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Goldman Sachs Group Inc  (NYSE:GS) Net Interest Margin (Bank Only) %: 0.58% (As of Sep. 2017)

Net interest margin is a measure of the difference between the interest income generated by banks or other financial institutions and the amount of interest paid out to their lenders (for example, deposits), relative to the amount of their interest-earning assets. It is usually calculated as a percentage of what the financial institution earns on loans in a time period and other assets minus the interest paid on borrowed funds divided by the average amount of the assets on which it earned income in that time period (the average earning assets).

GuruFocus calculates net interest margin as Net Interest Income divided by its average earning assets. Goldman Sachs Group Inc's annualized Net Interest Income for the quarter that ended in Sep. 2017 was $2,920 Mil. Goldman Sachs Group Inc's average earning assets for the quarter that ended in Sep. 2017 was $502,369 Mil. Therefore, Goldman Sachs Group Inc's annualized net interest margin for the quarter that ended in Sep. 2017 was 0.58%.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Goldman Sachs Group Inc Annual Data

Nov07 Nov08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Net Interest Margin (Bank Only) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.64 0.58 0.75 0.60 0.54

Goldman Sachs Group Inc Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
Net Interest Margin (Bank Only) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.50 0.28 0.44 0.65 0.58

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Calculation

Net interest margin (NIM) is a measure of the difference between the interest income generated by banks or other financial institutions and the amount of interest paid out to their lenders (for example, deposits), relative to the amount of their interest-earning assets. It is usually calculated as a percentage of what the financial institution earns on loans in a time period and other assets minus the interest paid on borrowed funds divided by the average amount of the assets on which it earned income in that time period (the average earning assets).

Goldman Sachs Group Inc's annualized Net Interest Margin for the fiscal year that ended in Dec. 2016 is calculated as

Net Interest Margin(A: Dec. 2016 )
=(Interest Income + Interest Expense)/Average Earning Assets
=Net Interest Income/( (Earning Assets (A: Dec. 2015 ) + Earning Assets (A: Dec. 2016 ))/2)
=2587/( (493217 + 462549)/2)
=2587/502368.5
=0.54 %

where

Earning Assets(A: Dec. 2015 )
=Money Market Investments + Net Loan + Securities & Investments
=134308 + 45407 + 313502
=493217

Earning Assets(A: Dec. 2016 )
=Money Market Investments + Net Loan + Securities & Investments
=116925 + 49672 + 295952
=462549

Goldman Sachs Group Inc's annualized Net Interest Margin for the quarter that ended in Sep. 2017 is calculated as

Net Interest Margin(Q: Sep. 2017 )
=(Interest Income + Interest Expense)/Average Earning Assets
=Net Interest Income/( (Earning Assets (Q: {}stock_data.data.Q2}}) + Earning Assets (Q: Sep. 2017 ))/2)
=2920/( (497245 + 507492)/2)
=2920/502368.5
=0.58 %

where

Earning Assets(Q: Jun. 2017 )
=Money Market Investments + Net Loan + Securities & Investments
=115553 + 53952 + 327740
=497245

Earning Assets(Q: Sep. 2017 )
=Money Market Investments + Net Loan + Securities & Investments
=112532 + 61486 + 333474
=507492

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Note: Interest Expense is the negative value.

In the calculation of annual net interest margin, the Net Interest Income of the last fiscal year and the average earning assets over the fiscal year are used. In calculating the quarterly data, the Net Interest Income data used here is four times the quarterly (Sep. 2017) net interest income data. Net Interest Margin is displayed in the 15-year financial page.


Explanation

The negative value of net interest margin mean the firm pays more interest for its debt than the interest revenue generated from its investment.


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