KINGSTON, JAMAICA — Scotia Group Jamaica (SGJ) ended its 2025 financial year with a mixed performance, balancing record loan growth and digital momentum against rising operating costs and the financial shock of Hurricane Melissa.
The Group’s standout highlight was its solidified role as Jamaica’s largest mortgage lender, expanding residential loans to $118 billion and growing its total loan portfolio by 12% to $350.44 billion. This credit expansion drove operating income up 9% year-over-year to $64.71 billion, with fourth-quarter income alone rising 4% to $16.31 billion.
However, beneath the top-line strength, cost pressures mounted. SGJ’s operating expenses surged 19% over the year, reaching $34.99 billion. The fourth quarter alone saw a sharp 29% spike to $8.82 billion, driven primarily by union-negotiated salary increases, transportation of physical cash, and strategic tech-related outlays. A $817 million bill related to asset write-downs and recovery efforts following Hurricane Melissa added further strain.
Cash Handling, Salary Surge Bite Into Margins
Labor costs remain the biggest lever in the rising expense structure. Staff salaries and benefits in the fourth quarter alone jumped 44% to $4.21 billion. Meanwhile, the continued operation of 300+ ABMs, with a majority situated offsite, heightened logistical costs for delivering cash services across the country. SGJ also adjusted various banking fees during the year to balance its pricing model.
Despite those increases, SGJ still delivered $29.72 billion in pre-tax profit and maintained a solid net profit of $19.90 billion—only one per cent below the prior year. Fourth-quarter consolidated net profit fell 17% to $5.14 billion, primarily due to non-recurring expenses. Excluding these, profit contraction would have been minimal at 3%.
Loan Book Expansion Leads Market
Bank of Jamaica data confirmed that SGJ’s loan book growth—$43.79 billion over the 12-month period—accounted for more than half of the total credit growth across all eight commercial banks. Consolidated net interest income rose 8% in the quarter to $13.04 billion and finished the year at $50.01 billion.
Non-performing loans remained well-contained at $4.8 billion or 1.3% of gross loans, with coverage of 123%, thanks to $5.9 billion in credit loss provisions. Despite Hurricane Melissa’s impact, SGJ signaled confidence in its risk exposure, particularly given the concentration of its customer base in the less-affected regions of Kingston, St. Andrew, and St. Catherine.
A post-disaster client assistance programme was also rolled out, allowing temporary loan deferrals and increased flexibility for life insurance and credit customers in the western parishes most affected.
Digital Rollouts Accelerate
The Group advanced several digital initiatives in 2025 under Scotiabank’s regional transformation strategy. Online onboarding, investment portfolio integration, and self-service debit card controls were deployed, enhancing convenience and security for retail customers.
ScotiaProtect, its general insurance arm, continued expansion as a fully digital agency. Meanwhile, work progressed on upcoming rollouts for Apple Pay and online wire transfers, although firm launch dates have not been disclosed.
Scotiabank’s case management platform, ScotiaFlow, which cut commercial client onboarding times in international markets by two-thirds, is set to be fully implemented in the Caribbean by 2026.
Strong Fundamentals Despite Profit Dip
Total consolidated assets increased 10% to $773.78 billion. The deposit base now stands at $532.89 billion, while insurance liabilities are logged at $51.40 billion. Shareholder equity grew 9% to $150.51 billion, translating to a book value of $48.37 per share.
On the capital markets front, SGJ’s stock closed at $52.39, down 2% for the year, with a market capitalization of $163.03 billion. It trades at a price-to-earnings ratio of 8.19x and a price-to-book of 1.08x. A final dividend of $0.45 per share was declared, bringing total dividends for the year to $1.80—a 3.44% yield.
Segment Breakdown: Profits Holding Steady
Scotia Jamaica Life Insurance posted $4.5 billion in pre-tax profit. Scotia Investments delivered $2.1 billion, and ScotiaProtect generated $224 million. The banking operations themselves, excluding inter-company dividends, contributed $21.5 billion.
SGJ’s audited statements are expected by January 29, and the Group remains optimistic. “Whilst Melissa remains the most devastating of them all, we are confident that the bank and Scotia Group in total will continue to deliver strong, robust business and financial performance,” stated CEO Audrey Tugwell Henry.
Outlook: Recovery With Caution
While the full economic impact of Hurricane Melissa will echo into 2026, SGJ’s credit discipline, expanding digital framework, and sector dominance position it for a measured rebound. The Group’s ability to absorb shocks without compromising operational control reaffirms its resilience in a volatile regional climate.
