By McPherse Thompson, Assistant Financial News Editor 
Clarke (left) and Birmingham (right)
THE BANK of Nova Scotia Jamaica (BNS) has recorded net income of $999 million for the quarter to the end of January 2003, the highest in the history of the bank, according to Managing Director, William Clarke.
The figure represents a $69 million increase over net profit for the first quarter of the previous financial year, and $33 million above the quarter ending October 2002.
BNS has also announced an interim dividend of 30.5 cents per stock unit.
Mr. Clarke, speaking at the bank's annual general meeting at the Pegasus Hotel in New Kingston on Friday, said it was the first time that they have been able to present the first quarter results to such a gathering.
While commending BNS on its achievements over the years, shareholders were vociferous that management should do something to correct the stagnation in BNS' stock price, which has been trading on the Jamaica Stock Exchange (JSE) in the region of $15 for some time, and which they felt was not a reflection of the Bank's stability, growth and profitability.
However, Bruce Birmingham, the bank's chairman, said they did not control the stock price and ultimately that had to be determined by the market. "The bank has had record earnings, paid dividends, has had a record of stability and unparalleled reserves, but for some reason the market does not appreciate it," he said.
He added that "There was nothing that we, as management, can do about a stock price" and "we will not do anything to manipulate the price of the stock."
The shareholders' concerns were raised after Mr. Clarke gave an update on the bank's financial status, in the process noting that despite renewed challenges, Scotiabank continued to achieve solid results due to careful management of its credit and interest rate risk, expense control and continued growth in key business lines.
He said careful management of the institution's credit risk has resulted in a decrease in non-performing loans year over year. At the end of the quarter, loan provision stood at $1.5 billion, some $580 million more than non-performing loans.
Total assets at the end of the quarter stood at $130 billion, an increase of $26 billion or 24 per cent over the previous year, and was attributed mainly to a $13 billion growth in loans.
In addition, Mr. Clarke said, deposits grew by $16.3 per cent to $79 billion, "reflecting continued confidence of the Jamaican public in Scotiabank." Total stockholders equity grew to $14 billion at the end of the quarter.
