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US bank stocks could hit 'speed bump' on a Trump policy miss: Analyst Mike Mayo

The runup by U.S. banks since the Nov. 8 election could hit a speed bump on the chance President Donald Trump doesn't deliver on certain policy goals, independent analyst and financials expert Mike Mayo told CNBC on Tuesday.

"I will concede that there could be a speed bump with the Trump bump," Mayo said on "Halftime Report."

"In other words, a lot of investors are owning the bank stocks for the possibility of the big tax reduction, even higher interest rates increases, the trillion-dollar infrastructure investment," he said. "And there is a likelihood something doesn't go right."

Stocks and Treasury yields jumped initially in the wake of Trump's victory, amid the prospects for looser regulations in certain sectors, lower tax rates and fiscal stimulus. Stocks have pulled back somewhat and were lower Tuesday as investors looked ahead to a likely interest rate hike on Wednesday.

And with another strong U.S. jobs report the Fed is now seen delivering at least two more rate increases in 2017.

Mayo has said American banks have some of "the best balance sheets in a generation" as they enjoy accelerating revenue growth from higher interest rates.

He said Tuesday that the possibility of two or three interest rate hikes this year is "fantastic." Even without the rate rises, there is still revenue acceleration, he noted.

— Reuters contributed to this report.