US bank profitability measure continues rising – study
Net interest margin climbed throughout 2024 and Q1 2025, St Louis Fed research finds
The net interest margins earned by US banks are rising, according to research from the Federal Reserve Bank of St Louis.
In a blog post published on June 10, Suzanne Jenkins and Richard Zott say the average margin – the difference between the interest rates banks earn and the rates they pay – climbed throughout 2024 and during the first quarter of 2025. A higher net interest margin indicates higher profitability.
“Throughout 2024, banks benefited from increasing asset yields as interest rates on
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