The CFS Index, which tracks the state of the German financial sector on a quarterly basis, fell by 0.9 points to 107.9 points in the first quarter of 2025. This was primarily due to falling values for revenue growth and negative growth in the number of employees. The importance of Germany as a financial center is perceived as increasingly positive. A top score of 104.7 points was achieved here.
“The stability of the European financial markets relative to the USA has a positive effect on Germany’s attractiveness as a business location,” comments Prof. Dr. Andreas Hackethal, Director of the Center for Financial Studies, on the results.
The assessment of the future international importance of Germany as a financial center surpassed the neutral mark of 100 points in the first quarter of 2025, sending a clear signal at 104.7 points. In the last two years, the assessment of the financial managers surveyed had been significantly lower in some cases. Executives at financial institutions in particular are confident and, at 111.0 points, attribute growing importance to the financial center.
“The sentiment is encouraging: Germany as a financial center, led by the financial center Frankfurt, is regaining its appeal. This momentum must be exploited. In close cooperation with the city, state and federal government, we need to sustainably strengthen our competitiveness. With and in the state’s financial center cabinet, we have identified solutions for the strategic further development of the
location. Now is the time to act,” explains Oliver Behrens, President of Frankfurt Main Finance.
While sales growth is stable, growth in earnings and employee numbers fell in the first quarter of 2025
There was little movement in turnover growth across the entire financial sector in the first quarter of 2025 compared to the fourth quarter of 2024. On average, turnover growth fell by 0.9 points to 116.4 points. The index values have also only improved by a few points compared to the same quarter of the previous year – the financial institutions report 120.3 points, while the financial service providers are at 112.5 points. Turnover expectations reflect a more cautious attitude.
The biggest movement can be seen in earnings growth, with the financial institutions and service providers surveyed reporting a significant decline in data for the first quarter of 2025. The corresponding sub-index for financial institutions fell by 5.9 points to 114.4 points and is 4.7 points below the previous year’s level. The sub-index for service providers fell by 8.0 points to 106.3 points, but still marks a clear increase compared to the same quarter of the previous year (99.1 points). Expectations for earnings growth are slightly negative.
Growth in the volume of investment in product and process innovations in the financial sector is stable. Among financial institutions, it rose by 2.6 points to 111.9 points in the first quarter of 2025 and is therefore 7.4 points above the previous year’s level. Service providers reported a decline of 0.8 points to 101.6 points. They are now 1.5 points below the level of a year ago.
While there was still a slight increase in employee growth in the previous quarter, the figures in the first quarter clearly fell in line with earnings growth. The sub-index for financial institutions fell by 8.4 points to 99.2 points. The last time it fell below the neutral mark of 100 was in the second quarter of 2021. Employee growth among service providers fell by 5.5 points to 96.9 points. However, strong fluctuations are part of the usual picture in this sub-sector. For the current quarter, the sector is expecting a slight increase in employee numbers.
CFS survey
Source: CFS press release from 17.06.2025