o_19heefouak9i9v4do11ac41pi7a.pdf

KONSTANTINOS I. LOIZOS
Figure 1: Net interest margin
Source: Author’s calculations
Table 1 gives a clearer picture of the evolution of the ratio. Observe that the indicator
rises in median terms for ETEBA. We use the median to avoid the outlier effect
of the very large initial value of the ratio. However, on average, the NIM falls
for ETBA at least in the last period and for Investment Bank during the whole period
of operation.
Table 1: Net interest margins: summary statistics
ETEBA Investment Bank ETBA
1964-74 1975-86 1987-2001 1963-74 1976-86 1987-92 1967-74 1975-86 1987-2002
Mean 0.16 0.05 0.09 0.04 0.03 0.02 0.03 0.03 0.01
Median 0.05 0.06 0.10 0.05 0.03 0.03 0.04 0.03 0.04
Std. Dev. 0.28 0.02 0.05 0.01 0.01 0.04 0.01 0.02 0.06
Min. 0.03 0.03 0.02 0.02 0.00 -0.04 0.00 0.02 -0.09
Max. 0.97 0.08 0.17 0.06 0.04 0.07 0.05 0.09 0.11
The NIM is a measure of profitability exclusively focused on the financial aspect
of earnings and expenses in respect of the relevant assets and hence, on the kinds of
operation that are characteristic of a banking institution. Given this measure of performance,
ETEBA sees its margin rising over time, while ETBA and Investment
Bank exhibit, on average, a falling trend. Furthermore, the NIM reaches an average
level of 0.09 or 9% for ETEBA during the deregulation period, while for the same
period ETBA exhibits even negative values with an average of only 0.01 or 1%.
~ 234 ~