Efficiency Ratios Continue Negative Trend

Barb, as we all know, revenue growth is a bigger driver of lower efficiency ratios than cost cutting (and a lot more rewarding). I just don't see how efficiency ratios don't continue climbing in this environment as revenue growth is such a challenge.

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John Tyson
CFO/SVP
Altamaha Bank & Trust Company
Vidalia, GA
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Original Message:
Sent: 03-10-2021 13:12
From: Barb Rehm
Subject: Efficiency Ratios Continue Negative Trend

The aggregate efficiency ratio for U.S. banks continued to edge up in the fourth quarter, settling at 61.4% on Dec. 31. That's up from 59.3% at year-end 2019 and 56.9% for 2018. The trend is being driven by increasing expenses and slack revenue growth, according to this week's complimentary post from S&P Global's Market Intelligence. Read all the details and view the charts here.

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Barb Rehm
Senior Managing Director
IntraFi Network
Arlington VA
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