Bank of Nova Scotia is reporting a rise in profit for the first quarter ended January 31. The bank said on Tuesday that strong performance in its retail and international banking operations led to increase.

Net profit for the quarter was $595 million, or $1.11, compared with $52 million, or 5¢ a share, for the first quarter of last year.

Last year the bank took a $540 million charge for its exposure to Argentina. Excluding Argentina, the bank earned $592 million, or $1.10 a share in the first quarter last year.

Return on equity for the first quarter of 2003 was 16.6%, compared with 0.8% a year ago.

The bank said its productivity ratio was 51.2% during the quarter compared to 56.7% a year ago.

“We delivered strong earnings again this quarter, led by Domestic and International Banking, and our global trading and investment banking operations,” said Peter Godsoe, Chairman and CEO.

“Specific provisions for credit losses have decreased year over year, but some credit sectors are still experiencing volatility,” he added.

Total revenue (on a taxable equivalent basis) was $2.6 billion, down $20 million compared to the same quarter of last year and $76 million below the prior quarter.

The total provision for credit losses was $325 million in the quarter, compared to $429 million in the fourth quarter of 2002 ($475 million excluding Argentina) and $850 million in the first quarter of 2002 ($350 million excluding Argentina).

Scotiabank also announced a quarterly dividend of 40¢ per common share.