This measures the ability to pay expenses and generate net income from interest and non-interest income.

The statement seems to be referring to the concept of "Profitability" in financial management. Profitability is a financial metric that is widely used to measure the probability of gaining a profit or positive return from a business investment. It is also used to analyze a company's performance over time and compare its performance with competitors.

Here's a step-by-step breakdown:

1. The ability to pay expenses: This refers to a company's operational efficiency and its ability to cover its operational costs. This can be measured using metrics like the Operating Profit Margin, which shows how much a company makes from its core operations, excluding interest and taxes.

2. Generating net income from interest and non-interest income: This refers to a company's ability to generate profits from its core and non-core activities. Interest income is usually derived from the core activities of financial institutions like banks. Non-interest income can come from various sources like fees, commissions, and investments. Net income is calculated by subtracting all the company's expenses, including taxes and interest, from its total revenue.

3. The measure of these factors gives an indication of the company's profitability. Key profitability metrics include Gross Profit Margin, Net Profit Margin, Return on Assets (ROA), and Return on Equity (ROE). These metrics help investors and stakeholders determine the financial health and performance of a company.