Financials stocks are set to take on a leadership role across the markets, according to banking analyst Mike Mayo of Wells Fargo Securities. 

"We think financials stocks, at least, the banks themselves, should become more of a leader in the market," he said in an interview with TheStreet. "The fundamentals of banks are very strong."

He said bank balance sheets are the strongest they've been "in a generation."

JPMorgan Chase (JPM - Get Report) , Citigroup (C - Get Report) and Wells Fargo (WFC - Get Report) release first quarter earnings on Friday. 

Watch our entire interview with Mike Mayo on YouTube: