// definition
NII
Net interest income
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Short definition
Interest income less interest expense over a period, taking hedging into account. NII sensitivity depends on the scenario’s horizon and assumptions. It is distinct from total net earnings and economic value of equity.
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Knowledge map
Intuition
Income depends on how quickly assets and funding reprice.
Formula
NII = interest income - interest expense, over the same period and scopeRelated analyses
- Government debt is catching up with Europe’s banksDeutsche Bank’s published one-year sensitivity, separate from EVE.
Primary sources
- Basel Committee, SRP98Net interest income §98.21 and horizon choice §98.22.