ReutersBank of Ireland lifted its net interest income guidance for the second time in three months on Thursday and now expects it to be 5 per cent higher in the second half than the first due to higher rates and ongoing business momentum. Banks tend to benefit from rising interest rates as their net interest margins, the difference between interest income and expenses, improve. When rates rise, banks are able to charge higher interest rates on newly issued loans than they pay out to depositors. Bank of Ireland kept its guidance for costs and business income unchanged, with the latter expected to be broadly in line with the first half. The country’s two dominant lenders have benefited not only from higher rates from but from the recent exits of KBC and NatWest from the Irish market.

Source: The Herald October 26, 2023 09:33 UTC