how to calculate net interest income
nii is a fundamental metric used by financial institutions particularly banks to assess the profitability of their lending and borrowing activities it s calculated as the difference between the revenue generated from interest earning assets and the expenses associated with paying on interest bearing liabilities n e t i n t e r e s t i n c o m e n i i i n t e r e s t i n c o m e i n t e r e s t e x p e n s e net interest income nii interest income interest expense netinterestincome nii interestincome interestexpense