The Indexation Error Has Begun to Return Increased Interest Income to Banks Again.

Vísir

Factuality

Ownership

Last year, the banks' large positive indexation imbalances generally put pressure on interest rate spreads and their net interest income at a time when inflation was on a sharp decline. Now the situation is different, inflation has even started to rise, and Arion's positive profit warning, together with Landsbankinn's results, shows that increased interest income is mainly responsible for the large improvement in profits.