RBC CM Q3 2006 Bank Review

RBC Capital Markets, 7 September 2006Valuation and RecommendationCanadian banks trade at 12.7x estimated forward earnings � a compelling valuation given the excellent EPS growth, ROE, credit and capitalization. Our Sector Overweight recommendation reflects solid industry fundamentals and factors a 13x forward price/earnings (P/E) target multiple, supported by our valuation model and assuming a