Cost-to-income ratio of banking industry in Europe 2008-2022, by country

Between 2008 and the second quarter of 2022, all the hikes in the cost-to-income ratio of the leading European countries' banking industries represent certain economic issues. The cost-to-income ratio (CIR) is calculated by dividing the operating costs of a company by the operating income and it is a key financial measure when valuing banks. The lower the ratio, the more profitable a bank - or in this case, the banking industry - is. In 2008, the banking industries were still feeling the effect of the global financial crisis. The next sudden increase took place between 2010 and 2012, as a result of the Euro area recession. COVID-19 caused another drastic increase, but the banking industries seemed to recover in 2021. The first quarter of 2022 started with a sharp increase for Germany, while other leading European countries experienced only a slight increase in the second quarter of 2022.