06:45 AM EDT, 05/27/2025 (MT Newswires) -- Bank of Nova Scotia ( BNS ) was at last look down 1.1% on Tuesday after it lodged a second-quarter adjusted earnings miss amid slightly lower-than-expected revenue. The bank cited the "uncertain macroeconomic outlook", but increased its dividend and announced a share buyback,

For Q2, Scotiabank reported diluted earnings per share of $1.52 versus $1.58 a year earlier and a FactSet forecast of $1.55.

Revenue rose to $9,080 million compared with $8,347 million in the year-earlier period and a FactSet forecast of $9,087.8 million.

In an earnings preview note published earlier this month, National Bank forecast $1.59 versus a consensus of $1.55. It also forecast a dividend increase. Among key themes, National Bank expected the corporate segment to lead the way; said the provision build could diverge from peers; and added capital markets could provide a "relatively lower uplift."

Among other highlights today, Scotia announced an increase to the quarterly dividend by $0.04 cents to $1.10 on the outstanding shares of the Bank, payable July 29 to shareholders of record at the close of business on July 2.

The bank also announced its intention to seek regulatory approval, including from the Toronto Stock Exchange, for a normal course issuer bid to purchase up to 20 million of its common shares, or 1.6% of the issued and outstanding shares.

On its divisions, Scotia said Canadian Banking generated adjusted earnings of $613 million, down 31% compared to the prior year, due primarily to a significant increase in performing credit loss allowances and a lower margin. The business had solid asset and deposit growth, as well as good underlying momentum in fee revenue, it added.

The provision for credit losses was $1,398 million, compared to $1,007 million, an increase of $391 million. The provision for credit losses ratio increased by 21 basis points to 75 basis points.

International Banking generated adjusted earnings of $719 million, up 7% over the year, with solid revenue generation and lower provision for credit losses, reflecting improvements in the portfolio. The bank said continued positive operating leverage reflects the impact of successful productivity initiatives in the region.

Global Wealth Management adjusted earnings were $407 million, up 17% year-over-year driven by solid revenue growth from higher mutual fund fees, brokerage revenues, and net interest income across the Canadian and International wealth businesses. Additionally, assets under management of $380 billion grew 9% year-over-year.

Global Banking and Markets reported earnings of $412 million, up 10% compared to the prior year. It said the results were supported by strong performance in its capital markets business, as well as higher fee revenue in its corporate and investment banking business.

The Bank reported a Common Equity Tier 1 (CET1) capital ratio of 13.2%. Adjusted return on equity of 10.4%, compared to 11.3%.

"Amidst the continuously-evolving economic outlook, we are focused on what we can control and are executing on our strategic plan while continuing to deliver positive operating leverage," said the bank's President and CEO Scott Thomson. "This quarter we increased our performing allowances to reflect the impact of an uncertain macroeconomic outlook. With strong balance sheet metrics, we remain well positioned to support our clients through this period of uncertainty and to seize growth opportunities as they arise."

BNS closed Tuesday up $0.05 at $71.74.