THE BANK of Nova Scotia Jamaica Limited (Scotiabank) earned a net profit of 5.5 billion on a gross operating income of $19.7 billion, for the year ended October 31, 2003. Net profit was up 41 per cent in the year before while its gross income was up 27 per cent, based on the results released yesterday. The company released its results in a press briefing at its executive office in the Scotiabank Centre Building, downtown Kingston.
"This is the most outstanding year on record for the Bank of Nova Scotia," said William Clarke, its managing director. This achievement came, he said, at a time when the economy has been going through considerable challenges.
Scotiabank is primarily focused in the retail banking business. He said, "Our retail franchise continues to deliver outstanding results."
The board of directors yesterday approved an interim dividend of 40 cents per stock unit and a special dividend of 38 cents, totalling 78 cents per share. This is payable on January 12, 2004 to stockholders on record at December 17, 2003.
"What we are paying as dividend for this quarter is equivalent to the total dividend we would have paid in the year 2000," he said.
This dividend takes the year-to-date distribution to $1.75, a 52 per cent increase over the $1.15 paid last year
Explaining the rapid profit climb, Stacie-Ann Wright, general manager and chief financial officer said, "Our productivity ratio improved year-over-year, so the expenses to income was lowered, and also the tax rate was lower." She said the productivity improvement was based on "very strict" expense control. The year's results were driven by strong revenue growth, increasing to $14.5 billion, up 36 per cent over the previous year.
Net interest income was $12 billion, or 37 per cent more than last year.
