Luxembourg's Financial Sector Booms with Record-Breaking Bank Profits
The financial sector in the Grand Duchy is experiencing significant growth, with banks in Luxembourg reporting a pre-tax income of €5.35 billion for the first half of 2024, an increase of approximately €1 billion compared to the same period in 2023, according to the financial sector regulator CSSF.
So far in 2024, nearly all of Luxembourg's 116 banks have reported profits, with only 15 posting negative results in the first half of the year. This follows a record-breaking 2023, where net profits for the banking sector reached €6.6 billion.
Part of the positive financial performance is attributed to a reduction in general expenses. The CSSF reported a 7.2% decrease in costs from January to June 2024, with personnel expenses amounting to €1.7 billion and other expenses totaling approximately €2.2 billion—down more than 12% from the first half of 2023.
The decrease in expenses is largely due to the completion of contributions to the Single Resolution Fund, a centralised reserve designed to prevent financial sector bankruptcies. With the fund reaching its target last year, no new contributions are required in 2024.
First, please LoginComment After ~