Cost/assets ratio

The cost/assets ratio measures costs in relation to the size of a deposit taker (e.g. a bank). It is:

operating expenses ÷average assets over the period

It is a similar efficiency measure to the cost/income ratio, but it is less directly related to profitability. It is not affected by interest rate changes so it can give a better picture of gains or deterioration in efficiency at times when rates or spreads have changed significantly.