These Banks Have Profitability in the Cards

One of the indicators of profitability and earnings that investors in bank stocks watch most closely is the net interest margin, which is interest income minus interest expense. 

Net interest margin in the U.S. banking system has been declining for the past three years, as the Federal Reserve has increased quantitative easing and has withdrawn longer-duration debt from the publicly available capital markets. This has affected banks of all sizes pretty evenly. Net interest margin at the top four is currently about 3.10%, and at the smallest local banks it is about 3.50%....569 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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