Scotiabank T&T Limited recorded an increase of $27 million in its net income for the nine months ended July 31. Financial results just released by the bank shows net income of $417 million which is seven per cent higher than the figure for the comparative period in 2014.Total assets ended the period at $21.8 billion representing growth of $1.6 billion or 8 per cent compared to the previous year. Earnings per share (EPS) grew to 236.3 cents and return on equity (ROE) increased to 15.51 per cent.
The bank's balance sheet shows that total assets were $21.8 billion as at July 31–8 per cent or $1.6 billion more than the comparative period in 2014.Loans to customers, the bank's largest asset category, closed the period at $13 billion an increase of $1.5 billion or 13 per cent compared to 2014.
Treasury bills holdings totalled $1.8 billion, down by $305 million from 2014. Investment Securities grew by $859 million or 60 per cent as the bank moved to redeploy funds to higher yielding short to medium term instruments. Scotiabank said this was part of its active liquidity management strategies employed in the current economic environment. Total liabilities grew to $18 billion, up $1.4 billion or 8 per cent when compared to 2014.
"Customer deposits was the major driver of this growth, increasing by $1.8 billion or 12 per cent to close the period at $16.7 billion, as our customers continue to invest with confidence in the bank.
"In February 2015, Scotiabank made an early repayment of a $618 million debt security. This repayment has positively contributed to our net interest margin in the third quarter and will continue to do so for the remainder of 2015 and beyond."
The insurance segment continues to be an important pillar within the group, contributing 20 per cent to Scotiabank's total profitability. In commenting on the results, Anya Schnoor, managing director said: "We are pleased to announce that Scotiabank has concluded yet another successful quarter.
Our commendable third quarter results reflect consistent growth across all business lines and the continued focus placed on deepening our relationship with our customers and growing market share.
"Total loans grew by $1.5 billion or 13 per cent year over year coupled with an increase in deposits by $1.8 billion or 12 per cent; confirming the continued confidence that our customers place in us.Schnoor said the economic environment continues to be challenging with lower energy prices, noting that while liquidity has tightened in recent months, surplus liquidity remains.
She saud during the quarter the Central Bank increased the repo rate to 4.25 per cent. "We continue to closely monitor market dynamics and remain confident in our proven ability to manage through periods of economic uncertainty," she said.