08:33 AM EDT, 05/28/2024 (MT Newswires) -- Bank of Nova Scotia's ( BNS ) dividend and Common Equity Tier 1 (CET1) ratio were notable elements of its Q2 results, CIBC Capital Markets said on Tuesday.

The Canadian bank reported quarterly earnings before market open, and CIBC analyst Paul Holden said the results were "neutral" with in-line EPS and "most key metrics coming in very close to consensus."

"Two things we would call out: i) dividend was maintained versus Street expectation for a 2% increase; and ii) CET1 ratio of 13.2% was above consensus expectation of 13.0%," Holden said in a note to clients.

"Capital position looks strong," the analyst said. "Sources of growth include organic capital generation of 14 basis points (bps), DRIP of 10bps and net RWA growth of 15bps."

Holden maintained a Neutral rating and $64 price target on BNS.

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