Rally in U.S. banks seems unsustainable

The near-term outlook for bank fundamentals is positive, but we see most of the firms we cover as fairly or overvalued.

Eric Compton 23 February, 2018 | 6:00PM

 

 

Eric Compton: U.S. banks have been on a tear over the last couple of years. Many of the names we cover have had total returns for shareholders of 20% all the way up to 70% over the last two years. For an industry which has traditionally grown tangible book value in the mid- to upper-single-digit-range, with range-bound margins and returns on equity, this does not seem sustainable to us.

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Eric Compton

Eric Compton  Eric Compton is an equity analyst for Morningstar,

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