Luzerner Kantonalbank (LUKN) H2 2024 earnings summary

Executive summary

• 2024 consolidated net income rose 8.0% to CHF 286.6m; business profit after tax reached a record CHF 311.6m before CHF 25m was allocated to reserves for general banking risks.

• Revenue grew 5.8% to CHF 650.5m, supported by net interest and commission income; non-interest income represented 31.8% of revenue.

• Customer loans increased 4.0% to CHF 43.403bn and customer assets grew 4.8% to CHF 39.489bn; the cost-income ratio was 46.1%.

Financial highlights

• Net interest income rose 5.1% to CHF 444.0m; commission and service income grew 10.2% to CHF 130.1m, while trading income fell 5.2% to CHF 56.5m.

• Other ordinary income increased 33.4% to CHF 19.9m; revenue growth included a CHF 31.6m gain on the sale of Fundamenta Group Holding AG’s real estate business.

• Operating expenses rose 8.4% to CHF 306.5m, including personnel costs of CHF 209.0m, up 8.7%, and other expenses of CHF 86.8m, up 8.2%.

• EPS was CHF 5.81 versus CHF 5.38 in 2023; book value per share was CHF 82.02 versus CHF 78.20.

Outlook and guidance

• 2025 consolidated net income forecast is CHF 265m–285m, assuming no unexpected and severe events; the cumulative 2021–2025 business-profit target is expected to be exceeded.

• 2025 targets include more than CHF 1bn in net new money in advisory and discretionary mandates, non-interest income above CHF 215m and credit growth of 2.00%–3.75%.

• Lower interest income from the SNB rate environment is expected to be largely offset by growth in non-interest income.

• Priorities include expanding the Luzern leadership position, selective growth across German-speaking Switzerland, cost discipline and completing LUKB25 projects.

• The 2026–2030 strategy is planned for presentation in late 2025, with digital transformation, revenue diversification and lower reliance on interest income among its priorities.