With the interest rate spread at 2.56 times the historical average, banks have been handed an increasingly favorable environment to shore up their balance sheets and improve operations, but one-time writedowns and short-term headwinds still have them trading at historic discounts.
With the Fed indicating a favorable spread for the near future, and most of these short-term headwinds almost gone, banks are likely to be strong performers over the next few years. Even with banks claiming that added regulation drags on profits, banks are at such a severe discount to their historic norms that even a return to more modest multiples would result in huge upside.
To learn more about the most-talked-about bank out there, check out our in-depth report on Bank of America. The report details Bank of America’s prospects, including three reasons to buy and three reasons to sell. Just click here to get access.
