In Luxembourg, the results of the Banque Commerciale au Luxembourg (Commercial Bank in Luxembourg, BCEL) are up "very sharply". 

Outstanding loans increased by 1.3% compared to the second quarter of 2022, driven by the increase in corporate loans and mortgage loans. Deposit outstandings fell by 7.2% compared to the second quarter of 2022.

At €145 million, net banking income increased sharply by 27.4% compared to the second quarter 2022. Interest income was up very sharply by 35.1% driven by the increase in outstanding loans and the good performance of margins on deposits, in particular for business customers. Commissions are down 2.1% compared to the second quarter of 2022.

Operating expenses, at €69 million, were up 5.5% compared to the second quarter 2022 in line with the support for business growth. The jaws effect is largely positive (+21.9 points).

Gross operating income, at €75 million, was up very sharply by 57.3% compared to the second quarter 2022.

At €1 million, the cost of risk is at a very low level (recovery of €3 million in the second quarter of 2022).

After allocating a third of Private Banking's profit to the Wealth Management business (IPS division), BCEL generated pre-tax profit of €73 million (€49 million in the second quarter of 2022), up very sharply by 48.5%. compared to the second quarter of 2022.

Over the first half of the year as a whole, net banking income increased very sharply by 27.0% compared to the first half of 2022 to reach €290 million. Interest income was up very sharply by 35.7% compared to the first half of 2022, in line with the growth in outstanding loans and the good performance of margins on deposits, in particular for business customers. Fees were down by 3.8% compared to the first half of 2022. At €157 million, operating expenses were up by 7.6% compared to the first half of 2022. The jaws effect was very largely positive (+19.4 points). At €2 million, the cost of risk is at a very low level (recovery of €8 million in the first half of 2022). After allocating a third of Private Banking's income to the Wealth Management business (IPS division), BCEL thus generated pre-tax income of €128 million (€89 million in the first half of 2022), a very strong increase of 43.4% compared to the first half of 2022.