What is Return on Assets (ROA)? Return on Assets (ROA) is a crucial financial ratio that measures how efficiently a bank or financial institution generates profit from its total assets. It helps investors and analysts evaluate how well a bank is utilizing its resources to create earnings. A higher ROA indicates strong financial performance, while…
Finance
Net Interest Margin (NIM) in Banking: A Key Profitability Metric
What is Net Interest Margin (NIM)? Net Interest Margin (NIM) is a key profitability metric used in the banking sector. It measures the difference between the interest banks earn on loans and the interest they pay on deposits, relative to their total earning assets. A higher NIM indicates that a bank is efficiently managing its…