Profit and loss account of credit institutions as at 30 September 2024
Press release 24/32
Profit before provisions and taxes of the Luxembourg banking sector1 amounted to EUR 7,588.3 million for the first three quarters of 2024, i.e. an increase of 14.6% compared to the same period of the previous year.
Profit and loss account as at 30 September 2024
| Items in million EUR | January – September 2023 | January – September 2024 | Variation in % |
| Net interest income | 7,627.8 | 8,024.3 | 5.2% |
| Net fee and commission income | 4,293.7 | 4,653.6 | 8.4% |
| Other net income | 895.6 | 810.2 | -9.5% |
| Banking income | 12,817.1 | 13,488.1 | 5.2% |
| Staff costs | 2,615.1 | 2,614.4 | 0.0% |
| Other general expenses | 3,581.3 | 3,285.5 | -8.3% |
| General expenses | 6,196.5 | 5,899.9 | -4.8% |
| Profit before provisions and taxes | 6,620.6 | 7,588.3 | 14.6% |
Over the same period, net interest income recorded a year-on-year increase of 5.2%. 57% of banks reported a rise in their net interest income.
Net fee and commission income increased by 8.4% year-on-year. This increase concerned 69% of the banks and more specifically banks providing wealth management services for private and institutional customers, including investment funds. For the latter banks in particular, the average value of deposited assets, used for the calculation of commissions, increased by 6.5% in the first three quarters of 2024 compared to the same period of 2023.
Other net income, which includes various elements that are by nature very volatile and generally non-recurring, declined by 9.5%.
General expenses decreased by 4.8% year-on-year. This fall is primarily attributable to the contributions of Luxembourg banks to the Single Resolution Fund. As the Single Resolution Fund reached its minimum target level of 1% of the amount of the covered deposits of all the credit institutions of the Banking Union in 2023, no further contribution is requested in 2024.
The above-mentioned developments led to a cost-to-income ratio amounting to 44%, against 48% in the third quarter of 2023. As at 30 September 2024, among the 115 banks in Luxembourg, 11 registered negative results.
1 The scope of the data of the Luxembourg banking sector covers banks active during the reference period, except for their foreign branches and their subsidiaries.