WaMu Focuses On Boosting Profit
Washington Mutual Inc. will change its focus from cost cutting to revenue improvement as it seeks to improve its efficiency ratio, The American Banker said.
Kerry Killinger, the company's chairman and CEO, said after a conference call with investors that the bank plans to lower its efficiency ratio below 50%.
He said that expenses are expected to be flat for this year from last year and that efficiency improvements will have to come from the revenue side, the daily said.
The $320-billion asset company's first-quarter efficiency ratio was 55.77%, down from 63.34% a year earlier and much of the improvement came from cost cuts in its mortgage business, the daily said.