Bank profitability in the euro area in times of high inflation
https://doi.org/10.3326/pse.49.1.3 | Published online: March 10, 2025 Figure 1
ECB’s key policy rates (in percent) Figure 2
Yields on 10y government bonds of selected euro area member states (in %) Figure 3
Bank lending and deposit rates in the euro area, new business (in %) Figure 4
Euro area banks’ return on equity (in %) Figure 5
Euro area banks’ net interest income and margin Figure 6
Croatian banks’ net interest income and margin Figure 7
Euro area banks’ ROA and ROE, annualized quarterly data Figure 8
Pass-through* of ECB policy rate hikes to selected items of assets and liabilities of euro area banks, outstanding amounts (in %) Sources: ECB, author’s calculations. Figure 9
Composition of the Eurosystem’s total consolidated assets (bn euro) Figure 10
Size and composition of banks’ deposits with the Eurosystem (bn euro) Figure 11
Daily interest income based on liquidity placed in the deposit facility Figure 12
Net interest income of euro area banks, quarterly data (bn euro) Figure 13
ECB’s deposit facility rate and bank lending rates in the euro area (in %) Figure 14
ECB’s deposit facility rate and bank deposit rates, new business (in %) Figure 15
Composition of deposits in euro area banks (in %) Figure 16
Banks’ net interest margin and return on equity* (in %) Sources: ECB, author’s calculations. Figure 17
Factors driving the increase in net interest margins of euro area banks Sources: ECB, author’s calculations. Figure 18
Cumulative increase in interest rates on outstanding private sector loans* Sources: ECB, author’s calculations. Figure 19
Contributions to the overall increase in gross interest income* (in %) Sources: ECB, author’s calculations. Figure 20
Absolute change in banks’ quarterly interest income and expenses (Q3 2023 vs. Q2 2022) and the initial share of retail overnight deposits in total liabilities Figure 21
Composition of funding of euro area banks at the beginning of the last two ECB’s tightening cycles (percentage of total liabilities) |
March, 2025 I/2025 |
