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The ultra-low rate environment has exerted pressure on banks’ net interest income, forcing them to seek out alternative sources of income in order to generate returns at the level expected by investors. The average net interest margin hit a record low of 0.8% of assets in 2021, dropping to 49% as a share of total income. In parallel, fee and commission income has increased, and now accounts for 31% of total income. The composition of both interest income and fee mix has also evolved over the years. Compared to European banks, Spanish banks stand out for having the highest share of interest income in total earnings and among the lowest share of fee and commission income in total earnings. Fee and commission income, measured as a percentage of average total assets, is in line with the eurozone average.

Maudos, J. (2022). «The shifting income structure of Spanish banks». SEFO – Spanish Economic and Financial Outlook 11, n.º 4 (julio): 37-44.