Daily Concept 2592 - Net Interest Margin (NIM)

 

Daily Concept 2592 - Net Interest Margin (NIM)

Net Interest Margin is a measurement comparing the net interest income a financial firm generates from credit products like loans and mortgages, with the outgoing interest it pays holders of savings accounts and certificates of deposit (CDs).

Expressed as a percentage, the NIM is a profitability indicator that approximates the likelihood of a bank or investment firm thriving over the long haul.