Bill Clarke, president of BNS Jamaica. - File

Ashford W. Meikle, Business Reporter

Bank of Nova Scotia (BNS) Jamaica, the country's most profitable commercial bank, is set to close two sub-branches on the north coast after almost 50 years of doing business and already the bank's decision is attracting the ire of customers as far away as Canada.

"Apparently, residents of Oracabessa must now go to Port Maria, eight miles away on a bad road. Yet very few appear to own cars and many older people cannot use the ATM," one customer complained in an email.

"For an institution that is making large profits, it seems particularly unfeeling to close a branch that is important to a small town's survival."

Closure confirmed

Yesterday, the bank's corproate office in Kingston confirmed the closure of Oracabessa, which was opened in 1959 and Gayle, in operation since 1975 - both sub-branches to Port Maria - but said that the decision was based on changing customer profiles and restructuring of its operations.

"After long and careful deliberations at all levels within Scotiabank and taking all issues and circumstances into considera-tion, we have decided to close these sub-branches on April 20, 2007," said BNS, whose profits reached a new peak of $6.8 billion in 2006 off revenues of $19.3 billion.

"We have carefully evaluated our branch network in light of changing demographic patterns and increasing usage of alternate delivery channels, inclusive of automated banking machines; MultiLink debit point of sale; internet banking and telephone banking. As a result, we have had to make difficult decisions to open, close or re-locate branches from time to time."

Scotibank Jamaica, headed by William 'Bill' Clarke, has some three dozen branches islandwide. The com-mercial bank faces heavy competition from National Commercial Bank, whose $223 billion of assets already outstrips BNS' $200 billion.

Scotiabank is reshaping its entire operation to, analysts say, position itself against its main rival and future growth possibly through acquisitions. The plan to create a new holding company and exchange issued common stock for preference shares is pending shareholder approval and then the Supreme Court's endorsement.

Jobs redundant

The bank shied way from the question of whether it was planning to make the jobs at the branches redundant. No response was forthcoming up to press time.

Also unanswered were questions about the closure, in the future, of other branches and sub-branches.

The automated banking machines will remain at both locations, but the Scotiabank customer criticised the decision, saying the lock-down of Oracabessa, for example, "appears to lack long-term business vision", citing expected economic boom from the highway, hotels and other tourism developments either under way or pending.

Originally, the branches were to be closed in January, but this was postponed to April 20, to allow customers "to make a smooth transition to the use of other branches in close proximity," the bank said in its statement.

ashford.meikle@gleanerjm.com