Two of Canada's major banks announced dividend increases this week as they reported improved financial performance.

National Bank of Canada raised its quarterly dividend by 6.5% to CAD 1.32 per share, marking a significant increase in shareholder returns for the Montreal-based institution.

Separately, Bank of Nova Scotia (Scotiabank) also boosted its dividend payout following stronger-than-expected fiscal second-quarter earnings. The Toronto-based bank reported increased profits driven by lower credit-loss provisions and growth across multiple business segments.

The dividend increases reflect improved financial conditions at both institutions, with reduced provisions for credit losses indicating better loan portfolio performance. Scotiabank's results showed particular strength across its various business lines during the quarter.

Both announcements come as Canadian banks continue to navigate evolving economic conditions while maintaining strong capital positions. The dividend increases signal management confidence in sustained earnings performance and the banks' ability to return capital to shareholders while maintaining regulatory capital requirements.