Net Interest Margin.
Net Interest Margin measures the difference between interest income received by banks and the amount of interest expense of the banks. If the bank's net interest margin are high, they will generate more profit. Usually the bank itself interested in their net interest margin because the rate that they pay to depositors and lend are different. United Overseas Bank's net interest margin has continuously decreased from year 2010 to year 2013. Net interest margin at year 2010 is 2.25%, then it decreased to 1.91% at year 2011. At year 2012, it has decreased further to 1.81% and then decreased even more at year 2013 to 1.74%. As for HSBC Bank, their net interest margin at year 2010 was 1.71%, it then decreased to 1.44% at year 2011. It has increased tremendously at year 2012, which is 1.93%, then it decrease again to 1.40% at year 2013. United Overseas Bank's net interest margin shows better result at year 2010 and 2011, which both are higher than HSBC Bank, but starting from 2012 to 2013, their performance has drop compared to HSBC Bank. .
Net Non-Interest Margin.
Net Non-Interest Margin measures the difference between non-interest income received by banks such as service fees and non-interest expense such as salaries, repair and maintenance of facilities and loan loss expenses. The net non-interest margin are usually negative. United Overseas Bank's net non-interest margin has increased from year 2010 to 2012. In year 2010, the net non-interest margin was -0.28% and it has increased to -0.20% in year 2011. It then increase drastically to -0.06 in the year 2012 and it remained constant at the end of year 2013. HSBC Bank's net non-interest margin decreased from 1.65% in year 2010 to 1.57% in year 2011. It then increase in the year 2012 to 1.76%, but it decreased again in the year 2013 to 1.34%, which declined 0.42%. .
Net Operating Margin.
Net Operating Margin measures both the efficiency and profitability of the company.