The difference between such sources of bank income as service charges on deposits and trust-service fees,and such sources of bank expenses as salaries and wages and overhead expenses divided by total assets or total earning assets is called the:
A)net profit margin.
B)net operating margin.
C)net noninterest margin.
D)net return on assets.
E)None of the options is correct.

Question

Quizplus · Accepted Answer

The difference between sources of bank income and expenses divided by total assets or total earning assets is referred to as the net noninterest margin. This measure provides insight into a bank's ability to generate revenue from activities besides the traditional interest earning activities such as loans and investments. It is a key performance measure for banks, as it helps in determining the bank's profitability from noninterest sources.

The Difference Between Such Sources of Bank Income as Service