NIM
Business & Finance abbreviation · Banking
| Stands for | Net interest margin |
|---|---|
| Categories | Business & Finance |
NIM stands for Net interest margin, a banking abbreviation.
Bank profitability measure equal to net interest income divided by average interest-earning assets, showing the spread between what a bank earns on loans and securities and what it pays on deposits and borrowings. US bank NIMs typically fall roughly between 2.5 and 3.5 percent.
Example: Rising deposit costs squeezed the regional bank's NIM to 2.9 percent from 3.3 percent.
Usage notes
NIM tends to widen when interest rates rise faster than banks raise deposit rates, and to compress when deposit competition intensifies. It is one of the first figures analysts check in bank earnings. Banks with large non-interest-bearing deposits usually enjoy higher margins.
Related abbreviations
More banking abbreviations
- LLP – Loan loss provision
- LOC – Line of credit
- MT103 – SWIFT MT103 message (single customer credit transfer)
- NACHA – Nacha (formerly National Automated Clearing House Association)
- NEFT – National Electronic Funds Transfer
- NII – Net interest income
- NPA – Non-performing asset
- NPL – Non-performing loan
- NSF – Non-sufficient funds
- NSFR – Net stable funding ratio
- OD – Overdraft
- ODP – Overdraft protection