Signals of strength? U.S. banks’ Q4 earnings highlight steady fundamentals and confidence heading into 2026.

John Guarnera, Senior Corporate Analyst on RBC GAM's BlueBay U.S. Fixed Income team, analyzes the latest bank results and their implications for both economic fundamentals and sector positioning.

1. Investment banking surged—M&A advisory revenues climbed over 40% in some banks—while equity trading gains point to optimism in capital markets.
2. Asset quality remains stable across lending verticals, dispelling concerns around fraud events seen earlier in the year.
3. Loan growth in commercial sectors and steady deposits reinforce banks' sector momentum and ability to navigate credit and regulatory changes.