Scotiabank (Bahamas) Limited plans to launch its Carmichael Road branch by next monday, part of a $8.2 million capital project expenditure for 2012.
The 4,100-square-foot bank, nestled in one of the capital's fastest-growing communities, will be consistent with the look and style of the Cable Beach branch. While an official grand opening is expected in January, Scotiabank (Bahamas) has scheduled the "soft launch" for this coming Monday.
Kevin Teslyk, managing director at Scotiabank (Bahamas), said that $1.3 million was invested into the new facility and it created 10 new jobs.
"It is very clear to me that it's a location we need to have, as the fastest-growing residential community. Clearly it is a place we want to be," he said yesterday.
The branch features extended banking hours and three new automated banking machines.
This level of capital expenditure should continue into 2013, according to the managing director. He envisioned a similar budget for next year and even further expansion to the bank's network.
The institution is considering another location in eastern New Providence, although executives have decided to wait for the right location.
In 2012, Scotiabank (Bahamas) invested considerably in large-scale real estate projects, such as foundational work on buildings beside Rawson Square. Investment in upgrades to existing infrastructure and signage is expected to continue into 2013.
Looking at 2012 from a bottom-line perspective, Teslyk told Guardian Business that commercial banking and wealth management should drive growth going forward. Other segments, such as retail banking, should remain "relatively flat". Scotiabank (Bahamas) expects a year-on-year improvement for 2012, which is mostly the result of high provisions in 2011 against the residential mortgage portfolio. Provisions decreased this year, but are still trending higher than prior to the financial crisis.
The global wealth management division has really been the hero for the financial institution. This segment, only in its third year of existence in the Bahamian market, saw an increase of around 20 percent year-on-year.
"We can sustain that or better, hitting perhaps north of 20 percent next year," he explained.
The bank is investing in new talent for this division and going after attractive clients. Teslyk noted that offshore banking is still "critically important", whether it be financing for a second home, or helping a client start an international business.
Part of the bank's strategy is to hold the line before what is believed to be a possible change in fortune by early 2015, coinciding with the opening of the $3.5 billion Baha Mar resort.
"The bulk of jobs will come online then and that will impact the general economy. It should be pretty significant. Getting there will be the next challenge," according to the managing director.
Another particular area of focus in 2013 is the "rebirth" of its Internet platform. While a new website should come online this week, the bank hopes to leverage the new platform go to after new business. The new look and feel is designed to perform differently depending on the device being used, adapting to tablets, smartphones or standard computers.
Further announcements are expected in 2013 on new programs for its commercial division as it relates to the Internet platform.
Bank of The Bahamas (BOB), for example, recently started an e-commerce program. Whether Scotiabank has similar ideas for The Bahamas remains to be seen.

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