"For the second half of 2019, we anticipate our net interest margins
to recover as the liquidity situation improves and interest rates to normalize" he added.
Following the enactment of the Tax Cuts and Jobs Act, beginning in the first quarter of 2018, net interest margin
is computed using net interest income adjusted to a fully taxable equivalent (FTE) basis assuming a statutory federal income tax rate of 21 percent and, where applicable, state income taxes; prior period net interest margins
are computed using the then-statutory federal income tax rate of 35 percent and, where applicable, state income taxes.
The firm said it expects to lift its net interest margins
this year after reporting a 33 percent rise in quarterly profit.
Gates Little, president and chief executive officer of the company said that the company's net interest margins
improved during the quarter as compared to the same period in 2013.
Strong net interest income generation (+22 per cent) supported by better net interest margins
(NIMs) and contribution from Egyptian operations, impressive non-funded income (+37 per cent) driven by robust fee income and gains from property sales portfolio, boosted the performance of ENBD in the second quarter of this year, according to Shu Capital's analysts.
" 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.
Sharp declines in short-term interest rates and a steepening of the yield curve helped boost income, as net interest margins
widened and banks realized hefty gains on securities, which helped offset adverse effects on profitability of higher loss provisioning (table 4).
The bank also posted its slowest quarterly profit growth in a decade due to a drop in net interest margins
and losses in its investment portfolio.
According to Reuters, private-sector lenders in India are expecting an easing of pressure on net interest margins
in the second half of this fiscal.
This development will help support net interest margins
The improvement resulted from higher net interest margins
, continued low provisions for loan losses, and slow growth of expenses.