Fee income is not the sorcerer's stone.
The growth of fee income as a proportion of bank revenue is a trend most often invoked by analysts to justify higher P/E valuations. Some analysts have a fetish for fee income. They argue that since it is not driven by credit and is not capital-intensive, fee revenue should command a higher multiple than traditional banking revenues. This is true as far as it goes, but I would argue that fee income is not the unmitigated positive that many analysts believe.