KINGSTON, Jamaica – Scotia Group Jamaica Limited reported higher half-year profit in results published on the Jamaica Stock Exchange on Friday, alongside a separate announcement that its majority shareholder plans to take the company private.

The banking group posted net income of $10.1 billion for the six months ended April 30, up from $9.2 billion a year earlier, supported by stronger lending, higher deposits and growth across its banking, investment and insurance businesses.

Scotiabank Caribbean Holdings Limited, which owns 71.78 per cent of Scotia Group Jamaica, announced that it intends to buy out minority shareholders at $61.50 per share in cash.

Scotia Group shares closed at $58.43 on Friday, up $4.22, or 7.78 per cent, after the announcements. The closing price remained below the proposed buyout price, leaving a gap of $3.07 between the market price and the offer.

The proposed offer also comes as Scotia Group reported shareholders’ equity of $169.7 billion, or roughly $54.50 per issued share, while earnings per share rose to $3.24 for the half-year. Those figures, along with Friday’s closing price, give minority shareholders fresh benchmarks against which to assess the $61.50-per-share offer.

Scotia Group said revenues rose as its loan book expanded, with growth in mortgages, consumer loans, credit cards and commercial lending. Deposits also increased, which the company said reflected continued client confidence in the group.

President and CEO Audrey Tugwell Henry said the group delivered a solid performance during the quarter.

“We delivered a solid performance during the quarter, reflecting the strength of our strategy, the resilience of our team, and the continued confidence of our clients,” Tugwell Henry said.

The company said expenses also increased, partly because of higher transaction costs, technology investments and asset taxes. Credit quality remained broadly stable, with non-accrual loans staying below the industry average.

The board approved a second interim dividend of 45 cents per stock unit, payable on July 23 to shareholders on record as at July 1.

Scotia Group ended April with a larger asset base and said it continued to exceed regulatory capital requirements across its business lines.

The proposed privatisation remains subject to minority shareholder and court approval. If completed, Scotia Group Jamaica would be removed from the Jamaica Stock Exchange and become privately held within Scotiabank’s wider Caribbean structure.