Banking

Big three banks set to make over €5 billion in combined profits

Thanks to the series of interest rate hikes by the ECB, both AIB and Bank of Ireland are set to report their highest ever profits – slightly more than in the Celtic Tiger era

Philip Lane, chief economist at the ECB, said it was important that a distinction was made between overnight current accounts and fixed term savings accounts when looking at interest rates on deposits. Picture Conor McCabe

The three main banks in the country are on track to make over €5 billion in combined profits this year as the series of interest rate hikes by the European Central Bank over the last year continues to fatten their bottom lines.

Banking analysts at Davy and Goodbody stockbrokers have raised their full-year forecasts for both AIB and Bank of Ireland in recent weeks after each lender reported bumper profits for the first six months ...