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 2023 saw a slight increase to 53.7 percent, suggesting minor efficiency challenges. In the first three quarters of 2024, the ratio decreased slightly, standing, before rising to 53.89 percent in the last quarter.

European banks showed varied levels of operational efficiency, with Portugal leading the pack in last quarter of 2024. The cost-to-income ratio (CIR), a key indicator of bank profitability, reveals significant disparities across EU countries. In the fourth quarter of 2024, Portugal's banking sector boasted the lowest CIR at **** percent, followed closely by Bulgaria and Greece, indicating their high operational efficiency. In contrast, Liechtenstein, France, and Germany 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 2024. 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 2023, 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 2023, 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.

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.

Graph and download economic data for Bank's Cost to Income Ratio for Egypt (DDEI07EGA156NWDB) from 2000 to 2021 about Egypt, ratio, expenditures, banks, depository institutions, and income.

Bank cost to income ratio (%) in Ethiopia was reported at 55.42 % in 2021, according to the World Bank collection of development indicators, compiled from officially recognized sources. Ethiopia - Bank cost to income ratio - actual values, historical data, forecasts and projections were sourced from the World Bank on July of 2025.

Bank cost to income ratio (%) in Latvia was reported at 59.99 % in 2021, according to the World Bank collection of development indicators, compiled from officially recognized sources. Latvia - Bank cost to income ratio - actual values, historical data, forecasts and projections were sourced from the World Bank on July of 2025.

European banks demonstrated varying levels of operational efficiency in 2023, as revealed by their cost-to-income ratios (CIR). UBS AG topped the list with the highest CIR at 95 percent, followed by Deutsche Bank and Société Générale, both exceeding 73 percent. On the other end of the spectrum, UniCredit reported the lowest CIR at 39.7 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 32.1 percent and 79 percent in early 2024, with Greece'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 2023, HSBC led the pack with annual revenues of approximately 59.85 billion euros, closely followed by Banco Santander at 57.42 billion euros. HSBC also demonstrated strong financial performance in terms of profits, reporting nearly 24.6 billion U.S. dollars in 2023. 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.

Taiwan: Bank cost to income ratio, in percent: The latest value from 2021 is 61.71 percent, a decline from 61.99 percent in 2020. In comparison, the world average is 54.80 percent, based on data from 133 countries. Historically, the average for Taiwan from 2000 to 2021 is 60.41 percent. The minimum value, 38.98 percent, was reached in 2002 while the maximum of 150 percent was recorded in 2006.

Graph and download economic data for Bank's Cost to Income Ratio for Costa Rica (DDEI07CRA156NWDB) from 2000 to 2021 about Costa Rica, ratio, expenditures, banks, depository institutions, and income.

Graph and download economic data for Bank's Cost to Income Ratio for Mexico (DDEI07MXA156NWDB) from 2000 to 2021 about Mexico, ratio, expenditures, banks, depository institutions, and income.

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.

Bank cost to income ratio (%) in Ireland was reported at 49.56 % in 2019, according to the World Bank collection of development indicators, compiled from officially recognized sources. Ireland - Bank cost to income ratio - actual values, historical data, forecasts and projections were sourced from the World Bank on June of 2025.

Between the fourth quarter of 2014 and the fourth quarter of 2024, there was a fluctuating pattern, with occasional peaks in the cost-to-income ratio of the German banking industry. The ratio reached its highest point at 90.6 percent in the first quarter of 2020. Subsequently, there was a gradual decline until the first quarter of 2023, when the ratio stood at 56.6 percent. Since then, it remained quite stable being the ratio at nearly 58.9 percent in the fourth quarter of 2024.

Indonesia PT ANZ Panin Bank: Consolidated: Performance Ratio: Cost to Income Ratio data was reported at 91.280 % in Mar 2019. This records an increase from the previous number of 87.260 % for Dec 2018. Indonesia PT ANZ Panin Bank: Consolidated: Performance Ratio: Cost to Income Ratio data is updated quarterly, averaging 80.555 % from Dec 2000 (Median) to Mar 2019, with 74 observations. The data reached an all-time high of 102.080 % in Mar 2016 and a record low of 54.530 % in Dec 2002. Indonesia PT ANZ Panin Bank: Consolidated: Performance Ratio: Cost to Income Ratio data remains active status in CEIC and is reported by Indonesia Financial Services Authority. The data is categorized under Indonesia Premium Database’s Banking Sector – Table ID.KBE034: Joint Venture: Financial Ratio: PT ANZ Panin Bank.

Bank cost to income ratio (%) in India was reported at 47.82 % in 2021, according to the World Bank collection of development indicators, compiled from officially recognized sources. India - Bank cost to income ratio - actual values, historical data, forecasts and projections were sourced from the World Bank on July of 2025.

Bank cost to income ratio (%) in Malaysia was reported at 43.43 % in 2021, according to the World Bank collection of development indicators, compiled from officially recognized sources. Malaysia - Bank cost to income ratio - actual values, historical data, forecasts and projections were sourced from the World Bank on June of 2025.

Graph and download economic data for Bank's Cost to Income Ratio for San Marino (DDEI07SMA156NWDB) from 2004 to 2019 about San Marino, ratio, expenditures, banks, depository institutions, and income.

Nigeria: Bank cost to income ratio, in percent: The latest value from 2021 is 65.04 percent, an increase from 61.27 percent in 2020. In comparison, the world average is 54.80 percent, based on data from 133 countries. Historically, the average for Nigeria from 2000 to 2021 is 73.68 percent. The minimum value, 51.15 percent, was reached in 2016 while the maximum of 202.04 percent was recorded in 2010.

China Commercial Bank: Cost to Income Ratio data was reported at 30.840 % in Dec 2018. This records an increase from the previous number of 28.020 % for Sep 2018. China Commercial Bank: Cost to Income Ratio data is updated quarterly, averaging 29.440 % from Dec 2010 (Median) to Dec 2018, with 33 observations. The data reached an all-time high of 35.300 % in Dec 2010 and a record low of 25.300 % in Mar 2016. China Commercial Bank: Cost to Income Ratio data remains active status in CEIC and is reported by China Banking and Insurance Regulatory Commission. The data is categorized under China Premium Database’s Money and Banking – Table CN.KC: Banking: Income Statement and Its Related.