Irish mortgage rates the same as eurozone, but deposit rates much lower

Brendan Burgess

Brendan Burgess

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There has been a lot of discussion about Irish mortgage rates now being reasonable compared to the rest of the eurozone.
But I want to compare the margins the Irish banks are making. I searched but could not find any study of this.

Here are my initial findings but I want to research it further. But I don't want to reinvent the wheel. Has anyone seen a more systematic study?

Central Bank’s report for April

After a long period of being by far the highest in the eurozone, Irish mortgage rates are now about the same
Average for eurozone: 3.57%
Average for Ireland: 3.63%

What about deposit rates?

Eurozone average in March

Irish deposit rates
3 months’ notice: 1.21% (Ireland: Redeemable at notice: .24%)
One year’s notice: 2.09% (Ireland: 2 years’ notice: .58%)

Overnight: 0.15% (Ireland: .03%)

Ireland’s margin is double the average for the eurozone

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This is from Bank of Ire;and Annual Report 2022:

20222021
Net Interest Margin1.96%1.86%

There is similar details in other annual reports. You'll have to show us how to copy from PDFs it didn't work for me. After the rate rises after 31/12/2022 I have no doubt the margin has risen but they also have bonds that they pay away on.
 
Brendan your approach to Net Interest Margin is a bit simplistic. As one argument is that mortgage bonds which the Bank of Ire;land issues 'funds' some of the mortgages and therefore BoI pay a higher rate for bonds than deposits.. The Form 20F which BoI file might be even more helpful.
 
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