The cost-to-income ratio (CIR) is a vital financial metric for evaluating bank efficiency, representing operational costs as a percentage of income. A lower CIR indicates higher profitability for a bank or banking sector. The European Union's banking industry experienced significant CIR fluctuations in recent years. In the first quarter of 2020, the COVID-19 pandemic triggered a peak CIR of 73.29 percent, the highest in the observed period, reflecting widespread economic disruption. As the EU economy stabilized in 2021, the banking sector saw marked improvement, with the CIR decreasing substantially. Throughout 2023, the CIR stabilized around 53 percent, indicating a return to more efficient operations. However, the last quarter of 2024 saw a slight increase to 53.89 percent, suggesting minor efficiency challenges. In the first quarter of 2025, the ratio increased slightly, again, to 54 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.

Graph and download economic data for Bank's Cost to Income Ratio for United States (DDEI07USA156NWDB) from 2000 to 2021 about ratio, expenditures, income, banks, depository institutions, and USA.

Graph and download economic data for Bank's Cost to Income Ratio for Sweden (DDEI07SEA156NWDB) from 2000 to 2021 about Sweden, ratio, expenditures, income, banks, and depository institutions.

The average for 2021 based on 133 countries was 54.8 percent. The highest value was in Switzerland: 94.5 percent and the lowest value was in Syria: 10.52 percent. The indicator is available from 2000 to 2021. Below is a chart for all countries where data are available.

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.

Bank cost to income ratio (%) in United States was reported at 62.73 % in 2021, according to the World Bank collection of development indicators, compiled from officially recognized sources. United States - Bank cost to income ratio - actual values, historical data, forecasts and projections were sourced from the World Bank on November of 2025.

Graph and download economic data for Bank's Cost to Income Ratio for Indonesia (DDEI07IDA156NWDB) from 2000 to 2021 about Indonesia, ratio, expenditures, income, banks, and depository institutions.

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.

Actual value and historical data chart for Turkey Bank Cost To Income Ratio Percent

The average for 2021 based on 40 countries was 60.48 percent. The highest value was in Switzerland: 94.5 percent and the lowest value was in Turkey: 39.46 percent. The indicator is available from 2000 to 2021. Below is a chart for all countries where data are available.

Graph and download economic data for Bank's Cost to Income Ratio for India (DDEI07INA156NWDB) from 2000 to 2021 about ratio, India, expenditures, income, banks, and depository institutions.

Graph and download economic data for Bank's Cost to Income Ratio for Brazil (DDEI07BRA156NWDB) from 2000 to 2021 about Brazil, ratio, expenditures, income, banks, and depository institutions.

Actual value and historical data chart for Latvia Bank Cost To Income Ratio Percent

Graph and download economic data for Bank's Cost to Income Ratio for Hungary (DDEI07HUA156NWDB) from 2000 to 2021 about Hungary, ratio, expenditures, income, banks, and depository institutions.

The average for 2021 based on 24 countries was 52.52 percent. The highest value was in Lesotho: 77.63 percent and the lowest value was in Egypt: 35.34 percent. The indicator is available from 2000 to 2021. Below is a chart for all countries where data are available.

The average for 2021 based on 19 countries was 59.48 percent. The highest value was in Venezuela: 77.95 percent and the lowest value was in Chile: 45.21 percent. The indicator is available from 2000 to 2021. Below is a chart for all countries where data are available.

The cost-to-income ratio of France’s banking industry fluctuated considerably between 2014 and 2025. In the first quarter of 2025, it stood at 67.51 percent, lower than the levels recorded in 2020. This suggests that operating expenses have declined recently, leading to increased profitability across the industry.

Actual value and historical data chart for Thailand Bank Cost To Income Ratio Percent

Romania: Bank cost to income ratio, in percent: The latest value from 2021 is 54.39 percent, an increase from 54 percent in 2020. In comparison, the world average is 54.80 percent, based on data from 133 countries. Historically, the average for Romania from 2000 to 2021 is 58.88 percent. The minimum value, 44.99 percent, was reached in 2009 while the maximum of 69.7 percent was recorded in 2003.