Slides
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Half-year results for 2026
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Agenda 1 In brief 2 Half-year results for 2026 3 Outlook for 2026 annual results 4 Your questions 5 Annex 2
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3 In brief
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• Moderate GDP growth of 1.1 % • Slight year-on-year rise in inflation of 0.6 % • Canton of Lucerne in above-average condition • SNB policy rate at 0 % since June 2025 • Regulatory: • Stricter requirements • Higher compliance costs • Greater FINMA influence in the banking system LUKB's market environment and management measures • Targeted management of the balance sheet and interest conditions • Adherence to the proven, very risk-conscious lending policy Market environment in 2026 LUKB management measures In brief 4
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The half-year results for 2026 in brief • Record half-year profit: consolidated profit 161.4 million Swiss francs (+7.1 %) • Rise in profitability: operating income 369.2 million Swiss francs (+6.3 %) • Increased diversification: Non-interest income +12.7 % • Zero-interest-rate environment cleverly managed: interest income +3.1 % • Efficiency kept high: 45.5 % cost-income-ratio 5 In brief
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S&P credit rating: AA+ confirmed 20242023 Rating for current liabilities Rating for non-current liabilities A-1+ AA+ A-1+ AA A-1+ AA+ 2025 6 In brief A-1+ AA+ 2026
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ESG ratings established at a high level ESG ratings for LUKB 2023 2024 2025 2026 MSCI: ESG risk1) AA AA AA AA Inrate: ESG impact2) B- B B B* Inrate: Corporate governance (zRating)3 70 72 74 74* Sustainalytics (Morningstar): ESG risk4) Medium Medium Medium Medium* ISS: ESG impact, risks & opportunities (IRO)5 Not Prime D+ Not Prime D+ Prime C Prime C* 1 Scale: AAA (best rating), AA, A, BBB, BB, B, CCC; AA rating confirmed as of 01.06.2026 2 Scale: A+ (best rating), A, A–, B+, B, B–, C+, C, C–, D+, D, D– 3) Scale from 100 points (best rating) to 1 point 4 Scale: ‘Negligible ESG risk’ (best rating), ‘Low ESG risk,’ ‘Medium ESG risk,’ ‘High ESG risk,’ ‘Severe ESG risk’ 5 Scale: A+ (best rating), A, A–, B+, B, B–, C+, C, C–, D+, D, D– 7 In brief * not yet updated in 2026
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8 Half-year results for 2026
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Active interest rate risk management cushions the SNB's low interest rate policy Comparison with the same period in the previous year • Highest net interest income ever achieved • +3.1 % versus the same period in the previous year • Net result from interest operations: 238.9 million Swiss francs Half-year results for 2026 9 Development of net result from interest operations in million Swiss francs 205.4 216.9 210.6 233.4 231.7 226.4 238.9 0 50 100 150 200 250 1HY23 2HY23 1HY24 2HY24 1HY25 2HY25 1HY26 +7.2 million Swiss francs or +3.1 % Well positioned thanks to active interest rate risk management • Positive margin development in the lending business • Active management of financial assets • Higher contribution to earnings from interest rate hedging business
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Prudent development of the lending business Development since the end of 2025 • Loans to customers as of 30.06.2026 46.7 billion Swiss francs (+0.8 %) − Mortgage loans (-0.1 %) Decline in CISA financing → growth in ordinary mortgage business (+0.6 billion Swiss francs) − Amounts due from clients (+7.2%) Half-year results for 2026 10 Development of loans to customers in billions of Swiss francs 36.0 36.6 36.8 38.2 38.8 40.9 40.9 5.1 5.1 5.7 5.1 5.3 5.4 5.8 0 10 20 30 40 50 30.06.2023 31.12.2023 30.06.2024 31.12.2024 30.06.2025 31.12.2025 30.06.2026 Mortgage loans Amounts due from clients 41.1 41.7 42.5 43.4 44.1 46.4 46.7 +0.8 % Companies with high demand for credit • Targeted use of regulatory capital to meet demand in the lending business • Strong demand for business loans thanks to the long-term commitment of the entrepreneur bank • Increased demand for Lombard loans
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Low average loan-to-value ratio for residential properties Half-year results for 2026 11 Locations of the pledged assets and loan to value in percent (as at 30.06.2026) 58.8 15.4 25.8 Lucerne Neighbouring cantons Rest of Switzerland 92.3 6.2 1.4 < = 60 % loan-to-value ratio > 60–70 % loan-to-value ratio > 70–80 % loan-to-value ratio > 80 % loan-to-value ratio (0.1 %) Locations of the pledged assets Loan to value (Ø 52.5 %)
