"In aggregate, it's kind of lackluster," said Moshe Orenbuch, a bank analyst for Credit Suisse Group AG in New York. "Net interest is still declining. Mortgage-banking revenues are going to be under pressure because volumes are under pressure and spreads are under pressure."
Financial companies recorded losses and writedowns of more than $2 trillion stemming from the housing crisis and rising U.S. joblessness, according to data compiled by Bloomberg. The pace of new problem loans eased over the past three quarters as the U.S. economy recovered, even after the federal government withdrew support from financial markets.