Irish banks 'likely to continue to drive profitability' on deposit and loan rates 

Ireland's banks have so far this year posted among the highest levels of net interest margin in Europe

For 2024, Irish banks may continue to increase profitability should they continue to raise interest rates on loans but pass on deposit rate increases at a relatively slower pace.

Irish banks are among a small group of lenders in the eurozone that are likely to continue to tap increases in profitability in 2024, as the deposit rates they offer customers for savings rises at a relatively slower pace than the rates they charge borrowers for their loans, ratings firm DBRS Morningstar has said in a major Europe-wide report.

The 'European Banking Outlook 2024' report shows that "with few exceptions" European banks this year have boosted their net interest margins — a profitability measure for lenders that tracks the difference between what they charge borrowers for their loans and the rate they pay out on deposits, as official rates rise.