That maybe a good short-term decision in terms of managing to the net interest margin.
FORBES: JPM, Wells Fargo Shares Are Being Punished Despite Record Quarters--What Gives?
That may be a good short-term decision in terms of managing to the net interest margin.
The biggest concern for Wells Fargo continues to remain its steadily declining net interest margin.
FORBES: The Wells Fargo Wagon Hauls In $38 On Thinner Margins
However, net interest margin decreased 70 basis points (bps) year over year to 6.52%.
The bank's loan portfolio and margins grew during the fourth quarter, as did its net interest margin.
For Wells Fargo, much of the problem was a greater than expected drop in its net interest margin.
FORBES: JPM, Wells Fargo Shares Are Being Punished Despite Record Quarters--What Gives?
Banks need to post revenue growth and show a widening net interest margin.
FORBES: Where To Load Up, Where To Go Lightly In Russell Growth, S&P 500
Additionally, an improved net interest margin and a reduced provision for credit losses led to the solid year-over-year growth.
With its net interest margin ( NIM) at 4.5%, HUVL is among the most profitable community banks in its peer group.
The bank's net interest margin--the difference between its cost of capital and average loan rate--has fallen for five consecutive quarters, to 0.9%.
These burdens are occurring amid tepid loan growth and in a low interest rate environment that contributes to net interest margin contraction.
FORBES: Moody's Outlook On Banks? Still Negative, Here's Why
In most countries, the net interest margin the difference between what banks pay for deposits and what they charge for loans is falling steadily.
Net interest margin contraction will likely outweigh any positive from loan growth.
FORBES: Best Ideas 2013: Not All Financial Stocks Are Equal, Buy Bank Of America, Avoid Comerica
Capital One also reported a 13 basis point improvement in its net interest margin largely due to lower cost of funds in the quarter.
This figure was also the lowest since Q3 2011, with the net interest margin falling to the unprecedented 3.66% from the normal level of 3.8-3.9%.
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.
Moreover, once you get past the pressure on net interest margin, other key metrics continue to move in the right direction, and outpace rival JP Morgan Chase (JPM).
Most notably, the bank bucked the trend reported by peers Wells Fargo, JPMorgan Chase and U.S. Bancorp, of a sequential decline in net interest margin figures over recent quarters.
FORBES: Here Are Some Positives From Bank Of America's Earnings
First and foremost, ever-present low interest rates have squeezed bank profitability as measured by net interest margin, or the spread between what banks pay to borrow and what they're paid to lend.
WSJ: Standard & Poor's 500 Had a Good Year in 2011 -- If You Don't Count Too-Big-To-Fail Banks
If Washington can agree on something or at least push out the day of reckoning, bank stocks must start to discount the end to net interest margin depression, a big plus dwelling in the cards.
In the last quarter short term rates stabilized at a slightly higher level and the net interest margin (the difference between the interest they pay to depositors and that which they are paid for them) widened.
Net interest margin declined to 3.66%, a reflection of the low interest rate environment being orchestrated by the Federal Reserve thanks to its asset purchase programs over the past several years aimed at greasing the skids for an economic recovery.
FORBES: Record Quarter For Wells Fargo, Rocky Start For Stock
Unlike its more profitable private sector rival HDFC Bank, ICICI is ready to sacrifice short-term net for gaining market share, as it did in undercutting HDFC's long-standing lead in mortgage loans. (Overall, ICICI's net interest margin of 2.25% is less than half that of HDFC Bank's 4.72%.) Similarly, ICICI has overtaken Citibank as the country's largest issuer of credit cards, with 8.5 million cards issued to date.
Lloyds, for instance, has a net-interest margin of more than 2% in its retail bank.
In the fiscal year ending March 2014, AMMB's net-interest margin is projected to narrow by 0.1 percentage point.
Net-interest margin a measure of profitability from lending after paying returns on deposits may contract by up to 0.15 percentage point, Mr. Ramamurthy said.
The antimissile business probably enjoys an operating margin (net before depreciation, interest and taxes) of between 30% and 40%.
The cable billing runs an operating margin (net before depreciation, interest and taxes, as a percent of sales) of 11%, versus 30% for fund servicing.
应用推荐