Bank of Nova Scotia today reported a 16% rise in second-quarter profit thanks to a strong showing in its domestic and international operations, as well as low credit losses.

Scotiabank said net income for the quarter ended April 30 was $1.03 billion, or $1.03 a diluted share. That compared with earnings of $887 million, or 89¢ a share, in the same period last year.

Return on equity, a closely-watched ratio of a bank’s efficiency, edged up to 23.4% in the quarter from 23.3% in the second quarter of 2006.

Provisions for credit losses fell to $20 million from $35 million in the same quarter last year.

The bank, as expected, lifted its quarterly dividend. It increased the payout by 3¢ a share to 45¢.

“Our strategy of diversification across business lines and by geography continued to produce solid results,” said Scotiabank president and CEO Rick
Waugh, in a release.

“Domestic Banking, Scotia Capital and International Banking experienced strong asset growth, resulting in higher net interest income. As well, this quarter’s results benefited from the positive contributions of recent acquisitions and low levels of credit losses,” he added.