(Bloomberg) -- Bank of Nova Scotia got a boost from its retail banking franchises in its fiscal fourth quarter, with businesses in Canada and abroad ramping up borrowing.  

Revenue in the Canadian banking unit rose 11% to C$3.13 billion ($2.33 billion) in the quarter ended Oct. 31, the Toronto-based company said Tuesday. Overall profit topped analysts’ estimates.

Canadian companies have borrowed heavily this year to rebuild inventories and meet customer demand, and the trend continued last quarter, with business loans up 25% from a year earlier. The Latin America-focused international division also posted higher revenue and profit, helped by a 15% increase in business loans as well as widening lending margins.

Net income fell 18% to C$2.09 billion, or C$1.63 a share. Scotiabank set aside C$529 million in provisions for credit losses, up from C$168 million a year earlier. The international unit’s revenue rose 8.1% to C$2.5 billion, while net income gained 12% to C$679. The division’s net interest margin expanded to 4.08%, up 13 basis points from the third quarter.

Excluding some items, Scotiabank’s overall profit was C$2.06 a share. Analysts estimated C$2.01, on average.

Chief Executive Officer Brian Porter, who will step down at the end of the current quarter, has spent years revamping the international unit by shedding smaller and less profitable operations while building up its presence in larger markets such as Chile and Mexico.  

Scotiabank slipped 1.1% to C$70.68 at 9:50 a.m. in Toronto. The shares have fallen 21% this year, compared with a 7.6% decline for the S&P/TSX Commercial Banks Index.

(Updates with shares in last paragraph.)

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