Earnings Estimates

Interest & Fees on Loans is generally the major source of income for the commercial banking business. Loans to customers are the most significant portion of investment assets in banking, where the loans may be inclusive of interbank loans. Fees related to loan transactions are not separated from interest income because typical loan contracts may set a lower interest rate when a higher initial fee is charged.

Interest Adjustment – Primary EPS represents expected interest expense to be recovered from the conversion of convertible securities when such securities are included in the denominator for Primary EPS computation. The recoverable interest expense is compiled net of possible tax impacts.

Interest Bearing Deposits represents deposits that bear interest, such as savings accounts or time deposits. It includes:
Savings accounts
NOW accounts
Money market accounts
Passbook deposits
Time deposits, certificates of deposit.

Interest Capitalized, Non-Operating represents interest charges deferred to the company’s property, plant and equipment account, amortized over the life of the related assets. It is reported in the non-operating section of the company’s income statement.

Interest Capitalized – Operating represents interest charges deferred to a company’s property, plants and equipment account, amortized over the life of the related assets. Interest Capitalized – Operating reflects only the portion of interest on an asset that is amortized during the fiscal period.

Interest Capitalized, Supplemental represents interest charges deferred to a company’s property, plant and equipment account, amortized over the life of the related assets. If Interest Capitalized, Supplemental is not provided on the income statement, it is obtained from the notes. It is always reported as a negative figure.

Interest Cost – Domestic represents the increase in projected benefit obligation due to the passage of time for plans based in the company’s home country.

Interest Cost – Foreign represents the increase in projected benefit obligation due to the passage of time for plans based in countries other than the company’s home country.

Interest Cost – Post-Retirement represents the increase in projected benefit obligation due to the passage of time, for Post-Retirement plans.

Interest Costs reflects the growth (interest rate) value discounted from future capital lease payments to reconcile these payments to present value. This item will be used when capital lease maturities are presented as gross payments (versus maturities presented at present value). It will always be reported as a negative value.