The Luxembourg Financial Sector Supervisory Commission (CSSF) on 28 March for Luxembourg’s banking sector for 2024. Earnings before taxes and provisions for January 2024 to December 2024 increased to €9,782.2m. That’s an 8.8% increase compared to 2023, notes the CSSF in its press release on profit and loss figures for the country’s credit institutions.

Interest margins last year increased 4.4%, says the CSSF, climbing from €10,301.1m in 2023 to €10,754.1 in 2024, despite the drop in interest rates in the second half of 2024. More than half (54%) of banks saw their interest margin increase.

“Net commission income increased by 9.4% year-on-year,” adds the CSSF. “This increase concerned 77% of banks, particularly those providing wealth management services to private and institutional clients, including investment funds. For the latter, the average value of assets on deposit, which represents the basis for calculating fees, increased by 7.9% in 2024 compared to 2023.”

General expenses dropped by 0.1% in 2024, mainly due to Luxembourg banks’ contributions to the Single Resolution Fund, which is under the control of the Brussels-based Single Resolution Board. “The SRF has been built up over a period of eight years (2016-2023) and reached its target level of at least 1% of the amount of covered deposits of credit institutions in all 21 banking union countries at the end of 2023,” explains the SRB. For this reason, “no new contribution was requested in 2024,” notes the CSSF.