how do banks earn profits 
profitability is any money that is earned after all expenses are accounted for by a business or individual banks earn profits from a variety of sources the main drivers for bank profits are the fees and service charges they impose on their customers interest expenses on loans and other credit products also help generate income the bottom lineprofitability is a key metric for any business there are different tools that companies can use to determine whether they are in the black funds transfer pricing is a system that banks and other financial institutions can implement to assess their overall success and that of their individual business units products and services among other things not having a system like this can be risky for financial institutions because it can lead to mispricing and increased volatility 