On Friday 25 April 2025, Spuerkeess (Banque et Caisse d'Épargne de l'État) presented its financial results for 2024.
Spuerkeess stated that 2024 was marked by challenges and opportunities in an uncertain global economic context, but it leveraged its strategy and adaptation to change to deliver solid financial results and strengthen its position in the Luxembourg market.
The bank added that it recorded a significant increase in its banking income, reaching €1,171.8 million, an increase of 9.4% compared to the previous year. This performance reflected the dynamic growth in fees and commissions and the interest margin, supported by proactive risk management and a robust business development strategy. For the 2024 financial year, Spuerkeess posted a net profit of €400.4 million, equivalent to the 2023 financial year which enabled it to offer its owner, the Luxembourg State, a dividend payment of €120 million.
In 2024, Spuerkeess demonstrated its commitment to its customers by passing on market conditions to its interest rates, making variable-rate loans more affordable. This impact of the lower interest rates allowed many customers to benefit from advantageous financing conditions.
With more than 4,500 new housing applications, mortgage lending activity saw a sharp rebound in loan production, particularly in the fourth quarter. The bank accelerated the onboarding of more than 22,000 new customers, representing an increase of more than 20% compared to 2023. This growth reflected the socio-professional and demographic characteristics of the national population. The bank emphasised that it is continually investing to digitise and simplify access to its banking services and products.
Regarding Spuerkeess's active support for the country's economic development, several flagship projects stood out:
- arrangement and financing of the "Skypark" project in Findel, incorporating sustainability principles with green roofs and energy-efficient features;
- co-financing of the new CFL headquarters, incorporating considerations for the circular economy and the use of advanced technologies;
- co-financing of the new building of the Centre Hospitalier du Luxembourg (CHL), with a capacity of 54,158 m², incorporating technical and digital innovations for sustainability;
- financing business transfers, with an investment of over €80 million, thus supporting the continuity and growth of local businesses.
The bank also stated that it provided significant support to local authorities by financing the construction of numerous new educational, sports and recreational facilities, as well as affordable housing throughout the country. It also reported financing the creation of new primary schools, halfway houses and social housing.
Spuerkeess launched its "Transition Enabler" programme in early 2025 to support customers in their energy transition, by providing them with tools to meet future regulatory and economic challenges related to sustainability.
The bank added that it played a key role in financing environmentally friendly mobility solutions by supporting companies in their decarbonisation efforts and by offering tailored solutions for financing electric vehicles, particularly cars and buses. This included leasing and loan financing at preferential terms.
The bank declared that as a responsible financial player, it attached importance to the development of renewable energies, namely solar farms, onshore wind turbines, biomass and energy networks.
As of 31 December 2024, Spuerkeess's workforce stood at 1,950 employees, an increase of 2%. In 2024, the bank recruited 134 new staff members whose training and professional experience provided essential support to the teams in all areas. In 2024, a total of 82,000 hours of training, or an average of 42 hours per employee, were organised to ensure professional skills that meet the requirements of customers and demonstrate commitment to the development and growth of employees.
According to Spuerkeess, its 2024 performance was mainly driven by the interest margin and the dynamic growth in commissions, thanks to commercial development. The interest margin increased by 8.7% and the commission income increased by 17.5% due to the dynamic development of fund administration activities, the recovery in credit activity and the favourable performance of asset management. Income from investments amounted to €88.5 million, an increase of 14.6% compared to the previous financial year, due to higher dividends received from certain strategic investments.
The balance sheet totalled €57,155.3 million as of 31 December 2024, an increase of €831.1 million compared to 31 December 2023. Customer deposits totalled €42,207.1 million, an increase of €2,064.2 million compared to 31 December 2023, mainly due to the increase in institutional, private and public deposits.
The bank reported that economic environment remained uncertain, with, on the one hand, a certain recovery in activity in the mortgage loan portfolio, but, on the other hand, VEFA (Sale in Future State of Completion) activity remaining slow and impacting the real estate development financing portfolio. The bank protected itself against this risk by recording value adjustments and other provisions amounting to €196.2 million, compared to a net provision of €133.8 million recorded in 2023. The cost of risk amounted to 31 bps compared to 22 bps and thus had a significant influence on the Bank's earnings in 2024.
International rating agencies maintained the very high ratings assigned to Spuerkeess, namely Standard & Poor's (AA+) and Moody's (Aa2).
Spuerkeess announced that it is currently developing its strategic plan for 2030 to meet new challenges and best meet its customers' expectations, while ensuring regulatory compliance and optimising processes and procedures. Particular emphasis is placed on supporting clients and digital transformation, aimed at modernising its commercial and operational services and thus providing an optimised customer experience. This strategy includes the integration of innovative technologies, improving data security and operational resilience, as well as customising offerings to better meet the individual needs of each client.
