Commercial banks can generate substantial net profits during stable economic periods, primarily driven by the net interest margin—the difference between the interest they charge on loans and mortgages versus what they pay out on customer deposits. Additionally, large financial institutions earn billions through non-interest income sources, including wealth management fees, investment banking services, credit card interchange transaction fees, and advisory services. However, banking profitability is highly sensitive to macroeconomic shifts, credit default rates, regulatory compliance costs, and fluctuating central bank interest rate policies.