Net Interest Income (NII)

Net interest income (NII) is a financial metric that calculates the difference between the revenue generated and interest paid on various assets, such as securities, loans, mortgages, and other financial instruments. NII is affected by a number of factors, including the interest rate and whether it is fixed or variable. Banks and other financial institutions typically use the net interest rate to calculate the difference between liabilities and interest-bearing assets, allowing them to calculate the income generated by a specific investment or loan.