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State-owned BCEE records massive €236m profit

State-owned BCEE records massive €236m profit

by Yannick HANSEN 22.04.2022 From our online archive
2021 profit at Spuerkeess is over €100 million more than the year before
BCEE headquarters in Luxembourg City
BCEE headquarters in Luxembourg City
Photo credit: LT archive

State-owned bank BCEE recorded a €236 million profit in 2021, an increase of better than 75% compared to the previous year that allowed the Luxembourg state to pocket €40 million, the company said on Friday,

The bank that does business by the name Spuerkeess collected just under €650 million in revenues last year, an 8.7% increase and over €50 million more than 2020, the bank said.

The Luxembourg state will receive €40 million from the 2021 profit, with the rest staying in-house to bolsters its funds, BCEE said.

Some of the state-owned bank's profits came from its shareholding in "strategic participation in aviation and insurance", which contributed just under €50 million in revenues, BCEE said in a press release. The bank is one of the main shareholders in struggling airline Luxair.

BCEE also managed to recoup €31 million in provisions it made previously, according to the press release.

The 2021 profit should help the bank overcome a €3.7 million fine it received from the European Central Bank last month for consistently underestimating its ability to withstand a financial crisis.

"The ECB classified the breach as severe," the Frankfurt-based bank said in explaining why it slapped BCEE with its biggest penalty since a €5.15 million fine against Greece's Piraeus Bank in August 2019.

At the end of 2021, private clients kept deposits worth almost €37 billion at Luxembourg's state-owned bank.

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