U.S. Bank is looking to manage expenses without cutting corners on technology, and its steadily decreasing efficiency ratio is proof of the effort. 

Efficiency ratio is a key indicator of financial institutions’ cost effectiveness in their operations.  

“We are making steady progress on our medium-term profitability and efficiency targets,” Chief Financial Officer John Stern said during the bank’s second-quarter earnings call in July. 

In Q2, the $673 billion bank’s efficiency ratio clocked in at 59.2%, according to the bank’s Q2 earnings release. This is down from 60.7% in Q2 2024, according to Bank Automation News’ newly launched Efficiency Ratio Database.  

U.S. Bank’s efficiency ratio over time is tracked below.

Financial institutions prioritize efficiency gains through hiring, technology implementation and restructuring. In fact, to kick off 2025, the following institutions announced efficiency plans: 

• Citizens. The $220 billion bank announced its plans to save $100 million in efficiency savings this year.  

According to the database, the bank’s efficiency ratio is already showing improvement from 2023, in Q4 2024 the bank’s efficiency ratio clocked in at 66.3%, down from 81.1% in the Q4 2023. 

• Wells Fargo. The $1.9 trillion bank is investing more than $50 million into improving operational efficiency and risk infrastructure. 

According to the database, Wells Fargo’s efficiency ratio is also trending down. In Q4 2024 the bank’s efficiency ratio fell to 68%, down from 77% in Q4 2023. 

New efficiency ratio data 

Bank Automation News‘ Efficiency Ratio data, updated quarterly,  covers all U.S. banks and credit unions.  

The data provides a core banking metric and clear snapshot of where the country’s financial institutions stand on their efficiency efforts over time. The data, measured over time, indicates whether an FI is controlling costs while growing income. 

This new database allows users to search and filter financial institutions by multiple criteria, including: 

• Type; 

• Asset size and tier;  

• Efficiency ratio; 

• Income; and
• Headcount.   

Explore the new Bank Automation News efficiency ratios here.