How do banks make profits?
I was reading this article about HSBC’s profits declining by 62%. https://m.ca.investing.com/news/stock-market-news/global-markets-hsbc-slump-eclipses-punchy-euro-zone-growth-signals-114662
If this was a normal business that profit drop could have collapsed its share prices by 50% in a day and file for bankrupcy or be acquired by another firm in a month.
But for banks it seems the same scenario does not apply i.e. Deutsch Bank is another example whose profits have collapsed but still endures.
So how exactly do banks make profits and how do they go bankrupt? Am I to assume that a lack of demand for loans is the cause for the profit drop? Or is it something else?
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