MEDIA RELEASE. For six months ending April 30th, SCOTIABANK TRINIDAD AND TOBAGO LIMITED POSTS SOLID HALF YEAR RESULTS:

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1 MEDIA RELEASE For six months ending April 30th, SCOTIABANK TRINIDAD AND TOBAGO LIMITED POSTS SOLID HALF YEAR RESULTS: Highlights of Six months Performance 2012: Net Income $268.7MM Dividends per share 64 c Earnings per share c Return on Equity 18.85% Return on Assets 3.15% The Scotiabank Group s six months performance for fiscal 2012 recorded net profit after tax of $268.7 million, an improvement of 2.4% compared to the prior year. Earnings per share stood at cents as at April 30th 2012, whilst Return on Assets was 3.15% and Return on Equity 18.85% ( % and 20.81%, respectively). Dividends for the period remained flat at 64 cents per share and represented a distribution of 42.0% of after tax profits. PROFITABILITY The Directors attribute the Group s sustained profitability and growth to its pro-active treasury management and credit risk and expense management philosophies. These results were achieved in a highly competitive and challenging environment as the Bank continues to manage the effects of excess liquidity, historically low returns and a limited supply high quality investment opportunities. REVENUE Net Interest and Other Income totalled $634.1 million for the six month period and was 0.4% below the previous year s recorded revenues. Despite the excess liquidity overhang from 2009 and low demand for new credit, The Group realised growth in Net Interest Income of 2.05% or $9.3 million over the prior year. Net Interest Income as at April 30th 2012 was $462.0 million compared to 2009 $452.7 million. 500% 450% 400% Shareholders Returns - 10 yr CAGR 19.70% 350% 300% 250% 200% 150% 100% 50% 0% For further information contact: Adrian Lezama, AGM Finance Tel: ext. 2367

2 Growth in interest income was driven primarily by the redeployment of excess liquidity as the Treasury Unit actively sought and acquired high quality investments. Additionally, the Group s Insurance subsidiary, ScotiaLife Trinidad and Tobago Ltd continues to generate positive growth as traditional Corporate, Commercial and Retail lending business lines continue to be negatively impacted by reduced credit demand. A lack of capital market activity persisted during the period which affected the Group s Merchant Banking and Wealth Management divisions. NON- INTEREST EXPENSES Total Non Interest Expenses (NIE) for the six months to April 30th, 2012 was $290.3 million, which was $9.7 million or 3.2% lower than previous year. This was mainly as a result of lower loan loss expenses which fell by 67.7% or $22.1 million. The reduction in Loan Loss Expense was mainly due to the strategic management of the portfolio of delinquent loans which was additionally assisted by the improvement in local economic confidence. Other Non-interest expenses increased 4.7% to $279.8 million mainly as a consequence of overall increases in prices of goods and services consumed by the Group. BALANCE SHEET Total assets at April 30th 2012 was $17.3 billion, whilst Total Liabilities was $14.4 billion and Shareholders Equity $2.9 billion. Year over year assets grew 4.5% or $7.5 million. Net loans to customers, which accounts for 58.9% of Total Assets, declined versus the previous year by $351.5 million or 3.3% as scheduled pay-downs continue to outstrip the value of new loans booked for the period. This category of asset continue to record relatively small negative growth as a direct consequence of the overall subdued demand for new credit. The Central Bank Repo Announcement of April 2012 indicated that on a year on year basis, private sector credit as at February 2012 grew by a sluggish 2.3%. Deposits with Central Bank grew $232.1 million or 8.5% relative to the prior year. This asset category represents 17.2% of Total Assets. Growth in this category resulted due to liquidity absorption measures implemented in March 2012 by the Central Bank which resulted in commercial bank excess liquidity being reduced to $3.5 billion in April 2012 from a high of $5.6 billion in March Treasury bills increased year over year from $1,083.9 million in 2011 to $1,587.0 million in This 46.4% increase was as a result of the continued high liquidity in the market and continued low credit demand, hence the Bank sought to deploy its excess funds and enhance profitability in short term instruments. The market remained flush with excess funds which were reflected in bank s excess reserves held at the Central Bank. 2

