GLOBAL - Large US custody banks face a bright future, according to a research note from Deutsche Bank Securities.

The analysts, led by Mike Mayo, reckon the likes of Northern Trust, State Street, the Bank of New York and Mellon Financial, will benefit from expectations for faster economic growth and capital markets expansion outside the US.

"We favour financials with more non-US and capital markets sensitive revenues," the note - "Going for Gold" - states. "By contrast, US traditional banking faces headwinds."

"We note that we expect trust banks to generate earnings growth two-thirds faster than the S&P 500 over the next two years, but trade at a modest discount to the market, implying upside to current variations and superior appreciation driven by EPS growth."

The note, which initiated the team's coverage of US financial stocks, had buy ratings on all the large custody banks.

The team is neutral on asset managers, with its pick named as AllianceBernstein.

The team says AllianceBernstein is a buy given "improving performance, the leveraging of its global distribution and brand and lower regulatory/legal overhand compared to earlier this decade".