Scotiabank Trinidad and Tobago Ltd (The Group) has realised income after taxation of $119 million for the second quarter ended April 30, 2020, a decrease of $39 million or 25 per cent over the comparative quarter ended April 30, 2019.
In a statement the bank said year to date, the Group has realised income after taxation of $262 million versus the prior year comparative of $343 million, a decrease of $81 million or 24 per cent.
“As we noted in our first quarter financial results announcement, our year to date performance was impacted by two significant adjustments: $22 million in additional provision for credit losses related to certain changes in assumptions in our IFRS 9 economic scenario assessment and a tax credit recorded by the insurance subsidiary in 2019,” the bank said.
It said excluding the impact of these adjustments, the Group’s year to date performance has declined by 10 per cent over the prior year.
As a result Return on Equity has decreased to 12.76 per cent and Return on Assets to 2.02 per cent for the six months ended April 30, 2020.
It noted that based on the Group’s performance, the Board of Directors has approved a second dividend of 40 cents per ordinary share payable by July 10, 2020 to shareholders on record as at June 19, 2020.
Stephen Bagnarol, Managing Director said the bank is weathering the storm this storm, backed by a solid balance sheet.
He said the bank is responding to the COVID-19 crisis by bringing relief to customers through different solutions, for instance Customer Assistance Programme, which has helped provide financial relief to over 64,000 customers.
“Our digital transformation has also given our customers the support they need to help them conduct their business faster, easier and more securely,” Bagnarol said.
The bank also noted that the coronavirus pandemic coupled with the significant reduction in oil and gas prices, has resulted in unprecedented declines in economic activity, ultimately impacting the Group’s income statement.
“Toward the end of the quarter taxation ending in April, our Group’s financial results would have had a relatively greater impact as business activity in Trinidad and Tobago stalled for six weeks due to the COVID-19 lock down measures,” the bank said.