Interest boost helps Luxembourg banks navigate challenges
The 2024 Luxembourg Banking Insights study by KPMG Luxembourg has revealed a remarkable surge in net interest income, driven primarily by the European Central Bank’s interest rate hikes.
Luxembourg banks find new growth niche
Despite a Brexit-inspired influx of banks to Luxembourg, the number of banks active in the country is dwindling. At the same time however, many of the remaining banks keep growing their revenue thanks to an increasing focus on ultra-high net worth individuals (UNHWI’s). But this success comes with a price.
Luxembourg bankers support mutualisation of finance functions
Luxembourg banks want to work together to create common standards on certain compliance-related functions, a survey by the Luxembourg Bankers’ Association ABBL among its member showed. 93% of respondents said they see such cooperation as ‘valuable for the financial services community’.
Luxembourg banks at the crossroads
“In 2018, 21 banks active [in Luxemburg] for more than three years had a cost to income ratio in excess of 100%, and there could be more this year,” CSSF director general Claude Marx said recently. As in the rest of Europe, Luxembourg’s B2C banks in particular are under diverse pressures. Some tough strategic choices are required.