"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.
Operating expenses totalled $99 million, compared to $88 million for the same period last year with Cost/Income
ratio declining to 50 per cent from 52 per cent last year.
ratio fell by 2.2 percentage points to 43.6%.
But reassurances from chief executive Peter Wuffli that a hiring spree was over and the cost/income
ratio - a key measure of efficiency - should stabilise failed to click with investors.
Net market share of the UK mortgage market was 13.4% and the key cost/income
ratio was again improved, falling to 28.4%.
ratio is far too high and its return on equity far too low.
The mechanical use of cost-to-operating-income (cost/income
) ratios as a standard for measuring the reasonableness of an effort to share costs in proportion to anticipated benefits.
Where a cost-sharing agreement fails to allocate costs in accordance with the proportionality required by the proposed "cost/income
" test, the regulations empower the IRS to make various levels of adjustment.
OPEX clocked in at PKR 23.7bn, increasing 6% YoY with cost/income
deteriorating to 53% compared to 51% SPLY.
It said that a drop in client activity in the third quarter had affected its gross margin and cost/income
Market activities were resilient, albeit at a structurally high cost/income