Scotia Group Jamaica Limited (SGJ) has announced a 17% decline in fourth-quarter net profit, which fell to $5.14 billion from $6.16 billion, primarily driven by escalating operational expenditures and one-time costs associated with Hurricane Melissa. This occurred despite the group achieving substantial growth across key financial metrics and solidifying its position as Jamaica’s leading mortgage provider.
Throughout the 2025 financial year, SGJ expanded its total loan portfolio by 12% to $350.44 billion, with residential mortgages reaching $118 billion. This expansion fueled a 9% annual increase in operating income, which climbed to $64.71 billion. The fourth quarter alone saw operating income rise by 4% to $16.31 billion.
However, these gains were significantly offset by a 29% surge in quarterly operating expenses, which jumped to $8.82 billion. This increase was attributed to multiple factors: a 44% rise in staff salaries and benefits to $4.21 billion following union negotiations, a 28% increase in cash handling costs due to vendor repricing, and $817 million in non-recurring expenses for efficiency initiatives, asset write-downs, and hurricane-related provisions.
President and CEO Audrey Tugwell Henry addressed the cost pressures, noting the challenges of cash transportation for their extensive network of 300 automated banking machines, two-thirds of which are located offsite. The bank also adjusted various customer fees effective May 1st in response to these rising costs.
Despite the catastrophic impact of Hurricane Melissa on Jamaica’s western region, SGJ leadership expressed confidence in their resilience. The group’s non-accrual loans stood at $4.8 billion (1.3% of gross loans), with credit loss provisions exceeding total non-performing loans by 123%. The bank has implemented client assistance programs offering payment deferrals and insurance flexibility for affected customers.
SGJ demonstrated significant market strength throughout the year, accounting for 55% of the total loan growth across Jamaica’s eight commercial banks. Consolidated net interest income grew by 8% to $50.01 billion for the full year. For the 2025 FY, consolidated net profit declined marginally by 1% to $19.90 billion, with earnings per share of $6.40.
The group continues to advance its digital transformation strategy under Scotiabank’s global ‘make it easy to do business with us’ initiative. Recent enhancements include online onboarding, digital debit card controls, investment portfolio visibility through mobile banking, and plans to introduce Apple Pay and digital wire transfers, though specific timelines remain undisclosed.
SGJ’s total assets grew by 10% to $773.78 billion, while shareholder’s equity increased by 9% to $150.51 billion. The company declared a dividend of $0.45 per share, payable January 21, bringing the annual dividend yield to 3.44%. Despite short-term challenges, CEO Tugwell Henry affirmed the institution’s strong positioning to navigate current conditions and deliver robust future performance.