In 2023, Spuerkeess saw its profits rise by 70.8% to €400.781m. In 2024, the bank maintained this momentum, with profit coming in at €400.37m. Net banking income increased by 9.4% to €1.171bn and whilst costs went up by 2.1% to reach €475m. This performance will allow the payment of €120m in dividends to the state shareholder, as in 2023.

These results “reflect dynamic growth in fees and interest margin, supported by proactive risk management and a robust business development strategy,” commented , the bank’s CEO since 2016.

In detail, the interest margin rose by 8.7% and commission income by 17.5% due to the dynamic development of the fund administration business, the recovery in lending activity and the favourable trend in asset management. Total assets rose by 1.5% to €57.155bn. Customer deposits rose by 5% to €42.207bn, driven by an increase in institutional, private and public deposits. The stock of loans increased by 0.8% to €27.19bn. The CET1 core capital ratio rose from 21.8% to 23.1%.

22,000 new customers

In 2024, the bank integrated more than 22.000 new individual customers, an increase of 20% compared with 2023. “A large proportion came from ING,” said Romain Wehles, executive vice-president in charge of business development, without giving any further details, citing the difficulty of keeping such a calculation due to the fact that Luxembourg customers are largely multibanked.

In corporate banking, Spuerkeess recorded 1,200 new entrants in relations with companies. In institutional banking, 442 new relationships were recorded, mainly in the investment fund sector.

Mortgage business up 39%

Spuerkeess benefited from the interest rate cuts initiated by the European Central Bank (ECB), which boosted mortgage lending at the end of the year.

The bank granted 4,500 new mortgage loans, a 39% increase in activity that was concentrated in the fourth quarter of 2024. This trend is set to continue in 2025. At the end of 2024, outstanding mortgage loans totalled €17bn, said , executive vice president and chief financial officer. However, in view of the continuing sluggish activity on the VEFA property market (sale in future state of completion, or vente en l’état futur d'achèvement), the bank has made a provision of €196.2m.

As far as retail customer insolvencies are concerned, they do not appear to be higher than the historical average. Spuerkeess stresses the efforts made to provide individual support to retail customers who may be in difficulty.

The Caritas threat

The other risk threatening the bank is the follow-up to the Caritas affair. The bank’s management, led by Thoma, will appear before the special parliamentary committee on 5 May. “In the context of the Caritas affair, Spuerkeess, as the association’s reference bank, continues to participate actively in the ongoing investigations by various authorities. The aim is to clarify the circumstances that may have led to the misappropriation of funds via payment transactions and the provision of funds, thereby jeopardising the continuity of Caritas’ activities,” reads the annual report. We won’t know any more today.

At the end of 2024, Spuerkeess employed 1,950 staff, an increase of 2%.

This article was originally published in .