Profit and loss account of credit institutions as at 31 March 2026
Press release 26/12
Profit before provisions and taxes of the Luxembourg banking sector1 amounted to EUR 2,561.8 million for the first quarter of 2026, representing an increase of 4.2% compared to the same period of the previous year.
Profit and loss account as at 31 March 2026
| Items in million EUR | January – March 2025 | January – March 2026 | Variation in % |
| Net interest income | 2,652.3 | 2,619.7 | -1.2% |
| Net fee and commission income | 1,704.2 | 1,814.7 | 6.5% |
| Other net income | 260.1 | 323.1 | 24.2% |
| Banking income | 4,616.6 | 4,757.5 | 3.1% |
| Staff costs | 949.7 | 965.0 | 1.6% |
| Other general expenses | 1,208.8 | 1,230.7 | 1.8% |
| General expenses | 2,158.5 | 2,195.7 | 1.7% |
| Profit before provisions and taxes | 2,458.1 | 2,561.8 | 4.2% |
The net interest income generated by banks during the first quarter of 2026 decreased by 1.2% compared to the same period in 2025. This downward trend which was recorded among 54% of the banks is attributable to lower interest rates as compared to the first quarter of 2025.
Net fee and commission income increased by 6.5% year-on-year. The increase concerned 69% 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 7.4% in the first quarter of 2026 compared to the first quarter of 2025.
Other net income, which includes various elements that are by nature very volatile and generally non-recurring, rose by 24.2%.
General expenses increased by 1.7% year-on-year. This increase is due to the rise in staff costs (+1.6%) as well as the growth in other general expenses (+1.8%).
The above-mentioned developments led to a cost-to-income ratio of 46.2% as at 31 March 2026 against 46.8% as at 31 March 2025.
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.