Bangkok--17 Mar--Standard & Poor’s While less than half of the banking stocks covered by Standard & Poor’s Equity Research may see net interest margin benefits in the first quarter of 2008 from recent Fed rate cuts, there are still a few potential bright spots for investors, according to a new report released by the company. Through the analysis of four key metrics, the study identified a number of well-positioned players with upside potential. However, through historical comparison, Standard & Poor’s Equity Research also found investors in bank equities would be best served by holding out for an established positive market trend, rather than trying to time a market bottom. These were among the findings from the Standard & Poor’s report titled, “U.S. Banks & Thrifts : An In-Depth Analysis.” “Investors in the banking industry need to take a holistic approach when looking for potential buying opportunities, and temper this with patience as these companies navigate the current market volatility,” notes Stuart Plesser, Senior Banking Industry Analyst, Standard & Poor’s Equity Research, and one of the study’s authors. “In our view, companies that have effectively managed their capital levels along with their portfolio holdings and loan exposure may be well-positioned for the long term. Taking into account their current trading levels against their five-year average, we believe a number of these companies offer an attractive investment.” To help estimate the impact of the current economic environment on banking stocks, Standard & Poor’s Equity Research looked at the period of July 1990-March 1991. S&P Economics believes that the U.S. has likely entered into a recession that may be similar to the 1990/1991 recession in terms of length, depth, and effect on banking equities. In looking at this period, S&P Equity Research was able to assess whether the stocks of large diversified banks or smaller regional players had quicker recovery times. (Note: Past performance is not necessarily indicative of future results.) “In today’s turbulent banking environment, investors may need to look beyond the bigger players to the regional players to find value,” notes Erik Oja, Regional Banks Analyst, Standard & Poor’s Equity Research. “While distinct challenges, such as residential loan portfolio difficulties, remain for some in the study, others, including Bank of Hawaii (BOH: “Buy”; $49), Northern Trust (NTRS: “Buy”; $69), Bank of New York Mellon (BK: “Buy”; $45) and Westamerica (WABC: “Hold”; $50), performed well across all the areas we examined.” The report looked at the 51 companies covered by Standard & Poor’s Equity Research in the banking and thrifts sub-industries across four primary categories: net interest margin (NIM), credit quality, capital levels and valuation. Readers can purchase this report in three ways: Online for immediate download at http://sandp.ecnext.com/, by telephone at 617-530-8233, or via e-mail order sent to [email protected]. Members of the media can request a copy of this report from the communications contact listed at the end of this release. The analysts quoted above are Standard & Poor's equity analysts. They have no affiliation with any company they cover, nor any ownership interest in any companies they cover. About Standard & Poor’s Equity Research Services As the world’s largest producer of independent equity research, Standard & Poor’s licenses its research to over 1,000 institutions for their investors and advisors, including 19 of the top 20 securities firms, 13 of the top 20 banks, and 11 of the top 20 life insurance companies. Standard & Poor’s team of 120 experienced U.S., European and Asian equity analysts use a fundamental, bottom-up approach to assess a global universe of approximately 2,000 equities across more than 120 industries worldwide. Follow Standard & Poor's equity analysts' U.S. market commentary each day at http://www.equityresearch.standardandpoors.com/. The equity research reports and recommendations provided by Standard & Poor’s Equity Research Services are performed separately from any other analytic activity of Standard & Poor’s. Standard & Poor’s Equity Research Services has no access to non-public information received by other units of Standard & Poor’s. Standard & Poor’s does not trade for its own account. The analytical and ethical conduct of Standard & Poor’s equity analysts is governed by the firm’s Research Objectivity Policy, a copy of which may also be found at www.standardandpoors.com or by by clicking here. For further information contact: Jeff Sexton, Communications, Ph.: Tel.: 212-438-3448 [email protected]