The Luxembourg state savings bank, BCEE, announced a strong 2017 in press release issued on Friday 30 March 2017.
Net profits increased slightly to €240.8 million as at 31 December 2017, with banking income for the year reaching €606.9 million, up 5.8% on the previous year.
Loans and receivables to customers rose by 5.5% compared to 2016, and mortgages granted rose such that nearly 5,000 customers were able to access housing. Many of the mortgages granted were on a fixed rate basis, thus protecting clients against future rises in interest rates.
Customer deposits increased by 12.0% in comparison with December 2016 due to higher deposits from the private and public sectors.
Net interest margins decreased by 0.6% due to the context of low or even negative interest rates and variable-income securities revenue increased 5.1% due to higher dividends from certain strategic holdings.
Income from charges rose to 10.4% due to higher commissions on credit activity, as well as payment and account management operations.
On the expenditure side, fees increased by 5.5% in 2017 due to investments in strategic projects, the commissioning of the 19 Liberté building and expenses related to the increasing regulation and staff costs (in 2017, BCEE hired 76 new employees).