Moat Upgrades for 8 Banks
We've undertaken a more detailed analysis of the systems in which banks operate and the 'moatiness' of their fee-earning businesses.
Erin Davis: We recently refined our bank-moat methodology to include a more detailed analysis of the banking systems in which banks operate and the "moatiness" of their fee-earning businesses.
As a result, we upgraded the moat ratings of eight banks that we cover: Wells Fargo (WFC) and U.S. Bancorp (USB) in the United States; Svenska Handelsbanken (SVNLY) in Sweden; Toronto-Dominion (TD), Bank of Nova Scotia (BNS), and Royal Bank (RY) in Canada; and Banco Santander (SAN) and Banco de Chile (BCH) in Chile. Many of these--including U.S. Bancorp, Toronto-Dominion, and Santander Chile--are trading at attractive discounts to our fair value estimates.
Erin Davis does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
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