Scotia Group Jamaica is reporting an almost $2-billion decline in net income for the first quarter of 2020.
This represents a sizable downgrade from the $2.32 billion net income recorded for the corresponding period last year. In its latest quarterly report for the period ended January 31st, Scotiabank was quick to point out that the net income for the quarter under review would be on par with 2019 excluding gains on sale of investments in the first quarter of $126 million, and additional provisions recorded of $408 million [one-time impact] based on a more prudent approach in determining expected credit losses.
Total revenues excluding expected credit losses for the quarter under review was $11.1 billion and showed a reduction of $430 million or 3.7 per cent when compared to 2019. Loan and transaction volumes continue to grow across business lines. However, lower interest rates and increased competition, resulted in margin compression.
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