Economic analysis

The following economic ratios are derived from the aggregate figures contained in the financial statements "profit and loss account" of credit institutions, whose structural peculiarities justify their separate presentation:

• Personnel Expense Rate (TGP)

  It represents the importance in terms of proportion that personnel expenses have in the gross margin, considering this as an expression of the added value of credit institutions.

• Efficiency ratio (ER)

  Ratio between gross operating profit and gross margin. Its amount corresponds to the importance of the consumption required to obtain the gross operating profit from the gross margin, with efficiency being greater the lower the relative importance of said consumption.

• Financial profitability (FR)

  Proportion between accounting profit before taxes and equity (Net worth). It represents the measure of the profitability of equity. Since it is prior to the taxation of profits, it allows for international comparability.

• Return on assets

  Ratio of accounting profit before taxes to total assets. It does not take into account the quality of the assets and their categories. It allows us to know whether assets are being used efficiently to generate returns.

• Gross interest margin (GIM) ratio

  Ratio between net interest income and gross margin. It reports on the relative importance of the strict financial intermediation activity, excluding other products such as net commissions and dividends.