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

Click for larger image

For more from me on the unsustainable bank earnings see here, here,  here and here.

Source: Fitch