New PSF entity trends, workforce expansion, and profit insights

Deloitte Luxembourg’s 2023 PSF report reveals pivotal insights into Luxembourg's financial sector. In 2022, the number of PSF entities under CSSF supervision slightly decreased to 260, with 255 professionals subject to prudential supervision by September 2023. However, this falls just short of the 266 entities observed as of December 2021.

Despite this, the PSF workforce exhibited a robust 4.6% growth, totalling 17,514 professionals in December 2022, compared to 16,744 in December 2021. The net profit of PSF entities surged from €277 million in 2021 to €422 million in 2022. Yet, excluding an outlier, the profit would have been €252 million, reflecting a slight 9% decrease.

Notably, the net results of investment firm PSFs experienced a 33% drop for investment firms but rose by 28% for support PSFs and an impressive 180% for specialized PSFs. The combined balance sheet for specialized PSFs reached €8,892 million by December 2022.

Additionally, in the midst of changing interest rates and a shift to a younger client base, the growing democratization of finance, provides expanded investment opportunities but raises the crucial challenge of mitigating misinformation, reinforcing the need to foster client relationships and enhance financial education.

Indeed, Deloitte Luxembourg’s report encapsulates not only numerical trends but also the strategic manoeuvres employed by the financial sector to maintain a balance amidst a dynamic economic landscape.

The latest state of play, insights and opinions

Alongside detailed commentary and analysis of the trends shaping this ever-changing market—including sustainability, trends, workforce growth, and financial performance across various PSF categories.—this report provides a clear view of the different PSF types and their evolution.

Click here to see the previous editions - Professionals of the Financial Sector (PSF) in Luxembourg