Profit and loss account of credit institutions as at 31 March 2024
Press release 24/14
Profit before provisions and taxes of the Luxembourg banking sector1 amounted to EUR 2,431.9 million for the first quarter of 2024, i.e. an increase of 19.9% compared to the same period of the previous year.
Profit and loss account as of 31 March 2024
| Items in million EUR |
January – March 2023 |
January – March 2024 |
Variation in % |
| Net interest income |
2,321.0 |
2,751.7 |
18.6% |
| Net fee and commission income |
1,498.0 |
1,569.9 |
4.8% |
| Other net income |
406.5 |
193.5 |
-52.4% |
| Banking income |
4,225.5 |
4,515.1 |
6.9% |
| Staff costs |
873.7 |
917.0 |
5.0% |
| Other general expenses |
1,323.9 |
1,166.1 |
-11.9% |
| General expenses |
2,197.5 |
2,083.2 |
-5.2% |
| Profit before provisions and taxes |
2,027.9 |
2,431.9 |
19.9% |
In the first quarter of 2024, net interest income recorded an 18.6% increase compared to the same period of 2023. The net interest income of two thirds of the banks has grown over this period.
Net fee and commission income increased by 4.8% year-on-year. This increase concerns 59% of the banks and more specifically banks providing wealth management services for private and institutional customers. The increase is mainly due to a rise of 4.5% of the average value of the assets managed by the investment funds in the first quarter of 2024 compared to the first quarter of 2023.
Other net income, which includes different elements that are by nature very volatile and generally non-recurring, declined by 52.4%.
General expenses recorded a 5.2% decrease compared to the same period of 2023. The decrease is primarily attributable to the contributions of Luxembourg banks to the Single Resolution Fund. As it reached its minimum target level of 1% of the covered deposits of all the credit institutions of the Banking Union in 2023, no contribution is requested in 2024. Staff costs increased by 5% as a result of three rounds of wage indexation in 2023.
The above-mentioned developments led to a cost-to-income ratio amounting to 46%, against 52% in the first quarter of 2023. As at 31 March 2024, among the 117 banks in Luxembourg, 10 registered a net loss.
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.