Capital returns are key, says a bullish Michael Goldberg from Desjardins Securities. He's looking for multiple expansions as dividend boosts and buybacks will have retail investors ditching fixed-income for bank stocks.
As for operations, Goldberg expects lending growth to Canada's already highly leveraged consumers could be a challenge. Instead banks will spend capital on acquisitions and the earlier-mentioned payouts and repurchases. His favorite picks are Scotiabank (BNS +0.1%) and TD Bank (TD +0.1%).