Best bank: Scotiabank
With economic growth softening in Trinidad and Tobago – this year GDP is expected to come in at 2.2% compared to 2.5% in 2023 – Scotiabank continues to outperform other banks in the local market. Led by country manager Gayle Pazos, Scotiabank’s focus on digital transformation saw improvements in its platform relating to accessibility upgrades and security enhancements. The significant investment from the bank in this area over the past three years is helping to deliver efficiency and, in turn, stronger financial results.
Meanwhile Scotiabank is also focusing on diversifying its business lines to provide stable earnings growth. The bank’s corporate and commercial segment saw solid loan and deposit growth, with loans up by 8% (translating into a 38 basis point increase in market share) and the insurance division saw a 24% uplift in net income.
Scotiabank’s wealth management division in the country grew above the industry average despite a challenging investment climate that was impacted by heightened geopolitical tensions. Assets under management grew by 22% and the bank’s net income for the segment grew 18% – it has now seen a five-year compound annual growth rate of 23%.
In the retail business the bank saw very strong competitive challenges but still delivered $866 million growth in retail loans, a 7% increase equal to a 17bp increase in its market share to 34.05%. Around 72% of retail customers were enrolled in digital platforms by the end of 2023 – and 97% of all transactions are now conducted without any direct staff intervention.
In total the bank’s assets grew by $1.6 billion or 6%, to $29.7 billion, while loans increased by $1.3 billion or 7%. The ratio of non-performing loans improved to 1.95% from 1.98% in 2022, with net impairment losses as a percentage of gross loans improving from 0.67% to 0.58%. The bank’s return on equity came in at 15.4%, ahead of its five-year average of 14.9%.
Best digital bank: First Citizens
First Citizens improved digital engagement, customer convenience and data privacy last year.
The bank saw significant growth on its digital channels – user numbers increased by 6.2%, reaching 2,692,328 at the end of the awards period. Active customers represented 95% of the lender’s digital user base.
Initiatives such as the delivery of debit cards by mail and transaction thresholds introduced for over-the-counter services, contributed to increased take up of debit cards and ATM usage. Wifi and tablets were rolled out across the bank’s network to ensure seamless internet access and better service at branches. eStatements for deposit accounts have also been introduced.
First Citizens also upgraded its digital policy. This included upgrades to the collections management system and the development of an automated credit scoring model. This contributed to the more effective management of delinquencies and collection activities, while also enabling more precise risk pricing.
Best bank for corporates: Scotiabank
Scotiabank showed robust growth in its corporate banking operations in Trinidad and Tobago, with considerable expansion in both loans and deposits, alongside impressive transactional work.
The lender achieved an 8% year-on-year increase of TT$433 million ($63.9 million) in its corporate portfolio, bringing the total loan portfolio to TT$5,845.5 million. The bank now has an 11.4% share of the market. Corporate deposits grew by TT$1 billion – an 11% year-on-year increase.
The bank acted on a number of transactions for large domestic and international corporates in 2023, including a $50 million term loan to support Proman’s petrochemical operations in Trinidad and Tobago. This loan was part of an extensive refinancing package valued at $800 million.
