Morningstar Advisor - June/July 2010 - 65

Sector Snapshot: Banks
The data shown on this page represents the companies in the North American banking industry that are covered by Morningstar analysts.

Sector Structure
Moat Breakdown* % Breakdown S&P 500

Key Stats
Aggregates

Industry Map
53
1 3 2 4 5 7 8 10 9 12 6 14 13 11 15

Number of Companies Total Market Cap Total Fair Value Total Revenue
Valuation
6479.800293 5234.600220 3989.400146 2744.200073 1499.000000 6479.800293 5234.600220 3989.400146 2744.200073 1499.000000

31878.001953 25840.001465 19802.000977 13764.000488

Wide Moat Narrow Moat No Moat
Stock Type Breakdown

9.30% 76.70% 13.90%

42.20% 45.10% 11.70%

$922.0 billion
31878.001953 25840.001465 19802.000977 13764.000488

Market Cap Large

$1,180.1 billion
7726.000000 31878.001953 25840.001465 19802.000977 13764.000488

$505.6 billion
7726.000000

7726.000000

Medium

% Breakdown

S&P 500

High Yield Distressed Hard Asset Cyclical Slow Growth Classic Growth Aggressive Growth Speculative Growth Not Classified
*Based on Morningstar analyst coverage.

0.00% 3.80% 0.00% 96.20% 0.00% 0.00% 0.00% 0.00% 0.00%

0.00% 1.80% 12.80% 34.60% 13.90% 20.50% 13.10% 2.90% 0.40%

Sector

S&P 500
1282.600037 1067.200027 1067.200027 851.800018

Price/Fair Value P/E Price/Book Price/Sales Price/Cash Flow Dividend Yield %
Profitability and Financial Health

0.78 20.31 1.27 1.57 — 0.53

0.93 15.33
420 336 252 168 84

Small

636.400009 636.400009 421.000000

2.07 1.30
0

Undervalued 0 .5 Price/Fair Value 1

Overvalued 1.5 2

5.53 2.33

Sector

S&P 500

ROE % ROA % Net Margin % Debt to Capital %

2.37 0.16 2.24 59.37

18.27 7.06 10.64 35.81

Banking-sector companies are plotted based on their market cap and price/fair value ratio. Companies with a price/fair value ratio of less than 1 are undervalued. Companies with a ratio of more than 1 are overvalued. Numbered plots show companies listed in the “Notable Banking-Sector Companies” chart below.
0.0 0.5 1.0 1.5 2.0 0.0 0.5 1.0 1.5 2.0 0.0 0.5 1.0 1.5 2.0 0.0 0.5 1.0 1.5 2.0 0.0 0.5 1.0 1.5 2.0 0.0 0.5 1.0 1.5 2.0

H

R U

S
0.0 0.5 1.0 1.5 2.0

Notable Banking-Sector Companies
Name/Ticker Market 3-Yr Total Cap ($mil) Rtrn % Revenue TTM ($mil) 3-Yr Rev/ Morningstar Share Rating Growth % Uncertainty Rating

Economic Moat

0.0

Growth Grade

0.5

Profitability Grade

Financial Distance Dividend Free Cash Health to Yield % Flow Grade Default Yield %

1.0

1.5

2.0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Bank of America Corporation BAC Wells Fargo Company WFC J.P. Morgan Chase & Co. JPM Citigroup, Inc. C US Bancorp USB PNC Financial Services Group PNC BB&T Corporation BBT State Street Corporation STT SunTrust Banks, Inc. STI Northern Trust Corporation NTRS Fifth Third Bancorp FITB Regions Financial Corporation RF M & T Bank Corporation MTB KeyCorp KEY Comerica Incorporated CMA
Data as of May 4, 2010.

