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European banks demonstrated varying levels of operational efficiency in 2024, as revealed by their cost-to-income ratios (CIR). UBS AG topped the list with the highest CIR at **** percent, followed by Deutsche Bank and Société Générale, both exceeding ** percent. On the other end of the spectrum, Banco Santander reported the lowest CIR at **** percent. This wide range of ratios highlights the diverse operational strategies and challenges faced by major European financial institutions.

Profitability and operational efficiency

The CIR serves as a crucial indicator of a bank's profitability, measuring the cost of running operations as a percentage of operating income. Lower ratios generally indicate higher profitability, while higher ratios suggest operational inefficiencies. Cost-to-income ratios in Europe varied between **** percent and **** percent in early 2025, with Bulgaria's banking sector leading in efficiency. This disparity in CIRs reflects the ongoing efforts of European banks to optimize their operations and adapt to changing economic conditions.

Revenue and profit landscape

Despite varying CIRs, European banks continue to generate substantial revenues. In 2024, HSBC led the pack with annual revenues of approximately *billion euros, closely followed by Banco Santander at  billion euros. HSBC also demonstrated strong financial performance in terms of profits, reporting 25 billion U.S. dollars in 2024. These figures underscore the resilience of major European banks in navigating challenging economic environments while maintaining their position as key players in the global financial landscape.