SCOTIA Group Jamaica (SGJ), the nation’s largest bank, for the second year made an undisclosed accounting provision for the US$14.5 million ($1.5 billion)-plus interest judgement handed down against the bank.

It’s the largest case on SGJ’s books, but it remains mum on the provisions to date or its strategy going forward. It only indicated that the bank awaits a hearing date for appeal.

The case, which commenced nearly 20 years ago, also reflects how the pace of justice impacts business.

“The Supreme Court delivered judgement against Scotia Jamaica Investment Management Limited (SJIM) in January 2012. That decision was appealed by The Bank of Nova Scotia Jamaica Limited (which assumed SJIM’s liability) and is currently before the Court of Appeal. We are currently awaiting a hearing date from the Court of Appeal. We are not at liberty to disclose any further details as the matter is pending before the court,” stated SGJ executive vice-president, chief financial officer and chief operating officer Frederick Williams in a written response to Jamaica Observer queries.

The group still earned increased profits at $11.9 billion for its October year-end or $350 million higher than a year earlier. Most of the industry earned less profit due to the debt swap in 2013. However, SGJ leveraged its reduced interest income with a 10 per cent growth in its loan portfolio to $134 billion.

Action was brought against SJIM by an unnamed financial entity in 1997 amidst the financial sector meltdown.

“The claim arose from an alleged breach of contract and negligent performance of a letter of undertaking issued by SJIM in May 1997,” indicated SGJ in its annual report 2013 note 50. “Notwithstanding the strong grounds for appeal, management has considered it prudent to make some provision in the accounts of Bank of Nova Scotia Jamaica for the year ended October 31, 2013.”

In 2012, the Court of Appeal granted a stay of execution of the judgement pending determination of the appeal. SGJ indicated that it will appeal on “several grounds”.