Consumer loans under pressure but mortgages up at Scotia Group
The loan portfolio of Scotia Group Jamaica Limited dipped by nearly four per cent year on year. Personal loans are down, generally, but mortgages rose by 11 per cent at Jamaica's second largest banking group.
Scotia Group's total loan portfolio was estimated at $215 billion at the end of April, compared to $223 billion a year earlier.
“We continue to see a robust demand for mortgages. We are playing a key part in offering that product,” said President and CEO Audrey Tugwell Henry at the bank's quarterly investor briefing on Thursday following the release of its second quarter financial results.
The group made quarterly profit of $2.7 billion, up from $2.2 billion in the comparative quarter in 2020. Revenue improved from $8.8 billion to $9.3 billion, reflecting flat interest income and lower fees and insurance flows, but growth in other income.
“The demand for consumer loans have been tempered but we are still seeing commercial loans happening,” said Tugwell Henry who was promoted to head the bank on January 1. She previously headed the retail operations.
Fees from loans have contributed to growth for the group over the years, but Tugwell Henry indicated that going forward investment banking services and insurance services could plug the gap.
"We are seeing big opportunities ... for non-interest revenue to come from our investment and insurance business. That's our expectation for closing the gap," she said.