The bank reported profit growth, raised its quarterly dividend on Wednesday.

The chief executive of the Bank of Nova Scotia says he’s optimistic the Canadian economy will turn a corner despite macroeconomic challenges, as the bank reported profit growth and raised its quarterly dividend on Wednesday.

The bank reported a second-quarter profit of $2.63 billion, up from $2.03 billion a year earlier. Scotiabank also said it will now pay a quarterly dividend of $1.14 per share, up from $1.10 per share.

The increased payment to shareholders came as the bank said its profit amounted to $2.00 per diluted share for the quarter ended April 30, up from $1.48 per diluted share a year earlier.

Speaking with analysts, president and CEO Scott Thomson struck a positive tone, even while acknowledging “some stresses” in Scotiabank’s Canadian portfolio. He said those include macroeconomic challenges stemming from the Iran war and some uncertainty related to Canada’s trade relationship with the United States.

But Thomson pointed to three factors that underscore why he said he feels “relatively optimistic about the outlook for Canada.” The first of those relates to Canada’s position as an “oil-exporting nation” at a time when the price of oil is hovering at more than US$90 per barrel.

During the quarter, Scotiabank’s revenue totalled $9.84 billion, up from $9.08 billion in the same quarter last year. The bank’s provision for credit losses amounted to $1.22 billion, down from $1.40 billion a year ago.

On an adjusted basis, Scotiabank said it earned $2.02 per diluted share, up from an adjusted profit of $1.52 per diluted share a year ago.

Analysts on average had expected an adjusted profit of $1.94 per share, according to LSEG Data & Analytics.

Jefferies analyst John Aiken called it a “solid beat” that showcased Scotiabank’s strong performance in domestic retail lending.

Scotiabank said its Canadian banking operations earned net income attributable to equity holders of $935 million in its latest quarter, up from $613 million a year ago, boosted by higher revenue and lower provisions for credit losses on performing loans, partly offset by higher non-interest expenses.

Meanwhile, international banking operations earned $701 million in net income attributable to equity holders, up from $676 million in the same quarter last year.

Scotiabank says its global wealth management business earned $474 million attributable to equity holders, up from $399 million a year ago. The division had $450 billion in assets under management as of Apr. 30, up 18% compared to the same time last year, mainly driven by market appreciation and higher net sales from retail distribution. It had $820 billion in assets under administration, up 15%, driven primarily by market appreciation and higher net sales.

The bank’s global banking and markets operations earned $457 million attributable to equity holders, up from $413 million in the same quarter last year.