WaMu Seeks New Revenue To Boost Efficiency Ratio
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 in April that the bank plans to lower its efficiency ratio below 50%. He said that expenses will be flat this year from last year and that efficiency improvements will come from the revenue side, the newspaper said.
The $320-billion 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, according to The American Banker.