Profit and loss account of credit institutions as at 31 March 2025
Press release 25/10
Profit before provisions and taxes of the Luxembourg banking sector1 amounted to EUR 2,456.7 million for the first quarter of 2025, representing an increase of 1.0% compared to the same period of the previous year.
Profit and loss account as at 31 March 2025
| Items in million EUR | January – March 2024 | January – March 2025 | Variation in % |
| Net interest income | 2,756.6 | 2,652.0 | -3.8% |
| Net fee and commission income | 1,572.8 | 1,704.0 | 8.4% |
| Other net income | 189.6 | 260.1 | 37.2% |
| Banking income | 4,519.0 | 4,616.2 | 2.2% |
| Staff costs | 918.1 | 949.7 | 3.5% |
| Other general expenses | 1,168.0 | 1,209.8 | 3.6% |
| General expenses | 2,086.1 | 2,159.5 | 3.5% |
| Profit before provisions and taxes | 2,432.9 | 2,456.7 | 1.0% |
In the first quarter of 2025, net interest income recorded a decrease by 3.8% compared to the same period of 2024. This trend which was recorded in 55% of the banks is attributable to the decline in interest rates as from the second half of 2024.
Net fee and commission income increased by 8.4% year-on-year. This rise concerned 66% of the banks and more specifically those 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 on asset custody, increased by 8.8% in the first quarter of 2025 compared to the first quarter of 2024.
Other net income, which includes different elements that are by nature very volatile and generally non-recurring, rose by 37.2%.
General expenses increased by 3.5% year-on-year. This increase is due to the rise in staff costs (+3.5%) as well as the growth in general expenses (+3.6%).
The above-mentioned developments led to a cost-to-income ratio of 46.7%, against 46.2% in 2024. As at 31 March 2025, among the 116 banks in Luxembourg, 14 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.