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.

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.

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.

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.

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.

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.

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 United Kingdom (DDEI07GBA156NWDB) from 2000 to 2021 about ratio, United Kingdom, expenditures, income, banks, and depository institutions.

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

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.

The banking industry in Turkey had an average cost-to-income ratio of about **** percent in 2021. The highest ratio was recorded in 2015 at nearly **** percent. Between 2012 and 2021, the cost-to-income ratio of banks in Turkey fluctuated.

Graph and download economic data for Bank's Cost to Income Ratio for Luxembourg (DDEI07LUA156NWDB) from 2000 to 2021 about Luxembourg, 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.

Graph and download economic data for Bank's Cost to Income Ratio for Saudi Arabia (DDEI07SAA156NWDB) from 2000 to 2021 about Saudi Arabia, ratio, expenditures, income, banks, and depository institutions.

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

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

The cost-to-income ratio of the banking industry in Ireland fluctuated significantly between 2014 and 2025. In the first quarter of 2025, the cost-to-income ratio was 56.46 percent, which was higher than the values observed in 2023 and 2024. This indicates that the cost of running operations became higher; therefore, the profitability of Ireland's banking industry has declined in the last couple of years.

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

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

Graph and download economic data for Bank's Cost to Income Ratio for Nigeria (DDEI07NGA156NWDB) from 2000 to 2021 about Nigeria, ratio, expenditures, income, banks, and depository institutions.