gark
You mentioned that one of the key numbers for evaluating a bank is net interest margin (NIM).

While a bank's financial report shows net interest income, NIM is not given. Average Invested/Earning Assets are also not given. How do you compute NIM?

Or do you simply rely on ANALyst reports?



This post has been edited by river.sand: Feb 22 2015, 06:06 PM

Net Interest Margin

According to Investopedia, NIM is:

NIM = (Investment Returns - Interest Expenses)/Average Earning Assets


Now, a typical bank financial statements will indicate its Net Interest Income, which I assume equals (Investment Returns - Interest Expenses). (correct me if I were wrong)

How could we determine Average Earning Assets?


Pink Spider

Refer to the attachments...
One is the snapshot of Current Assets of a company, the other snapshot of the bottom of Cash Flow Statement, from the same year.

Isn't the last line on Cash Flow statements equivalent to the Cash & Bank Balances in Balance Sheet


Mr Accountant Pink Spider and other experts...




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Question:
Is Fund from Operations (FFO) same is net cash from operating activities?
If not, using the attached IGBREIT cash flow statement as example, what is its FFO?






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Pink Spider
See above post. Thanks

Net Interest Margin

One of the measures used to value banking stocks is Ne Interest Margin, which is defined as:

Net Interest Margin
= Net Interest Income/Average Earning Assets


Using Maybank's balance sheet as example, please may I know how much its Average Earning Assets are



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