It surely does if you omit to make a repayment. Banks will then capitalise that interest and fees and charge interest on the increased amount as if it was principal.
The interest and fee are expenses, correct, but they are also changes (or charges, additions) to the loan, again, especially if you omit to make a repayment.
If you mean that interest charged to customers is Cash Flow attributable to operating activities, that is correct for banks, but so is reduction of loan principal for banks, making it unnecessary to separate interest and fees from their loan sub ledger. Of course, for the borrower, all these items are financing activities in terms of cash flow.
You have taken it beyond scope by making confusing statements and presenting unsubstantiated spreadsheet examples that may or may not be correct as to how banks arrange their general ledger (I suspect incorrect). And now you want to have a private discussion? @Brucanna as a moderator was right to challenge you on statements that are confusing to users and not necessarily correct or helpful.
This should stay in the open forum because users need to be informed of viewpoints that are presented in this forum that may not be valuable for their purposes, no matter how authoritative they may seem.