Evolution of the Luxembourg banking industry

What changed in 2024? Explore KPMG’s annual analysis of the banking market, based on statistical and annual accounts data.

What changed in 2024? Explore KPMG’s annual analysis of the banking market...

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Size of the Luxembourg banking industry: 2020 to 2024

Source: CSSF and BCL

Assets

Structure of banking assets (total in EUR billion)

Source: CSSF

The breakdown of assets has remained quite stable over the last years. The overall assets increased slightly by 0,9% in 2024 compared to last year with no significant changes in the structure of those assets.

Libiaties

Structure of banking liabilities (total in EUR billion)

Source: CSSF

Deposits from credit institutions and customers remain the two main sources of funding for the Luxembourg banking market. No significant change in the structure of liabilities was observed in 2024 compared to the last year.

Banking performance

Banking performance: income and expenses analysis

Source: CSSF

In 2024, the total banking income experienced a 5 % increase compared to the previous year. This notable growth was primarily driven by an increase in the commission income by 9,4% which is in line with the overall increase in Assets under Custody by 7,9% in 2024 compared to 2023.

Source: CSSF

Total expenses have stopped their upward trend which was observable in recent years. Banks are still investing in infrastructure, restructuring efforts, and regulatory compliance initiatives, but on the other side no further contribution was required for the Single Resolution Fund during 2024 which was overall leading to the same level of costs compared to last year. For a comprehensive analysis of the changes in total operating costs across different categories, please refer to the banking performance indicators section of this report.