| |
| |
Reviewing Efficiency Ratios: A 10 Year View |
 | | This optimum ratio tends not to be set at a specific target level any longer – rather there is focus on seeking ongoing improvements in efficiency levels, and recently, we are seeing (from more than one bank) that in the forthcoming financial reporting periods, there could even be increases in efficiency ratios. |
 | | Efficiency ratios are not the panacea they once were – during the latter 1990’s, when they first became a key measure in the South African industry, there was strong focus to enhance shareholder returns by maximising efficiency levels, based on global best benchmarks. |
 | | As mentioned, most banks are not anticipating strong gains in their efficiency ratios in future (once again, with the exception of Nedcor, which aims to regain its long-term average, and substantially reduce the gap that exists between their peer group and themselves). |
| www.ey.com /global/content.nsf/South_Africa/22_Nov_05_Reviewing_Efficiency_Ratios_A_10_Year_View (923 words) |
|