SCOTIA Group Jamaica Limited’s (SGJ) growing mortgage business and wider push to deepen customer relationships helped lift earnings for the six months ended April 30, even as the banking group prepares for a proposed privatisation by its Canadian parent.

SGJ reported a $378.32-billion loan book, including $127 billion in residential mortgages, as profit before tax rose nine per cent to $15.41 billion for the half-year.

“What you’re seeing with the growth in mortgages is a direct reflection of our strategy to be our client’s most trusted financial partner, meeting all of their financial services needs,” said SGJ President and Chief Executive Officer Audrey Tugwell Henry at the company’s media briefing on Friday.

Scotia Group became the largest banking mortgage provider in Jamaica as its consolidated loan book reached $117.94 billion in October 2025, with $105.28 billion held by its subsidiary the Bank of Nova Scotia Jamaica Limited (BNSJ). That surpassed JN Bank Limited and the VM Building Society, two institutions long associated with Jamaica’s mortgage market.

This expansion in residential mortgages has resulted in that segment becoming 30 per cent of BNSJ’s overall loan book. SGJ also reported double-digit growth in mortgages, consumer and commercial loans, along with credit cards, during the most recent half-year. This propelled interest income by 11 per cent to $27.92 billion for the six months, while profit before tax increased nine per cent to $15.41 billion.

However, Tugwell Henry noted, “We’re not just aimlessly pursuing a loan growth strategy. The foundation of the strategy is client primacy.”

Client primacy is one of the four pillars set by Scott Thomson, president and CEO of the Bank of Nova Scotia (Scotiabank), which is focused on deepening the client relationship and services offered across the various business lines.

That has manifested in Scotia Group Jamaica spending more on digitising its operations across its subsidiaries while improving existing options. This has resulted in improved digital workflows to speed up turnaround times for employees and clients at the bank level. Turnaround times for the pledging of securities or assets held at Scotia Investments Jamaica Limited have also improved, while a new digital channel is being piloted to support client advisor interactions.

“With a large book of bank customers at the retail level, we have over 850,000 retail deposit clients. We are seeking to become the primary bank for those clients. That is the foundation on which we have built our strategy,” Tugwell Henry added on the strategy going forward.

While the timeline to introduce
Apple Pay has changed, BNSJ is piloting the digital introduction of wire transfers for retail clients. This is being supported by the move to modernise its ATM fleet through the addition of 100 new machines during 2026.

With digital adoption at BNSJ above 50 per cent, interactions with clients across other business lines are also changing. Clients at Scotia Jamaica Life Insurance Company Limited will receive their statements digitally as of July 1. The digital-first nature of Scotia General Insurance Agency Limited continues to bear fruit, as the subsidiary reported full retention of written premiums.

“All our clients have the option to fulfil their financial needs digitally assisted without having to come into branch. We’re embedding insurance into key client journeys. So, whether a client is borrowing, saving or planning for the future, protection is becoming a natural and intuitive part of that experience,” added Debra Lopez-Spence, President of SJLIC on the bancassurance strategy.

For the second quarter ended April 30, SGJ’s consolidated interest income improved by 11 per cent to $13.82 billion, with profit before tax rising 18 per cent to $8.62 billion. Net profit for the period grew 19 per cent to $5.96 billion for the quarter and 10 per cent to $10.08 billion for the six months.

With Scotiabank seeking to take SGJ private, Tugwell Henry noted that the Bank of Jamaica had not raised any concerns about the move. She said that while the conglomerate would be privately held if the transaction is approved, its commitment to clients and Jamaica would not change. She also highlighted that SGJ and BNSJ would still be required to publish financial statements under Jamaican law.

“This transaction is aimed at enhancing capital and operational efficiency and Scotiabank’s agility in responding to market opportunities. If the transaction is completed in line with normal and customary closing conditions, there will be no material impact on the current operations of SGJL,” the SGJ CEO explained.

Scotia Group’s consolidated asset base grew nine per cent during the six-month period to $843.86 billion which was largely influenced by the $19 billion remeasurement of the defined benefit pension plan. SGJ had $172.38 billion in investment securities and $215.25 billion in cash resources. Total liabilities increased eight per cent to $674.19 billion with $571.77 billion in deposits and $51.41 billion in insurance contract liabilities.

Shareholder’s equity grew 13 per cent to $169.64 billion with a book value of $54.53 per share. SGJ Chief Financial Officer Gabrielle O’Connor explained that BNSJ’s board of directors had approved a $4 billion transfer from retained earnings to retained earnings reserve. That move is meant to further bolster the bank’s regulatory capital.

SGJ’s share price closed Tuesday at $59.40 which leaves the stock up 10 per cent since the Scotiabank Caribbean acquisition announcement. That has pushed the company’s market capitalisation to $184.83 billion and makes it the largest company by market cap. While this is below the $61.50 takeover price, it represents a 13 per cent premium to the conglomerate’s book value.

Scotia declared a $0.45 dividend, totalling $1.40 billion, to be paid on July 23 to shareholders on record as of July 1. SGJ also appointed Peter Moses to its board and risk committee effective June 19. Scotiabank International executive Jonathan Echeverria, Flow Jamaica CFO Yaniece Gentles and attorney Stephanie Ewbank were also appointed to different SGJ subsidiaries.