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.
Showing 2 terms
Interest income divided by average interest-earning assets — what a lender earns on what it has lent.
Half of the spread, and the half that is easiest to misread. A high yield is not skill; it is the price of the risk the lender agreed to carry, and the credit cost line is where that bill arrives.
Yield on assets minus cost of funds — two rates, subtracted.
The measure a capital raise cannot flatter. Net interest margin rises when more of the book is funded by shareholders’ money; the spread, being a difference of two rates, cannot move for that reason.