Net Interest Margin:
Net interest margin measures how large a spread betweeninterest income and interest costs management has been able to achieve by closecontrol over total assets. The formula is-
(Int. Income-Int. Exp)/Total Assets5.
Net Non-interest margin:
Net non-interest margin measures how large a spreadbetween non-interest income and non-interest costs management has been ableto achieve by close control over total assets. The formula is-
(Non Int. Income-Non Int. Exp)/Total Assets6.
Net Operating margin:
Its shows how much does the firm generate net worthagainst investing in assets. The formula is-
(Total operating revenue-Total Operating Exp)/Total Assets7.
Also known as asset
management efficiency. It is a goodindicator of portfolio management policies, especially the mix and yields on the
bank’s assets. The formul
Total Op. Revenues/Total Assets8.
Tax Mgt. Efficiency:
It shows how efficiently the firm does manage its taxes withnet operating income. The formula is-
Net Income/ Net Operating Income before tax9.
Expense Control Efficiency:
It shows how efficiently the firm does manage itsexpense with its revenues. The formula is-
Net operating income before taxes/total operating revenues10.
EPS measures how much the firm earns against every common share. Theformula is-
Net Income after tax/ Common Equity Shares outstanding