The Luzerner Kantonalbank (LUKB) reported a first-half 2026 net profit of CHF 161.4 million, up 7.1% from the prior-year period and marking the highest half-year result in the bank’s history. Net profit growth was driven by a 11.1% increase in commission and services income to CHF 77.5 million, while net interest income rose 3.1% to CHF 238.9 million despite a challenging rate environment.
Lending growth slowed sharply to 0.8% in the first half, bringing total loans to CHF 46.72 billion. Mortgage claims were essentially flat at CHF 40.89 billion, as the bank deliberately reduced real-estate lending to highly price-sensitive corporate borrowers by nearly CHF 600 million. The freed-up capital is being redeployed toward higher-yielding client segments.
Assets under management increased 3.3% to CHF 43.99 billion at end-June, up CHF 1.39 billion from year-end 2025. Net new money totaled CHF 709 million, while market appreciation contributed CHF 677 million. Trading income rose 12.1% to CHF 45.5 million, with structured products benefiting from calmer markets in the second quarter.
Total operating income grew 6.3% to CHF 369.2 million, while operating expenses increased 5.7% to CHF 170.9 million. Personnel costs rose 6.4% to CHF 115.6 million, reflecting a 3% increase in average headcount to 1,215.5 full-time equivalents as LUKB expands to meet its goal of ranking among Switzerland’s top five universal banks by 2030.
The cost-to-income ratio remained low at 45.5%. LUKB also raised its full-year 2026 guidance, targeting net profit of CHF 305-320 million, up from a prior minimum of CHF 295 million. CEO Daniel Salzmann cautioned that the second half may be softer due to seasonally lower dividend income, limited scope for further margin expansion and continued investment in technical infrastructure.
The bank reaffirmed its long-term targets under the LUKB30 strategy, aiming for net profit exceeding CHF 340 million and non-interest income above CHF 310 million by 2030.