178,870.66 171,533.89 169,272.53 124,443.99 51,220.69 34,775.04 22,958.18 21,549.07 14,780.76 13,294.41 11,856.17 10,540.01 10,366.74 7,920.81 6,349.32

–24.34 119,643.00 0.46 88,686.00 –4.13 100,434.00 –50.31 80,285.00 –4.00 16,470.00 –0.62 16,228.00 –3.20 –13.36 –25.22 –3.04 –24.96 –32.46 –4.83 –32.42 –8.56 8,778.00 8,640.00 8,175.97 3,786.90 8,136.00 7,090.00 3,103.85 4,415.00 2,617.00

18.02 {{{{ 35.45 {{{{

High Medium High Medium High Medium Medium High Medium High High Medium High High

Narrow C Narrow X Narrow X
V C

V V V V V V V V V
0.5

C C C V C C C C C C V C C C C
1.0

2.64 1.89 2.87 0.56 2.52 2.06 1.45 1.47 2.48 2.18
1.5

0.22 –26.90 0.60 0.47 0.75 0.60 1.81 –0.25

17.80 {{{{
–2.39 {{{{ 6.62 {{{ 23.71 {{{ NA {{{

7.83
4.18 –5.96 3.04

Very High None Wide

NA –10.19

Narrow C Narrow NA Wide Wide
0.0

11.04 {{{
0.19 {{{ 8.12 {{{ 18.54 {{{ 9.92 {{{ 2.72 {{{ –3.69 {{{ –2.67 {{

NA
C

0.09 –16.70 0.44 –11.93 2.04 0.27 3.21 0.48
2.0

Narrow NA

C V

7.08 –5.76 –5.67 2.21

Narrow C Narrow V Narrow C Narrow V Narrow C

0.93 1.90 3.56 1.61 1.26

B
V V V

0.45 –19.91 0.44 –19.16

MorningstarAdvisor.com 65


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Morningstar Advisor - June/July 2010

Table of Contents for the Digital Edition of Morningstar Advisor - June/July 2010

