Luzerner Kantonalbank AG

LUKN

Equity

ISIN CH1252930610 / Valor 125293061

SIX Swiss Exchange (2026-01-30)

CHF 98.40+0.31%

Luzerner Kantonalbank AG
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About company

Luzerner Kantonalbank AG (LUKB), established in 1850, is a prominent financial institution in Canton Lucerne, Switzerland, and ranks among the country's ten largest banks. As a full-service bank, LUKB provides a comprehensive range of financial services, including real estate and business financing, pension provision, and asset advisory and management. The bank is particularly recognized for its strong relationships with small and medium-sized enterprises (SMEs) in German-speaking Switzerland, bolstered by a state guarantee that enhances its credibility and trustworthiness. LUKB Expert Fondsleitung AG, a subsidiary, specializes in investment fund administration, offering services such as fund issuance and management in compliance with the Swiss Collective Investment Schemes Act. Since 2001, LUKB has operated as a joint stock company, with Canton Lucerne holding a majority stake of approximately 61 percent, while the remaining shares are publicly owned. The bank's extensive network includes 23 branches, ensuring a significant presence in the region, and it maintains a robust financial standing with a balance sheet totaling 59.46 billion Swiss Francs and equity capital exceeding 3 billion Swiss Francs.

Summarized from source with an LLMView SourceSector: Finance

Credit rating & outlook

S&P Global rates Luzerner Kantonalbank AG AA+/Stable/A‑1+ as of March 27, 2025, applying a four‑notch uplift for the extremely high likelihood of extraordinary support from the Canton of Lucerne; outlook is stable.

Capital & profitability

Very strong capitalization: S&P reports a risk‑adjusted capital (RAC) ratio ~19.1% (2024) and CET1 13.9% at year‑end 2024. Return on equity was 7.3% for 2024 (S&P calculation); S&P expects ROE ~6%–7% through 2027.

Earnings mix & costs

Operating revenues CHF 659m in 2024 with net interest income the largest component; S&P cost‑to‑income ratio 52.2% (bank reported 46% under its own measure). Management targets CIR below 50% over the cycle.

Asset quality

Sound asset quality: gross nonperforming assets ~0.1% of loans, loan‑loss provisions essentially neutral; mortgage‑dominated loan book (≈75% residential) with average LTV ~55% as of Dec. 31, 2024.

Loan growth & business risks

Customer loans grew 4.0% in 2024. Management is expanding residential real‑estate lending outside the canton and growing structured products business — diversification benefits but higher operational, litigation and concentration risks in commercial real estate and hybrids.

Funding & liquidity

Stable funding metrics: core deposits ~54% of funding base (2024) and customer loans/net deposits ~148%. Higher reliance on wholesale and hybrid instruments (short‑term wholesale ≈19.6% of funding base; hybrids ~17% of adjusted capital). Liquid assets ~19% of total assets, with capacity to withstand >12 months without market access per S&P.

Hybrids & capital structure

LUKB holds CHF 810m of AT1 instruments (recognized in capital), making hybrid capital a material share (~17%) of total adjusted capital — viewed by S&P as lower‑quality capital and a source of comparative adjustment.

Key sensitivities

Downside: weakening of ties or guarantee from the Canton of Lucerne, materially weaker canton finances, or RAC falling below ~15% could lead to negative rating actions. Upside from material improvement in standalone credit profile is considered remote in the next two years.

Summarized from source with an LLMView Source

Key figures

43.9%1Y

16.3%3Y

23.6%5Y

Performance

14.4%1Y

13.6%3Y

13.2%5Y

Volatility