3 Total Liabilities stood at $14.4 billion as at April 2012 compared to $13.9 billion from one year ago. This represents growth of $415.7 million or 3.0% year over year. Deposits which represents 88.9% of Total Liabilities stood at $12.8 billion as at April Growth was recorded at $860.9 million year over year as depositors continue to seek stability rather than reward. The Bank s Debt Security in Issue as noted in our previous Media Release of February 23, 2012, declined to $618 million in 2012 from $800 in as the Bank chose to exercise its embedded call option feature in its current bond in issue. This decision was due to the fact that interest rates are currently significantly lower than when the bond was originally issued, hence the Bank exercised its call option, but gave investors the option to reinvest funds with restated terms. Investor s were also given the option to cash out at call and hence the restated issue size fell to $618 million. Policyholders Fund maintained its steady growth as it increased by 19.1% or $93.9 million year over year. SHAREHOLDERS EQUITY Total Shareholders Equity increased to $2.94 billion, up 12.7% compared to the same period in Growth was driven primarily by Retained Earnings which increased by $285.0 million or 14.6% over the prior year as the Group continue to deliver sustainable returns to shareholders. Shareholders were additionally rewarded by significant capital appreciation as investors demonstrated confidence in the Group s stability and ability to deliver sustainable returns. This demand for the Bank s equities resulted in the share price improving to $55.24 as at April 30th 2012 from $40.26 one year ago. This represents a capital gain of 37.21% or $14.98 per share. Furthermore, the Bank s capital adequacy ratio stood strong at 30.75% as at April 30th 2012 which compared favourably to the 2011 figure of 27.53%. This continues to be well above the minimum capital adequacy ratio of 8% specified by regulators and is consistent with international standards. LIQUIDITY MANAGEMENT The Bank continues to maintain high liquidity reserves with Cash and Cash Equivalents of $1.7 billion in addition to statutory reserve deposits of $3.0 billion at the Central Bank which places Scotiabank in a strong coverage position at 35.0% of the bank s customer deposits. 3

4 CORPORATE SOCIAL RESPONSIBILITY The Scotiabank Trinidad and Tobago Foundation continued to support the philanthropic needs of the country in Q2 of 2012 in alignment with the mandate of the Foundation and as agreed by its Board of Directors. Outlined below are some of the major initiatives however, support is given via ad hoc donations to requests that are also in alignment with the objectives and selection criteria of the Foundation. BIENNIAL MUSIC FESTIVAL In March 2012, as one of two Gold Sponsors, the Foundation proudly sponsored the 30th edition of the Music Festival. Canvassing the young and seasoned performers alike the festival brought to the stages of Queen s Hall and the National Academy for the Performing Arts, a host of local talent. The festival was an opportunity for participants to hone their skills in the music arts and provided a showcase for bourgeoning talent in the country. FAMILIES IN ACTION BRIGHT FUTURE AMBASSADORS PROGRAMME Under the umbrella of the Bright Future Program, the Families in Action Bright Future Ambassadors neared completion of a pilot project for youth in a pilot project conducted in four secondary schools. Students participated in goal setting sessions and were exposed to real-life examples of the world of work via a mock interview session and also having had the opportunity to attend the Scotiabank Annual Meeting of Shareholders in February The programme will come to a close in May with the first cohort seeding a movement for the youth in their spheres of influence to enjoy a brighter future. 4

5 KIDDY CRICKET AND CHIRPY During the Digicel Home Series test match held at the Queen s Park Oval in April 2012, the new Scotiabank Bright Future Kiddy Cricket mascot, Chirpy took to the field for a skills display with 80 young talented cricketers. The Kiddy Cricket programme is run through a partnership between Scotiabank and the West Indies Cricket Board and teaches young players the game of cricket from the ground up. Along with their learnings in sport the young cricketers are also schooled in character building workshops that focus on creating a well-rounded individual. Chirpy also visited the children of the Belmont Government Primary School, winners of the 2011 Kiddy Cricket Festival. To the cheers of the children Chirpy displayed his cricketing skills and listened attentively to a motivational piece delivered by a young national cricketer. SCOTIABANK AGAINST BREAST CANCER GOLF TOURNAMENT The annual Scotiabank Against Breast Cancer Golf Tournament took place in Mid-May The tournament is staged to raise funds in support of the annual free breast cancer screening clinics that are open do women throughout Trinidad and Tobago in October each year. To date over 16,272 women have been screened through the programme which from inception in 2001 has expanded to include rural areas throughout the country. The Board of the Foundation meets quarterly and continues to ensure that the funds raised and disbursed are done so in service of making a better Trinidad and Tobago. 5

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