Capital markets expected to drive Q1 bank earnings as loan growth lags

Banks built up provisions for potentially bad loans as interest rates rose, but have kept levels fairly steady in recent quarters despite the overhang of economic uncertainty.RBC analyst Darko Mihelic said in a note that bank stocks are trading at elevated levels considering the relatively weak Canadian economic data.He says capital markets could help boost bank earnings, but that any signs of trouble on revenue or provisions could throw off lofty bank valuations.Scotiabank reports Tuesday, BMO Financial Gr ...