Companies issuing interim and annual results will often refer to basis points or bps. A basis point is a unit of measure in the finance and account sector that is utilised to depict changes in value. It is commonly used when illustrating changes to interest rates.
A single basis point represents 0.01% and is equal to 0.0001 in form of a decimal.
In an example, a company may currently be paying interest on its loans of 3%. If the respective company announced that interest rates increased by 25 basis points over the past quarter, this would mean its overall interest rate is now 3.25%.