Compute and comment on the net interest margin

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Reference no: EM133209551

XPY Bank reported, Corporate and Investment Banking's headline earnings has doubled to I '$4 billion, this is attributable to solid growth across the franchise, most notably in the global markets business and the investment bank. This has helped to offset low credit appetite from corporate clients. Furthermore, XPY Bank reported the following as per the table below Rate sensitive Assets N$500,000 Rate Sensitive Liabilities N$300,000 Net Interest Income N$390,000 Average Assets N$85,000.

1. Compute and comment on the Net interest margin.

2. Compute and comment on the GAP.

3. Discuss how net interest income can vary directly with changes in the volume of earning assets and interest-bearing liabilities, regardless of interest rate levels.

Reference no: EM133209551

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