Furthermore, banks are expected to reveal a slowdown in their advising businesses as merger and acquisitions tapered off and bond and stock offerings slipped in the third quarter year-over-year.

Bank stocks and the benchmark KBW Nasdaq bank index have been roughly flat and underperformed the broader S&P 500 so far this year.

Investors will be closely watching the financial sector with J.P. Morgan Chase (NYSE: JPM), Wells Fargo (NYSE: WFC) and Citigroup (NYSE: C) reporting quarterly earnings on Friday.

For more information on the banking sector, visit our financial category.