Bank of Nova Scotia is reporting improved results for the second quarter ended April 30. Scotiabank says net income was $539 million, 16% higher than a year ago.

Earnings per share were $1.02, a jump of 16% over the second quarter in 2000. Return on equity climbed to 17.9%, up from the 17.7% recorded last year.

For the six-month period ended April 30, net income was $1,049 million or 19% higher than the same period a year ago. Earnings per share were $1.99, an increase from $1.67, while return on equity rose significantly to 17.4% from 16.8%.

“Our growth and diversification strategies continue to produce very good results. Scotiabank has exceeded virtually all of its performance targets again in the second quarter,” said Peter Godsoe, chairman and CEO. “Solid earnings continued across all businesses.”

“Grupo Financiero Scotiabank Inverlat, Mexico, was a factor in the quarter, contributing $17 million to the increase in net income,” said Godsoe. “We look forward to an increasing contribution from Scotiabank Inverlat and remain very optimistic about Mexico’s growth prospects.” Revenues

Total revenues rose to $2.6 billion during the quarter, a significant increase of 13% over last year. Net interest income was $1,535 million in the quarter, up 22% or $272 million from the second quarter last year.

Domestic Banking continued to grow its consumer lending portfolio, especially personal loans and credit cards. These increases were partially offset by the impact of the sale of 43 branches to Laurentian Bank.

Other income in the quarter was $1,014 million, an increase of $26 million above the same quarter a year ago, and represented 40% of the bank’s total revenues. This growth arose from Scotia’s international operations, including Inverlat; plus a very strong quarter for underwriting revenues and higher credit fees.

The bank reported lower revenues from retail and discount brokerage, due to a decline in client-driven trading activity.

The bank’s productivity ratio was 53.7% in the second quarter, a significant reduction from 58% a year ago. During the quarter, the bank increased its general provision by $100 million to $1.4 billion.

Scotiabank’s Tier 1 capital ratio was 9.0%, a significant increase of 40 basis points from the preceding quarter. The Bank’s total capital ratio was 12.5%, compared to 12.1% in the prior quarter.

The board of Directors has approved a quarterly dividend of 31¢ per common share.