The Luxembourg Commission de Surveillance du Secteur Financier published profit-and-loss figures for the Luxembourg banking sector as at 31 December 2024, showing net profits grew 10.0% year on year as allocations to provisions for risk reverted to their pre-2022 average level. Net interest income increased by 4.4% to 10,754.1 despite declining interest rates during the second half of 2024, with 54% of banks reporting higher net interest income over the period. Net fee and commission income rose by 9.4% to 6,318.3, while other net income declined by 16.8% to 1,097.9; staff costs (3,575.0) and other general expenses (4,813.0) were broadly stable. These developments resulted in a cost-to-income ratio of 46% (48% in 2023), and 13 of the 115 banks registered negative results. The sector data cover banks active during the reference period, excluding foreign branches and subsidiaries, and the 2024 figures were adjusted to reflect a merger of two banks in Q2 2024 to ensure a like-for-like annual comparison.
Luxembourg Commission de Surveillance du Secteur Financier 2025-03-28
Luxembourg Commission de Surveillance du Secteur Financier reports 2024 Luxembourg banking sector net profits up 10% and cost-to-income ratio at 46%
The Luxembourg Commission de Surveillance du Secteur Financier reported a 10% year-on-year increase in net profits for the Luxembourg banking sector as of 31 December 2024, with provisions for risk returning to pre-2022 levels. Net interest income rose by 4.4% despite declining rates, while net fee and commission income increased by 9.4%. The cost-to-income ratio improved to 46%, although 13 out of 115 banks recorded negative results.