The seven sins US banks still struggle with

In his first report on US banks at CLSA, Mike Mayo continues to be bearish on the sector, identifying seven deadly sins of banking that will remain a drag on bank performance.

Greedy loan growth, gluttony of real estate, lust for high-yields, sloth-like risk management, pride of low capital, envy of exotic fees and anger of regulators are the sins Mayo highlights in his report. These were the actions whereby banks increased risks to generate revenues.

Against this backdrop, it is not surprising that Mayo, who joined CLSA in March after two years at Deutsche Bank, is still underweight on the sector. He notes that the impact of the seven sins was...