The New Normal of Bank Profitability

October 30, 2014 at 6:30 PM

Five years after the trough of the credit crisis, a clear picture is emerging about industry performance. Today’s high performing institutions are again posting double-digit returns on equity and are able to generate solid levels of noninterest income during a time in which overall noninterest income for the industry has declined. Increased compliance costs and narrowing margins have caused the industry to become less efficient on average; however, high performers have managed to maintain efficiency ratios at 60%.

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Eileen Sullivan

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