Net income is the bottom line of a financial results report. It serves as the source for dividends and equity capital replenishment, and is the basis for calculating earnings per share and the P/E multiple.
However, this metric is most prone to distortions. It includes one-time transactions—asset sales, write-offs—as well as exchange rate differences and tax benefit effects. A company can show net income growth while its core business deteriorates, and vice versa.
Therefore, net income is reviewed alongside operating income: divergence in their trends indicates the result was driven by non-operating factors. For banks, an additional factor is the volume of accrued reserves, which can radically change the outcome despite unchanged operational quality.
It is also important to note whose profit is reported. In consolidated financial statements, profit attributable to parent company shareholders and non-controlling interests are separated—the former is used for per-share metric calculations.