SCOTIA Group Jamaica reported net income of $10.6 billion for the year ending October 31, 2012, $43 million less than the same period last year.

Bruce Bowen, president and CEO of Scotia, noted that the results were against the background of a weakening domestic and global economy over the past few quarters. But he said the financial institution managed to produce “solid results” despite the harsh economic climate.

“All of our business lines continued to produce solid results over the last quarter,” he said.

Scotia’s total operating income, comprising net interest income after impairment losses and other revenue, was $31.2 billion, representing an increase of 7.4 per cent relative to the prior year.

Net interest income after impairment losses for the year was $22.1 billion, up $1.1 billion or 5.1 per cent when compared to prior year. While interest margins declined, continuing the trend of the past few years, growth in loan volumes helped to off-set it, the company said, adding that there was a 39 per cent reduction in impairment losses, due to lower net write-offs and provisions year over year.

The company reported that other revenue for the year was $9.1 billion, up $1.1 billion or 13.3 per cent when compared with the prior year. This was due primarily to fees earned on capital market and unit trust transactions, gains on sale of securities, increased loan fees due to growth in loan volumes, as well as higher foreign exchange trading income, reported Scotia.

Operating expenses at the firm were $16.37 billion for the twelve months, representing an increase of $1.5 billion or 10.3 per cent over last year. Total personnel costs increased by three per cent, the company noting that he majority of the increase was in other operating expenses, reflecting the impact of new tax measures announced in the Government’s May 2012 budget presentation, as well as increased provisions in connection with a long outstanding legal claim.

Non-performing loans at October 31, 2012 totalled $4.55 billion, reflecting a decrease of $706 million from prior year. The reduction from the previous year was due primarily to a large corporate loan that was classified as non-performing during 2011, the company said.