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How Much Money Does a Bank Make?


Banks help consumers store their money and borrow loans to fund big-ticket items and projects. This article will examine how much money banks make per customer and the profit potential of owning a bank.


How Much Money Does a Bank Make per Customer?

How much a bank makes per customer varies significantly by the bank, location, and services offered. Further, different customers make banks wildly different amounts of money. 

For example, a customer with multiple loans will generate more revenue for their bank than someone with just a savings account. However, banks need customers with savings to give out loans to other customers.


What Factors Affect How Much Money a Bank Makes?

Several factors can affect how much money a bank makes per customer. These include:

  • Size of the bank: Larger banks typically have more customers and can, therefore, make more money. They also tend to have more resources and can offer more services than smaller banks.
  • Location of the bank: Banks in urban areas typically have more customers and can charge higher fees than those in rural areas.
  • Type of bank: Private banks usually have wealthier clients who can afford to pay higher fees. Investment banks also tend to make more money than traditional banks since they are involved in more complex financial transactions.
  • Services offered: For example, banks that offer more services (such as investment banking, wealth management, etc.) usually make more money per customer.

The types of banks are:

  • Investment banking involves advising on mergers and acquisitions, issuing new shares, etc.
  • Wealth management involves managing the finances of wealthy individuals and families.
  • Retail banking is the most common type of banking and includes services such as savings accounts, checking accounts, loans, etc.

Retail banks typically make less money per customer than investment or private banks. However, they usually have a larger number of customers, which helps to offset the lower per-customer profit. 


What Is the Profit Potential of Owning a Bank?

The profit potential of owning a bank is considerable. Not only do banks typically make a lot of money, but they are also relatively low-risk businesses. This is because the government insures customers’ deposits for up to $250,000. This means that even if a bank were to go bankrupt, its customers would not lose their money.

For example, let’s say that a bank has one million customers, and each customer has an average balance of $10,000. This means that the bank has $10 billion in deposits. Let’s also assume that the bank has a profit margin of 2%. This means that the bank would make $200 million in profits annually.



To succeed in the banking business, you need to have a good understanding of the financial industry and manage risk effectively. You also need to be aware of the ever-changing regulatory environment. Nonetheless, owning a bank can be a very lucrative business!