ICBC's net interest margin
in the first half was 2.25%, down from 2.95% as of the end of 2008.
The fall in net interest margin
triggered a fall in shares of other banks on concerns that it would presage lower profits across the industry as interest rates have dropped.
Nigerian Tribune reports that Net Interest Margin
has led to increased financial disintermediation, just as mobile banking and threat from financial technology (fintech) firms lead to higher cost-to-serve and lower profits in banks relative to other industries.
The net interest margin
evolution was worse than expected (2.47% in Q4 vs.
Net interest income increased $91 million compared with the year-ago quarter substantially due to loan growth, as well as higher interest income on our PCI loan portfolio, which drove a 12 basis point increase in the net interest margin
. Average total loans held for investment, excluding PCI loans, increased $7.9 billion, or 13 percent, compared with the second quarter 2013 due to organic loan growth and our PB Capital Corporation acquisition, which closed late in the second quarter of 2013.
Net interest margin
(NIM) for the first half of 2014 was 1.98 per cent down 7 basis points compared to first half of 2013.
" Our net interest margins
on both domestic and international business have improved, and our reliance on wholesale deposits is very less," Chanda Kochhar, managing director ( MD) and chief executive officer ( CEO), ICICI Bank, said in a conference call.
So, they may see net interest margin
of about 150250 basis points even after deducting the new required loan reserve ratio of 2.5%.
The net interest margin
, the difference between what a bank earns on loans and its funding cost, may shrink to 2.04 per cent from 2.1 per cent in 2010, Credit Suisse analysts including Carla Antunes-Silva wrote in a note to investors.
SBI will be able to maintain its net interest margin
at about 3.4 percent in the current quarter, it said.
Net income of $5.1 million for the quarter Net interest margin
of 4.09% for the quarter Net interest income increased $3.4 million or 11% over the second quarter of 2009 Nonperforming assets not covered by loss share agreements increased $10.9 million during the quarter to $118.0 million Allowance for loan and lease losses increased during the quarter from 1.96% to 2.03% of total loans and leases.
"There are a lot of positives for our company this quarter; we had record quarterly net interest income, a sub 50 core efficiency ratio, a growing net interest margin
and improvement in selected asset quality ratios."