net interest income

Definition

NII. A financial measure for banks, calculated by the amount of money the bank receives from interest on assets (commercial loans, personal mortgages, etc) minus the amount of money the bank pays out for interest on liabilities (personal bank accounts, etc). Although usually calculated for banks, this figure can also be calculated for other corporations, simply by subtracting the amount of interest paid on liabilities from the amount of interest earned from assets.

Use net interest income in a sentence

You should always try to make sure that you are doing your best to make your net interest income work for you.

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The accountant for the bank is responsible for calculating the net interest income every year based on all the loans that the bank lends out.

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They ran their numbers to determine their projected net interest income. Although they had to pay out interest to personal accounts, they were receiving more from lending money to consumers.

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