Banque et Caisse d'Epargne de l'Etat Luxembourg (BCEE) has issued euro medium-term notes (EMTN) for a nominal amount of €166m during the first half of 2016, down from €593m in the first half of the previous year, according to the banks interim results.
Between January and June 2016, the bank (in Luxemburgish Spuerkeess) launched structured notes worth €141m with a maturity of more than five years (2015: €71m) and €25m with a term of between two and five years (2015: €0). However, no products with a duration of less than two years were issued by BCEE during the semester, against €522m in 2015. The majority of structures issued by the bank are of the plain vanilla type.
The value of products which matured or were redeemed early during the first half of 2016 stood at €518m (2015: €950m), including €154m structured products (2015: €940m) and €25m subordinated notes (2015: €0). During the semester, BCEE did not repurchase any of its own emissions against €460m during the first half of 2015, the bank reported.
Fair value adjustments for fixed rate bonds and structured products included adjustments of €26m change in non-hedged value (credit and liquidity spread) and €417m of change in hedged value (interest rate and price) as of June 30, 2016.
BCEE has been involved in the structured products market since 1995. At the end of December 2015, the outstanding of the banks EMTN programme amounted to US$1.7bn and its products are distributed among international institutional clients.
The SRP Luxembourg database lists 10 structured products issued by BCEE.
BCEE posted a net profit of €133.5m in the first half of 2016, down 17% from the same period last year. Fee and commission income was 3.3% lower due to unfavourable market conditions for trading and asset management and lower revenue on payment operations. The bank also completed the restructuring of its house 'Lux funds' with the aim to distinguish more clearly the different investment policies and to streamline the management and administration of the range of funds.
Click the link to view the BCEE interim report 2016 (French).
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