While Western European retail banking saw slower growth, in Romania this sector grew by more than 10% in income per customer in 2024. This local result is primarily driven by higher interest rates.

However, the report highlights that Romanian retail banking still lags behind in terms of income per employee and profit per client, even within CEE. 

Florian Teleabă, Principal at Kearney Romania, said: "Romania retail banking still sits at the bottom in terms of income per employee and profit per client - even just comparing within CEE. There is still room to improve operational efficiency and invest more in digital and technology to improve customer experience."

Across the European market, profitability per customer reached a record €238, a 50% increase since 2019. 

This is attributed to banks' focus on cost control, enhanced operational efficiency, and a strategic pivot towards higher-margin, fee-based products like asset management and insurance. For instance, fee income now accounts for over two-thirds of total growth (72%), with a year-on-year increase of 5%.

Kearney's research covers nearly 90 retail banks across 21 European markets.