RBC: The performance of U.S. bank stocks in 2024 may be similar to 1995

Sina Financial News Royal Bank of Canada capital analysts led by Gerard Cassidy released a report saying that bank stocks may perform better than other U.S. stock sectors in 2024 as they did in 1995, when bank stocks soared 54%, while the S&P 500 index rose 34%. "In the second half of 2024, as the Fed gradually lowers the federal funds rate, loan growth begins to accelerate, loan loss provisions begin to decline, and capital returns through share buybacks begin to accelerate, we expect fundamentals to continue to improve. Until bank stocks outperform the market, they will continue to provide consistent earnings. Looking ahead, dividends are expected to remain unchanged or increase over the next 12-18 months. ”