NEW YORK ( CNBC) --Now that the stress tests are over, US banking stocks are likely to increase at least 25% in the year ahead as investors realize the sector is in solid condition, analyst Dick Bove told CNBC Wednesday. The biggest factors driving that recognization, Bove said, are the windfall from the European sovereign debt crisis--clients fleeing to US banks--as well as sharp increases in liquidity, capital and deposits. "If you wrap it all up, in 2011 the banking industry had its third most-profitable year ever in the history of the industry," said the vice president of equity research at Rochdale Securities. "No one has cared about any of that, no one has looked at that.
By Jeff Cox, CNBC.com Senior Writer
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