Net Interest Income

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Dictionary Says

Definition of 'Net Interest Income'

The difference between the revenue that is generated from a bank's assets and the expenses associated with paying out its liabilities. A typical bank's assets consist of all forms of personal and commercial loans, mortgages and securities. The liabilities are, of course, the customer deposits. The excess revenue that is generated from the spread between interest paid out on deposits and interest earned on assets is the net interest income.
Investopedia Says

Investopedia explains 'Net Interest Income'

The net interest income of some banks is more sensitive to changes in interest rates than others. This can vary according to several factors, such as the type of assets and liabilities that are held. Banks with variable rate assets and liabilities will obviously be more vulnerable to changes in interest rates than those with fixed-rate assets. Banks with liabilities that reprice more often or quicker than its assets will also be affected by interest rate changes.

Related Definitions

Search results for

'Net Interest Income'

  • Analyzing A Bank's Financial Statements

    http://www.investopedia.com/articles/stocks/07/bankfinancials.asp
    ... the interest that a bank earns from loans is greater than the interest it must pay
    on deposits, it generates a positive interest spread or net interest income. ...

  • Zooming In On Net Operating Income

    http://www.investopedia.com/articles/fundamental/101602.asp
    ... operating profit after taxes) or NOPLAT (net operating profit ... Earnings before interest
    and taxes (EBIT) is often ... as a proxy for actual operating income, so NOI ...

  • Understanding The Income Statement

    http://www.investopedia.com/articles/04/022504.asp
    ... company's borrowings. Sometimes companies record a net figure here for
    interest expense and interest income from invested funds. ...

  • Patience Will Pay At Wells Fargo

    http://stocks.investopedia.com/stock-analysis/2011/Patience-Will-Pay-At-Wells-Fargo--WFC-PNC-C-BAC-ZION-UMPQ-FCNCA0722.aspx
    ... Revenue was pretty flat as net interest income grew just $27 million on a sequential
    basis (0.2%) and fell about 6% from the year-ago level. ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Federal ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/federal-issues.asp
    ... 11.10 Payback Period; 11.11 Net Present Value (NPV ... 14.41 Importance of Reinvestment
    Income and Reinvestment Risk; ... vs Spot Rates; 14.46 Measuring Interest Rate Risk ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Measuring ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/measuring-interest-rate-risk.asp
    ... 11.10 Payback Period; 11.11 Net Present Value (NPV ... 14.41 Importance of Reinvestment
    Income and Reinvestment Risk; ... vs Spot Rates; 14.46 Measuring Interest Rate Risk ...

  • M&T Bank Looking Like A Diesel

    http://stocks.investopedia.com/stock-analysis/2012/MT-Bank-Looking-Like-A-Diesel-MTB-PNC-WFC-FNFG-KEY0119.aspx
    ... At $625 million, M&T's net interest income was a little light this quarter,
    with a 3.6% net interest margin showing a sequential decline. ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Interest Rate ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/interest-rate-risk.asp
    ... 11.10 Payback Period; 11.11 Net Present Value (NPV ... 14.41 Importance of Reinvestment
    Income and Reinvestment Risk; ... vs Spot Rates; 14.46 Measuring Interest Rate Risk ...

  • Weave Your Own Retirement Safety Net

    http://www.investopedia.com/articles/retirement/07/income-generation.asp
    ... reducing your net earnings. Consider that the after-tax return on a CD paying 5%
    interest is essentially cut to 4.25% if you're in the 15% income tax bracket ...

  • Find Quality Investments With ROIC

    http://www.investopedia.com/articles/fundamental/03/050603.asp
    ... NOPAT = Reported Net Income - Investment and Interest Income - Tax Shield from Interest
    Expenses (effective tax rate x interest expense) + Goodwill ...

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