Difference between revisions of "Net Interest Income"

From Open Risk Manual
 
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== See Also ==
[[Category:Accounts Main]]
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* [[Finance Income]]
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[[Category:Income Statement Items]]
 
[[Category:Interest Rate Risk]]
 
[[Category:Interest Rate Risk]]

Latest revision as of 14:58, 13 April 2021

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}

See Also