Bank of Nova Scotia today announced a 5% increase in fourth-quarter earnings, helped by several acquisitions and organic growth in its domestic and international banking units.

Scotiabank said earnings were $938 million or 95¢ a diluted share, in the three months ended October 31. That’s up from $890 million, or 89¢ a share, in the same period a year earlier.

Return on equity for the quarter was 21.0%, versus 21.1% for the year ago period.

Scotiabank said it has no direct exposure to U.S. subprime mortgages.

For the year, Scotiabank achieved record earnings with net income of $4.05 billion. Earnings per share were $4.01, up 13% compared to $3.55 in 2006.

Return on equity was 22.0%, at the high end of the bank’s target range.

“Our record results and success in meeting or exceeding all financial and operational targets was achieved by continuing a consistent strategy of diversifying across geographies and our three growth platforms,” says Rick Waugh, president and CEO. “All major business lines delivered strong earnings, led by Domestic Banking with excellent growth of 21%, International Banking with 17% and Scotia Capital with 6%.”

Scotiabank also increased its quarterly dividend
by 2¢ to 47¢ a share.