NIM stands for Net Interest Margin, which is a profitability ratio that determines how a banks interest earnings compare to what it pays its customers. It is a measure of profitability for banks and financial institutions, and it reveals the amount of money that a bank is earning in interest on loans compared to the amount it is paying in interest on deposits. NIM is presented as a percentage of a banks average interest-earning assets (or AIEA), which mainly comprises the loans a bank has issued to its customers, but it can also include other assets on a banks balance sheet, like its cash and investments. A higher NIM is generally seen as a good thing, as it indicates that the bank is using its investments efficiently. The average NIM for U.S. banks was 3% as of Q1 2023.