Banking performance indicators

Luxembourg banking insights 2021

Benchmark your bank by deep-diving into balance sheet and P&L components, together with performance indicators, segmented by bank type.

In collaboration with

Luxemburger Wort

Banking industry segmentation

Our study is based on 84 banks located in Luxembourg, covering 70% of the total amount of assets in the market. We have divided these banks into four different segments based on their business type:

  • Commercial banks, that focus on deposits, corporate loans, payments and basic investment products.
  • Private banks, that manage the personal assets of high-net-worth individuals (HNWIs) by providing a wide range of wealth management services.
  • Depositary banks, that focus on custody services for their own groups and institutional clients around the world.
  • Universal banks, that provide combined services offered by the three other banking segments described above.

Three banks specialized in issuing covered bonds were not included in the four segments given their specific business. Branches are excluded from the analysis.

Breakdown by business type

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Source: KPMG study

Through this annual analysis of the Luxembourg banking market, we focus on performance indicators that reflect the overall trends observed per banking segment.

We gathered financial data as of December 2020 from the banks’ annual accounts, which were drafted using LuxGAAP methodology in 70% of the cases and IFRS in the remaining 30%. The two methodologies imply different account measurement types and a diverse level of granularity in the notes section. However, we have standardized all indicators for both accounting schemes to provide accurate and consistent results.

Regulatory classification* of the 84 banks included in our analysis

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* ECB List of Supervised Entities

Key performance indicators

A selection of key performance indicators

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Average number of employees per banking segment

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Benchmark your bank

Use the buttons below to view balance sheet and P&L components together with performance indicators by bank type.

Universal banks
Profit and loss overview

Total operating income (average in EUR million)

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Total operating costs (average in EUR million)

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Net profit (average in EUR million)

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Except for 2016 where a one-time transaction of one universal bank has been factored in, the net profit shows a stable trend during the recent years.

The Total Operating Income and Total Operating Costs have had a significant increase in the previous year, mainly due to the reclassification of one ex Depositary Bank as Universal Bank. The latter expanded the scope of the activities it provides, to further develop its business in the EEA, in direct response to the UK’s decision to leave the EU. The remaining banks in that segment are showing a stable development over the last years with no major fluctuations.

The decrease in net profit for 2020 is mainly the effect of credit provisions taken as a direct effect of the Covid 19 crisis.

Balance sheet overview

Balance sheet (in EUR billion)

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Loan-to-deposit (customer) ratio

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Depository banks
Profit and loss overview

Total operating income (average in EUR million)

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Total operating costs (average in EUR million)

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Net profit (average in EUR million)

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The decrease in total operating income as well as the decrease in total operating costs are mainly coming attributable to the three major banks in that segment that account for more than 80% of revenues and costs.

Depositary banks' net profit has decreased on average by 0.2% since last year. No major changes identified.

Balance sheet overview

Balance sheet (in EUR billion)

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Private banks
Profit and loss overview

Total operating income (average in EUR million)

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Total operating costs (average in EUR million)

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Net profit (average in EUR million)

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The Private Banking figures are heavily influenced by the restructuring of one bank with a significant impact on operating costs and net profit. Excluding this bank, the majority in this segment shows an increase in operating income, a reduction in costs and a slight increase in net profit. Net Commission Income is the main driver for the increase in total operating income and accounts now for more than 60% of revenues. It has benefited from an increased transaction volume due to the volatility of stock markets caused by the pandemic.

Balance sheet overview

Balance sheet (in EUR billion)

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Loan-to-deposit (customer) ratio

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Commercial banks
Profit and loss overview

Total operating income (average in EUR million)

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Total operating costs (average in EUR million)

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Net profit (average in EUR million)

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Within that segment two banks account for 2/3 of revenues and cost. The peak in the years 2016 to 2018 was coming from one bank that had a significantly increased interest income during that period.

The evolution from 2019 can be considered as rather stable, the decrease in total operating income and operating costs is mainly due to foreign currency effects and the inclusion of one bank that only became operational during 2020.

Balance sheet overview

Balance sheet (in EUR billion)

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Loan-to-deposit (customer) ratio

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