March 7, 2025

Scotia Group Jamaica Limited (SGJ)

Unaudited financials for the first quarter ended January 31, 2025:

Scotia Group Jamaica Limited (SGJ) for the first quarter ended January 31, 2025, reported a 10% increase in interest income totalling $12.72 billion compared to $11.60 billion in the corresponding three months last year.

Interest expense amounted to $499.04 million (2024: $498.96 million). Consequently, net interest income increased by 10% to $12.22 billion compared to $11.11 billion for the first quarter ended January 31, 2024. This was attributed to a strong growth in the company’s loan book.

Net Interest Income after expected credit losses increased by 15% to close at $11.62 billion (2024: $10.08 billion).

Total insurance finance expenses increased by 11% from $735.16 million in 2024 to $812.72 million for the three months.

Net Insurance Revenue for the first quarter amounted to $1.03 billion, a 96% increase relative to $523.96 million reported in 2024.  SGJ noted, “This was driven by higher contractual service margin releases coupled with lower insurance expenses in keeping with the performance of the portfolio, as well as an increase in transaction volumes stemming from further deepening of our client relationships.”

Total operating income for the three months amounted to $16.55 billion, a 19% increase relative to $13.89 billion reported in 2024.

Total operating expenses totalled $9.69 billion, a 12% increase from the corresponding period last year. (2024: $8.68 billion).

Profit before taxation for the first quarter ended January 31, 2025, amounted to $6.86 billion, a 32% increase relative to $5.22 billion reported in 2024.

Taxation for the three months had a 27% increase to reach $2.66 billion (2024: $2.09 billion). As such, Net Profit for the three months amounted to $4.20 billion, a 34% increase from the $3.13 billion reported in 2024.

Consequently, Earnings per share for the three months amounted to $1.35 (2024: EPS: $1.00). The twelve-month trailing EPS was $6.48, and the number of shares used in these calculations was 3,111,572,984.

Notably, SGJ’s stock price closed the trading period on March 06, 2025, at a price of $56.82 with a corresponding P/E ratio of 8.77x.

Balance Sheet Highlights

The company’s assets totalled $739.25 billion (2024: $665.91 billion). The growth in total assets was mainly driven by a $46.65 billion or 33% uptick in ‘Investment Securities’ to $186.29 billion, and a $36.73 billion or 13% increase in the company’s loan portfolio totalling $312.46 billion in 2025.

Shareholder’s equity was $150.68 billion (2024: $121.41 billion), representing a book value per share of $48.43 (2024: $39.02).

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