Total earning asset
(1,060) 1,951 891 (9,340) 2,912 (6,428)
Total average earning asset
yields have increased from 5.
Although revenue to earning asset
yield continued its established trend and declined from 21.
Although KBK has an unassailable record of asset growth and quality, and while our revenue to net earning asset
yield is among the highest of all publicly reporting commercial finance companies, we have yet to prove our ability to generate and manage assets in a cost effective manner.
The results reflect a lower Cost of Funds, growth in earning assets
and lower expenses.
Currency issuing is highly profitable for governments because the issuance of non-interest-bearing central bank currency liabilities gives rise, correspondingly, to comparable holdings of earning assets
by the central bank.
The year-to-date average yield on earning assets
decreased 24 basis points to 3.
The following table sets forth the average balances of interest earning assets
and interest bearing liabilities for the periods indicated, as well as total interest and corresponding yields and rates (dollars in thousands).
This increase resulted primarily from an increase in average interest earning assets
Adjusted gross yield on interest earning assets
Important factors that may impact our actual results include changes in interest rates and market values; changes in prepayment rates; general economic conditions, particularly as they affect the price of earning assets
and the credit status of borrowers; the level of liquidity in the capital markets as it affects our ability to finance our real estate asset portfolio; and other factors not presently identified.
Malaga was able to increase its earnings, considering the steady interest rate increases in the Federal Funds rate through the summer of 2006, by continuing to grow its earning assets
while maintaining a relatively constant level of operating expenses.