Grupo Financiero Scotiabank Inverlat SA de C.V.'s net income in the fourth quarter of 2017 more than doubled from the same period in 2016, as the Mexican unit of Bank of Nova Scotia expanded its credit portfolio and financial margin.
The bank posted net income of 2.83 billion Mexican pesos in the fourth quarter of 2017, higher than the 1.35 billion pesos in the same period in 2016.
Net interest income jumped to 5.67 billion pesos, up from 4.77 billion pesos a year ago, while net fee and commission income reached 852 million pesos, up from 813 million pesos in the fourth quarter of 2016.
However, loan provisions increased to 1.45 billion pesos from 988 million pesos a year ago, while operating expenses slid to 3.87 billion pesos from 4.06 billion year over year.
The group's ROE climbed to 22% in the fourth quarter, from 12% in the year-ago period, while its its NPL ratio fell to 2.4% from 2.6% in the year-ago period. Meanwhile, Scotiabank Inverlat SA Institución de Banca Múltiple's capital ratio reached 14.54%.
The group's total loan portfolio rose to 308.94 billion pesos as of Dec. 31, 2017, up from 246.00 billion the year prior, as Scotiabank Inverlat's commercial portfolio grew 33% and its consumer and housing portfolios increased by 23% and 16%, respectively.
Scotiabank Mexico CEO Enrique Zorrilla Fullaondo said the financial group "closed 2017 with a fourth quarter full of achievements," adding that they have significantly expanded the volume and clientele of its main products and services leading to an increase in market share.
As of Feb. 28, US$1 was equivalent to 18.84 Mexican pesos.
