For the banking sector, trends leading up to 2025 appear to be stable, according to analysts who have made only minor adjustments to their earnings models and predictions. Looking ahead to 2028, banks are expected to strive for maximum growth, maintaining a low-to-mid-teens return on tangible common equity, while skepticism remains regarding a significant reduction in regulatory and capital burdens. The sector is deemed to be reasonably priced, and while select opportunities exist, analysts express a preference for certain leading banks.

Citi has been deemed a top preference for investment under various scenarios, excluding a recession. The expectations are for the company's expenses to be favorable, crucial inflections in returns to boost the stock, and book value growth even under recessionary pressures. Additionally, the changes in management are viewed as the most substantial in decades. Over a three-year horizon, it is anticipated that significant improvements in earnings per share, efficiency, and returns will double the stock's value compared to peers.

Equity markets experienced a downturn of approximately 2% in December, described as a 'post-post-election breather' largely due to emerging assumptions that rate cuts might not occur as soon as anticipated. Additionally, activity levels in investment banking saw a continuation of the slowed pace from November after a relatively robust September and October. As for future expectations, it is believed that improvement in investment banking sectors will occur, seen as a matter of 'when, not if', especially with an anticipated active beginning in 2025.