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198 210 193 233 227 0.56% 0.55% 0.48% 0.48% 0.49% 0 50 100 150 200 250 300 31.12.2022 31.12.2023 31.12.2024 31.12.2025 30.06.2026 Impaired loans Value adjustments/provisions for default risks in % of loans to clients Quality of the lending portfolio remains high Half-year results for 2026 12 Development of impaired loans and value adjustments in million Swiss francs or % of loans to customers Conservative credit risk policy has a positive impact • Traditionally low value adjustment requirement • Value adjustment expenses unchanged in moderate range • Quality of loan portfolio very good over the years Breakdown of value adjustment portfolio • Specific value adjustments: 128.6 million Swiss francs • Value adjustments for inherent default risks: 89.6 million Swiss francs
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Strong growth in strategically key commission business and services Comparison with the same period in the previous year Result from commission business and services: 77.5 million Swiss francs (+11.1 % compared to the same period in the previous year) 13 Development of result from commission business and services in million Swiss francs 58.9 59.2 63.7 66.5 69.7 73.5 77.5 0 10 20 30 40 50 60 70 80 1HY23 2HY23 1HY24 2HY24 1HY25 2HY25 1HY26 Half-year results for 2026 Primary earnings drivers • Continuous increase in advisory and asset management mandates • Demand for specialist advice Successful funds • Above-average return on LUKB Expert funds • Fund volume increased by 12.6 % to 7.341 billion Swiss francs (compared to the end of 2025) +7.7 million Swiss francs or +11.1 %
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Desired increase in mandated client assets Compared to the end of 2025 • Client assets under management as at 30.06.2026: 43.993 billion Swiss francs (+3.3 %) − Net new money: +0.709 billion Swiss francs − Performance: +0.677 billion Swiss francs • Percentage of mandated client assets increased further by 806 million Swiss francs after adjustment for performance Half-year results for 2026 14 Development and composition of client assets under management in billions of Swiss francs Reduced cash ratios in mandates Reduction of cash ratio within mandates influences amounts due to clients Growth in the number of mandates Strong expansion in asset management and asset advisory mandates across all client segments and within all geographical target markets 37.6 37.7 38.5 39.5 40.1 42.6 44.0 0 10 20 30 40 50 30.06.2023 31.12.2023 30.06.2024 31.12.2024 30.06.2025 31.12.2025 30.06.2026 Asset management mandates Asset advisory mandates Pension provision Remainder 41.8% 43.6% +3.3 %
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36.7 22.9 36.0 20.5 40.6 35.4 45.5 0 5 10 15 20 25 30 35 40 45 50 1HY23 2HY23 1HY24 2HY24 1HY25 2HY25 1HY26 Result from trading activities: growth with unchanged risk exposure Comparison with the same period in the previous year Result from trading activities: 45.5 million Swiss francs (+12.1 % compared to the same period in the previous year) Half-year results for 2026 Development of result from trading activities in million Swiss francs 15 Trading activities • Increase in client activity in foreign exchange and foreign currency trading boosts profitability • Strong demand for structured products: revenue exceeding 1.3 billion for the first time in a single half-year Risk management • Strong portfolio hedging • Risk limits have been stable for years despite consistent expansion of activities +4.9 million Swiss francs or +12.1 %
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Other result from ordinary activities slightly up Comparison with the same period in the previous year Other result from ordinary activities: 7.3 million Swiss francs (+38.4 % compared to the same period in the previous year) Half-year results for 2026 16 Development of other result from ordinary activities in million Swiss francs 7.2 7.7 9.5 10.5 5.3 8.4 7.3 0 2 4 6 8 10 12 1HY23 2HY23 1HY24 2HY24 1HY25 2HY25 1HY26 Higher income from financial investments Disposals of equity securities from financial investments in the current financial year → Increase in compulsory hidden reserves of 4 million Swiss francs Consistent earnings from real estate • LUKB properties fully let out • Earnings from real estate unchanged at 3.9 million Swiss francs LUKB target • Generate sustainable additional income from financial assets and own properties +2.0 million Swiss francs or +38.4 %
