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Banking industry segmentation

Our study is based on 71 of the banks located in Luxembourg in 2023. We have categorized the banks into three distinct segments based on their primary business focus:

Private banks: These institutions specialize mainly in managing the personal finances of high net worth individuals (HNWIs). They offer a comprehensive range of financial services tailored to the unique needs of affluent clients.
Depository banks: These banks primarily provide custody services, safeguarding assets for their affiliated groups and institutional clients worldwide.
Universal banks: Universal banks cater to a broader clientele by offering deposits, business loans, payment solutions and basic investment products or a combination of all the services listed above.

Two banks that specialize in issuing covered bonds were not included in these segments due to their specific business type. Branches were also excluded from our analysis.

Breakdown by business type

In this annual analysis of the Luxembourg banking market, we focus on the performance indicators that reflect the overall trends for each banking segment.

We gathered the financial data from banks’ annual accounts as of December 2023 — 62% of the banks used LuxGAAP methodology and the remaining 38% IFRS. As these methodologies result in different levels of granularity, we standardized all indicators for both accounting schemes to provide accurate and consistent results.