Profit and loss account of credit institutions as at 31 December 2025
Press release 26/06
Profit before provisions and taxes of the Luxembourg banking sector1 amounted to EUR 9,431.8 million for the year 2025, representing a decrease of 3.6% compared to 2024.
Taking into account the allocations to provision for risk, which have now reverted to the pre-2022 average level, net profits dropped by 5.4% year-on-year.
Due to a break in series as a result of the merger of two banks, impacting the figures in the first quarter of 20242, the relative developments regarding the general expenses items were greatly overestimated (cf. the percentages in italics under the “Variation in %” column in the table below). However, the impact on the profits of the financial year remained limited. Indeed, based on estimates, the CSSF assessed the development of the profit before provisions and taxes at -3.4% year-on-year.
Profit and loss account as at 31 December 2025
| Items in million EUR | January – December 2024 | January – December 2025 | Variation in % |
| Net interest income | 10,698.8 | 10,392.9 | -2.9% |
| Net fee and commission income | 6,255.7 | 6,393.6 | 2.2% |
| Other net income | 1,063.8 | 1,225.6 | 15.2% |
| Banking income | 18,018.3 | 18,012.1 | 0.0% |
| Staff costs | 3,519.0 | 3,703.2 | 5.2% |
| Other general expenses | 4,714.4 | 4,877.1 | 3.5% |
| General expenses | 8,233.4 | 8,580.4 | 4.2% |
| Profit before provisions and taxes | 9,784.9 | 9,431.8 | -3.6% |
| Net profit | 7,235.7 | 6,846.0 | -5.4% |
The net interest income generated by banks during 2025 decreased by 2.9% compared to 2024. This downward trend which was recorded among 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 2.2% year-on-year. The increase concerned 70% of the banks, especially depositary banks. The average value of the net assets of undertakings for collective investment, which represents the key element for the calculation of their safekeeping commissions, grew by 6.4% in 2025 compared to 2024.
Other net income, which includes different elements that are by nature very volatile and generally non-recurring, rose by 15.2%.
As regards staff costs and other general expenses, it is worth noting that the extent of their increase, amounting in the table above to 5.2% and 3.5% is greatly overestimated. The CSSF estimates that, by correcting the gross figures from the 2024 reporting, the variations of staff costs and other general expenses amount to 3.5% and 1.0%, respectively.
The above-mentioned developments led to a cost-to-income ratio of 47.6%, against 45.7% in 2024. As at 31 December 2025, among the 116 banks in Luxembourg, 14 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.
2 Due to this merger, the figures for the first quarter 2024 do not include those of the target bank.