- Scotia Group Jamaica Limited (SGJ) reported a marginal 1.8% year-on-year (YoY) increase in net profit of $5.55Bn for the third quarter ended July 2025 (Q3 2025). The relatively flat earnings reflect higher cost growth, which outpaced revenues.
- SGJ’s revenue grew 8.7% to $16.25Bn YoY. This growth was driven by improved performance across all business segments.
- Net interest income after expected credit losses rose by 7.1% to $11.77Bn, amid continued momentum across the bank’s core lending engines. Mortgage loans led the charge with a 22.0% surge, while consumer lending, through the Scotia Plan portfolio, grew 17.0%.
- Net insurance revenue rose 22.7% to $0.74Bn, driven by strong performance across the groups insurance subsidiaries. Scotia Jamaica Life Insurance Company’s (SJLIC’s) net insurance business revenue rose 6%, alongside an 8% rise in gross written premiums. Meanwhile, Scotia General Insurance Agency (SGIA) also delivered strong results, with gross written premiums up 65% and policy sales increasing 57% year-over-year, underscoring robust demand and effective distribution in the general insurance segment.
- Additionally, the group’s fee and commission income rose 13.8% to $1.91Bn and net gains on foreign currency activities rose 10.6% to $2.52Bn.
- Notwithstanding the healthy 8.7% revenue growth, operating expenses grew faster at 14.9% to $8.16Bn largely reflecting a 16.9% increase in salaries and staff benefits and a 14.2% increase in other operating expenses. Management pointed to increased billings and technology investments as they focus on improving digital capabilities for clients. While the cost-to-income ratio rose during the quarter due to front-loaded expenditure, these initiatives could deliver long-term productivity gains and strengthen cost discipline over time.
- While Q3 earnings growth was relatively subdued, for the nine months it increased by 5.5%, supported by strong performance in the first quarter.
- SGJ’s stock price has increased by 2.4% year-to-date, closing at $54.84 on Monday, September 8, 2025. At this price, the stock is trading at a price-to-book (P/B) ratio of 1.16x, which is in line with the Main Market Financial Sector’s average of 1.19x
(Source: JSE & NCBCM Research)