The French banking sector recorded historically high revenues in 2024, driven by commissions and market activities, amid an economic slowdown and political uncertainties. This financial performance coexists with profound changes: a decline in loans, a rise in fraud through manipulation, and an accelerated closure of physical branches.
Record net banking income: what the non-interest revenues reveal
The Net Banking Income (NBI) of major French groups increased by 8% in 2024, reaching 158.7 billion euros according to the ACPR. This rebound follows a decline the previous year and marks a historic high.
The surprise comes from the composition of this growth. It is the commissions that drive the results, with a 5.5% increase to reach 57.7 billion euros. They now represent nearly 40% of the NBI.
Market activity revenues also rose by 6.5%, to 21.5 billion euros. This configuration illustrates the benefits of a diversified business model, where payment services, life insurance, and asset management compensate for the erosion of credit margins.
To follow banking news on News Finance, these figures published by the ACPR help explain why the profitability of French banks remains strong despite a less favorable interest rate environment.
Bank credit in France: a significant turnaround
The volume of bank loans declined in 2024. This turnaround particularly affects mortgage credit, following the sharp shock of rising rates initiated to contain inflation.
The monetary easing that began in June 2024 has started to produce effects. The production of new loans significantly picked up in the fourth quarter of 2024, particularly in the real estate segment.
This rebound remains fragile. Companies, facing an increase in bankruptcy filings, are seeking investment credit less frequently. At the same time, banks have strengthened their commitment to financing the ecological transition: the volumes of green and sustainable loans have more than quadrupled in three years, according to the French Banking Federation.
Fraud through manipulation and payment security
Fraud through manipulation is one of the major challenges of 2024 for the French banking sector. This type of fraud, distinct from technical fraud, exploits customer trust: fake bank advisor, fake executive, IBAN substitution.
According to the report from the Observatory of Payment Means Security published by the Bank of France, fraud through manipulation stabilized in 2024 after a strong increase since 2021. This stabilization does not mean a decline: the amounts diverted remain high and the techniques are becoming more sophisticated.
Instant transfers amplify the risk. Their irrevocable nature forces banks to detect fraud before validation, not after. Prevention has shifted towards cooperation with external actors outside the banking sector:
- Telecom operators participate in identifying fraudulent calls and SMS, the main entry channel for scams involving fake advisors.
- Large digital platforms collaborate to spot advertisements and online identity theft that precede fraud attempts.
- Banks strengthen their customer support systems before payment validation, with contextual alerts and confirmation delays.
This intersectoral cooperation marks a turning point in the fight against fraud, which can no longer rely solely on internal banking systems.
Closure of bank branches: reconfiguration of the territorial network
France historically had one of the densest branch networks in Europe. This network is shrinking. The closure of branches accelerated in 2024, affecting both large cities and rural areas.
In Paris, bank branches are becoming increasingly rare, a phenomenon documented in the local press. In rural areas, customers publicly denounce the closure of their local branches.
Banks are redirecting their investments towards digital channels and remote services. This transformation responds to changing usage: the majority of routine operations are now conducted online. The remaining branches are evolving towards a specialized advisory role, less frequented but with higher added value.
The question of inclusion remains. The older populations and the least connected areas are experiencing this rationalization without fully benefiting from digital alternatives. French banks emphasize their commitment to inclusion, but the pace of closures exceeds that of deploying replacement solutions in certain areas.
Financing the ecological transition and sustainable loans
French banks have positioned themselves as players in financing the ecological transition. The volumes of green and sustainable loans have more than quadrupled in three years, according to the FBF. This figure reflects both a growing demand from businesses and individuals, and a strategic reorientation of institutions.
The European regulatory context pushes in this direction. Requirements for non-financial reporting are strengthening, and banks are gradually integrating environmental criteria into their lending decisions. Non-financial performance is becoming a fully-fledged analysis axis of banking results, on par with risk costs or profitability.
The French banking sector in 2024 thus combines solid financial results with profound structural changes. The decline of traditional credit, the rise of fraud through manipulation, and the rationalization of the physical network outline a banking landscape in reconfiguration, where revenue diversification and intersectoral cooperation become the most concrete markers of adaptation.
