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A “lacklustre” bank earnings season in the U.S. does not bode well for Canada’s biggest banks, says John Aiken, analyst at Barclays Capital Markets.

“With the ‘Big 6’ already experiencing robust capital markets gains last quarter, we believe the few positive factors driving the bottom line for the U.S. banks, are unlikely to carry over north of the border,” Aiken said in a note to clients.

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“Further tempering our outlook for Q2, sequential top line and EPS growth for the U.S. banks remained relatively modest, weighed by higher loan loss provisions, and continued margin pressures.”

U.S. bank earnings have benefited from strong trading revenues and good cost control, but Aiken estimates that more than three-quarters of those that have reported so far experienced sequential declines in net interest income.