No, Luzerner Kantonalbank cannot and is not satisfied with the share price. The securities have been trending downward for quite some time. This has sparked discussions even among shareholders, and now politics has also become involved; finews.com reported on it.

The bank is not willing to accept this development as it is, as Lukb’s Chief Financial Officer made clear in an interview with the «Luzerner Zeitung» (paywalled article). «For about a year now, we have been intensifying dialogue with institutional investors such as pension funds to better explain our business,» he says. Although progress has been made, Hurschler does not consider the matter resolved. «We are not yet where we want to be. It is a task that requires a lot of perseverance from us,» he emphasizes. 

Luzerner Kantonalbank is not alone with this problem. There is currently general pressure on the stock market on shares of domestically focused banks. «Because interest rates are falling, this is raising concerns among some investors. They likely expect lower revenues for banks,» says Hurschler. He also points to adjustments in various indices. These result in larger companies' shares gaining more weight, while smaller ones tend to lose weight. «We are in the same boat as comparable regional and cantonal banks,» he says.

To support the share price, Luzerner Kantonalbank could buy back its own shares. The dividend could also be increased. This is decided by the Board of Directors, says Hurschler, emphasizing: «Basically, it can be said that the level of the dividend does not have a sustainable impact on the share price. Studies have shown this. With the current dividend of 2,50 francs and a dividend yield of 4 percent, our shares are very attractive.»