- Increase in customer deposits
- Credit risks could gather
It’s early days in the half-year reporting season, but the impact of rising interest rates on the broader financial sector is already apparent. Interim reported profits for Arbuthnot Banking (ARBB) leapt thanks to the widening of its net interest margin, the difference between what it pays and receives in interest payments. However, it expects the differential to narrow as there is an inherent lag in the repricing of deposits to current market levels.