Okuzeka
Finance & Banking vocabulary · Financial Statements

Net income

Meaning in finance & banking, with examples

nounCore term

In finance & banking, net income means: What is left of a company's revenue after all costs, interest, taxes and other expenses are deducted. When it is negative, it is called a net loss.

In Turkish: net kar, net dönem karı

How it is used

Mainly American; British reports often say net profit or profit after tax. It is the last line of the income statement, hence 'the bottom line'. Analysts compare net income across quarters and use it in ratios such as ROE.

Example sentences

  1. Net income fell this quarter because of higher loan loss provisions.

  2. The bank reported net income of 4 billion lira for the first half.

Common collocations

  • report net income
  • net income margin
  • quarterly net income
  • net income growth
  • revenueThe total income a company receives from its normal business activities, such as selling goods or services, before any costs are deducted.
  • income statementA financial statement showing a company's revenue, costs and profit or loss over a period, such as a quarter or a year.
  • EBITDAShort for earnings before interest, taxes, depreciation and amortization: a measure of a company's operating profit before financing costs and non-cash expenses.
  • dividendA part of a company's profit that is paid to its shareholders, usually in cash and as an amount per share.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Financial Statements

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level:

This page explains English vocabulary for learners. It is not financial advice.