| ← Back to Cover | |||||||||||||
| NET INTEREST MARGIN ANALYSIS | |||||||||||||
| Commercial Bank — Yield/Cost Decomposition ($mm) | |||||||||||||
| FY2024 | FY2025 | FY2026 | FY2027 | FY2028 | FY2029 | FY2030 | FY2031 | FY2032 | FY2033 | FY2034 | FY2035 | ||
| EARNING ASSET BALANCES | |||||||||||||
| Gross Loans | $17,500 | $18,550 | $19,570 | $20,647 | $21,782 | $22,980 | $24,244 | $25,578 | $26,984 | $28,468 | $30,034 | $31,686 | |
| Securities | $3,500 | $3,640 | $3,767 | $3,899 | $4,036 | $4,177 | $4,323 | $4,474 | $4,631 | $4,793 | $4,961 | $5,135 | |
| Other Earning Assets | $1,100 | $1,025 | $886 | $824 | $811 | $904 | $1,217 | $1,976 | $3,638 | $7,113 | $14,223 | $28,613 | |
| Total Earning Assets | $22,100 | $23,215 | $24,224 | $25,369 | $26,628 | $28,061 | $29,784 | $32,028 | $35,253 | $40,374 | $49,218 | $65,433 | |
| INTEREST INCOME | |||||||||||||
| II - Loans | $870 | $950 | $1,011 | $1,067 | $1,126 | $1,188 | $1,253 | $1,322 | $1,395 | $1,471 | $1,552 | $1,638 | |
| II - Securities | $85 | $90 | $100 | $103 | $107 | $111 | $115 | $119 | $123 | $127 | $131 | $136 | |
| II - Other | $35 | $57 | $117 | $234 | $467 | $935 | $1,870 | $3,739 | $7,478 | $14,957 | $29,914 | $59,827 | |
| Total Interest Income | $990 | $1,097 | $1,228 | $1,404 | $1,700 | $2,233 | $3,237 | $5,180 | $8,996 | $16,555 | $31,597 | $61,601 | |
| ASSET YIELDS | |||||||||||||
| Loan Yield | 4.97% | 5.12% | 5.17% | 5.17% | 5.17% | 5.17% | 5.17% | 5.17% | 5.17% | 5.17% | 5.17% | 5.17% | |
| Securities Yield | 2.43% | 2.47% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | |
| Other EA Yield | 3.18% | 5.56% | 13.19% | 28.38% | 57.66% | 103.44% | 153.68% | 189.21% | 205.57% | 210.28% | 210.33% | 209.09% | |
| Avg Earning Asset Yield | 4.48% | 4.73% | 5.07% | 5.53% | 6.38% | 7.96% | 10.87% | 16.17% | 25.52% | 41.00% | 64.20% | 94.14% | |
| FUNDING COSTS | |||||||||||||
| IE - Deposits | $285 | $310 | $342 | $357 | $373 | $390 | $408 | $426 | $445 | $465 | $486 | $508 | |
| IE - Borrowings | $75 | $82 | $86 | $88 | $91 | $93 | $95 | $97 | $100 | $102 | $105 | $108 | |
| IE - Other | $20 | $25 | $26 | $26 | $27 | $27 | $28 | $28 | $29 | $29 | $30 | $30 | |
| Total Interest Expense | $380 | $417 | $454 | $472 | $490 | $510 | $530 | $552 | $574 | $597 | $621 | $646 | |
| COST OF FUNDS | |||||||||||||
| Cost of Deposits | 1.58% | 1.64% | 1.73% | 1.73% | 1.73% | 1.73% | 1.73% | 1.73% | 1.73% | 1.73% | 1.73% | 1.73% | |
| Cost of Borrowings | 3.75% | 3.98% | 4.08% | 4.08% | 4.08% | 4.08% | 4.08% | 4.08% | 4.08% | 4.08% | 4.08% | 4.08% | |
| Avg Cost of Funds | 1.72% | 1.80% | 1.87% | 1.86% | 1.84% | 1.82% | 1.78% | 1.72% | 1.63% | 1.48% | 1.26% | 0.99% | |
| NET INTEREST MARGIN | |||||||||||||
| Net Interest Income | $610 | $680 | $775 | $932 | $1,210 | $1,723 | $2,707 | $4,628 | $8,422 | $15,958 | $30,976 | $60,955 | |
| NIM (NII / Earning Assets) | 2.76% | 2.93% | 3.20% | 3.68% | 4.54% | 6.14% | 9.09% | 14.45% | 23.89% | 39.53% | 62.94% | 93.16% | |
| Spread (Yield - Cost) | 2.76% | 2.93% | 3.20% | 3.68% | 4.54% | 6.14% | 9.09% | 14.45% | 23.89% | 39.53% | 62.94% | 93.16% | |
| NIM SENSITIVITY (+/- 25bps on rates) | |||||||||||||
| NIM if Loan Yield +25bps | 2.96% | 3.13% | 3.40% | 3.88% | 4.75% | 6.35% | 9.29% | 14.65% | 24.08% | 39.70% | 63.09% | 93.28% | |
| NIM if Loan Yield -25bps | 2.56% | 2.73% | 3.00% | 3.47% | 4.34% | 5.94% | 8.88% | 14.25% | 23.70% | 39.35% | 62.78% | 93.03% | |
| NIM if Deposit Cost +25bps | 2.56% | 2.73% | 2.99% | 3.47% | 4.34% | 5.94% | 8.89% | 14.26% | 23.71% | 39.36% | 62.79% | 93.04% | |
| NIM if Deposit Cost -25bps | 2.96% | 3.13% | 3.40% | 3.88% | 4.75% | 6.34% | 9.29% | 14.64% | 24.07% | 39.69% | 63.08% | 93.27% | |
| Note: Sensitivity assumes parallel shift in rates. Actual impact depends on repricing gaps. | |||||||||||||