3 Reasons to Remain Bullish on U.S. Banks

As of this past Friday, 17 of the 18 banks in the S&P 500 have reported results for the first quarter and not only have the quantitative results been supportive of strong fundamentals, but the tone from management teams has also been consistently positive about business trends. While these banks have outperformed the broader market so far this year, the margin has been thin at just 2-3%: we think this gap is poised to widen considerably as the year progressed. We’ve summarized below our 3 most important takeaways from bank earnings thus far, which in totality keep us bullish on U.S. Banks.  

1. Loan Demand Remains Strong Loan demand is arguably the most important fundamental indicator for banks.