The efficiency ratio of the U.S. banking industry fluctuated significantly between 2003 and 2025, signaling the varying performance and stability of the industry. The ratio, which measures the non-interest expense as a percentage of the net operating revenue, was **** percent in the second quarter of 2025, notably lower than in the same quarter in the previous year. The highest efficiency ratios were measured during the global financial crisis in 2008.

Among Canada's largest banks, Toronto-Dominion Bank (TD Bank) reported the highest efficiency ratio in 2024 at ** percent, followed by the Royal Bank of Canada (RBC) at **** percent. The Canadian Imperial Bank of Commerce (CIBC) recorded the lowest efficiency ratio, at **** percent. The efficiency ratio - also known as the cost-to-income ratio or productivity ratio - is a key measure of operational efficiency, calculated by dividing non-interest expenses by total revenue. A lower ratio indicates more efficient operations.

Banamex had the highest efficiency ratio among the leading banks in Mexico in 2024. The bank reported an efficiency ratio of **** percent, and was followed by HSBC with a ratio of **** percent.

European banks showed varied levels of operational efficiency, with Bulgaria leading the pack in first quarter of 2025. The cost-to-income ratio (CIR), a key indicator of bank profitability, reveals significant disparities across EU countries. In the first quarter of 2025, Bulgaria's banking sector boasted the lowest CIR at **** percent, followed closely by Poland and Greece, indicating their high operational efficiency. In contrast, Liechtenstein, France, and Hungary faced challenges with higher CIRs, suggesting room for improvement in their banking operations. Similar differences can also be observed at the individual bank level, where some of the largest European banks reported CIRs well above ** percent in 2023. Recent trends in the EU banking sector The European Union's banking industry has experienced notable fluctuations in recent years, which was reflected in the EU's aggregate cost-to-income ratio. In the first quarter of 2020, the COVID-19 pandemic caused the CIR to spike to ***** percent, the highest in recent history. However, the sector has since rebounded, with the CIR stabilizing around ** percent throughout 2024. This improvement coincides with a significant increase in total operating income, which reached ******billion euros in 2024, up from a low of ****** billion euros in 2020. Profitability and growth outlook Despite challenges, the EU banking sector has shown resilience and growth. The operating income growth rate reached approximately ****percent in 2024, the highest in the observed period. This positive trend is particularly noteworthy following the substantial decline in income growth during the 2020 pandemic-induced economic contraction. As banks continue to adapt to changing economic conditions, their ability to maintain low CIRs while increasing operating income will be crucial for sustained profitability and stability in the European financial landscape.

Ranks of Saudi banks using CAMEL composites (C, A, M).

European banks demonstrated varying levels of operational efficiency in 2024, as revealed by their cost-to-income ratios (CIR). UBS AG topped the list with the highest CIR at **** percent, followed by Deutsche Bank and Société Générale, both exceeding ** percent. On the other end of the spectrum, Banco Santander reported the lowest CIR at **** percent. This wide range of ratios highlights the diverse operational strategies and challenges faced by major European financial institutions. Profitability and operational efficiency The CIR serves as a crucial indicator of a bank's profitability, measuring the cost of running operations as a percentage of operating income. Lower ratios generally indicate higher profitability, while higher ratios suggest operational inefficiencies. Cost-to-income ratios in Europe varied between **** percent and **** percent in early 2025, with Bulgaria's banking sector leading in efficiency. This disparity in CIRs reflects the ongoing efforts of European banks to optimize their operations and adapt to changing economic conditions. Revenue and profit landscape Despite varying CIRs, European banks continue to generate substantial revenues. In 2024, HSBC led the pack with annual revenues of approximately ******billion euros, closely followed by Banco Santander at ***** billion euros. HSBC also demonstrated strong financial performance in terms of profits, reporting 25 billion U.S. dollars in 2024. These figures underscore the resilience of major European banks in navigating challenging economic environments while maintaining their position as key players in the global financial landscape.

Overall ranking of Saudi banks using CAMEL.

Coefficients of the linear regression model.

In 2024, the efficiency ratio of Scotiabank in Mexico declined to **** percent, down from **** percent when compared to the previous year. In 2023, Scotiabank was ranked third among the leading banks with the highest efficiency ratio in Mexico.

In 2020, the efficiency ratio of Grupo Financiero Santander Mexico (Santander Mexico Financial Group) stood at **** percent, up from **** percent reported a year earlier. The ratio is calculated by dividing administrative expenses by income. Here is a ranking of selected banks in Mexico by efficiency ratio in 2020.

