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 shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.