Revenue Growth
It’s a key measure of a bank’s performance.
Higher growth indicates more earnings and potential expansion.
Net Interest Margin
This KPI reflects the profitability of a bank’s core activities.
A higher NIM means more profit from lending.
Loan to Deposit Ratio
It measures a bank’s liquidity.
A lower ratio indicates the bank has more liquidity and less financial risk.
Non-Performing Loans
This indicates the quality of the bank’s loan portfolio.
Lower numbers suggest fewer risky loans.
Return on Equity
This KPI measures a bank’s profitability.
Higher ROE indicates the bank is using its equity more efficiently.
Key Takeaways
Understanding KPIs like Revenue Growth, Net Interest Margin, Loan to Deposit Ratio, Non- Performing Loans, and Return on Equity can help you decode a bank’s performance.
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