The Luzerner Kantonalbank (LUKB) reported a 7.1% increase in first-half net profit to CHF 161.4 million on Tuesday, citing broad-based revenue growth and disciplined cost management.
The bank’s operating performance measure, business success, rose 6.4% to CHF 181.7 million, while total revenue grew 6.3% to CHF 369.2 million. Net interest income advanced 3.1% to CHF 238.9 million, supported by higher volumes in its core lending business. Commission and service income surged 11.1% to CHF 77.5 million, and trading income climbed 12.1% to CHF 45.5 million, benefiting from favorable market conditions and structured product activity.
Operating expenses increased 5.7% to CHF 170.9 million, with personnel costs up 6.4%. The cost-income ratio remained tight at 45.5%, unchanged from the prior-year period. Net new money inflows totaled CHF 708.8 million, while assets under management rose 3.3% to CHF 44.0 billion, driven by both client inflows and positive market performance.
Based on the strong first-half performance, LUKB raised its full-year net profit guidance to CHF 305-320 million from the previously guided CHF 295 million. The bank attributed the upward revision to better-than-expected contributions across all revenue streams and ongoing investments in business expansion and digitalization.
LUKB’s management noted that the first six months of 2026 represented a "wishful start" to its new strategic cycle, with all key performance metrics exceeding internal expectations.
