It would be great if you could also add what percentage of their revenue comes from each segment. I just feel like I’m not getting something beyond that they lend money at a higher rate than they pay you for storing it. Thanks!
Banks do so much more than lend and store money. Services offered also plays a role in how a bank makes money. In the bank I worked for the money maker was the Trust and Investments Department. Peoples pay big bucks for financial management. Not only are they responsible for making sound investments for the customer but they are also responsible for making sure every aspect of the customers life is taken care of. I even picked out the clothing someone was buried in.
Banks also make money off of each other. Smaller rural banks only exist due to the larger banks. The rural banks don’t have the capital to support most lending and most be backed by a larger financial institution. It’s called correspondent banking.
Other money makers include return check fees, lock-box services, business accounts, retirement planning services, farm management services. There are really many income sources, especially for a larger bank. Hope that helps.