On the heels of Scotiabank’s announcement that it is pulling out of several Caribbean jurisdictions, the Canadian bank has reported its operations in Barbados recorded millions of dollars in losses in the last financial year.
The Bank of Nova Scotia, which trades as Scotiabank, said in financial statements published this week that after making $47.27 million in profit in 2017, it was faced with a massive $18.65 million loss.
However, market watchers say the reported loss for the financial year ending October 31, 2018 was linked to the $86.18 million that Scotiabank assigned to impairment loss. There was no such provision for impairment loss in 2017.
In light of this position, the bank’s financial statement did not indicate any income tax expense for 2018.
In addition, there was no comment accompanying the financials which were signed by managing director David Parks and the bank’s director of finance, Colleen Cyrus.
Scotiabank’s branches in Barbados had net interest income of $129.72 million and this was on par with the $130.16 million in the 2017 financial year. However, there was a jump in non-interest, income inclusive of fees, as this moved from $45.97 million in 2017 to $49.14 million in 2018.
Last November, Scotiabank announced it was exiting nine Caribbean countries and selling those assets to Trinidad-based
Republic Bank Holdings. The list did not include the commercial bank’s Barbados branches.
In defence of its move, the bank’s Senior Vice President and Head of the Caribbean South and East, Stephen Bagnarol said: “We are just refocusing on the markets with size and scale . . . [and] even after this transaction we will be servicing 90 per cent of the Caribbean.”