Profit and loss account of credit institutions as at 31 December 2024 (only in French)
Communiqué de presse 25/05
Profit before provisions and taxes of the Luxembourg banking sector1 amounted to EUR 9,782.2 million for the year 2024, representing an increase of 8.8% compared to 2023.
Taking into account the allocations to provision for risk, which have now reverted to the pre-2022 average level, net profits grew by 10.0% year-on-year.
Profit and loss account as at 31 December 2024
| Items in million EUR |
January – December 2023 |
January – December 2024 |
Variation in % |
| Net interest income |
10,301.1 |
10,754.1 |
4.4% |
| Net fee and commission income |
5,774.0 |
6,318.3 |
9.4% |
| Other net income |
1,318.8 |
1,097.9 |
-16.8% |
| Banking income |
17,393.9 |
18,170.3 |
4.5% |
| Staff costs |
3,581.1 |
3,575.0 |
-0.2% |
| Other general expenses |
4,818.5 |
4,813.0 |
-0.1% |
| General expenses |
8,399.6 |
8,388.0 |
-0.1% |
| Profit before provisions and taxes |
8,994.3 |
9,782.2 |
8.8% |
| Net profit |
6,583.6 |
7,239.1 |
10.0% |
In 2024, net interest income generated by banks increased by 4.4% compared to 2023, despite declining interest rates during the second half of 2024. The net interest income of 54% of the banks grew over this period.
Net fee and commission income increased by 9.4% year-on-year. This rise concerned 77% of the banks and more specifically banks providing wealth management services for private and institutional customers, including investment funds. For the latter banks, the average value of deposited assets, used for the calculation of commissions, increased by 7.9% in 2024 compared to 2023.
Other net income, which includes various elements that are by nature very volatile and generally non-recurring, fell by 16.8%.
General expenses decreased by 0.1% year-on-year. This drop 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 was requested in 2024.
The above-mentioned developments led to a cost-to-income ratio of 46%, against 48% in 2023. As at 31 December 2024, among the 115 banks in Luxembourg, 13 banks 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. However, the 2024 figures have been adjusted in order to take into account the merger of two banks which occurred in Q2 2024. Indeed, without that adjustment, the figures for 2024 would not include the results that the target bank generated in Q1 2024, resulting thus in an incorrect annual comparison.