Profit and loss account of credit institutions as at 30 June 2023
Press release 23/20
Profit before provisions and taxes of the Luxembourg banking sector1 amounted to EUR 4,361.8 million for the first half of 2023, representing a substantial increase of 43.4% compared to the same period of the previous year.
Profit and loss account as at 30 June 2023
| Items in million EUR |
January – June 2022 |
January – June 2023 |
Variation in % |
| Net interest income |
2,941.8 |
4,919.2 |
67.2% |
| Net fee and commission income |
3,029.2 |
2,829.1 |
-6.6% |
| Other net income |
1,144.4 |
793.9 |
-30.6% |
| Banking income |
7,115.5 |
8,542.2 |
20.1% |
| Staff costs |
1,610.7 |
1,718.4 |
6.7% |
| Other general expenses |
2,463.6 |
2,462.0 |
-0.1% |
| General expenses |
4,074.3 |
4,180.4 |
2.6% |
| Profit before provisions and taxes |
3,041.2 |
4,361.8 |
43.4% |
In the first half of 2023, net interest income recorded an increase of 67.2% compared to the same period of 2022. Against the background of the overall rise in interest rates, net interest income increased in 82% of banks.
Net fee and commission income decreased by 6.6% year-on-year. The decline concerned more specifically banks providing wealth management services for private and institutional customers, including investment funds.
Other net income, which comprises different elements that are by nature very volatile and generally non-recurring, fell by 30.6%.
General expenses (+2.6%) continued their upward trend for 75% of banks. This rise concerns only staff costs which were up by 6.7%.
The above-mentioned developments led to an average cost-to-income ratio of 49% in the first half of 2023, against 57% in the first half of 2022.
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.