As slide 12 shows, the net income of euro area significant banking groups actually increased between 2014 and 2015 [Slide 12: Euro-area large banks: Aggregate net income]. This was mainly driven by lower impairments and higher non-interest income. Even net interest income made a positive contribution, despite a small decline in interest margins.
This reflects an increase in volumes, which is of course an intended consequence of accommodative monetary policy. As discussed earlier, however, interest margins are likely to stay low and might even further decline, while profits from one-off capital gains will fade away. Indeed, analysts forecast a decline in bank profitability in 2016 and 2017, mainly due to lower net interest income.