Net Interest Margin

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Dictionary Says

Definition of 'Net Interest Margin'

A performance metric that examines how successful a firm's investment decisions are compared to its debt situations. A negative value denotes that the firm did not make an optimal decision, because interest expenses were greater than the amount of returns generated by investments.

Calculated as:
Net Interest Margin
Investopedia Says

Investopedia explains 'Net Interest Margin'

For example, ABC Corp has a return on investment of $1,000,000, an interest expense of $2,000,000 and average earning assets of $10,000,000. ABC Corp's net interest margin would be -10%. This would mean that ABC Corp has lost more money due to interest expenses than was earned from investments. In this case, ABC Corp would have been better off if it had used the investment funds to pay off debts instead to making an investment.
Search results for

'Net Interest Margin'

  • Remember Net Interest Margins?

    http://stocks.investopedia.com/stock-analysis/2009/Remember-Net-Interest-Margins-CFR-WABC-SIVB-BMRC-CATY0522.aspx
    However, once the crisis passes, investors will examine the net interest margin
    of a bank, part of which is determined by the cost of funds. ...

  • 4 Top Bank Stocks From 2010's First Half

    http://stocks.investopedia.com/stock-analysis/2010/4-Top-Bank-Stocks-From-2010s-First-Half-KBE-KRE-HBAN-RF-RBS-MTB0705.aspx
    ... Huntington has seen a healthy improvement in its net interest margin versus
    its Q1 in 2009 and its net charge-offs declined significantly. ...

  • Patience Will Pay At Wells Fargo

    http://stocks.investopedia.com/stock-analysis/2011/Patience-Will-Pay-At-Wells-Fargo--WFC-PNC-C-BAC-ZION-UMPQ-FCNCA0722.aspx
    ... The company's earning asset base remained stagnant as average loans declined about
    1% sequentially and the net interest margin compressed a bit. ...

  • US Bancorp Could Bring Investors Back To Banks

    http://stocks.investopedia.com/stock-analysis/2011/U.S.-Bancorp-Could-Bring-Investors-Back-To-Banks-USB-C-CMA-MTB-TCB-CYN-PNC0121.aspx
    ... USB saw its net interest margin fall slightly, but 3.83% is still a very
    good result. Average earning assets were up 3%, and the ...

  • Bank Of America's Story Not About Lousy Earnings

    http://stocks.investopedia.com/stock-analysis/2012/Bank-Of-Americas-Story-Not-About-Lousy-Earnings-BAC-C-USB-WFC-PNC0123.aspx
    ... Bank of America continues to shrink its balance sheet (average earning assets down
    near 3%), but net interest margin improved 13 basis points to 2.45% - not a ...

  • Is The US Going To Goose BMO's Growth?

    http://stocks.investopedia.com/stock-analysis/2011/Is-The-U.S.-Going-To-Goose-BMOs-Growth-BMO-RBC-PNC-HBC-USB0824.aspx
    ... Revenue rose 13% overall, with an 8% increase in company-wide net interest
    income. Net interest margin slid 11 basis points to 1.78%. ...

  • US Bancorp Worth Checking Out

    http://stocks.investopedia.com/stock-analysis/2011/U.S.-Bancorp-Worth-Checking-Out-USB-ZION-BPOP-TCB-PJC-C-BAC0420.aspx
    ... Net interest income performance was alright - net interest margin fell (due to deposit
    growth), but earning assets grew and loan growth was up a bit as well. ...

  • Wells Fargo's Glass More Full Than Empty

    http://stocks.investopedia.com/stock-analysis/2011/Wells-Fargos-Glass-More-Full-Than-Empty-WFC-C-BAC-JPM-FNMA-FMCC0121.aspx
    ... For the year, net interest margin declined slightly from 4.28% to 4.26%. Full year
    revenue for 2010 was $85.21 billion compared to $88.69 in 2009. ...

  • Bank Of The Ozarks Making The Best Of Things

    http://stocks.investopedia.com/stock-analysis/2011/Bank-Of-The-Ozarks-Making-The-Best-Of-Things-OZRK-RF-BXS-BAC-WABC0418.aspx
    ... That in turn has led to unusually low credit losses and non-performing
    assets, as well as surprisingly high net interest margin. ...

  • Can SunTrust Be Trusted?

    http://stocks.investopedia.com/stock-analysis/2009/Can-SunTrust-Be-Trusted-STI-JPM-PNC0910.aspx
    ... to SunTrust management, "during the second quarter of 2009, the core business generated
    solid fee income, expanded net interest margin, substantially grew low ...

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