What Makes a Moat for Canadian Banks
Each has its own niche in the overall banking landscape, both in Canada and abroad.
Dan Werner: Recently, we published our framework for assessing bank moats in which we increased the moats on Royal Bank of Canada (RY), Toronto-Dominion Bank (TD), and Bank of Nova Scotia (NA) to wide from narrow due to their local market positions and expected excess returns over the long term.
The Canadian banks have long been known for their stability, diverse revenue streams, and strong returns on equity over time. While they all have traditional, personal, and commercial banking businesses, each bank has its own niche in the overall banking landscape, both in Canada and abroad.
Dan Werner does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.