This is true, but was that really the point?
As far as I can tell, the LTROs were put in place to allow European banks to rollover debt that the market was not prepared to buy. It also allowed banks to be a bit more selective in the deleveraging process, taking way the compulsion to sell assets at fire sale prices.
More bank lending would be a nice side effect, but not many expected it to be the main symptom cured by the ECB’s monetary mechanism.
