摘要：EU banks’ f inancial condition improved in
2004 and the f irst half of 2005, continuing
the positive developments recorded in 2003.
Prof itability increased for the full spectrum
of banks, as well as in those national banking
sectors that had substantially underperformed
EU averages in 2002 and 2003. However,
interest income, both as a share of total income
and of total assets, continued to fall in 2004,
as it did in 2003. Notwithstanding sustained
growth in lending to households, mostly for
housing purposes, and an incipient recovery
in lending to the corporate sector, including
SMEs, banks suffered from margin erosion. In
fact, banks experienced increased competition
from their peers in granting loans, especially to
households, which contributed to persistently
narrow lending margins.
