Persistently low interest rates and poor economic growth are serving to constrain income, while investments in compliance and other back-office roles and charges to resolve historical allegations of misconduct have helped offset cost-cutting efforts including branch closures, sweeping layoffs and pushing customers to digital options.
Across a sample of 15 of Europe’s largest banks by total assets, third-quarter cost-to-income ratios declined year over year at just six, according to S&P Global Market Intelligence data. Relative to the second quarter, 10 of the 15 saw cost-to-income ratios grow.
