Profit and loss account of credit institutions as at 30 September 2025
Press release 25/20
Profit before provisions and taxes of the Luxembourg banking sector1 amounted to EUR 7,406.8 million for the first three quarters of 2025, representing a decrease of 2.6% compared to the same period of the previous year.
Due to a break in series as a result of the merger of two banks, some relative developments (column “Variation in %” below) are materially false and are indicated in italic in the table below. Based on estimates, the CSSF assessed the development of the profit before provisions and taxes to -2.3% year-on-year.
Profit and loss account as at 30 September 2025
| Items in million EUR | January – September 2024 | January – September 2025 | Variation in % |
| Net interest income | 8,036.2 | 7,735.0 | -3.7% |
| Net fee and commission income | 4,659.6 | 4,726.9 | 1.4% |
| Other net income | 908.6 | 1,200.2 | 32.1% |
| Banking income | 13,604.4 | 13,662.2 | 0.4% |
| Staff costs | 2,616.2 | 2,742.0 | 4.8% |
| Other general expenses | 3,385.1 | 3,513.4 | 3.8% |
| General expenses | 6,001.3 | 6,255.4 | 4.2% |
| Profit before provisions and taxes | 7,603.2 | 7,406.8 | -2.6% |
In the first three quarters of 2025, net interest income recorded a decrease by 3.7% compared to the same period of 2024. This downward trend which was recorded in 65% 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 1.4% year-on-year. The increase concerned 2/3 of the banks, especially depositary banks. The average value of net assets of undertakings for collective investment, which represents the key element for the calculation of their safekeeping commissions, grew by 6.2% in the first three quarters of 2025 compared to the same period of 2024.
Other net income, which includes different elements that are by nature very volatile and generally non-recurring, rose by 32.1%.
As regards staff costs and other general expenses, it is worth noting that the extent of their increase, amounting in the table above to 4.8% and 3.8% is greatly overestimated. The CSSF estimates that, by correcting the gross figures from the reporting, the variations of staff costs and other general expenses amount to 2.5% and 0.4%, respectively.
The above-mentioned developments led to a cost-to-income ratio of 45.8%, against 43.7% in 2024. As at 30 September 2025, among the 117 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.