Luxembourg Corporate Banking Revenues Hit €6.5bn in 2024, New Report Finds

On Wednesday 10 December 2025, PwC Luxembourg and the Luxembourg Bankers’ Association (ABBL) published their new Corporate & Institutional Banking Survey 2025, reporting solid 2024 results for the Grand Duchy’s corporate banking sector, with revenues reaching €6.5 billion and net profits €2.8 billion.

According to the survey, Luxembourg’s corporate and institutional banks play a central role in supporting international corporates, funds and institutional clients as Europe navigates a decade marked by geopolitical uncertainty, energy insecurity and climate pressures. The report highlights the sector’s contribution to cross-border financing, international investment flows, diversified lending and treasury services, as well as its expanding role in sustainable finance, including the funding of renewable energy, sustainable infrastructure and technological innovation.

The report offers comprehensive insights into a sector that remains a cornerstone of Luxembourg’s financial centre, describing corporate banking as agile and internationally trusted, underpinned by regulatory stability, multilingual expertise and technological sophistication.

Key findings

Sustained expansion of corporate banking revenues
Corporate banking revenues grew for the third consecutive year, reaching €6.5 billion in 2024. This expansion was driven both by higher interest rates and increased demand for financing and treasury services.

Interest income gains prominence
Interest-driven earnings rose from 72% of revenues in 2022 to 82% in 2024, reflecting global monetary tightening and inflationary conditions. Corporate banks are nevertheless seeking to diversify income streams by strengthening fee-based models.

Treasury services take the lead in revenue generation
Treasury-related activities became the leading source of revenues (€1.8 billion, 29%), followed by syndicated loans (€1.6 billion, 26%) and bilateral loans (€1.2 billion, 18%), marking a significant shift in product mix and client needs.

Net profits bounce back strongly
After a challenging 2022, net profits rebounded in 2023 and reached a record €2.8 billion in 2024, underscoring the sector’s capacity to adapt to changing market conditions.

Building in-house talent and capabilities
Corporate banking players in Luxembourg tend to retain core strategic, regulatory, compliance, risk and audit functions in-house, while outsourcing IT to access expertise and manage costs. Strengthening digital and ESG skills, alongside the pragmatic use of AI and process automation, remains essential to long-term competitiveness.

Sustainable finance on the rise
ESG-linked corporate banking continues to gain traction:
– 76% of banks offer sustainability-linked loans;
– 62% offer environmental or climate-related corporate loans;
– 45% offer preferential conditions on ESG-related corporate products.
The average share of corporate lending portfolios with ESG criteria rose from 11.9% in 2023 to 14.7% in 2024. This trend is expected to continue as the European Commission prioritises decarbonisation and sustainable finance.

According to the report, Luxembourg’s ability to attract, train and retain specialised talent will be crucial to maintaining its competitiveness in the years ahead.

Dr Daniel Zapf, Chairman of the ABBL Corporate and Institutional Banking Cluster; Deutsche Bank Luxembourg SA CEO, said: “Luxembourg’s corporate banks’ success is no accident. It is rooted in Luxembourg’s unique combination of stability, innovation, and international connectivity. But the real test lies ahead as Europe is entering a decisive decade. Against a backdrop of geopolitical uncertainty, energy insecurity, and climate urgency, the task before us is clear: to contribute to build a more secure, more digital, and greener economy.”

Hélène Lange, ABBL Head of Business Coordination, stated: “Luxembourg’s corporate banking sector still flies too often under the international radar. The industry’s expertise in cross-border finance, sustainable lending, and risk management is world-class, but the world doesn’t always know it. That is why the ABBL is intensifying its international outreach through missions, partnerships and teaming up with PwC to publish a pitchbook to promote Luxembourg’s corporate banking expertise and its role in Europe’s financial evolution.”

Julie Batsch, PwC Luxembourg Assurance Partner, Banking & Capital Markets Leader, commented: “The corporate banking landscape in Luxembourg faces a promising yet demanding outlook. As interest rates stabilise, margin compression will test institutions’ ability to maintain profitability through operational efficiency, diversified revenue streams, and deeper client engagement. The emergence of private credit as a complementary financing channel, growing opportunities in emerging markets, and the evolution toward integrated advisory services all represent pathways for continued development.”

Ryan Davis, PwC Luxembourg Advisory Partner, added: “Looking ahead, various corporate banking players 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.”

For full details, the report is available here.