The combined balance sheets of Luxembourg banks decreased by 1.2% in June 2024 compared to May, but remain up 2.9% year-over-year, according to the latest data from the Luxembourg Central Bank (BCL). Photo: Christophe Lemaire

The combined balance sheets of Luxembourg banks decreased by 1.2% in June 2024 compared to May, but remain up 2.9% year-over-year, according to the latest data from the Luxembourg Central Bank (BCL). Photo: Christophe Lemaire

The aggregated balance sheet of Luxembourg banks dropped by 1.2%, settling at €949.131bn on 30 June 2024, down from €960.433bn on 31 May 2024, according to data from the Luxembourg Central Bank.

The aggregated balance sheet of credit institutions in the grand duchy dropped by nearly 1.2%, from €960.433bn at the end of May 2024 to €949.131bn on 30 June 2024, preliminary data released on Thursday 25 July from by the Luxembourg Central Bank (BCL) shows.

Assets and liabilities

The drop is primarily to monthly decline in loans to other banks and deposit-taking corporations. On an annual basis, the aggregated balance sheet is still up by 2.9%.

Net interbank lending, which is the difference between interbank loans and deposits, increased by €2.57bn. This 1.13% rise brought the total to €229.455bn by the end of June 2024.

Lending

The lending landscape showed mixed results. Loans to Luxembourg resident households increased by €411m in June, reflecting a 0.9% rise for the month. However, over the past 12 months, the net volume of these loans decreased by €234m, or about 0.5%.

Among loans to Luxembourg households, those for house purchases rose by €249m in June, which is a 0.6% improvement. Despite this monthly increase, housing loans were still 0.9% lower than a year ago, indicating room for growth in this area. In contrast, consumer loans for consumption grew by 4.1% over the past 12 months.

Loans to non-financial corporations (NFCs) declined by €659m in June, a 2.4% drop for the month. Year-over-year, the decrease was more significant, amounting to €2.716bn or 9.3%.

Loans to other financial intermediaries (OFIs) saw a 4.3% increase for the month but only a marginal 2.5% rise over the past year.

Deposits

On the liability side, deposits from resident households grew by €179m in June 2024, a 0.4% increase for the month. Over the past 12 months, these deposits rose by €1.255bn, marking a modest 2.8% increase.

Deposits from OFIs showed positive trends, increasing by €8.8bn over one month and €7bn over the past year, representing growth rates of 4.7% and 3.7%, respectively.

Deposits from NFCs, however, varied. In June, they dropped by €911m, or about 3.7%. Yet, over the past 12 months, NFC deposits increased by €2.045bn, or 9.4%.

Related articles