efficiency ratio


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Efficiency Ratio

In banking, a ratio of expenses to revenue. For example, if a bank spends $10 million and makes $15 million in a given month, its efficiency ratio is .67. Banks desire a lower efficiency ratio because this means that the bank is making considerably more than it is spending and is therefore on sound fiscal footing. One way to conceptualize the efficiency ratio is to say it is the measure of what a bank must spend in order to make one dollar. In the above example, the bank must spend 67 cents.

efficiency ratio

The ratio of leasable space to gross space in a building.When planning a building, it is important to balance the need to maximize the efficiency ratio in order to lease the maximum amount of space possible,against the aesthetic need to have wide corridors and open spaces.

References in periodicals archive ?
Multiple stiffness improvement methods including adding bulkheads to the frame rails, increasing the thickness of frame parts, and enlarging the cross sections on the frame rails were evaluated utilizing a material efficiency ratio defined as [34]:
As a result, analysts say it may take until 2020 for Wells Fargo to get its efficiency ratio within the 55 percent to 59 percent range Chief Executive Tim Sloan has pledged to hit.
Feed efficiency ratio (FER) and protein efficiency ratio (PER) exhibited a significant difference (p<0.05) in all the treatment groups (Table III).
Also included in the proposal is a different metric to measure air conditioner efficiency called the integrated energy efficiency ratio (IEER).
The group's prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 20.9 per cent, which is considered one of the best ratios among financial institutions in the region.
The new proposed standards are based on a metric called IEER (integrated energy efficiency ratio), which captures efficiency at 25, 50, 75, and 100% of full capacity.
Panasonic Window Type Air Conditioners' class-leading 11.7 Energy Efficiency Ratio (EER), guarantees lower electricity consumption, making one's budget-saving purchase an even smarter choice.
KEY's inferior efficiency ratio reflects its large and dispersed branch network.
Bulgaria is at the still high 41st position, leaving Romania (48th) and Poland (49th) behind.According to the "top-performance by an income group" statistics where the results are based on the development stages of countries, captured by the World Bank income classifications, Bulgaria again is among the 10 best performers in the three indices: Global Innovation Index, Innovation Output Sub-Index and Innovation Efficiency Ratio. The efficiency ratio is designed to be neutral to countries' stages of development, and the data indeed reflect this neutrality.
He said these financial results show an improvement in the group's performance as its efficiency ratio, operating expenses to operating revenue, improved from 40pc last year to 38.9pc this year.
The product is equipped with the company's latest inverter technology contributing to what LG says is an impressive integrated energy efficiency ratio (IEER) and a high energy efficiency ratio (EER).
The efficiency ratio (cost to income ratio) stood at 16.6 per cent, compared to 15.3 per cent in September 2011, one of the best ratios among financial institutions in the Middle East and North Africa.

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