(Bloomberg) -- A dearth of negative shocks from big bank earnings this season is a positive for the sector, Wells Fargo & Co.’s Mike Mayo says, after tumult last year rattled the industry. 

Earnings reports over the last couple of weeks from Wall Street giants like JPMorgan Chase & Co. and Citigroup Inc. included a lack of surprises across deposits, credit and other key issues, the closely followed analyst wrote in a note to clients. 

The industry being “back to boring banking” is good after last year’s results at this time were marked by fears over deposit flows following the failure of Silicon Valley Bank. 

“A year later, banks have increased capital, taken extra protections for asset-liability management, and seem on a path to continue what seems like boring banking,” the analyst wrote.

Results from lenders kicked off a bit more than week ago, with investors closely watching for shifts in the results and outlook for lending profits given the evolution of expectations for Federal Reserve rate cuts. 

Read More: ‘Market’s Wrong, I’m Not’: Mike Mayo Loves Playing a Provocateur

Mayo recommends investors overweight bank stocks by the middle of the year in order to position for an inflection of earnings per share later in the year and for potential rate cuts. He sees the potential for “hockey stick” improvement in EPS, meaning the metric shifting from a declining trajectory to being up. 

In the note, Mayo reiterated his preference for Citigroup as his “dominant” top pick. The bank’s shares have soared 16% this year.

Read More: Mayo Lifts Citi to Top Big Bank Pick Into 2024 Over JPMorgan 

Mayo’s argument echoes a sentiment that’s risen across the industry in recent months. PNC Financial Services Group Inc. has launched an ad campaign to say that a “boring” approach positions them well within the industry, and Fifth Third Bancorp Chief Executive Officer Tim Spence also labeled the bank’s results as such on a conference call with analysts last week. 

Read More: Bank Brags About Being ‘Boring’ a Year Into Industry’s Turmoil

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