The Financial Post reports in its Tuesday edition that the next bank earnings season is still more than a month away, but early indications suggest solid results are on the way, says RBC Capital Markets analyst Darko Mihelic. The Post's David Pett writes in the Trading Desk column that Mr. Mihelic says: "Thus far, we see generally positive trends for domestic loan growth, underwriting and advisory activity, no signs of credit deterioration, and capital ratios developing in advance of Q2 Canadian bank results. If the banks were serious about cost initiatives in quarter, the set-up looks good for Q2 earnings." He notes residential mortgage growth for the Big Five banks has been modestly accelerating over the past several months, with secured domestic real estate loans increasing by 4.3 per cent in February. Interest rates, furthermore, have increased on a quarter-to-date basis, which should provide support for net interest margins in the segment. Mr. Mihelic also believes income from investment banking operations fees is "likely to be robust," and does not see any "concerning signs" on credit quality. He believes current trends support the recent rally in bank stocks, but warns risks to earnings remain elevated.