As far as the US goes, most banks are making less off mortgages right now. The vast majority of mortgages are sold off, usually to Fannie or Freddie or other gse and the banks make money off of origination and servicing. That activity is suppressed right now.
On the other hand, most US banks are currently making more off of new loans they hold on their books. However, they are paying more for their deposits, and a lot more if they operate heavily with “fed funds” which is the rate you hear about in the news. There are some commercial banks in the US that have a low deposit base and simply use overnight borrowing from the fed to fund their loans, and this is a lot expensive now.
Anyway, the higher “net interest margin” is balanced against lower demand and potential higher charge offs from reduced economic activity.
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