EU Banks Make Fat Profits From Deposits While Savers Get Little

European banks are keeping the vast majority of the benefit from rising interest rates to themselves, helping to drive profits in the industry to decade highs.

“There has been no material passing on of rates to customers,” Commerzbank Chief Financial Officer Bettina Orlopp said on an analyst call Thursday. Although Commerzbank may raise interest rates on deposits as competition for them is intensifying, there’s a good chance the rate, known in industry parlance as ‘deposit beta,’ will remain below the 30% level Commerzbank currently assumes as this year’s average, Orlopp said.