Luzerner Kantonalbank (LUKB) has raised its 2024 group profit forecast to a range of 270 to 285 million Swiss francs, as announced in a statement on Friday. Previously, the institution expected results similar to the previous year (2023: 265.4 million francs).

LUKB cites improved overall earnings – particularly in investment and trading activities – and active interest rate risk management in a declining interest rate environment as reasons for the increased forecast.

Strategic Initiatives in Trading Business

«Our customers have significantly increased their wealth management and advisory mandates, as well as investments in LUKB Expert Funds in recent months,» said Daniel Salzmann, CEO of LUKB. He also noted that the bank's strategic initiatives in trading have positively impacted trading success.

Regarding past and potentially upcoming interest rate cuts, Salzmann sees LUKB as well-positioned: «Thanks to our active interest rate risk management, we have largely compensated for the Swiss National Bank's interest rate cuts. Our success in the interest business also benefits from the excellent quality of our lending portfolio and the low impairments over the years.»

The increase in the profit forecast is contingent on the absence of unexpected and severe events.