Luzerner Kantonalbank (LUKN) H1 2024 earnings summary

Executive summary

• Net profit for H1 2024 reached CHF 144.7 million, up 13.1% year-over-year, with strong growth across all core and strategic business areas.

• Customer base expanded and earnings power increased despite volatile markets.

• Strategy "LUKB25" continues to deliver diversified income and a cost-income ratio below 50%.

• S&P upgraded the long-term rating to AA+ in June 2024, highlighting financial solidity.

• 2024 full-year profit guidance confirmed at CHF 270–285 million, reflecting robust operational momentum and successful strategy execution.

Financial highlights

• Total operating income rose 3.7% to CHF 319.7 million, with net interest income up 2.5% and commission income up 8.2%.

• Trading income was CHF 36.0 million, the second-best ever, down 2.1% from the previous year.

• Cost-income ratio at 45.6%, well within the strategic target of below 50%.

• CET1 ratio at 12.9% and total capital ratio at 17.4%, both above targets.

• Extraordinary gain of CHF 32.1 million from the sale of a stake in Fundamenta Group Holding AG.

Outlook and guidance

• Full-year 2024 profit guidance of CHF 270–285 million reaffirmed, even in a lower interest rate environment.

• Expects further SNB rate cuts and Swiss GDP growth of 1.6% in 2024.

• EPS expected to return to pre-capital increase levels by year-end.

• Strategy focuses on expanding market leadership in Lucerne and growth in lucrative Swiss markets.