Profit and loss account of credit institutions as at 30 June 2025

Profit before provisions and taxes of the Luxembourg banking sector[1] amounted to EUR 5,056.9 million for the first half of 2025, representing a decrease of 5.5% compared to the same period of the previous year.

As a result of a break in series owing to the merger of two banks, certain relative changes (“Variation %” column below) have been materially distorted and italicised in the table below. The CSSF estimates that profit before provisions and taxes dropped by 5% year-on-year.

Profit and loss account as at 30 June 2025

In the first half of 2025, net interest income recorded a 4.6% decrease compared to the same period of 2024. This downward trend which was recorded in 61% 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 2.1% year-on-year. This rise concerned 68% of the banks and more specifically depositary banks. The average net asset value of undertakings for collective investment, used for the calculation of commissions on asset custody, increased by 6.5% in the first quarter of 2025 compared to the same period in 2024.

Other net income, which includes different elements that are by nature very volatile and generally non-recurring, rose by 19.7%.

With regard to the staff costs and other general expenses, it should be noted that the extent of their growth, estimated in the table above at 6.4% and 6.8%, is greatly overestimated. The CSSF considers that, after adjusting the gross figures from the reporting, the growth in staff costs and other general expenses would amount to 3% and 2%, respectively.

The above-mentioned developments led to a cost-to-income ratio of 45.3%, against 42.1% in 2024. As at 30 June 2025, among the 118 banks in Luxembourg, 14 banks registered negative results.