The developer pays back the loan with interest from income generated by the sale of electricity to its customers.
FORBES: Solar Crowdfunding Startup Lets Ordinary Investors Own A Piece Of The Sun
Capital One reported better than expected third quarter results last Thursday, driven by lower provisions for loan losses and increased interest income.
In net interest margin (interest income minus interest cost, divided by the loan total), Lewis' bank scores 2.6%, versus 2.4% for Citi and 2.3% for Chase.
While an increase in prime loan rates will likely impact both interest income as well as interest expense for Wells Fargo, the fact that Wells Fargo derives the majority of its funding from low cost core deposits will help the firm restrain its interest expense even as interest rates increase and thus boost its net interest margins.
FORBES: Three Ways To Tell If Pain Or Pleasure Ahead For Wells Fargo
Its loan book shrank in second quarter, as interest income fell 15%.
FORBES: Bank Of America Cutting 16K Jobs By Dec.: Big Bank Would End Slim-Down A Year Early
And these business rely heavily on interest rates as the interest income earned on the outstanding loan portfolio forms a bulk of each of their revenues.
The interest income is largely dependent on the loan portfolio.
Somebody decided to change the definition of credit and made consumers feel that buying on credit was less like a high-interest loan and more like an increase in disposable income.
The outsiders did most damage by causing local banks' non-interest income to decline and their bad-loan provisions to rise.
One thing I wish President Obama would do is increase the income threshold that allows deduction of school loan interest.
Back in the 1960s, the Kennedy Administration deemed deferral an unwarranted interest-free loan from the Treasury and proposed taxing all international income as earned.
FORBES: Tax And Territoriality: The Corporate 99% Versus The Law School 1%
Unfortunately, the measures proposed so far -- freezing interest rates, income-based repayment and public service loan forgiveness -- haven't gone far enough to improve the lot of students and recent grads.
Regarding such a switcheroo as "income" is like making an interest-free loan and then telling yourself, as the debtor pays back only your principal, that you are earning a generous return on your money.
WSJ: The Intelligent Investor: Yields So High, They Can't Be for Real
If the loan interest is tax-deductible (most mortgages, and some student loans depending on your income and interest amounts), then you lose the deduction on the interest you no longer pay, so you must adjust the return for taxes.
Japanese financial stocks, as especially the megabanks, have been in a positive feedback loop of balance sheet and income statement translation gains from a weaker yen and the prospect of increased loan volumes and interest earnings from higher domestic loan demand.
FORBES: Whither Japan Stocks: Is the Bullish Case Still Intact?
应用推荐