Net interest margin (NIM) typically represents 50-85% of a credit union’s bottom line income. It is therefore critical to consistently and accurately analyze NIM as a measure of profitability and performance. While your mission statement is geared toward serving your members, profitability is an important factor in determining institutional health and viability.

This article explains how funds transfer pricing (FTP) helps you allocate NIM across all segments of the credit union, including branches, products, and members, for both historical analysis and planning purposes.