METHODOLOGY

“The State of the Financial Sector 2025” report outlines the evolution of Luxembourg’s financial services sector from 2014 to 2024, focusing on employment, gross value added, tax revenues generated, and the sector’s overall contribution to the national economy. It also provides a brief overview of developments in banking, investment fund management, and insurance, highlighting key industry-level metrics over this period.

The methodology for this year’s and future editions of this report has changed, with this report now exclusively using the European Union’s standardised statistical classification of economic activities (NACE Rev. 2 codes) to define the financial sector. For the purposes of this report, Luxembourg’s financial sector is composed of the following:

Subsector
NACE Rev. 2 Codes
Computable Ratio
Banking
K64.19
100%
Investment fund management
K64.30 and K66.30
100%
Insurance
K65.11, K65.12, and K65.20
100%
Financial holding companies
K64.20
100%
Other financial services
K64.91, K64.92, K64.99, K66.11, K66.12, and K66.19
100%
Legal, audit, and consulting services supporting the financial sector
M69.10, M69.20, and M70.22
75%

NACE codes K64.11 (Central banking) as well as K66.21, K66.22 and K66.29 (covering specific auxiliary financial activities) have been excluded from the definition of financial sector. In the former case, the central bank as a public institution performs a separate function from private sector institutions, justifying the exclusion. In the latter case, these firms were excluded to avoid double counting as well as potential overlaps with non-financial services related activities.

Data pertaining to Legal, audit, and consulting services that support the financial sector have been adjusted using a ratio of 75%, reflecting the estimated proportion of their turnover attributable to clients within the financial services sector.

As all classifications and data presented in this report are based exclusively on NACE codes (NACE Rev. 2), some discrepancies may exist when compared to the previously published State of the Financial Sector in Luxembourg 2023 report, which uses a different methodology.

For further details on the definitions, methodology and sources applied in this report, please refer to Annex.