What is Net Interest Income?

Net interest income is the difference between the revenue that is generated from a bank's assets and the expenses associated with paying its liabilities. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

| Term of the Day Net Interest Income Net interest income is the difference between the revenue that is generated from a bank's assets and the expenses associated with paying its liabilities. A typical bank's assets consist of all forms of personal and commercial loans, mortgages and securities. The liabilities are the customer deposits. The excess revenue that is generated from the interest earned on assets over the interest paid out on deposits is the net interest income. Read More » Related to "Net Interest Income" Analyzing a bank's financial statements In this article, you'll get an overview of how to analyze a bank's financial statements and the key areas of focus for investors who are looking to invest in bank stocks. Read More » How Do Net Income and Operating Cash Flow Differ? Net income is the profit a company has earned for a period, while cash flow from operating activities measures, in part, the cash going in and out during a company's day-to-day operations. Read More » Examples Of Asset/Liability Management Simply put, asset/liability management entails managing assets and cash inflows to satisfy various obligations; however, it is rarely that simple. Read More » Related Definitions Net Interest Margin Net interest margin is a metric that examines how successful a firm's investment decisions are compared to its debt situations. Read More » Maturity Gap Maturity gap is a measurement of interest rate risk for risk-sensitive assets and liabilities. Read More » Repricing Opportunity A repricing opportunity is a change in the market environment that allows for a reassessment of the value of an investment. Read More » Static Gap Static gap is the difference between the levels of assets and liabilities on which interest rates are reset during any particular bucket of time. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2019, Investopedia, LLC, All Rights Reserved | Privacy Policy