Net interest margin

And so that together is what's gonna get you what's called, uh, net interest margin, or NIM is the name of that acronym.

And so this is a very good way of, to just get a rough sense of how much money their lending activity is generating before any credit losses.

And so they actually have their own version of this metric they call NIMAL, which is NIM and then A-L, 'cause it's net interest margin after losses.

And so this includes their loss estimates, basically.

So that's a little bit better, in my opinion, to look at.

They have a much higher, uh, net interest margin on those.

Whereas credit cards, which is where they've mostly been focusing on, have not only tend to have lower interest rates, but they also, uh, initially, because of something called CECL, where you're booking a lot of losses up front, you don't need to worry about why.

But, uh, as a result of that, they actually initially shows up as a negative, uh, NIMAL.

And as for guidance, management actually cut their real loan growth targets down to a range of 10 to 15 percent, which is down from their previous expectation of above 20 percent.

They also raised their full year net interest margin or NUM guidance to 17 to 19 percent and lifted CET1 capital guidance to 12 to 14 percent.

Wow.

And just wrapping up the headline numbers, the stock reaction shares fell 1.18% in the regular session to $8.38 and slipped another like 0.24% after hours.

Yes.

Which brings us to that second lever.

their net interest margin, NM.

The data shows their NM expanded by 250 basis points sequentially, so essentially a full 2.5%, hitting 20.3% for the quarter.