent, and Return on Assets to 2.02 percent for the six months ended 30 April 2020.
Managing Director Stephen Bagnarol said the bank performed well in the face of COVID-19.
“The bank is weathering the COVID-19 pandemic crisis in a position of strength as we remain well capitalised. The underlying results of the bank were good; during the quarter, deposits in both retail and commercial continued to grow; and we had good revenue performance as the economic shocks caused by the pandemic were not felt until later in the quarter.”
He said provisioned credit losses for the second quarter of 2020 resulted in a charge of $67 million compared to $39 million for the same period in the prior year.
The charge for the quarter was primarily driven by a shift in forward-looking economic scenarios related to COVID-19 impacting the performing loan portfolio.
Bagnarol said the Bank responded to the COVID-19 crisis by bringing relief to clients through solutions like the Customer Assistance Programme, which offered financial relief to over 64,000 customers.
He noted that in spite of COVID-19, the bank was named Trinidad and Tobago’s Best Bank 2020 by Global Finance Magazine, which selects the best financial institutions around the world every year.
Bagnarol said: “This again shows we are well prepared to weather this storm, backed by a solid balance sheet, robust liquidity and a strong and dedicated team.”
He credited the Bank’s technology investments and digital transformation for managing the current crisis.
The Scotiabank Managing Director noted that there would be tougher times ahead, but he expressed confidence that the bank would weather the storm.
“However, with our resilient employees, good portfolio credit quality, and our investment in technology over the past 5 years, Scotiabank Trinidad and Tobago is well positioned to become even stronger than before. Please continue to be safe and keep your families protected as we continue to face this crisis together.”