In 2024, the efficiency ratio of HSBC in Mexico stood at **** percent, up from **** percent registered a year earlier. In that same year, HSBC ranked among the leading banks in * with the second-highest efficiency ratio. The ratio is calculated by dividing administrative expenses by income.

In 2020, the efficiency ratio of Banamex in Mexico stood at **** percent, *** percentage points less than the previous year. In that same year, Banamex ranked among the leading banks with the highest efficiency ratio in Mexico. The ratio is calculated by dividing administrative expenses by income.

Among the five largest banks in the United Kingdom (UK), HSBC Holdings had the lowest cost-to-income ratio (CIR) in 2024, at 20.2 percent. It was followed by NatWest and Standard Chartered, both with CIRs between 50 and 60 percent. The CIR is a key financial metric used to assess a bank’s profitability, as it compares operating costs to income. A lower CIR indicates higher profitability and operational efficiency, while a higher ratio suggests that a bank's operating expenses are too high relative to its income.

*********** received the highest customer satisfaction score among the largest banks in the United States as of 2024, with a score reaching *** points out of 1,000. JPMorgan Chase, the largest U.S. bank, ranked second, and TD Bank and U.S. Bank followed, both above the industry average. Wells Fargo, Bank of America, and Citigroup received the lowest scores. Most important factors for bank customers worldwide According to a survey conducted by Statista among more than ****** bank customers across ** nations worldwide, trust is the most important factor when customers think about their banks. More than half of all respondents highlighted trust as the most important factor. Banks seem to understand this and put focus on increasing their trustworthiness, which can be seen by the high level of customer satisfaction with the trustworthiness of their banks. More in-depth information can be found Statista's global bank customer satisfaction survey. Largest banks in the U.S. There are several aspects to consider when determining the largest banks in the United States, but JPMorgan Chase consistently stands out as a leader. Across key financial metrics, such assets, market capitalization, market share, deposits, revenue, and net income, JPMorgan Chase tops the list. CET1 ratio and total capital ratio seem to be two of the few key performance indicators where JPMorgan Chase did not rank first in 2024.

The European banking sector showed significant disparities in net interest margins (NIM) during the first quarter 2025. Poland and Hungary topped the rankings with NIMs of *** percent and *** percent, respectively. In contrast, several Western European nations reported markedly lower figures: Germany and Denmark at *** percent, France at *** percent. NIM, a key indicator of bank profitability, measures the difference between interest income earned from lending activities and interest paid to depositors, expressed as a percentage of interest-earning assets. Profitability and stability Low profitability has been highlighted several times by the ECB as a key risk to the financial stability of the Euro area. There are several ways to examine profitability in the banking sector, such as the cost-to-income ratio. Prolonged low profitability can have a knock-on effect on an economy’s growth. On the other hand, sustained periods of higher than average profitability can also mean trouble, as was seen in the period running up to the financial crisis. Other key measures There are several other metrics that can also be used. Return on equity (ROE), which divides net income by shareholders' equity, looks at how well a company’s management is using its assets to create profits. Another key measure of a bank's profitability is to look at the return on assets (ROA), which divides a bank’s net income by its total assets during a given period.

HSBC stood as Europe's only bank with a market capitalization exceeding 100 billion U.S. dollars as of December 31, 2024. The UK-based financial institution reached a market value of approximately ****** billion U.S. dollars, significantly ahead of its closest European competitor, UBS, which was valued at ***** billion U.S. dollars. Throughout the past decade, despite market fluctuations, HSBC has consistently maintained its position as Europe's most valuable bank by market capitalization. European banking: single representative in global elite Among the world's 15 largest banks by market capitalization in December 2024, HSBC was Europe's sole representative. JPMorgan Chase, headquartered in the United States, led the global rankings with a market value exceeding *** billion U.S. dollars. What is market capitalization? Market capitalization - calculated by multiplying a company's outstanding shares by its share price -serves as a widely used measure of company size. While this metric provides investors with an easily calculated indicator for risk assessment, it represents just one way to evaluate banks' performance. European banks can also be measured by other important metrics, including total assets, revenue, and cost-to-income ratio (CIR). These alternative measurements may paint a different picture of their relative strength and market position.

This statistic shows the tier 1 capital ratio value for the Clydesdale Bank PLC in the United Kingdom (UK) from 2014 to 2020. Between 2014 and 2020, the tier 1 ratio, used to evaluate the risk levels of bank business performance, fluctuated with an overall increase. In 2020, the ratio was set at **** percent.