banking term

Net Interest Margin

The spread between interest income and interest expense, expressed as a percentage of average earning assets.

Category

banking

Applies to

Companies, Sectors

Related sectors

1

Linked companies

5

Why it matters

Investor context

It is one of the most important gauges of earning power for banks and deposit-led financial institutions.

Formula

Calculation pattern

(interest income − interest expense) ÷ average earning assets

Sector context

Sectors where this term is common

Issuer examples

Companies using this lens

Market context

Markets where this concept shows up

Benchmark context

Indices where the concept matters