Agefi Luxembourg - décembre 2025

Décembre 2025 15 AGEFI Luxembourg Consultance C orporate and institutional ban- king inLuxembourg recorded solid results in 2024, with sector revenues reaching €6.5 bn andnet pro- fits amounting to €2.8 bn. These results, detailed in the newly released ‘ Corporate &Institutional Banking Survey 2025 ’* by PwCLuxembourg andAssocia- tiondes Banques et Banque- ters Luxembourg (ABBL), underline the sector’s remar- kable resilience andposi- tions the sector on a solid footing to helpmeet the economic challenges fa- cing our continent. Luxembourg’s corporate banks play a pivotal role as Europe navigates a decade marked by geopolitical uncertainty, energy insecurity, and cli- mate urgency by supporting international corpo- rates, funds, and institutional clients, by facilitating complex cross-border financing, supporting inter- national investments, diversifying lending and trea- sury services, and providing sustainable finance solutions. The banks daily work help finance pro- jects in renewable energy, sustainable infrastruc- ture, and technological innovation, while supporting clients in strengthening supply chains and adapting to new environmental standards. ABBL and PwC Luxembourg third edition of the Corporate and Institutional Banking Survey offers comprehensive insights into a sector that remains a cornerstone of Luxembourg’s financial centre. The Luxembourg corporate banking sector continues to demonstrate remarkable strength and adaptability, solidifying its role at the heart of Europe’s financial landscape. Luxembourg’s banks excel at leveraging the country’s regulatory stability, multilingual ex- pertise, and technological sophistication to deliver reliable, high-value services. Its achievements reflect not only the sector’s agility and capacity to trans- form challenges into opportunities, but also the en- during trust of clients worldwide. Executive summary - Sustained expansion of corporate banking rev- enues Corporate banking revenues experienced robust growth for three years in a row, reaching a new peak of €6.5bn in 2024. This expansionwas driven both by higher interest rates and growing demand for financing and treasury services. - Interest income gains prominence Interest-driven earnings have become increasingly significant, with their share rising from 72% in 2022 to 82% in 2024, a direct result of global monetary tighteningandinflationarypressures.However,cor- poratebankingplayersareincreasinglyaimingtodi- versify their income streams by shifting towards fee-basedmodels. - Treasury services take the lead in revenue gener- ation, followedby syndicated andbilateral loans Treasury-relatedactivitieshaveovertakensyndicated lending as the top contributor to revenues, reflecting a major shift in product mix and client demand. In 2024,revenuesfromtreasuryservicesreached€1.8bn andmadeup29%ofcorporatebankingrevenues,fol- lowed by €1.6bn (26%) from syndicated loans and €1.2bn (18%) for bilateral loans. - Net profits bounce back strongly After a challenging 2022, net profits surged in 2023 and set a new record in 2024, reaching €2.8bn. This growth highlights the sector’s ability to recover and adapt to changingmarket conditions. - Building in-house talent andcapabilities Luxembourg corporate banking players tend to re- taincorefunctions(e.g.,strategic,regulatory,compli- ance, risk, audit) in-house, outsourcing IT to attract financial expertise, manage costs, and bridge skills gaps. Strengthening employees’ digital and ESG ca- pabilities is essential to long-term competitiveness and efficiency, as is the pragmatic use ofAI andpro- cess automation. - Sustainable finance on the rise CorporatebankingactivitieslinkedtoESGcriteriaare very prevalent. Over three-quarters (76%) of banks offer sustainability-linked loans, while 62%offer en- vironmental or climate-related corporate loans and 45%offerpreferentialconditionsonESG-relatedcor- porate bankingproducts.Moreover, sustainability is increasingly reflected in corporate lending, with the averagepercentageofthecorporatelendingportfolio having some ESG criteria increasing from 11.9% in 2023to14.7%in2024.Giventhatdecarbonisationand sustainability remain a key policy priority of the Eu- ropeanCommission (e.g., it is one of the three pillars of the Competitiveness Compass), this trend is ex- pected to continue in the coming years. To remain competitive, the focusmust remainonat- tracting, training, and retaining skilled professionals who candeliver specialisedexpertise anddriveLux- embourg’s financial centre forward in an evolving landscape. Dr. DanielZapfChairman (portrait),ABBL CorporateandInstitutionalBankingClus- ter; CEO - Deutsche Bank Luxembourg S.A.: “Luxembourg’s corporate banks’ successisnoaccident.ItisrootedinLux- embourg’s unique combination of sta- bility, innovation, and international connectivity. But the real test lies aheadas Europe is enteringadecisive decade. Against a backdrop of geopolitical uncertainty, energy insecurity, andclimateurgency, the task before us is clear: to contribute to build a more se- cure, more digital, and greener economy.” HélèneLange,HeadofBusi- ness Coordination - ABBL: “Luxembourg’s corporate banking sector still flies too often under the international radar. The industry’s expertise in cross-border fi- nance, sustainable lending, and risk management is world-class—buttheworlddoesn’talwaysknowit. That iswhy theABBL is intensifying its international outreach throughmissions and partnerships to pro- moteLuxembourg’scorporatebankingexpertiseand its role in Europe’s financial evolution.” Julie Batsch (portrait), Assurance Partner, Banking & Capital Markets Leader –PwC Luxembourg: “The corporate banking landscape in Luxembourg faces a promising yet demanding outlook.As inter- est rates stabilise, margin compression will test in- stitutions’ ability to maintain profitability through operational efficiency and deeper client engage- ment. The emergence of private credit as a comple- mentaryfinancing channel represents pathways for continued development.” Ryan Davis Advisory Partner - PwC Luxembourg: “Lookingahead, various corporate bankingplayers in Luxembourg expect that new entrants from major emerging markets – such as China, Brazil, Mexico and India – will set up shop in the Grand Duchy, using it as a platform to service clients from their home countries and other regions. This will further help position Luxembourg’s corporate banking sector to seize opportunities in the next phase of global economic growth.” * Full Corporate & Institutional Banking Survey 2025 on https://short.do/CzGbFJ Corporate & Institutional Banking Survey 2025 Cementing Luxembourg’s strategic positioning