Scotia Group Jamaica is reporting net income of $3.3 billion for the second quarter, or 42 per cent more than the first quarter.

But overall, the performance is not as profitable as last year. The bank made total net income of $5.6 billion for the six months ended April 30, compared to $6.7 billion for the corresponing period last year.

That, however, does not take into consideration the gains on the sale of a subsidiary of $753 million in the prior year and additiinal IFRS 9 related provisions of $487 million in the current year.

Exculding that, the bank points out, net income increased year-on-year by $96 million, or two per cent.

David Noel, president and CEO of Scotia Group, said “our strategy to focus more aggresively on growing our core business is paying off with growth in loans (net of allowances for credit losses) totaling $18.5 billion at the end of the quarter which represents an increase of 11 per cent year over year.”

He said, “I am particularly pleased that commercial loans to the private sector increased by 23 per cent and our mortgage portfolio grew by 13 per cent relative to prior year.”

But he noted that the groups financial performance was also impacted by “the continued compression of net interest margins, the new treatment of credit loss provisions based on the adoption of IFRS 9, and increased investments in technology as we build our business for the future.”

“While our revenues have been significantly impacted by the low interest rate environment, we believe that low intereest rates are good for the economy and leads to improved macroeconomic stability over the long term,” he said.

Looking ahead, the company plans to roll out 100 upgraded ATMS across the island this year, with 48 currently installed.