Some of the largest banks in Switzerland and the U.K. were among the least efficient in Europe in the fourth quarter of 2021, S&P Global Market Intelligence data shows.

Among a sample of 38 of the biggest European banks, Credit Suisse Group AG had the highest cost-to-income ratio at 99.79% in the period, up 13.32 percentage points on a quarterly basis and 5.62 percentage points on an annual basis. The lender reported a CHF2.01 billion loss for the quarter following costly scandals related to its dealings with collapsed U.S. hedge fund Archegos Capital and British specialty lender Greensill Capital (UK) Ltd.

Swiss peer UBS Group AG's ratio increased 11.93 percentage points on a quarterly basis and 4.54 percentage points on an annual basis to 80.69%, the eighth-highest among banks in the sample.

Standard Chartered PLC, Lloyds Banking Group PLC and NatWest Group PLC were the three of five British lenders that made it to the top 10 of the list, with ratios of 92.10%, 89.21% and 87.34%, respectively.

StanChart, which posted a fourth-quarter loss of $382 million, aims to reduce its cost-to-income ratio to roughly 60% by 2024. The U.K.-based, Asia-focused banking group is planning $1.3 billion of gross cost efficiencies to help offset inflation.

Most significant rise, fall

The cost-to-income ratio of Italy's BPER Banca SpA rose the most among the sampled banks on a quarterly and annual basis. It stood at 95.63% — the second highest — up 28.68 percentage points year over year and 37.61 percentage points quarter over quarter.

Germany-based Bayerische Landesbank's ratio improved the most on a quarterly basis, falling 14.13 percentage points to 58.45%.

On an annual basis, German peer Commerzbank AG posted the steepest drop of 26.46 percentage points to 85.52%. The lender booked additional provisions to cover potential costs arising from Swiss franc mortgages at its Poland-based mBank SA unit in the fourth quarter, while its fourth-quarter operating result fell to €141 million from €328 million a year prior.

Deutsche Bank AG's ratio of 91.73%, which was up 5.72 percentage points on a quarterly basis and 3.96 percentage points on an annual basis, was the fourth highest in Europe.

Germany least efficient market

By country, Germany had the highest average cost-to-income ratio of 75.68%, up 1.83 percentage points from the year prior. France and Switzerland were second and third, respectively, despite year-over-year declines in their average ratios to 67.18% and 65.89%.

The U.K. and Italy came in fourth and fifth with aggregate cost-to-income ratios of 64.45% and 64.19%, respectively.