Over the last two years, the U.S. banking industry has significantly shifted its approach to creating shareholder value, from an exclusive focus on reducing expenses to a more balanced approach that stresses revenue growth as well as expense minimization.

This change follows 10 years during which the efficiency ratio was ascendant as the primary indicator of managerial competence. It caused our industry to focus almost myopically on acquisition and then on employee reductions as the primary drivers of net income growth.

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