INSIGHT

Malaysian Banks' Cost Efficiency

Author: Admin Publish Date: 30-08-2019
Updated On:  18-11-2019



A bank's efficiency can be observed from the cost to income ratio. The ratio should be as low as possible as it shows operating costs as a percentage of operating income. This also means that any additional revenue from existing or new customers has a relatively low cost associated with it and so is increasingly profitable.
 
Public bank score good in both cost-cutting measurement and each of its employees generate high income among the banks. As a contrast, Affin bank’s performance is something that every management should avoid.


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