So I am totally new into this, and I am just wondering how banks make their profit besides:
interest
investing
Saving your money.
I need some extra clearance on that, and which kind of bank is the most profitable one.
Because I already heard about BB-Banking, but it seems to have(in my opinion) a lot of cons.
Kind regards,
Thijssie3032
Banks can make money many ways. Their primary source of income is maturity transformation – taking short term liabilities and turning them into long term assets, collecting the spread between the two rates.
Fees are also a large part of certain banks income statements. It ranges widely: wealth management, payment processing, trading, private equity, deposit fees, fintech services, investment banking, mortgage banking, loan sales, insurance, etc.
The most profitable banks normally have a low cost structure (generally judged by efficiency ratio) or a significant fee income source (insurance, payment processing).
Is money laundering considered a separate, distinct revenue stream, or is it subsumed under “fees”?
I think at least for HSBC it was a distinct operating segment.