Luzerner Kantonalbank (LUKN) H1 2025 earnings summary

Executive summary

• Record H1 business income of CHF 347.4m, up 8.7% YoY, and consolidated net income of CHF 150.7m, up 4.1%.

• Strong growth in commission, service and trading income, alongside continued expansion in customer assets and lending.

• Managed customer assets reached CHF 40.096bn; net new money was CHF 463m and performance contributed CHF 144m.

• 2021–25 strategic financial targets are expected to be met or exceeded.

Financial highlights

• Net interest income rose 10.1% to CHF 231.7m; commission and service income increased 9.6% to CHF 69.7m, and trading income grew 13.0% to CHF 40.6m.

• Consolidated net income was CHF 150.7m, up 4.1%; EPS was CHF 6.10 for 6M 2025.

• Other ordinary income fell 44.2% to CHF 5.3m, reflecting lower financial-asset disposals; hidden reserves increased CHF 8.3m.

• Cost-income ratio was 45.9%, below the 50% strategic maximum.

• Customer loans totaled CHF 44.1bn, up 1.6%; mortgages rose 1.5% and other customer loans 1.8%.

Outlook and guidance

• FY 2025 consolidated net income is forecast at CHF 265–285m, with results expected in the upper half of the range, barring unforeseen events.

• FY 2025 targets: >CHF 1bn net new money in mandated investment business, >CHF 215m non-interest income and 2.00%–3.75% loan growth; H1 progress was CHF 636m, CHF 116m and 1.6%, respectively.

• Lower net interest income is expected to be largely offset by further non-interest income growth; lending growth will reflect Basel III final requirements.

• The 2021–25 cumulative net income target of CHF 1.260–1.330bn is expected to be slightly exceeded; new 2026–30 priorities will be announced in November 2025.