Luzerner Kantonalbank (LUKN) H2 2025 earnings summary

Executive summary

• Achieved record consolidated profit of CHF 295.5 million in 2025, up 3.1% year-over-year, with all strategic financial targets for 2021–2025 exceeded.

• Growth targets for new money in mandates, non-interest income, and lending were exceeded, with client assets under management rising 7.9% to CHF 42.6 billion.

• Broad-based growth across interest, commission, and trading income, despite a zero-interest-rate environment and volatile markets.

• Proposed gross distribution per share increased to CHF 2.70, with a 45.2% payout ratio and over CHF 100 million distributed to the canton of Lucerne.

Financial highlights

• Operating income grew 6.2% year-over-year to CHF 691.0 million.

• Net interest income reached CHF 458.1 million (+3.2%), commission income CHF 143.2 million (+10.1%), and trading income CHF 76.0 million (+34.5%).

• Non-interest income totaled CHF 232.9 million, exceeding the CHF 215 million target.

• Operating expenses rose 6.5% to CHF 326.4 million, with personnel expenses up 4.5% and general/admin expenses up 11.5%.

• Loans to clients increased 6.9% to CHF 46.4 billion, with mortgage loans up 7.0%.

Outlook and guidance

• For 2026, targets include consolidated profit of at least CHF 295 million, non-interest income of at least CHF 240 million, lending growth of 3.5–5.5%, and net growth in mandates of at least CHF 1.2 billion.

• Strategic investments of CHF 50 million planned for 2026–2030 to drive digitalisation, advisory, and specialty business.

• Long-term ambition to be among the top five full-service banks in Switzerland by 2030, with a consolidated profit target over CHF 340 million.

• Cost-income ratio cap remains at 50%.