After in late March and in early April, it’s now the turn of the state savings bank Spuerkeess to announce its 2023 annual results. Despite the “uncertain” economic environment, Spuerkeess’ commercial activities have been resilient, the bank said in a press release published on 24 April 2024.
Its banking income has grown by a “remarkable” 42%, climbing from €753m in 2022 to €1.07bn in 2023. “This performance is attributed to an improved interest margin and the good performance of financial instruments,” noted the press release. “The net interest margin increased by 59.2%, reflecting customer expansion and the positive impact of rising interest rates.”
“Although reduced demand for home loans led to a decline in fees, revenues from payment activities and fund administration fees offset this decrease,” said Spuerkeess. “Income from participations increased by 17.8%, supported by substantial dividends from certain participations, and the result on financial instruments increased significantly, from €16.4m in 2022 to €42.6m in 2023.”
Net income went up by 70.8%, increasing from €234.7m in 2022 to reach €400.8m in 2023. The communiqué added that €120m will be distributed to the Luxembourg state.
General fees went up by 9.5% (from €424.7m in 2022 to €465.2m in 2023), mostly due to salary increases and the integration of 149 new staff members.
The bank also paid €35m to the deposit guarantee and resolution systems to strengthen the financial security of banks in the EU. Spuerkeess has also strengthened its provisions against credit risk (with €133.8m) to protect against possible future defaults.
Its balance sheet as of 31 December 2023 stood at €56.32bn.
“Thanks to our prudent approach in a difficult geopolitical and economic context, we have been able to demonstrate resilience,” commented , CEO of Spuerkeess. “We remain determined to continue our commitment to our customers, employees and partners for years to come.”
Growth in retail and private banking
Spuerkeess recorded net growth of 1.35% in terms of the number of customers and 4.2% in volume of assets. “The stability of outstanding real estate loans contrasts with the slowdown in the production of new loans, attributable to clients having postponed or canceled their real estate projects in the face of market uncertainties,” said the press release. That being said, Spuerkeess did grant 2,450 real estate loans in 2023.
The bank has also opened two new agencies in Rédange and Differdange (in 2024), the communiqué noted.
Spuerkeess’ private banking activities saw an 11.6% growth in total assets under management.
Corporate banking
“The decline in the real estate sector, faced with the contraction in demand for housing, has had repercussions on the construction and craft sectors, impacting order books,” said Spuerkeess. Despite an overall drop in demand, outstanding credits increased by 8.6%.
Institutional clients: over €100bn entrusted to Spuerkeess
“In 2023, the total assets entrusted to Spuerkeess exceeded €100bn, recording an increase of 10%,” noted the bank. “This increase is mainly due to the growth of investment funds, in particular the activity of private equity funds.”