What businesses does banks and financial institutions do to report huge profits?

[King Belieal]

When one looks at the financial report of banks and other financial institutions, it is always significant profits. Is it only the bank charges of ten cents that banks use to make such huge profits?

What do banks do to make the profits they always report?

 

[Suba]

Banks have various sources of income such as interest from deposits in other banks, interest on loans to customers and other banks, profits from foreign exchange rates, financial consulting services, returns from investments, etc.

 

[Augusta]

Banks make their money from the interest they get from customers that take their loans

 

[eLdavis]

Banks also make their money from forex trading. When banks act as dealers for clients, they make money from that as well.

 

[Fidelia]

Banks have various sources of income such as interest from deposits in other banks, interest on loans to customers and other banks, profits from foreign exchange rates, financial consulting services, returns from investments, etc.

That means banks have different ways of earnings. Does this also apply to other financial institutions like insurance companies?

 

[Suba]

Banks are companies that go public or as stock issuers so they need to report all financial statements to the public and shareholders.

 

[magnus2022]

When one looks at the financial report of banks and other financial institutions, it is always significant profits. Is it only the bank charges of ten cents that banks use to make such huge profits?

What do banks do to make the profits they always report?

There are different ways banks use to make money. Banks invest in other banks to make profits. Banks do investment in real estate, give loans to business owners and corporate bodies, trade forex and a whole lot of more.