Compared with the pre-crisis period, when it stood at around 60 per cent, the cost-income ratio has not decreased. Last June it averaged 62 per cent for the top five banking groups. This can be attributed to a fall in earnings, in turn affected by the lack of diversified sources of income.
In the present situation it is hard to imagine a significant increase in bank income, in view of the performance of lending, reduced margin rates and low demand for asset management products. In the short term the recovery of profitability will require incisive action on the cost front, including labour costs.