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 ?
Jiang also said that the bank is planning to reduce the proportion of low-yield discounted bills in its total loan portfolio, which should help boost its overall net interest margin.
Increases over last year are attributed in large part to both a higher net interest margin and an increasing volume of net earnings assets.
The decrease in net interest income resulted from a decrease in net interest margin from 1.
NASDAQ:FNBN) today announced that it has restructured its investment portfolio to eliminate certain under-performing investments and to improve the net interest margin.
banks, although the industry's aggregate net interest margin was unchanged as of the quarter ended June 30, 2006, according to a special report by A.
residential mortgage-backed securities (RMBS) and net interest margin (NIM) securitizations, effective immediately.
These forward-looking statements describe management's expectations regarding future events and developments such as future operating results, growth in loans and deposits, maintenance of the net interest margin, credit quality and loan losses, the efficiency ratio and continued success of the Company's business plan.
Quarterly net interest margin expanded 151 basis points to 4.
Fitch has also updated its criteria for rating net interest margin (NIM) securitizations.
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.
The results for the second quarter and six-month periods of 2006 reflect significant loan and deposit growth, with the impact of this growth reduced by declines in net interest margins caused by a flat yield curve and increasingly competitive pricing for loans and deposits.