The Luxembourg Commission de Surveillance du Secteur Financier published profit and loss data for the Luxembourg banking sector as at 31 March 2025, showing a year-on-year decline in net interest income alongside higher fee and commission income and other net income. The update also shows a slightly higher cost-to-income ratio and that 14 of 116 banks recorded negative results. Net interest income fell to 2,652.0 from 2,756.6, a trend observed in 55% of banks and attributed to declining interest rates from the second half of 2024. Net fee and commission income rose to 1,704.0 from 1,572.8, and other net income increased to 260.1 from 189.6. Over the same period, staff costs increased to 949.7 from 918.1 and other general expenses to 1,209.8 from 1,168.0, resulting in a cost-to-income ratio of 46.7% versus 46.2% in 2024; the sector data covers banks active in the reference period, excluding foreign branches and subsidiaries.
Luxembourg Commission de Surveillance du Secteur Financier 2025-06-26
Luxembourg Commission de Surveillance du Secteur Financier reports Q1 2025 banking sector results with net interest income down 3.8%
The Luxembourg Commission de Surveillance du Secteur Financier reported a year-on-year decline in net interest income for the Luxembourg banking sector as of 31 March 2025, attributed to falling interest rates. Despite higher fee and commission income and other net income, the cost-to-income ratio slightly increased, with 14 out of 116 banks recording negative results. Staff costs and general expenses also rose during the period.