100 basis points is 1%. 1 basis point is 0.01%. 1.60 is 1.60% .
2.11% NIM is not good. NIM in a nut shell is the difference between what a bank pays out in interest eg..on deposits and money it borrows itself and what customers pay to borrow money from them. The NIM is the banks profit. 3% would be a good NIM. anything close to 2 is not.
One of the reasons bank shares are so bad now is that banks can't get a decent NIM. That is likely to continue for some time yet and in BKIR'S case they will do well to have a NIM of 2.20% for the FY16.
Hi, can someone explain how NIM is calculated and how someone like Virgin Money can say they expect their NIM to be 160 basis points for 2016, yet Davy talk in terms of % (NIM 2.11% Interim for 2016). Many Thanks. ps. What would a good NIM be?
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