Cost-to-income ratio of the largest banks in the UK 2023

Among the five largest banks in the United Kingdom (UK), HSBC Holdings had the lowest cost-to-income ratio (CIR) in the first half of 2023. HSBC's CIR was 41.9 percent as of June 2023. It was followed by Lloyds and NatWest, with ratios just below 50 percent. The CIR is an important financial metric for determining the profitability of banks. The measure looks at the cost of running operations in relation to a bank’s operating income. Lower ratios mean that a bank is running more profitably, whereas a higher CIR indicates that the bank's operating expenses are too high.