Bank of Nova Scotia is reporting improved profit for the fourth quarter ended October 31.

The bank said the rose on the performance of its domestic and international units, which offset higher losses in its U.S. corporate lending book.

Net income climbed to $583 million, or $1.09 a share, from $566 million, or $1.05 a share, in the year-before quarter.

Revenues were flat at $2.7 billion, while return on equity slipped to 16.5% from 17%.

The bank’s loan loss provisions rose to $427 million from $350 million a year ago.

Net income for the 2002 fiscal year was $1,797 million. Earnings per share (diluted) were $3.30, in comparison to $4.05 in 2001. Return on the equity was 13% versus 17.3% last year.

However, excluding charges of $540 million (after tax) in 2002 related to Argentina, net income for the year was $2,337 million, up from $2,169 million in 2001. On this same basis, earnings per share (diluted) were $4.35, an increase from $4.05, and ROE was 16.6% versus 17.3%.

“Excluding the unprecedented events in Argentina, we continued to deliver results within our target range this year, while tackling some very tough issues,” said Peter Godsoe, Chairman & CEO.

Revenues from investment, brokerage and trust services increased by 1% during the year. Retail brokerage fees fell 4% year over year following a market-led decline in customer trading, partly offset by the impact of the Charles Schwab Canada acquisition. Mutual fund fees grew by 8%, with gains in Canada and Mexico.

In it’s outlook for 2003, the bank said it remains “confident in our ability to continue to increase earnings and build shareholder value.”

The bank raised its as its quarterly dividend by 3¢ to 40¢ per common share.