European banks remain under substantial pressure on many operating fronts, a Deutsche Bank report said on Monday.

Revenue declines seem to become entrenched due to volatile capital markets and the low interest rate environment and initial improvements on the cost side have not nearly been able to compensate for those reduced earnings, said the report.

The report pointed out that the 20 largest banks in Europe reported weak results for the first half of this year. The banks have posted declines in net interest income, fee income and trading income.

The Deutsche Bank sees the further strengthening of capital levels of banks as one of the few bright spots. "In spite of the application of Basel 2.5 rules, Core Tier 1 ratios are now 11.2 percent on average," said the report.

VietNamNet/Xinhuanet