# NII Growth

Year-over-year change in Net Interest Income. Bank-specific.

## Definition

NII growth is the year-over-year percentage change in a bank's net interest income — its core revenue stream from lending. The bank-sector equivalent of revenue growth.

## Formula

(NII this period − NII prior period) ÷ NII prior period × 100

## Why it matters

NII growth captures both balance-sheet expansion (lending more) and net interest margin expansion (earning more on what's lent). It's the cleanest growth metric for assessing a bank's underlying franchise growth, separate from non-interest fee businesses.

## How Standard Equity uses it

Substituted for FCF/NI ratio in bank reports — a bank's FCF is not meaningful in the conventional sense, but NII growth tells you what you actually want to know about a bank's trajectory.

## The metric

| Category   | Growth     |
| ---------- | ---------- |
| Unit       | %          |
| Applies to | Banks only |

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