The calculation divides operating expenses including depreciation but without provisions by the sum of the net interest income and non-interest income.
Despite continuing to reduce its cost/income ratio, the worst performer among the major economies for last year, Japan, has retained this status and has returned to its position as overall worst performer with the highest ratio at 71.43%, although this is down more than 10% on 2004’s figure.
Poland is once more among the worst performers, although again it has succeeded in reducing its ratio from 76.33% to 70.85% over the past year. Belgium’s rise from 62.41% to 67.80% gives it the third highest ratio globally.
The region with the lowest ratio is once again the Middle East, showing an overall reduction of 2.11% to 41.04% for 2005. The four countries showing the greatest efficiency globally are in this region.
Overall ratios fell across all regions with the exception of Asia (up 2.53% on 2005) and Europe outside of the EU25, which has increased 5.44% over last year’s results.
The greatest country reduction is from Argentina, having decreased its ratio by 47.65% to 66.07%. The greatest rise is from Hungary with an increase of 14.06% to 54.34%.