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Income substantially increased and diversified Comparison with the same period in the previous year • Operating income +6.3 % versus the same period in the previous year • Interest operations: +7.2 million Swiss francs (+3.1 %) • Commission business: +7.7 million Swiss francs (+11.1 %) • Trading business: +4.9 million Swiss francs (+12.1 %) • Other ordinary income: +2.0 million Swiss francs (+38.4 %) Half-year results for 2026 17 Development of operating income by income component in million Swiss francs 205.4 216.9 210.6 233.4 231.7 226.4 238.9 58.9 59.2 63.7 66.5 69.7 73.5 77.536.7 22.9 36.0 20.5 40.6 35.4 45.57.2 7.7 9.5 10.5 5.3 8.4 7.3 33.4% 29.3% 34.1% 29.5% 33.3% 34.1% 35.3% 0 100 200 300 400 500 1HY23 2HY23 1HY24 2HY24 1HY25 2HY25 1HY26 Interest operations Commission business Trading business Other ordinary income Non-interest income in % 308.2 306.7 319.8 330.9 347.3 335.3 369.2 Diversification of gross income • Increase in non-interest income of 33.3 % (first half of 2025) to 35.3 % (first half of 2026) despite positive interest income development • Broad-based business model stabilises development of total income • Market-related weaknesses in one market area are compensated by strengths in other market areas
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Increase in expenses in line with strategy Comparison with the same period in the previous year • Personnel expenses: 115.6 million Swiss francs (+6.4 %) • General and administrative expenses: 49.5 million Swiss francs (+4.5 %) • Compensation for the state guarantee: 5.9 million Swiss francs (+3.5 %) 18 Development of operating expenses in million Swiss francs 95.4 97.0 101.8 107.2 108.6 109.8 115.6 38.8 41.4 41.8 45.0 47.3 49.5 49.54.9 5.2 5.4 5.4 5.7 5.5 5.9 0 50 100 150 200 1HY23 2HY23 1HY24 2HY24 1HY25 2HY25 1HY26 Personnel expenses General and administrative expenses Compensation for the state guarantee 139.1 143.6 149.0 161.7 164.8157.6 170.9 Investment in additional specialists • Increase in headcount: primarily in customer- facing special functions and in the areas of ICT/digitisation (+19.8 full-time equivalents) • Drivers of general and administrative expenses are reviewed on an ongoing basis Consistently low cost-income-ratio Cost-income-ratio of 45.5 % is well within the company's own target range (strategic objective: <50 %) Half-year results for 2026 +9.2 million Swiss francs or +5.7 %
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Highest half-year consolidated profit Half-year results for 2026 19 Development of consolidated profit in million Swiss francs 128.0 137.4 144.7 141.9 150.7 144.8 161.4 0 50 100 150 200 1HY23 2HY23 1HY24 2HY24 1HY25 2HY25 1HY26 +10.7 million Swiss francs or +7.1 %
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20 Outlook for 2026 annual results
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Assessment of market environment • LUKB expects solid economic growth of 1.2 % for 2026, with inflation expected at 0.6 %. • Inflation is expected to rise moderately towards 1.0 % in 2027. • The Swiss National Bank (SNB) is likely to leave the policy rate at 0.0 % this year. • Despite all the geopolitical adversities, the Swiss economy is performing robustly and is supported by positive domestic demand. Outlook for 2026 annual results 21
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Positive expectations for the 2026 financial year 22 Outlook for 2026 annual results Targets for 2030Targets for 2026 Consolidated profit 305 to 320 million Swiss francs* Cost-income-ratio *Increased as of August 2026 (previously > 295 million Swiss francs) > 340 million Swiss francs 6M 2026 161 million Swiss francs +0.8 % < 50 %45.5 % Net growth in lending business 3.5 to 5.5 % 2.5 to 4.0 % Net growth in asset advisory and asset management mandates (performance-adjusted) > 1.8 billion Swiss francs> 1.2 billion Swiss francs 806 million Swiss francs Non-interest income > 240 million Swiss francs > 310 million Swiss francs130 million Swiss francs
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«LUKB30»: 50 million Swiss francs for strategic projects 23 Investing and private banking • Further development of the investment business • Intensification of client support and advice • Strengthening of the EAM business Capital market • Expansion of trading/structured products • Expansion of digital asset activities AI and data • Expansion of AI competence centre • Digital financial assistance • Data-driven sales Brand and people • Brand evolution • Leadership programmes Sales of the future • Further development of the advisory centre • CX management culture Outlook for 2026 annual results Overview of strategic initiatives for 2026 to 2030
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24 Your questions
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25 Annex
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Key equity figures Key figures per share in Swiss francs 2022* 2023 2024 2025 6M 2026 Closing price (at the end of the period) 82.70 72.00 63.90 92.70 110.20 Book value (at the end of the period) 76.11 78.20 82.02 85.31 85.87 Consolidated profit/share (earnings per share, EPS) 5.34 5.38 5.81 5.97 6.52 Price-to-earnings ratio (based on net profit) 13.95 13.40 10.11 15.52 16.91 Price-to-book ratio 1.09 0.92 0.78 1.09 1.28 Total return (distribution + value change) 2.20 -7.00 -5.60 31.40 20.20 in % of prior-year closing price 2.7 % -8.5 % -7.8 % 49.1 % 21.8 % 26 *split 1:5 from April 2023 also taken into account in previous years Annex
