Luxembourg’s banks make full profits
The increased interest rates have given the banks a leap in profits for almost two years. Last year, the Luxembourg monetary houses went well in this regard. The result before provisions and taxes amounts to 9.78 billion euros in 2024, which corresponds to an increase of 8.8 percent compared to the previous year. This is announced by the CSSF financial supervisory authority on Friday.
The bottom line is that the net is an increase of ten percent to 7.2 billion euros. As early as 2023, the credit institutions based in Luxembourg at the time achieved a net profit of 6.6 billion euros, which corresponded to an increase of 67.3 percent compared to 2022.
According to CSSF, the interest margin generated by the banks in 2024 rose by 4.4 percent compared to 2023, although interest rates dropped from the second half of 2024. 54 percent of the banks recorded an increase in their interest margin.
The commission surplus rose by 9.4 percent in the year. This increase concerned 77 percent of banks and in particular those who provide services related to asset management for private and institutional customers, including investment funds. The other net income from the money houses decreased by 16.8 percent.
The relationship between effort to yield improved to 46 percent compared to 48 percent in 2023. However, not all 115 banks at the financial center are fine: 13 of them show a negative result for 2024.
