Large Regional Banks/Brokers Notch Big Gains; Some Primed For More

Sterne Agee analysts Todd L. Hagerman and Robert Greene cite operating efficiencies, lower legal and environment related costs, marginal loan growth and increased capital returns as the factors that could drive improved earnings growth at the large regional banks/broker. “Despite significant multiple expansion over the past year, we believe the large broker/ regional banks offer the best risk/reward. However, as we enter ’14, we see few catalysts to drive sector performance significantly higher as earnings meaningfully slow,” say the analysts in their research note on banking of January 14, 2014. The solid rally by regional banks A reference to the following…