Net Interest Margin

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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 ?
Net interest yield on a fully taxable-equivalent basis for the fourth quarter of 2009 was 215 basis points, compared to 205 basis points for the third quarter of 2009.
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.
The increase in the net interest yield was mainly the result of lower funding costs on short-term borrowings and interest bearing deposits influenced in part by the reductions in interest rates by the Federal Reserve and to strategies undertaken by management to reduce low yielding assets.
Continuing margin compression, however, has reduced the Bank's net interest yield to 3.
Farmer Mac's net interest yield for first quarter 2008 was 131 basis points ($17.
Business Cards managed net interest yield declined to 11.
Continuing margin compression has reduced the Bank's net interest yield to 3.
The net interest yield, adjusted for the effects of SFAS 133, for 2007 was 85 basis points ($44.
Despite the growth in the loan portfolio, especially in higher yielding commercial loans, our net interest yield has declined to 3.