Purpose. This paper attempts to identify the dynamics of the gender diversity-toperformance relationship in the Spanish Banking sector in the period 1999-2010. Specifically we try to study how different proportions of men and women in banking institutions lead to different levels of Return on Assets and sales productivity. Design/methodology/approach. We use conventional panel data methods to find an optimal mix of males and females which leads to higher levels of financial results. With the aim of controlling unobserved heterogeneity, equations are estimated using the random effects model. Findings. Our findings show that the proportion of women in the workforce does not affect productivity but significantly explains ROA. In addition low-moderated levels (27%) of women in technical positions optimize ROA. Practical implications. Managers and public bodies are increasingly asking for evidences that support the diversity-performance relationship. In our research we show that the performance effects of a balanced-gender organization can be altered by the knowledge base of the different gender groups. Originality/value This research empirically explores the business case for gender diversity going beyond the upper echelons of organizations. We also study how the technical qualification of employees can determine the optimal proportion of gender groups.

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