SCOTIA Group Jamaica (SGJ) plans to capitalise on the inching growth in the economy after posting a profit slump during the three months to July 31.

The bank earned $2.7 billion net profit for the quarter, or nine per cent less than the comparative period last year.

“We are also encouraged by the signs of growth we have seen in the economy during this quarter and are confident that we are well positioned to capitalise on opportunities as they arise,” said SGJ president, Jacqueline Sharp, in a release on the results.

The Bank of Jamaica, which releases preliminary economic data, indicated that real economic activity grew an estimated “one per cent to two per cent” during the June quarter, the fourth consecutive quarter of growth.

This is in line with growth projections for the full 2014/15 fiscal year.

SGJ which rarely makes less profit than a year ago still described its performance as creditable.

“For this quarter, all business lines across the group reported a solid performance with strong growth in our retail, small business and commercial loan portfolios,” added Sharp.

Most line items for the quarter were flat when compared to year-earlier levels, including total operating revenues, which hovered at $8.8 billion for the quarter.

The group would have posted higher profit if its impairment losses on loans for the quarter did not jump to nearly $500 million compared with $173 million a year earlier.

The increased loan loss expenses reflected “the impact of the challenging economic conditions being experienced by our customers”.

Over the period, SGJ increased its productivity ratio, a key measure of cost efficiency, to some 60 per cent, compared to 54.6 per cent in July 31, 2013, and 62.8 per cent for the previous quarter April 30, 2014.

“We remain committed to driving value for our customers, staff, shareholders and the communities in which we operate as we build on the strong legacy we have established,” added Sharp.

The commercial banking group’s total assets increased year over year by 3.2 per cent to $401 billion at the end of July 2014.

This was due primarily to growth in the loan portfolio, which increased by $13.6 billion to $144.6 billion. Total customer liabilities, which include deposits, repo liabilities and policyholders’ funds, grew to $303 billion, an increase of $4 billion over last year, “which was mainly reflected in the repo portfolio and policyholders’ funds”.

SGJ’s capital base stood at $76.6 billion as at July 31, or $6 billion higher than year-earlier levels.