Jamie Dimon, CEO of JPMorgan Chase & Co., speaks during a House Financial Services Committee hearing in Washington, DC, USA, on Wednesday, April 10, 2019.
Andrew Harrer | Bloomberg | Getty Images
Bank stocks have recovered sharply since the low of 2020, when investors feared pandemic-related loan losses and low interest rates would put pressure on the sector.
After being one of the least loved sectors for most of last year, the KBW Bank Index and lenders like JPMorgan Chase and Goldman Sachs rose by at least 11% in 2021.
Seizing the moment, analysts have become optimistic about the industry, raising price targets in the expectation that vaccines will allow the US economy to reopen, while the next rounds of government stimulus will support borrowers, allowing borrowers banks release some of the tens of billions of dollars set aside last year for loan losses.