31.   Though the interest margins are weak, Burkardt said most other German banks have shown similar weakness.

32.   U.S. commercial banks reported record earnings in the third quarter, fueled by lower deposit insurance costs, strong loan growth and stable net interest margins.

33.   While interest margins have been squeezed by increased competition and falling interest rates, banks should be able to make that up in higher fees, he said.

34.   Acting HKMA deputy chief executive David Carse also predicted a slowdown of growth in lending and narrowing interest margins.

35.   Financials led the gains on the rate-easing, which helped reduce pressure on interest margins.

36.   For the simple reason, financial institutions in that situation have too much cash to lend and cannot lend at interest margins to earn substantial profits.

37.   He said more competition in the local market, particularly on the interest margin, caused the slowdown.

38.   Interest margins are also expected to narrow this year.

39.   Managing director Amirsham A. Aziz attributed the impressive results to improved operational efficiency, better interest margin and higher loan volume.

40.   The bank said profits were held back by a slowdown in mortgage lending and an erosion of net interest margins.