What is a bank's main source of income ?

What is a bank main source of income the holding and manipulation of the money or the commissions , is it possible to find the numbers or each bank keeps them secret ?

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Banks main income still comes from arbitrage gaps and such, but in our days banks income from commissions is worryingly increasing, on the expense of the the private consumer. 

Probably the fees charged for overdrafts, returned checks, and fees on checking/savings accounts that are underthe specified minimums.  Also, the interest they charge on loans, e.g. mortgages, or what those places that buy the mortgages from the bank pay to buy them.  I'd guess that a lot of income comes from the differential between what they pay investors (saving account holders, etc.) and what they can loan out that same money for to others.  Add all the many people who have accounts, and that adds up.

Just think how much they'd have if they stole 1 cent from each account each month from every customer.


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Banks earn most of their money through investments, interest from loans and fees for their various services.

it came from us, simple people, from out taxes and vat. thats why home based business dont have tax and vat.

You talking about retail banks or investment bank?

retail banks make money by underwriting loans.  Clients deposit money in their saving accounts and earn a low interesting rate.  Banks lend these money to clients in mortgage, car loans...etc and charge a higher interest rate. 

Investment banks provide service and earn fees.  They are just like lawyers or other professionals.  The slightly difference is that they offer services in financial market, such as raising capital for companies, helping companies to get listed..etc.  Besides, their sales and trading department makes big money by speculating in the market too. 

I think there main source of income is the money they make from loans

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There are two types of bank's sources of income. First is fund-based income. It is the income derived from activities which require the use of funds that are costly as bank have to compensate the provider of funds. In other words, it is a interest income earn by bank through assets side in balance sheet like cash and short-term fund, loan and advancement, investment and so on.                                          Second is non fund-based income. It is the income obtain by banks by providing services that do not require the use of funds, and therefore do not incur any funding cost. That mean, it can be the non interest income or fee based income that earn by bank like commission, guarantee fees, brokerage income and so on. Bank can earn non-interest income through the activities like trade finance, payment and settlement service, investment service, card business, international banking and so on.  

(Source from my banking seminar lecturer Abmalek F. Abubakar)

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