The Globe and Mail reports in its Wednesday, Aug. 13, edition that CIBC analyst Robert Sedran says he has no issues with bank valuations. The Globe's Jody White and Tim Shufelt write in the Eye On Equities column that Mr. Sedran rates Bank of Nova Scotia and Toronto-Dominion Bank "sector outperformer." He concedes banks are trading above historical averages. However, Mr. Sedran says business and economic conditions are "supportive of these higher valuation levels." He expects third quarter earnings-per-share growth of 3 per cent quarter-over-quarter, along with good loan growth and a slightly lower margin, which "should be enough to help the group sustain the strong top-line growth delivered in recent quarters." He says Scotiabank and Royal Bank of Canada are the only banks likely to increase their dividend this quarter. He says Scotiabank and RBC should see dividend increases of 5 per cent and 4 per cent. He says, "Bank shares have had strong performance over the last year and we continue to have a positive view of the sector at this time." Credit Suisse analyst Kevin Choquette rated Scotiabank "outperform" and TD "neutral" in the Eye column on Aug. 1. Scotiabank and TD were then worth $74.35 and $57.30.