GNPA
Fundamental analysisGross non-performing assets — the share of a bank’s loans that have stopped being repaid.
In plain terms
The single most important number for any bank. Below 2% is healthy; above 6% is a crisis.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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NIM
Fundamental analysisAlso called: Net interest margin
Net interest margin — net interest income divided by average interest-earning assets.
In plain terms
Never read it without GNPA: a rising margin earned by lending to riskier borrowers is not skill. It is also not the same number as the lending spread, because the margin counts the assets funded by the lender’s own capital, which cost nothing.