The second quarter trends showed slower deposit repricing, better cost control and a stable cost of risk, translating into upgraded 2023 profits guidance. Further out, in the absence of management comments, we continue to expect profitability to normalise driven by net interest margin attrition. The commercial development in consumer finance and corporate lending should also translate into an above-inflation cost expansion as well as an increase in the though-the-cycle cost of risk.

20 Jul 2023
Slower deposit repricing

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Slower deposit repricing
- Published:
20 Jul 2023 -
Author:
David Grinsztajn -
Pages:
2 -
The second quarter trends showed slower deposit repricing, better cost control and a stable cost of risk, translating into upgraded 2023 profits guidance. Further out, in the absence of management comments, we continue to expect profitability to normalise driven by net interest margin attrition. The commercial development in consumer finance and corporate lending should also translate into an above-inflation cost expansion as well as an increase in the though-the-cycle cost of risk.