Between 2009 and 2018, the spread between return on equity and cost of equity for 56 percent of banks globally was less than zero, which means that they may not be economically viable, according to McKinsey data. Over 100 of these banks had a spread of negative four percent or more.
Share of banks whose return on equity (ROE) was less than cost of equity (COE) worldwide from 2009 to 2018
Statistic based on sample of top 1,000 banks’ data. Cost leader direct bank peer group includes ING Bank Australia, UmweltBank, Granit Bank, Rakuten Bank, Sumishin SBI Netbank, Sbanken ASA, Gjensidige Bank.
ROE based on average net income and average equity including goodwill for 2009–18.
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McKinsey & Company. (October 1, 2019). Share of banks whose return on equity (ROE) was less than cost of equity (COE) worldwide from 2009 to 2018 [Graph]. In Statista. Retrieved December 22, 2024, from https://www.statista.com/statistics/1092280/global-banks-return-equity-cost/
McKinsey & Company. "Share of banks whose return on equity (ROE) was less than cost of equity (COE) worldwide from 2009 to 2018." Chart. October 1, 2019. Statista. Accessed December 22, 2024. https://www.statista.com/statistics/1092280/global-banks-return-equity-cost/
McKinsey & Company. (2019). Share of banks whose return on equity (ROE) was less than cost of equity (COE) worldwide from 2009 to 2018. Statista. Statista Inc.. Accessed: December 22, 2024. https://www.statista.com/statistics/1092280/global-banks-return-equity-cost/
McKinsey & Company. "Share of Banks Whose Return on Equity (Roe) Was Less than Cost of Equity (Coe) Worldwide from 2009 to 2018." Statista, Statista Inc., 1 Oct 2019, https://www.statista.com/statistics/1092280/global-banks-return-equity-cost/
McKinsey & Company, Share of banks whose return on equity (ROE) was less than cost of equity (COE) worldwide from 2009 to 2018 Statista, https://www.statista.com/statistics/1092280/global-banks-return-equity-cost/ (last visited December 22, 2024)
Share of banks whose return on equity (ROE) was less than cost of equity (COE) worldwide from 2009 to 2018 [Graph], McKinsey & Company, October 1, 2019. [Online]. Available: https://www.statista.com/statistics/1092280/global-banks-return-equity-cost/
