AUM in its global wealth management segment rose 9% year over year to $380B.

Cautious borrowers and a worsening economic outlook pushed Scotiabank earnings slightly down in the second quarter from last year as the bank put aside more money for potentially bad loans.

The bank reported net income of $2.03 billion, compared with $2.09 billion a year earlier, as its provisions for credit losses rose by $391 million from last year to $1.4 billion.

“While we have not seen a meaningful deterioration in credit, our base-case forward-looking indicators have worsened,” said chief executive Scott Thomson.

He said deposits are rising and mortgage growth is slowing as consumers become more cautious, while capital markets activity slowed in April as tariff uncertainty escalated.

In a show of confidence in the bank’s own finances, Scotiabank boosted its dividend to $1.10 per share, up from $1.06 — its first raise in two years.

With a common equity capital ratio of 13.2%, well above the mandated minimum of 11.5%, the bank has also launched a share buyback program to help boost its stock price and return cash to shareholders.

The increased payment to shareholders came as Scotiabank said its profit amounted to $1.48 per diluted share for the quarter ended April 30, compared with a profit of $1.57 per diluted share in the same quarter last year.

Revenue totalled $9.08 billion, up from $8.35 billion.

On an adjusted basis, Scotiabank said it earned $1.52 per diluted share, down from an adjusted profit of $1.58 per diluted share a year earlier.

Analysts on average had expected an adjusted profit of $1.56 per share, according to data provided by LSEG Data & Analytics.

Jefferies analyst John Aiken said the miss was largely from the higher provisions build, while otherwise the results were solid.

“While there are still some headwinds to underlying growth, we believe that this is a result of the operating environment and not necessarily Scotia-specific,” he said in a note.

Scotiabank said its Canadian banking operations earned $613 million in net income attributable to equity holders, down from $893 million a year ago as it faced a higher provision for credit losses and non-interest expenses, partly offset by higher revenues.

Scotiabank’s international banking operations earned $676 million in net income attributable to equity holders, up from $639 million in the same quarter last year.