Deloitte: Professionals of Financial Sector Remains Resilient despite Turbulent Times

Deloitte Luxembourg has published its eleventh annual whitepaper, "Outlook and future of a persistent sector in turbulent times", which provides a detailed analysis of the Professionals of the Financial Sector (PSF).

This analysis has demonstrated the robustness of the field in spite of a slight decrease in the number of entities and employees in recent years. At the end of September 2020, PSF accounted for 270 entities, with 16,000 professionals employed as of August 2020. 

In recent years, and even more so in recent months, PSF has adapted to several regulatory changes, continuously developing and improving so as to remain viable. In adjusting to new regulations and constraints imposed by the COVID-19 pandemic and in seeking to stay ahead of the curve, many players in the industry have reimagined their service offerings and business delivery models, leveraging opportunities offered by new technologies and digitalisation.

“Luxembourg, as a global financial hub, has a reputation for quality services among clients. This reputation is due in part to the expertise of the PSF sector in the Grand Duchy. Expertise allows for PSFs to focus on their core businesses and is of particular import in light of the constant evolution of the global regulatory and technological environment. A strong PSF must be able to anticipate and adapt to the needs of tomorrow,” explained Adil Sebbar, Audit Director at Deloitte Luxembourg. “In these challenging times, it is crucial that PSF invest in new talent, talent retention and digitalization, in order to reinforce the strength and agility of the market”.

Despite the drop in the number of employees in the PSF sector from the end of 2019 to 30 September 2020, the sector continues to represent 35% of the employees working in Luxembourg’s financial sector. The sum of the balance sheets of all PSF amounted to €9 billion as of 31 December 2019, which remains stable when compared to the end of 2018. According to data issued by the Commission de Surveillance du Secteur Financier (CSSF), as of 30 September 2020, PSF had a provisional net profit of €174 million (investments firms and specialised PSF accounting for €75 million and €62 million respectively). 

Raphael Charlier, Audit Partner and PSF Leader at Deloitte Luxembourg, noted: “In 2020, not unlike other business sectors, PSF have experienced unexpected disruption due to the COVID-19 pandemic. This being said, PSF have shown noteworthy resilience. The sector has successfully implemented the measures recommended by the CSSF, all the while remaining consistent and showing limited setbacks in their results at the end of 2020. This grit and determination demonstrates a strong basis for future growth and development”. 

The full version of the whitepaper is available in English at: www.deloitte.com/lu/psf.