The Globe and Mail reports in its Thursday edition that Canaccord Genuity analyst Gabriel Dechaine says this year so far has been a good one for Canadian bank stocks. The Globe's Darcy Keith writes in the Eye On Equities column that Mr. Dechaine says many expected loan growth to slow on rising interest rates and high household debt levels. The banking sector, however, has actually been outpaced by the S&P/TSX composite index and has been just the fifth best performer within the index so far this year. Relative performance alone is not sufficient to recommend reducing bank exposure, notes Mr. Dechaine. Valuation metrics, however, suggest that bank stocks have become less attractive. The sector is currently trading at about 12 times forward earnings, which is above historical averages, says Mr. Dechaine. "While in our view the group doesn't look 'cheap' on an absolute basis, on a relative basis, the picture is not dramatically better." Compared with both the broader Canadian stock market and with United States regional banks, Canada's bank stocks are trading above historical norms as well. He says banks still look attractive when comparing dividend yields with Canadian government five-year bond yields.