Return on assets (ROA) of the banking sector in Luxembourg 2015-2021
In 2021, the return on assets (ROA) ratio of banks in Luxembourg was 0.3 percent. This was slightly higher than in the previous yeay but still lower than in the period between 2015 and 2019. The ROA ratio is calculated by dividing a company's net, after-tax income by total assets. Financial analysts frequently apply this is a key financial indicator, as banks rely on loans and money flow as their business model. As such, it is said that even a profit of one percent could be a significant number for a bank.
