Scotiabank hikes dividend on higher profit

Bank of Nova Scotia has joined most of its peers in raising its quarterly dividend following a strong first quarter that beat analyst estimates.

The bank says it had $1.625 billion of net income and $5.18 billion of revenue in the three-months ended Jan. 31, both up from last year.

Scotiabank says the net income amounted to $1.25 per share before adjustments or $1.27 per share on an adjusted basis.

Analysts had been looking for Scotiabank to report $1.25 per share of adjusted diluted earnings and about $5 billion of revenue in the quarter ended Jan. 31.

Dividend hiked

Scotiabank also announced a higher dividend, as anticipated, joining most of the other big Canadian banks in hiking the payout to shareholders.

The bank's quarterly dividend will rise by three cents to 60 cents per share.

Scotiabank is considered Canada's most international bank, although it has also been beefing up its domestic activities in recent years through acquisitions and internal growth.

"We are beginning the year with strong results," Rick Waugh, Scotiabank chief executive, said in a statement.

"The bank's diversity across businesses and geographies continues to contribute to solid top-line revenue growth."

The domestic banking sector had $574 million of net income, up 21 per cent from a year earlier making it the biggest single contributor to Scotiabank's profit.

International banking contributed $466 million, global wealth management added $310 million and global banking and markets generated $399 million of net income for the bank.

Overall provision for credit losses was $310 million, up from $265 million in the first quarter of 2012.

A year earlier, Scotiabank's total revenue was $4.62 billion, net income attributable to common shareholders was $1.343 billion or $1.20 per diluted share before adjustments and $1.22 per share on an adjusted basis.