Banks must derive more earnings from fees or face a chilly reception in the stock market in the months ahead, analysts say.

"It is going to be a difficult year," said Jacqueline Reeves, banking analyst at Salomon Smith Barney. "The general trend has been for margin compression and any more easing of rates will supply additional pressure."

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.