Fitch is out with their quarterly banking report and TPC readers will be shocked at their findings: the Q1 bank earnings are unsustainable going forward. Fitch says:
Credit losses at major banks continue to rise while strength from market-dependent revenues such as mortgage origination and fixed income trading are not likely to persist. Furthermore, net interest margins have become increasingly constrained by rising levels of non-performing assets and a lack of willingness and ability to fully pass lower market rates to core deposits.
Fitch expects that banks will exhibit continued increases in loan delinquencies, non-performing assets and, in many cases, net-charge offs for at least several quarters as the economic outlook remains uncertain
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For more from me on the unsustainable bank earnings see here, here, here and here.
Source: Fitch
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Onlooker
You mean they’ve been lying to us?! Scandalous! And Ken Lewis has such an honest face.
Hoocoodanode?