ECB rate cut set to dampen banks profits

INITIAL analysis of the impact of the 0.5% cut in ECB interest rates suggested the two big banks could lose €15m each if they passed on the full reduction to consumers.

But with the big players in the Irish financial services sector earning over €3 billion last year the cost will just be a blip on the profit and loss accounts, analysts said.

Scott Rankin of Davy Stockbrokers estimated Bank of Ireland would lose between €12m and €15m if it implemented a full 0.5% mortgage rate cut for customers.