Cdn Bank & LifeCo Week's Review

RBC Capital Markets, 26 June 2006Excellent Time to Overweight BanksLast week, the 10-year GoC bond yield moved up 20 basis points to 4.61%. At current bond yields, the sector forward P/E multiple of 11.9x remains below the 12.5x level predicted by our 25-year regression model. The group is now at an 8% discount to our target P/E of 13x forward EPS, offering an excellent entry point, in our