Scotiabank Trinidad and Tobago is reporting a 16 per cent improvement in its profitability during 2021. The company has recorded an after-tax profit of $604 million for the year ended 31 October 2021, which is an increase of $83 million over the previous year ended 31 October 2020.
In addition, the company notes that for the quarter ended 31 October 2021, The Group realized income after tax of $142 million, a decrease of $13 million or 8 per cent, compared to the previous quarter in 2020.
In an official release highlighting the bank’s financial results for 2021, Managing Director of Scotiabank Trinidad and Tobago Limited, Gayle Pazos observes the pandemic continues to present interesting challenges.
“2021 was a year of unique challenges faced by the country and our Group. The economic environment remains subdued as consumer demand and investment are below pre-pandemic levels and we continue to experience relatively high levels of COVID-19 cases,” she notes.
“Notwithstanding these headwinds, The Group has recorded improved financial performance, driven by lower net impairment losses on loans and reduced operating expenditure. The Group’s total Revenue declined by $48 million or 3%, driven by the reduction in loan balances. In response to lower revenues, The Group reduced its non-interest expense base by $55 million or 7%, translating into an improved operating efficiency ratio of 40.6%,” Gayle Pazos said.
She also pointed to their success in reducing fallout on the bank’s loan portfolio as a result of the pandemic’s economic impact on borrowers.
“The Group continues to exercise prudent risk management, and the credit quality of our loan portfolio has remained relatively stable with a ratio of non-accrual loans to total loans of 2.3%,” she reports. “Net impairment losses on loans reduced by $121 million or 53% from prior year.”
The Scotiabank T&T boss says their ability to optimise digital banking also provided another growth pole.
“We have seen over 3.4 million online and mobile transactions, and through continued feedback from ongoing customer surveys, we continue to enhance both our digital and non-digital offerings,” Gale Pazos says.
“In October, we launched Scotia SelectPay™, becoming the first within the local industry to give our customers the flexibility to convert credit card purchases into monthly instalments. I encourage our customers to visit tt.scotiabank.com to learn more about our acclaimed Scotia Caribbean App and other products and services that we offer,” she added.
The company’s release also highlights its support of environmental and food sustainability initiatives focused on households in Southern Trinidad, and which led to some 12,000 households and numerous children’s homes creating kitchen gardens, grow boxes, and a hydroponics system. Its work with United Way Trinidad & Tobago’s (UWTT) on the New Norm Project, means five thousand students and 241 teachers across 15 schools will benefit from the initiative which aims to help selected primary schools in high need communities to re-open safely and efficiently.
Scotiabank T&T also continued to champion breast cancer awareness, despite the pandemic, and is encouraging the public to “help make an impact by donating to the Scotiabank Women Against Breast Cancer (SWABC) Fund, Account# 74815 00131247.”
“In the last five years alone, we have donated $1.25M towards breast cancer screening initiatives, and since our initial launch of the SWABC programme, we have helped over 20,000 women access free screening,” the release disclosed.
Gale Pazos also points to the bank’s continued commitment to be a good corporate citizen, reporting that Scotiabank “provided financial assistance to over 95,000 customers to date”, and continues to stand with them, as they navigate the challenges wrought by the COVID-19 pandemic.
