Wells Fargo says dominant number one large cap bank remains Citigroup

Looking ahead at 2025, Wells Fargo says Banks should perform well in a multitude of scenarios except for recession or skyrocketing rates. Banks should benefit in most scenarios between a “soft landing” and “no landing” given estimated EPS growth of 10%-plus/year, ROE improving from 11% to 13% in 2025-2027, record net interest income by 2026, efficiency improving toward a record by 2027, stronger for longer credit with plentiful reserves, and buybacks of 2%-4%/year, the firm explains. Wells’ favorites are Citi (C) and East West Bancorp (EWBC). The firm’s dominant number one Overweight-rated large cap bank remains Citigroup.