A study by Macro Consult on behalf of Erste Bank has revealed that the Austrian banking sector is set to continue its recovery in 2010.

The study has predicted that there will be an increase in credit volumes of 3% over the next 5 years to 2015 and a growth rate for deposits of 5%pa, with inflation expected to stay unchanged for the long term at a low level.

Josef Christl, director on the board of the Austrian central bank, said: “One reason why Austrian banks are able to run their businesses so profitably is their high level of cost awareness.”

Austrian banks are the fifth most profitable in the Eurozone while operating the lowest consumer and SME banking margins in Europe.