Net Interest Margin


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Related to Net Interest Margin: Capital adequacy ratio

Net Interest Margin

A measure of the return on a company's investments relative to its interest expenses. The net interest margin helps a company determine whether or not it has made wise investment decisions. A negative net interest margin indicates that interest expenses exceed investment returns and that the company therefore has a net negative return. A positive net interest margin indicates the opposite. It is calculated thusly:

Net interest margin = (Investment returns - interest expenses) / Average earning assets.
References in periodicals archive ?
These factors should enable us to improve our net interest margin, one of our priorities for achieving higher profitability.
Year-to-date, the 246 basis point increase in the efficiency ratio was due in part to the net interest margin deterioration (194 basis points) and lower gains on the sales of securities and loans (53 basis points).
Banc One manages the components of net interest margin through the pricing of assets and liabilities, and the use of interest rate swaps of which the notional amount is not included in earning assets.
Payments on the Net Interest Margin Trust certificates are affected by both losses and prepayments on the underlying manufactured housing contracts.
91 percent a year ago, primarily because of the lower net interest margin and the resulting level net interest income from the fourth quarter of 1992.
The updated cash flow modeling criteria will affect the way net interest margin securities (NIMs) are analyzed and sized by Fitch.
64 percent net interest margin may be vulnerable to rising interest rates, the company could offset any margin shrinkage through better operating efficiency.
At the same time, our deposit growth has not met our expectations, and the use of higher cost funding sources has had a negative impact on our net interest margin.
For the quarter ended March 31, 2006, the Bank's net interest margin grew 12 bps to 5.
1st Century") (OTCBB:FCNA) announced today that strong growth in assets, loans and deposits and an expanding net interest margin contributed to improved financial performance for the period ended March 31, 2006.
Service 1st Bancorp's wholly owned subsidiary Service 1st Bank continues to reflect strong asset growth coupled with lower net income primarily due to the branch office expansion into Lodi and higher interest expense which has compressed net interest margins," said John O.