The key earnings generator for most of the banks on the ASX is lending. So, the interest rate can play a key role in the profitability of banks. A bank lends ...
NAB is projected to pay a grossed-up Under this environment, is the outlook for the sector promising? So, the interest rate can play a key role in the profitability of banks. [ASX: CBA](https://www.fool.com.au/tickers/asx-cba/)), Westpac Banking Corp ( [ASX: WBC](https://www.fool.com.au/tickers/asx-wbc/)), Bendigo and Adelaide Bank Ltd ( [ASX: BEN](https://www.fool.com.au/tickers/asx-ben/)) and MyState Limited ( [ASX: MYS](https://www.fool.com.au/tickers/asx-mys/)). [ASX: BOQ](https://www.fool.com.au/tickers/asx-boq/)) share price has fallen around 17% over the last year. A bank lends money out for a certain interest rate. [ASX: ANZ](https://www.fool.com.au/tickers/asx-anz/)) share price has dropped around 15% over the last year. [ASX: NAB](https://www.fool.com.au/tickers/asx-nab/)) share price has managed a slight gain over the past 12 months. [price/earnings (P/E) ratio](https://www.fool.com.au/definitions/p-e-ratio/) than other banks. Is this where investors should be looking? The difference between the lending rate and the cost (eg the rate for savers) is known as the net interest margin (NIM). [ASX bank shares](https://www.fool.com.au/investing-education/bank-shares/) are under the spotlight this year as the effect of higher interest rates comes through in the results.