The Luxembourg Commission de Surveillance du Secteur Financier published banking sector figures for the first three quarters of 2025, noting that a merger between two banks created a break in series that makes some year-on-year percentage variations materially unreliable. On an estimated basis, the CSSF assessed profit before provisions and taxes as down 2.3% versus the same period of 2024, with net interest income falling 3.7%. The decline in net interest income was recorded in 65% of banks and was linked to the fall in interest rates from the second half of 2024. Net fee and commission income increased 1.4% and other net income rose 32.1%; reported staff costs and other general expenses appeared to rise 4.8% and 3.8%, but the CSSF estimated corrected increases of 2.5% and 0.4%, respectively. The cost-to-income ratio rose to 45.8% from 43.7% in 2024, and 14 of 117 banks recorded negative results as at 30 September 2025; the sector scope excludes foreign branches and subsidiaries.
Luxembourg Commission de Surveillance du Secteur Financier 2025-12-19
Luxembourg Commission de Surveillance du Secteur Financier reports Luxembourg banks’ profit before provisions and taxes down 2.3% in first three quarters of 2025
The Luxembourg Commission de Surveillance du Secteur Financier reported a 2.3% decline in profit before provisions and taxes for the first three quarters of 2025, with net interest income down 3.7% due to falling interest rates. Net fee and commission income rose 1.4%, while other net income increased 32.1%. The cost-to-income ratio increased to 45.8%, with 14 out of 117 banks recording negative results.