Banks squeeze more profits from customers

Banks cut interest rates on deposits and raised the profits they make on mortgages, although the main cost of borrowing remained the same since the summer.

The new figures indicate that banks are protecting their bottom lines at the expense of savers and borrowers as interest rates reach their peak.

Banks are preparing to make big profits after 14 increases in the base interest rate to curb inflation. NatWest is set to reveal on Friday that net interest income – earned on the difference between what is paid to savers and what borrowers charge – jumped from £9.8bn to £11bn last year.

Lenders have been criticized for using rising interest rates as a cover to increase profits by squeezing savers and cheating borrowers.

The base interest rate has been at 5.25 percent since August, but that has not stopped the banks.

Losing: Lenders have been criticized for using rising interest rates as a cover to increase profits by squeezing savers and borrowers

Losing: Lenders have been criticized for using rising interest rates as a cover to increase profits by squeezing savers and borrowers

The average margin they get on a five-year mortgage rose from 1.27 percentage points in June to 1.79 last month, according to investment bank UBS.

But one-year deposit rates are 4.88 per cent, down from a peak of 5.33 per cent in October.

(tags for translation) Daily Mail

Leave a Reply

Your email address will not be published. Required fields are marked *