What are a financial institution's operating expenses?
These are the expenses that an institution incurs in its business operations.
Typically, expenses are divided into three groups: personnel costs, other operating expenses and overheads, also known as 'OPEX' (leases, advertising, water, electricity and gas supplies, IT, among other costs) and depreciation provisions (associated with the impairment or depreciation of physical assets and the amortization of CAPEX).
This does not include financial expenses (basically, the cost of deposits and issuances), which would be part of the interest margin.