Ken Leon, director of equity research at CFRA, told Squawk Box that the outlook for the large U.S. banking sector is extremely positive as earnings season approaches. He highlighted expectations for strong loan growth driven by sustained consumer and corporate demand, forecasting that capital markets divisions will deliver above-average returns. Leon noted that stress tests have shown resilience in bank balance sheets, and he anticipates consensus earnings estimates for the sector to be revised upward by approximately 5% over the next quarter.

Braun Stacey Associates Inc. raised its position in Bank of America during the third quarter, acquiring an additional 31,008 shares for a total holding of 509,036 shares, representing a 6.5% increase. At quarter end, the value of that stake stood at $26.3 million. Other major institutional moves included Norges Bank establishing a new $5.09 billion position and Arrowstreet Capital more than doubling its exposure to 17.6 million shares, indicating broad confidence among large investors in the bank’s strategic initiatives and capital generation profile.

In its most recent quarterly report, Bank of America delivered earnings per share of $1.06, surpassing analyst consensus by $0.13. Revenue rose 10.8% year-over-year to $27.0 billion, driven by a 12% increase in net interest income and robust fee income across wealth management and investment banking. The firm achieved a net margin of 15.7% and returned 10.8% on equity. Analysts now project full-year earnings of $3.70 per share, up from prior forecasts of $3.50.

The board approved a quarterly dividend of $0.28 per share, payable December 26 to holders of record as of December 5, translating to an annualized payout of $1.12 and a 2.0% yield. The dividend payout ratio stands at 30.5%, underscoring a balanced approach between capital return and reinvestment. In recent weeks, 23 analysts have rated the shares as a Buy and five as a Hold, with consensus target rising to $58.59. Several firms, including Wells Fargo & Company and Argus, have lifted their price targets, reflecting confidence in the bank’s capital strength and earnings trajectory.