Net revenue

What is Net Revenue?

Net Revenue (for banks) represents the total income generated from a bank’s core operating activities after accounting for interest expenses.

It is calculated as the sum of:

• Net Interest Income (NII)
• Non-Interest Income

Components of Net Revenue

Net Interest Income is the core driver of traditional banking profitability and reflects the bank’s earnings from its lending and funding activities:

Net Interest Income = Interest Income − Interest Expense

• Interest Income: Income from loans, securities, interbank lending, etc.
• Interest Expense: Costs paid on deposits, borrowings, and other funding sources

Non-interest income reflects diversification of revenue streams and includes revenues not directly related to lending:

• Fees and commissions (payments, cards, asset management)
• Trading income
• Investment banking income
• FX and derivatives gains/losses
• Other operating income