Morningstar Advisor - June/July 2010
Contents
New on MorningstarAdvisor.com
Contributors
Letter From the Editor
What Risks to Bonds Are You Most Concerned About?
The Irrational Lizard Brain
Investment Briefs
The Problem With Financial Plans
Preparing for Turbulance
Different Models, Similar Results
The Game Is Up
Some People Are Bullish on Bonds
Bonds We Like
What Does Harry Markowitz Think?
Escape From the Pack
Four Picks for the Present
Rising Rates Could Affect Equities, Too
The Banking Sector Knocks on Wood
Back to Basics
On the Prowl for Smooth Operators
Mutual Fund Analyst Picks
50 Most Popular ETFs
Undervalued Stocks With Wide Moats
New at Morningstar
R-E-S-P-E-C-T
Morningstar Advisor - June/July 2010 - Morningstar Advisor - June/July 2010
Morningstar Advisor - June/July 2010 - Cover2
Morningstar Advisor - June/July 2010 - 1
Morningstar Advisor - June/July 2010 - 2
Morningstar Advisor - June/July 2010 - Contents
Morningstar Advisor - June/July 2010 - 4
Morningstar Advisor - June/July 2010 - 5
Morningstar Advisor - June/July 2010 - New on MorningstarAdvisor.com
Morningstar Advisor - June/July 2010 - 7
Morningstar Advisor - June/July 2010 - Contributors
Morningstar Advisor - June/July 2010 - Letter From the Editor
Morningstar Advisor - June/July 2010 - What Risks to Bonds Are You Most Concerned About?
Morningstar Advisor - June/July 2010 - 11
Morningstar Advisor - June/July 2010 - 12
Morningstar Advisor - June/July 2010 - 13
Morningstar Advisor - June/July 2010 - The Irrational Lizard Brain
Morningstar Advisor - June/July 2010 - 15
Morningstar Advisor - June/July 2010 - Investment Briefs
Morningstar Advisor - June/July 2010 - 17
Morningstar Advisor - June/July 2010 - The Problem With Financial Plans
Morningstar Advisor - June/July 2010 - 19
Morningstar Advisor - June/July 2010 - 20
Morningstar Advisor - June/July 2010 - Preparing for Turbulance
Morningstar Advisor - June/July 2010 - 22
Morningstar Advisor - June/July 2010 - 23
Morningstar Advisor - June/July 2010 - Different Models, Similar Results
Morningstar Advisor - June/July 2010 - 25
Morningstar Advisor - June/July 2010 - 26
Morningstar Advisor - June/July 2010 - 27
Morningstar Advisor - June/July 2010 - 28
Morningstar Advisor - June/July 2010 - 29
Morningstar Advisor - June/July 2010 - The Game Is Up
Morningstar Advisor - June/July 2010 - 31
Morningstar Advisor - June/July 2010 - 32
Morningstar Advisor - June/July 2010 - 32a
Morningstar Advisor - June/July 2010 - 32b
Morningstar Advisor - June/July 2010 - 32c
Morningstar Advisor - June/July 2010 - 32d
Morningstar Advisor - June/July 2010 - 33
Morningstar Advisor - June/July 2010 - Some People Are Bullish on Bonds
Morningstar Advisor - June/July 2010 - 35
Morningstar Advisor - June/July 2010 - 36
Morningstar Advisor - June/July 2010 - Bonds We Like
Morningstar Advisor - June/July 2010 - 38
Morningstar Advisor - June/July 2010 - 39
Morningstar Advisor - June/July 2010 - 40
Morningstar Advisor - June/July 2010 - 41
Morningstar Advisor - June/July 2010 - 42
Morningstar Advisor - June/July 2010 - What Does Harry Markowitz Think?
Morningstar Advisor - June/July 2010 - 44
Morningstar Advisor - June/July 2010 - 45
Morningstar Advisor - June/July 2010 - 46
Morningstar Advisor - June/July 2010 - 47
Morningstar Advisor - June/July 2010 - 48
Morningstar Advisor - June/July 2010 - 49
Morningstar Advisor - June/July 2010 - 50
Morningstar Advisor - June/July 2010 - 51
Morningstar Advisor - June/July 2010 - Escape From the Pack
Morningstar Advisor - June/July 2010 - 53
Morningstar Advisor - June/July 2010 - 54
Morningstar Advisor - June/July 2010 - 55
Morningstar Advisor - June/July 2010 - 56
Morningstar Advisor - June/July 2010 - Four Picks for the Present
Morningstar Advisor - June/July 2010 - 58
Morningstar Advisor - June/July 2010 - 59
Morningstar Advisor - June/July 2010 - Rising Rates Could Affect Equities, Too
Morningstar Advisor - June/July 2010 - 61
Morningstar Advisor - June/July 2010 - 62
Morningstar Advisor - June/July 2010 - The Banking Sector Knocks on Wood
Morningstar Advisor - June/July 2010 - 64
Morningstar Advisor - June/July 2010 - 65
Morningstar Advisor - June/July 2010 - Back to Basics
Morningstar Advisor - June/July 2010 - 67
Morningstar Advisor - June/July 2010 - On the Prowl for Smooth Operators
Morningstar Advisor - June/July 2010 - 69
Morningstar Advisor - June/July 2010 - Mutual Fund Analyst Picks
Morningstar Advisor - June/July 2010 - 71
Morningstar Advisor - June/July 2010 - 72
Morningstar Advisor - June/July 2010 - 73
Morningstar Advisor - June/July 2010 - 50 Most Popular ETFs
Morningstar Advisor - June/July 2010 - 75
Morningstar Advisor - June/July 2010 - Undervalued Stocks With Wide Moats
Morningstar Advisor - June/July 2010 - 77
Morningstar Advisor - June/July 2010 - 78
Morningstar Advisor - June/July 2010 - New at Morningstar
Morningstar Advisor - June/July 2010 - R-E-S-P-E-C-T
Morningstar Advisor - June/July 2010 - Cover3
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