Question

Net Interest Margin is a key profitability metric for banks. How is it best described?

Q: Answer-Net Interest Margin is a key profitability metric for banks. How is it best described?

The difference between the interest earned on loans given by bank and on investments and the interest paid on deposits and borrowings is the net interest income of the bank.

A The difference between interest earned on securities and interest paid on deposits.

B The ratio of net income to total assets.

C The spread between lending rates and the cost of funding.

D The percentage of interest income that is generated from loan-related fees.

E The comparison between the bank's investment returns and its interest expenses.

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Net Interest Margin is a key profitability metric for banks. How is it best described?

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