Camille Fohl, board chair, and Françoise Thoma, CEO of Spuerkeess, said that 2021 was year of return to normality for the state savings bank. Photo: Spuerkeess

Camille Fohl, board chair, and Françoise Thoma, CEO of Spuerkeess, said that 2021 was year of return to normality for the state savings bank. Photo: Spuerkeess

The state savings bank Spuerkeess has announced a 74.9% increase in its result for the 2021 financial year. Its balance sheet total has increased by 6.6%. The state will receive €40m in dividends.

The five-year strategic plan , which launched in 2021, is producing its first results. This plan focused on the evolution of the commercial strategy with an emphasis on a personalised customer experience, digital transformation and the green transition.

In 2021, the bank’s total balance sheet grew by 6.6% to €53.8bn. Customer deposits also grew by 6.6% to €37bn. Loans and advances to customers rose by 4.38% to €25.2bn. Assets under management or under administration increased by 17.2% to €88.2bn.

The bank’s profitability was likewise up. Banking income rose by 8.7% to €647m, much faster than overhead costs, whose increase was limited to 6.1% to €388.3m. As a result, net income reached €236.8m (+74.9%).

“This increase in profit should be assessed in the light of the exceptional events that characterised the two financial years and the exceptional measures implemented by monetary policy in response. Notwithstanding these facts, the performance of Spuerkeess’ various business lines is reflected in the increase in interest income and commission income, and the progress made in the area of digital transformation is helping to curb the increase in overhead expenses,” , CEO of Spuerkeess, said on 22 April during a press conference.

€40m for the state

It’s a good deal for public finances: the state, Spuerkeess’s single shareholder, will receive €40m in dividends. The remainder will be used to strengthen its capital base.

At the end of 2021, the Superkeess had €5.1bn in equity (+18.8%) and an equity ratio of 22.1%. This should reassure the rating agencies. Standard & Poor’s confirmed its AA+ rating and assigned an Aa2 long term deposit rating with a stable outlook.

Among the highlights of the year, Romain Wehles, executive vice president and member of the executive committee, mentioned the creation of a team dedicated to the handover of businesses. “Indeed, various statistics show that many companies will be handed down in the coming years and it appears that SMEs often lack support in this crucial phase of their lifecycle. This is why we have given ourselves the means to provide assistance to sellers and buyers through close support by a team specialised in this area.”

He said the move was part of the bank’s overall mission to contribute to the economic and social development of the country. That mission was echoed by Thoma and , chairman of the board of directors, during Friday’s press conference.

The bank paid €42.1m to the national compartment of the Luxembourg Resolution Fund (FRL) and the Luxembourg Deposit Guarantee Fund (FGDL).

For 2022, Fohl and Thoma said they were “cautiously optimistic” about the macroeconomic consequences of the war in Ukraine and the return of inflation.

This story was first published in French by . It has been translated and edited for Delano.