The catalyst that could benefit bank stock prices should be a 20% increase in profitability, given, among other things, by the straightening of the yield curve and thus the growing difference between interest income and expenditure. Mayo pointed out that further stress tests by the Fed are approaching, and in his opinion, after them, banks will be able to pay their shareholders "twice the capital" compared to the current situation. The increased cash payout should lead to 7% of the total cash return calculated as dividends plus redemptions to the share price.

Regarding the cycle, it has to help by higher inflation, rising rates and the straightening of the yield curve.

Performance of Bank of America (Source: Tradingview.com)