Earnings season should boost hot financial stocks, RBC's top bank analyst predicts

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This pandemic-related market dynamic should lead to big financial beats. Here’s why

According to Cassidy, that's about to change.

He believes the banking sector will be among the best performers this year"That was not factored in last year when the banks set aside this money to cover these losses," he said. "So, we expect in the first quarter that's going to be the big driver of the earnings beat, partially offset though with slower growth in the net interest income and maybe some net interest margin pressure as well.

 

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