Best bank: Scotiabank
Scotiabank has demonstrated remarkable consistency amid a very volatile economic period, reflecting the management team’s focus on initiatives to improve the productivity and efficiency of the bank.
It has also been sharpening its proposition to the market and has boosted its position in both deposits and loans, with market shares hitting 25.7% and 21.2% respectively. Some sub-products saw even stronger growth, with the bank’s residential mortgage portfolio increasing by J$15.5 billion ($99.2 million) or 25% in the year, while the unsecured personal loans and credit card portfolio grew by J$7.7 billion or 9%. Greater loan underwriting was achieved without sacrificing credit policies – the bank’s non-performing loan ratio closed 2023 at 1.6%, comfortably below the average of 2.0% seen across the financial sector.
Total revenues grew by J$12.3 billion to J$55 billion, an increase of 28.6%. This healthy jump was primarily driven by an increase in net interest income of J$8.8 billion stemming from that bigger loan portfolio, as well as higher insurance revenues, gains on foreign currency activities and higher fee and commission income earned given significantly better transaction volumes during 2023.
In total, Scotia reported net income of J$17.3 billion in 2023, representing an increase of 67% compared with the previous year. The bank says its financial income was anchored by prudent expense management during the year – reflected by an improvement in the bank’s efficiency ratio to 52%.1% compared with 61.7% in the prior year. The bank’s return on equity was 15.5% (up from 9.4% in 2022), while return on assets was 2.6%, up from 1.7% in 2022.
