LBBW reports slight profit increase despite higher risk provisions

Landesbank Baden-Württemberg (LBBW) reported a slight increase in profits for the first half of 2026, despite a challenging economic environment and increased risk provisioning. The bank's pre-tax profit rose by 0.43 percent to 708 million euros.

Net profit increased by 0.42 percent to 479 million euros during the same period. To account for rising insolvency rates and economic difficulties, LBBW increased its risk provisioning from 107 million to 121 million euros, primarily due to specific engagements in real estate and corporate sectors.

CEO Rainer Neske maintained the bank's annual forecast, expecting a pre-tax result of more than 1.1 billion euros for the 2026 fiscal year, which is slightly lower than the 2025 results.