The Globe and Mail reports in its Tuesday edition that Canada's bank stocks have been on a tear this year, leaving investors wondering if there is more fuel to drive returns higher. In a Globe special, Shirley Won writes that the S&P/TSX Composite Bank Index, including dividends, is up 44 per cent this year versus 31 per cent for the S&P/TSX Composite Total Return Index. Although some investment managers do not expect a repeat of this year's lofty gains, they are upbeat on the banks because they expect rising loan growth and profits, as well as possible changes to bank regulation. "We're coming off a great year with a strong rerating in the multiples of the banks," says Robert Lauzon at Middlefield Ltd. With valuations at the high end of their historical range, Mr. Lauzon says he thinks the stocks will now move with earnings growth. Capital markets have been strong, credit loss provisions are improving, margins are expanding and banks are buying back shares. One concern is the U.S.-Mexico-Canada Agreement, which is up for renewal in 2016. However, the banks have set aside provisions in 2025 based on tariff risk, and a favourable outcome from the 2026 review could see them release these provisions into earnings.