The easy wins might be over for Lloyds. The sugar hit from rapidly rising interest rates, which has fattened margins for lenders, could be set for a comedown.
The net interest margin, the difference between the rate paid on deposits and that collected from borrowers, peaked during the market chaos of the fourth quarter, according to the bank. The sharp ascent in rates and a failure to pass on the benefit to savers has pumped-up margins in the past 12 months.
So how will margins stack up this year? Lloyds has suggested a figure greater than 3.05 per cent, which would compare with 3.22 per cent for the final three months of last year. That’s all predicated on the Bank of England not pushing its
