LBBW Shows Resilience and Sustained Growth in Challenging Economic Environment
Stuttgart, Germany – On Wednesday, 27th of August 2025, LBBW, one of the largest banks in Germany, announced its half-year results for 2025. The bank reported a strong operating profit before taxes, excluding integration costs from Berlin Hyp, of €759 million, a 4 percent increase from the previous year (€731 million). The pre-tax profit, including integration effects, was €705 million, only slightly below the previous year’s figure.
CEO Rainer Neske expressed his satisfaction with the results, stating, “The half-year result shows that LBBW is strategically well positioned, high-performing, and resilient. With Berlin Hyp now a part of our universal bank, we have strengthened our market position and created the leading CRE competence center. We understand our customers’ needs and have the financial strength to support them as a reliable partner, even in difficult times.”
The increase in profit was due to a strong core operating business with rising income and a stable risk situation, with slightly declining allowances for losses on loans and securities. All four operating segments of the bank achieved a profit in the three-digit million range, showcasing the balance of LBBW’s universal banking model.
Group income rose by 3 percent to €2.12 billion, driven by a 9 percent increase in net fee and commission income. However, expenses also increased by 4 percent to €1.31 billion, including €54 million in integration effects from Berlin Hyp. Excluding these effects, expenses stood at €1.26 billion, mainly due to investments in IT development, collective bargaining, and salary effects. The bank also saw an increase in contributions to the protection schemes of the S-Finanzgruppe.
Despite the challenging economic environment, the bank’s risk position remained stable, with allowances for losses on loans and securities slightly below the previous year at €107 million. The non-performing exposure (NPE) ratio remained low at 0.6 percent, reflecting the consistently high quality of the bank’s portfolio.
LBBW’s Common Equity Tier 1 ratio under CRR III stood at a comfortable 16.6 percent, a significant increase from the previous year’s 14.6 percent.
The bank’s four operating segments, Corporate Customers, Real Estate/Project Finance, Capital Markets, and Private Customers/Savings Banks, all achieved a pre-tax profit in the three-digit million range. CEO Rainer Neske reaffirmed the bank’s pre-tax earnings target of over €1 billion for the full year.
About LBBW
LBBW is a mittelstand-minded universal bank and a central institution for the savings banks in Baden-Württemberg, Saxony, and Rhineland-Palatinate. With total assets of €356 billion and around 10,800 employees, LBBW is one of the largest banks in Germany. Its core activities include business with corporate customers, especially SMEs, and business with private customers and savings banks. To support its customers, LBBW has a strong presence in 15 countries worldwide. The bank also offers a range of specialized services through its subsidiaries.
Contact:
LBBW
Angela Brötel
Mobile: +49 175 776 08 26
E-mail: Angela.Broetel@LBBW.de
Website: https://www.LBBW.de/en
LBBW
Christian Potthoff
Mobile: +49 151 14 65 90 43
E-mail: Christian.Potthoff@lbbw.de
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