The CFS Index, which quarterly reflects the state of the German financial sector, rose by 2.4 points to 108.4 in the third quarter of 2025. This marks a level that has been reached repeatedly since 2022, but rarely exceeded. In the quarter under review, financial institutions can take satisfaction in the fact that revenue and earnings growth increased significantly compared with the previous year.
“In the industry’s self-assessment, opportunities and risks are evenly balanced.”, 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 stood at 100.7 points in the third quarter of 2025, placing it only slightly above the neutral benchmark of 100.0. Nevertheless, it is noteworthy that this figure is 9.4 points higher than in the third quarter of the previous year.
The industry expressed its highest expectations regarding the importance of the German financial center in the second quarter of 2017, when the index reached 138.7 points. Since then, assessments have declined steadily and, since mid-2023, have fluctuated between 90 and 100 points.
“Frankfurt is the leading financial center of the EU and will continue to gain international importance. Especially in times as challenging as these, a strong financial center is of central importance. Only in this way can we meet the tasks ahead of us—from restoring defense capabilities and securing a sustainably viable pension system to achieving digital sovereignty. In this regard, the government has initiated key elements, giving us reason for confidence.” explains Oliver Behrens, President of Frankfurt Main Finance.
When it comes to revenue and earnings growth, financial institutions are the clear frontrunners in the third quarter of 2025.
Overall revenue growth in the financial sector increased by 5.0 points to 114.3 in the third quarter of 2025. Financial institutions in particular recorded strong gains, with an increase of 11.3 points compared to the same quarter of the previous year, reaching 121.5 points—one of the best results in the history of the index. Service providers showed revenue growth of 5.9 points compared to the second quarter of 2025; however, on a year-on-year basis, growth rose only moderately to 107.0 points.
Earnings growth across the entire sector rose by 5.9 points to 113.3. Compared with the same quarter of the previous year, this represents a significant increase of 11.5 points for financial institutions, bringing their index value to 120.8. Service companies, by contrast, recorded only a slight increase of 1.5 points, reaching 105.8, just above the previous year’s level.
Neither in revenue nor in earnings growth do financial institutions expect their current strong momentum to continue. The expectations of service providers largely correspond to the development observed in the current quarter.
Financial service providers are increasingly hiring staff and expect rising investments
Among financial institutions, employee growth remains largely stable. In contrast, service providers show a clear upward trend over the course of this year, with an increase of 8.8 points since a low in the third quarter of the previous year. Nevertheless, this sub-index for service providers stands at only 102.3 points, while the industry-wide average is 103.6 points.
Investment growth in product and process innovations among financial institutions recorded a slight decline of 1.4 points to 109.0, broadly in line with figures from recent quarters and reflected in similarly cautious expectations for the coming quarters. By contrast, investment growth among financial service providers increased by 4.8 points to 105.8, with expectations remaining unchanged for the next quarter.
General methodology of index calculation
The CFS Index is based on a quarterly management survey of Germany as a financial center. The index aggregates qualitative assessments of key business indicators—“revenues or business volume,” “earnings situation,” “number of employees,” and “investments”—for both the most recently completed quarter (“performance”) and the current quarter (“outlook”).
By design, the index ranges from a minimum value of 50 to a maximum value of 150, with a value of 100 indicating a neutral sentiment. The survey is a panel-based study conducted among companies and institutions in the financial industry. Panel participants are divided into the sectors “financial institutions” and “service providers” at the financial center, with the latter group defined very broadly.
CFS – Short Profile
The Center for Financial Studies (CFS) conducts independent and internationally oriented research across all key areas of financial markets, financial institutions, and monetary economics. Its research spans topics ranging from financial stability and banking regulation to securities trading and valuation in financial markets, household portfolio decisions, as well as the law and economics of financial organizations, monetary policy, and the economics of financial markets.
Drawing on insights from its research areas, the CFS contributes to policy debates and analysis. For its research projects and policy advisory work, the CFS relies on a network of academics and experts from the financial industry and central banks, both within and beyond Europe.
Source: CFS press release dated 18 December 2025