How do you calculate gross profit for banks?

Gross profit for banks is typically calculated by subtracting the cost of goods sold (COGS) from total revenue. In the banking context, total revenue includes interest income from loans, fees, and commissions, while COGS primarily encompasses interest expenses paid on deposits and borrowed funds. However, banks often focus more on net interest income (interest income minus interest expenses) as a key profitability measure, along with non-interest income, to evaluate overall performance.