Higher interest rates have fattened banks' profits but risks to lenders and financial stability have grown as loan growth is slowing and credit quality is likely to come under pressure, the Austrian National Bank (ONB) said in a report on Thursday.

"For Austrian banks to be able to cope with future risks in an uncertain environment, the ONB recommends that they ... be proactive, in particular, in provisioning for commercial real estate loans and use conservative collateral valuations in this segment," the ONB said in a statement on its half-yearly Financial Stability Report published on Thursday. (Reporting by Francois Murphy; Editing by Alex Richardson)