Banks with Best (Lowest) Efficiency Ratio
Financial institutions ranked by efficiency ratio (lower is better), showing which banks have the lowest operating costs relative to revenue.
Efficiency ratio measures how much a bank spends to generate each dollar of revenue. This ranking highlights the banks with the leanest operating profiles, where lower is better.
Why this metric matters
A lower efficiency ratio suggests the bank is converting more revenue into pre-provision earnings instead of absorbing it in overhead.
Cost discipline can help protect earnings even when credit costs or funding pressure start moving against the sector.
What good looks like
Lower is better, and many strong operators aim for efficiency ratios that trend comfortably below weaker peers.
The most attractive low-ratio stories are the ones where efficiency is driven by durable operating advantages rather than temporary expense cuts.
Live ranking table
Efficiency Ratio| # | Company | Symbol | Efficiency Ratio |
|---|---|---|---|
| 1 | First Citizens BancShares | FCNCAXNAS | 7.70% |
| 2 | WaFd Inc. | WAFDXNAS | 20.08% |
| 3 | ServisFirst Bancshares Inc. | SFBSXNAS | 28.68% |
| 4 | International Bancshares Corp. | IBOCXNAS | 33.09% |
| 5 | East West Bancorp Inc. | EWBCXNAS | 33.11% |
| 6 | SouthState Corp. | SSBXNAS | 35.70% |
| 7 | Cathay General Bancorp | CATYXNAS | 38.54% |
| 8 | Western Alliance Bancorporation | WALXNYS | 39.62% |
| 9 | Fifth Third Bancorp | FITBXNAS | 40.60% |
| 10 | Hope Bancorp Inc. | HOPEXNAS | 41.98% |
| 11 | Capital One Financial Corp. | COFXNYS | 43.06% |
| 12 | First Financial Bankshares | FFINXNAS | 44.13% |
| 13 | Valley National Bancorp | VLYXNAS | 45.29% |
| 14 | U.S. Bancorp | USBXNYS | 47.24% |
| 15 | Bank of America Corp. | BACXNYS | 47.55% |
Methodology
Uses the latest available quarterly bank KPI for efficiency ratio in the BankingTerminal universe.
Includes only companies with non-null efficiency ratio data and ranks each company once from lowest to highest.
Because lower is better, this ranking reverses the usual direction and highlights the banks spending the least to generate revenue.
Frequently asked questions
What is efficiency ratio in banking?
Efficiency ratio measures operating expenses as a percentage of revenue. In banking, lower values generally indicate stronger cost discipline.
Why is a lower efficiency ratio better?
A lower ratio means the bank keeps more revenue after operating costs, which supports stronger profitability and flexibility during weaker parts of the cycle.
Can a bank improve efficiency without improving the business?
Yes. Temporary cuts can lower costs for a period, so investors should check whether the improvement is durable and supported by revenue quality.
Related glossary terms
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Rankings are based on the most recent reported data available in BankingTerminal and should be used as a starting point for research. Disclaimer