Bank of Nova Scotia has reported better-than-expected financial results and raised its quarterly dividend by 3% as profits increased in most of its business units.
Scotiabank said net income in its fiscal second quarter, which ended on April 30, rose to $2.75 billion from $2.46 billion a year earlier. The lender earned $2.18 per share, well above the $1.97 in earnings per share forecast by analysts.
The bank also announced that it is raising its quarterly dividend to $1.03 a share from $1.00 previously, effective on July 27.
Profit in Scotiabank’s core Canadian banking division rose 27% year-over-year to $1.18 billion in the latest quarter.
Scotiabank also said it had an average of $271.8 billion in residential mortgages on its Canadian loan book in the quarter, up almost 3% from the previous quarter.
Growth in Scotiabank's international division was even stronger as net income surged 44% year-over-year to $605 million as provisions for loan losses fell and revenue climbed.
Scotiabank's Global Banking and Markets division was a profit drag, however, as net income slumped 6% year-over-year to $488 million, which the bank attributed to higher non-interest expenses and lower income.
