For a bank,the ratio of after-tax profit to assets is its

Question

Quizplus · Accepted Answer

The ratio of after-tax profit (net income) to assets is the return on assets (ROA), which is a commonly used performance metric for banks. ROA indicates how efficiently a bank is using its assets to generate profits. Option A, net interest margin (NIM), is the difference between the interest earned on loans and securities and the interest paid on deposits and borrowings, and indicates a bank's ability to earn interest income. Option C, return on equity (ROE), measures the return generated on shareholder equity and is a measure of a bank's profitability. Option D, spread, is similar to NIM and represents the difference between the interest a bank earns on loans and securities and the interest it pays on deposits and borrowings, but it is not a ratio of after-tax profit to assets.

For a Bank,the Ratio of After-Tax Profit to Assets Is