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  • Date Submitted: 05/07/2013 10:40 AM
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Bank Revenues

and Profits

Fast facts

The majority of Canadians are shareholders in Canada’s banks

87 per cent of Canadians give banks a good performance rating when it comes to being stable and secure

86 per cent of Canadians have favourable views of Canadian banks

The bottom line

When banks are profitable, they are stable. When banks succeed, the economy and communities prosper.

A profitable banking industry works for Canada and Canadians. Banks provide jobs directly and indirectly, create tax revenues and donate to charities in Canada and worldwide. Profits also expand the capital base of banks, which in turn maintains the stability of the system, ensuring the safety and security of Canadians’ deposits.
Revenues are the income generated from a business’ products( )
What is the difference between|Revenues||
|– Taxes||
revenues and profits?|||
and services before taxes and general expenses. Net income is = Profits (net income) left after all expenses and taxes are paid. The six largest banks’

net income in 2011 was $23.4 billion.

Where do bank revenues come from?

Being involved in a variety of businesses, banks have diverse revenue streams. This variety helps yield positive financial results, which makes for a secure and stable banking sector that contributes significantly to Canada’s economy.

Banks categorize their revenue into two broad areas based on how it is generated – interest income and non-interest or other income. As much as 55 per cent of bank revenues are earned mainly through lending activities.

Interest-based revenue is generated from what is known as the ‘spread’. The spread is simply the difference between the interest a bank earns on loans extended to customers and the interest paid to depositors for the use of their money. Banks extend loans to individuals to facilitate the purchase of

homes, cars or vacations or to pay for an...


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