LASTEST profit margins at Lloyds Banking Group highlight how banks are hitting borrowers while failing to pass on higher rates to savers.
The FTSE 100 bank said pre-tax profits had surged by 23 per cent in the six months to the end of June.
After a decade of low interest rates, Lloyds admitted it is now making more money from borrowers and boosted its net profit margin forecast to more than 3.1 per cent.
It said its profit margin was 3.18 per cent, compared to 2.77 per cent last year.
The net interest margin is closely watched by investors as it tells the difference between what banks charge borrowers versus the amount paid out to saver deposits.