Difference between revisions of "Net Interest Income"

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Latest revision as of 11:19, 11 June 2019

Definition

Net Interest Income (NII) is an accounting term denoting the difference between Gross Income generated by interest-bearing banking assets (loans etc.) and the debt servicing cost of liabilities (loans, deposits, bonds).

NII is an absolute figure, using the unit of account (e.g. Euro). A relative measure is provided by the Net Interest Margin metric

Formula


\mbox{NII} = \mbox{Interest Payments on Assets} - \mbox{Interest Payments on Liabilities}


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