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LUKN: Defensive stock with attractive risk-return profile 27 Annex
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Luzerner Kantonalbank AG Pilatusstrasse 12 6003 Luzern lukb.ch Luzerner Kantonalbank AG Pilatusstrasse 12 6003 Luzern lukb.ch
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Disclaimer • This document qualifies as advertising within the meaning of the Swiss Financial Services Act (FinSA). It does not constitutean offer to sell or an invitation to exchange, buy or subscribe to securities of Luzerner Kantonalbank AG in any jurisdiction, and also does not constitute a prospectus or key information document withinthe meaning of the FinSA or in any other jurisdiction. • This document does not constitute an offer to sell, or a solicitation of an offer to purchase, any securities in the United States. The securities of Luzerner Kantonalbank AG to which these materials relate have not been and will not be registered under the United States Securities Act of 1933, as amended (the «Securities Act»), and may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. There will not be a public offering of securities in the United States. • The information contained herein does not constitute an offer of securities to the public in the United Kingdom. No prospectus offering securities to the public will be published in the United Kingdom. This document is only addressed to and directed at persons in the United Kingdom who are «qualified investors» within the meaning of Article 2(e) of Regulation (EU) 2017/1129, as amended, as it forms part of retained EU law by virtue of the European Union (Withdrawal) Act 2018 (the «U.K. Prospectus Regulation»). In addition, this document is being distributed to, and is only directed at, qualified investors (i) who have professional experience in matters relating to investments falling within the definition of «investment professionals» in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the «Order»), (ii) who fall within Article 49(2)(a) to (d) of the Order or (iii) to whom it may otherwise lawfully be communicated (all such persons, together with qualified «investors» within the meaning of Article 2(e) of the U.K. ProspectusRegulation, being referred to as «relevant persons»). This announcement and the information contained herein must not be acted on or relied upon in the United Kingdom, by persons who are not relevant persons. Any investment or investment activity to which this document relates is available only to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire the same will be engaged in only with, relevant persons. • The information contained herein does not constitute an offer of securities to the public in any member state of the EuropeanEconomic Area (the «EEA») (each a «Member State»), no action has been undertaken or will be undertaken to make an offer to the public of securities requiring publication of a prospectus in any Member State. This document is only addressed to and is only directed at persons in Member States who are «qualified investors» («Qualified Investors») within the meaning of Article 2(e) of Regulation (EU) 2017/1129 (such Regulation, together with any applicable implementing measures in the relevant home Member State under such Regulation, the «Prospectus Regulation»). The information contained herein must not be acted on or relied upon in any Member State by persons who are not Qualified Investors. Any investment or investment activity to which this announcement relates is only available to, and any invitation, offer or agreement to purchase, subscribe or otherwise acquire the same will be engaged in only with, Qualified Investors. For the purpose of this paragraph, the expression «offer of securities to the public» means the communication in any form and by any means of sufficient information on the terms of the offer and the securities to be offered so as to enable the investor to decide to purchase or subscribe for the securities and the expression «Prospectus Regulation» means Regulation (EU) 2017/1129 and includes any amendments and relevant delegated regulations thereto. • This document may contain specific forward-looking statements, e.g. statements including terms like «believe», «assume», «expect», «forecast», «project», «may», «could», «might», «will» or similar expressions. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may result in a substantial divergence between the actual results, financial situation, development or performance of Luzerner Kantonalbank AG and those explicitly or implicitly presumed in these statements. Against the background of these uncertainties, readers should not rely on forward-looking statements. Luzerner Kantonalbank AG assumes no responsibility to update forward-looking statements or to adapt them to future events or developments.