The overheads efficiency ratio, i.e. the ratio of operating expenses to total assets (OEA), is the best proxy measure for the average cost of non-financial inputs to banks (Fries and Taci 2005). The underlying doctrine in the literature argues that the lower the overheads are, as percent of assets, the more efficient and profitable is a financial institution. The ratio of operating expenses to assets is expected to be negatively related to profitability, since improved operating expenses management will increase efficiency and, therefore, raise profits. However, Molyneux and Thornton (1992) observed a positive relationship meaning that high profits (Panagiotis et al, 2007)