Encouraging bank profits despite interest rate cuts
October 19, 2024
The reduction of interest rates by the ECB does not seem to negatively impact the banks' profits, which continue to show strong performance. Cypriot banks recorded profits of €602.92 million for the first half of 2024. Although interest income may be pressured, an increase in loan demand is anticipated. Banks are planning strategies to maintain profitability, such as increasing lending and reducing operational costs.