Non-performing assets (NPA): related pages

Non-interest income

For banks, Non-interest income ÷ operating income.

Interest margin

Interest income minus interest expenses as a percentage of average interest earning assets.

Interest spread

(interest income ÷ interest earning assets) - (interest expense ÷ interest bearing liabilities).

Cost/income ratio

Most often used for banks: operating expenses ÷ operating income.

Capital adequacy

The ratio of a bank's capital to its assets. Regulators set minimum levels to protect both depositors and the economy.

Cost/assets ratio

For banks; operating expenses ÷ average assets over the period.

Return on average assets (ROAA)

Net profit ÷ average assets. An efficiency ratio relevant to banks.

Risk weighted assets

The total assets a bank has, with the value of each asset adjusted by a factor that reflects its riskiness. Used to calculate capital adequacy ratios.