4 per cent), leading to a 2-point improvement in the cost/income
ratio, which stood at 49.
We noted in our previous report that cost/income
ratios were improving, and that continued to be the case in the last quarter," Dr Jaffar said.
There is a strong link between cost/income
ratios and credit quality.
These are for a pre-tax operating profit before write-downs of NOK22bn-25bn, a cost/income
ratio below 46% and a cost-cutting programme of NOK2bn.
ratio is far too high and its return on equity far too low.
The reasonableness of the cost shares will not be tested by using a cost/income
ratio, but by use of the best method rule, which requires use of the most reliable estimate of the sharing of benefits (Regs.
Therefore, TEI recommends that the cost/income
ratio be eliminated as a presumptive test of the reasonableness of a cost-sharing agreement.
The pre-tax margin increased from 34 to 36 basis points and the cost/income
ratio improved to 61.
The consolidated cost/income
ratio for the Group was 65 per cent despite the strong pressure on margins in the banking industry.
ratio saw a double-digit improvement to 76 per cent in the third quarter of 2013 from 134 per cent compared to the same period in 2012.
ratio for second quarter of 2013 was 60 percent.
Operating expenses of US$113 million increased by US$14 million in part due to one off costs resulting in cost/income
ratio of 49%.