Net Interest Margin

(redirected from Net Interest Yield)

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 ?
BAC's 3Q17 net interest yield (NIY) on a fully taxable equivalent basis was 2.
Net interest yield decreased to 127 basis points in 2003 from 146 basis points in 2002.
As a result, the company's net interest yield held relatively steady at 2.
This modest growth should help buffer Fitch's expected decline in both the loan portfolio and in the company's net interest yield which was 2.
Business Cards managed net interest yield declined to 11.
58% Noninterest bearing liabilities Demand deposits 65,378 58,921 Other liabilities 8,882 5,557 Total liabilities 987,849 812,907 Shareholders' equity 74,307 65,808 Total liabilities and shareholders' equity $1,062,156 $878,715 NET INTEREST EARNINGS $8,546 $7,652 NET INTEREST YIELD ON EARNING ASSETS 3.
49% Noninterest bearing liabilities Demand deposits 65,449 55,737 Other liabilities 7,338 5,189 Total liabilities 913,435 795,174 Shareholders' equity 71,771 62,329 Total liabilities and shareholders' equity $985,206 $857,503 NET INTEREST EARNINGS $ 8,129 $ 7,391 NET INTEREST YIELD ON EARNING ASSETS 3.
41% Noninterest bearing liabilities Demand deposits 59,073 53,719 Other liabilities 7,451 5,116 Total liabilities 863,328 771,189 Shareholders' equity 68,446 59,538 Total liabilities and shareholders' equity $931,774 $830,727 NET INTEREST EARNINGS $ 7,927 $ 7,128 NET INTEREST YIELD ON EARNING ASSETS 3.
81% Noninterest bearing liabilities Demand deposits 55,737 46,994 Other liabilities 5,189 4,501 Total liabilities 795,174 670,521 Shareholders' equity 62,329 55,189 Total liabilities and shareholders' equity $857,503 $725,710 NET INTEREST EARNINGS $7,391 $6,220 NET INTEREST YIELD ON EARNING ASSETS 3.