Evolution of the Luxembourg banking industry
Luxembourg banking insights 2023
What changed in 2022? Explore KPMG’s annual analysis of the banking market, based on statistical and annual accounts data.
Size of the Luxembourg banking industry: 2018 to 2022
Assets
Structure of banking assets (total in EUR billion)
The asset breakdown has stayed fairly stable in recent years. Overall, assets slightly increased by 0.2% in 2022 compared to 2021, with no significant changes in their structure.
Liabilities
Structure of banking liabilities (total in EUR billion)
Deposits from credit institutions and customers still represent the two main funding sources for the Luxembourg banking market. The structure of liabilities in 2022 did not significantly change compared to the previous year.
Banking performance
Banking performance outlook: income and expenses analysis
In 2022, total banking income increased by 11% compared to 2021, mainly due to the interest margin soaring by 39% while other revenues fell by 50%.
While total expenses continue their upward trajectory, the 3.3% increase in 2022 is lower than in previous years. Ongoing investments in infrastructure, restructuring, regulatory compliance and wage indexation are the primary contributors to the steady rise in other administration expenses and employee costs. This report’s banking performance indicators section sheds further light on how and why total operating costs have changed for each respective bank category.
Banking insights
Delve deep into the key trends, challenges, and opportunities shaping the banking sector in Luxembourg.
