Since the biggest banking institutions in the U.S. were at the epicenter of the 2008-2009 financial crisis, investors should not be surprised that the recovery has been a lengthy one, in our opinion. 

While many indices trade closer to their respective all-time highs, as of the close of trading on 2/6/19, the S&P 500 Banks Index stood 24.88% below its all-time high set on 2/20/07, according to Bloomberg. 

The recovery in bank dividend payments has now entered its 9th year. As indicated in the chart, the post-crisis bottom in annual dividend distributions for the S&P 500 Banks Index was $1.34 per share in 2010. Even if the $12.12 per share dividend estimate for 2021 proves accurate, it would still stand 16.70% below the $14.55 per share payout in 2007, just prior to the crisis. 

Today, the banking sector is robust, according to Deloitte. It notes that return on equity for the industry was at a post-crisis high of 11.83% heading into 2019.

Due to the passage of the Tax Cuts & Jobs Act in December 2017, 23 major U.S. banks were able to shave nearly $21 billion off their taxes in 2018, lowering their effective tax rates from around 28% in 2016 to below 19%, according to Bloomberg.

The tax savings enabled the 23 lenders to increase their dividends and stock buybacks in 2018 by a combined $28 billion from 2017's outlay, according to Bloomberg. 

While the recovery in the banking sector has gained a lot of ground, it remains a work in progress, and therein lies the opportunity for those investors willing to be patient, in our opinion.