Composition of regulatory capital and the TLAC

CCA: Main features of regulatory capital instruments and of other TLAC-eligible instruments

Amounts in millions Swiss francs

ISIN

Par values 31.12.2025

Common Equity Tier 1 (CET1)

Share capital

CH125 293 0610

183.5

Additional Tier 1 (AT1)

Subordinated Additional Tier 1 bond

CH047 507 0238

250.0

Subordinated Additional Tier 1 bond

CH048 526 1355

360.0

Subordinated Additional Tier 1 bond

CH059 785 7785

200.0

Subordinated Additional Tier 1 bond

CH140 547 2155

150.0

Tier 2 capital (T2)

Subordinated Tier 2 bond

CH111 224 6744

400.0

Subordinated Tier 2 bond

CH145 239 6513

200.0

The table ‘CCA: Main features of regulatory capital instruments and of other TLAC-eligible instruments is disclosed separately at lukb.ch/aktie-kapitalmarkt under ‘Capital instruments’.

CC1: Composition of regulatory capital

a

b

Amounts in millions Swiss francs

31.12.2025

References1)

Common equity (CET1)

1

Issued and paid-in capital, fully eligible

183.5

B

2

Retained earnings reserves, including reserves for general banking risks / profit (loss) carry forwards and profit (loss) for the period

3,425.0

C

3

Capital reserves and foreign currency translation reserve (+/-) and other reserves

487.1

D

6

Common Equity Tier 1 capital before regulatory adjustments

4,095.5

CET1: regulatory adjustments

16

Net long position in own CET1 instruments

– 4.5

E

28

Total regulatory adjustments to CET1

– 4.5

29

Common Equity Tier 1 capital (net CET1)

4,090.9

Additional Tier 1 capital (AT1)

30

Issued and paid in instruments, fully eligible

960.0

A

32

of which classified as liabilities under applicable accounting standards

960.0

36

Additional Tier 1 capital before regulatory adjustments

960.0

Additional Tier 1 capital: regulatory adjustments

37

Net long position in own AT1 instruments

– 0.3

43

Total regulatory adjustments to AT1

– 0.3

44

Additional Tier 1 capital (net AT1)

959.7

45

Tier 1 capital (net Tier 1 = net CET1 + net AT1)

5,050.6

Tier 2 capital (T2)

46

Issued and paid in instruments, fully eligible

600.0

A

50

Valuation adjustments; provisions and depreciation for prudential reasons

89.5

51

Tier 2 capital before regulatory adjustments

689.5

Tier 2 capital: regulatory adjustments

57

Total regulatory adjustments to T2

0.0

58

Tier 2 capital (net T2)

689.5

59

Regulatory capital (net T1 + net T2)

5,740.2

60

Total risk-weighted assets

27,904.3

Amounts in % of risk-weighted assets

31.12.2025

References1)

Capital ratios

61

CET1 ratio (item 29)

14.66 %

62

T1 ratio (item 45)

18.10 %

63

Regulatory capital ratio (item 59)

20.57 %

64

Institute specific CET1 buffer requirements in accordance with the Basel minimum standards (capital buffer + countercyclical buffer according to Art. 44a CAO)

2.50 %

65

of which capital buffer in accordance with Basel minimum standards

2.50 %

66

of which countercyclical buffer in accordance with the Basel minimum standards (Art. 44a CAO)

0.00 %

68

CET1 available after meeting the bank's minimum capital requirements

10.16 %

68a

CET1 total requirement target in accordance with Annex 8 of the CAO plus the countercyclical buffers according to Art. 44 and Art. 44a CAO

9.01 %

68b

of which countercyclical buffers according to Art. 44 and Art. 44a CAO

1.21 %

68c

CET1 available

14.66 %

68d

T1 total requirement in accordance with Annex 8 CAO plus the countercyclical buffers according to Art. 44 and Art. 44a CAO

10.81 %

68e

T1 available

18.10 %

68f

Total requirement for regulatory capital as per Annex 8 CAO plus the countercyclical buffers according to Art. 44 and Art. 44a CAO

13.21 %

68g

Regulatory capital available (total capital ratio)

20.57 %

Amounts in millions Swiss francs

31.12.2025

References1)

Amounts below the thresholds for deduction (before risk-weighting)2)

72

Non-qualified participations in the financial sector

24.7

73

Other qualified participations in the financial sector (CET1)

4.1

Applicable caps on the inclusion of items in T2

76

Valuation adjustments eligible in T2 in the context of the SA-BIS approach

89.5

77

Cap on inclusion of valuation adjustments in T2 in the context of the SA-BIS approach

306.8

1)The references relate to Section ‘CC2: Reconciliation of regulatory capital to the balance sheet‘. References A and B are described in Section ‘CCA: Main features of regulatory capital instruments and of other TLAC-eligible instruments‘.

2)Amounts below the threshold are subject to the normal capital requirement.

CC2: Reconciliation of regulatory capital to the balance sheet

a

b

c

Amounts in millions Swiss francs

31.12.2025

31.12.2024

References1)

Assets

Liquid assets

7,797.9

8,212.6

Amounts due from banks

658.6

346.2

Amounts due from securities financing transactions

0.0

0.0

Amounts due from clients

5,434.9

5,138.6

Mortgage loans

40,917.7

38,235.4

Trading activities

1,692.9

1,489.2

Positive replacement values of derivative financial instruments

89.6

174.4

Financial investments

5,290.1

5,153.7

Accrued income and prepaid expenses

100.7

101.0

Non-consolidated participations

28.3

29.0

Tangible fixed assets

213.8

218.5

Other assets

24.6

55.4

Capital not paid in

0.0

0.0

Total assets

62,249.1

59,154.1

Liabilities

Amounts due to banks

5,706.2

4,102.4

Amounts due to securities financing transactions

2,571.9

3,861.8

Amounts due in respect of customer deposits

30,009.6

29,101.6

Trading portfolio liabilities

55.9

88.2

Negative replacement values of derivative financial instruments

176.6

480.9

Liabilities from other financial instruments at fair value

927.7

695.2

Medium-term notes

206.2

282.5

Bonds and mortgage-backed bonds

18,053.0

16,417.1

Accrued expenses and deferred income

273.2

287.0

Other liabilities

17.2

52.3

Provisions

26.8

30.4

Total liabilities

58,024.5

55,399.3

of which subordinated liabilities eligible as Tier 2 capital (T2)

600.0

400.0

A

of which subordinated liabilities eligible as Additional Tier 1 capital (AT1)

960.0

810.0

A

Equity

Reserves for general banking risks

694.4

694.4

C

Share capital

183.5

183.5

of which eligible as CET1

183.5

183.5

B

of which eligible as AT1

0.0

0.0

3,351.4

3,186.0

C, D

Own shares

– 4.5

– 18.5

E

Total equity

4,224.6

4,045.3

1)The references relate to Section ‘CC1: Presentation of regulatory capital‘.

The regulatory scope of consolidation for the calculation of capital adequacy is identical to the scope of consolidation for the preparation of the consolidated financial statements (see the ‘Disclosures on significant shareholdings’ table in Section 8.6 ‘Shareholdings’ of the consolidated notes to the 2025 Annual Report). All significant shareholdings that are not consolidated are risk-weighted. The relevant threshold values are explained in the ‘CC1: Composition of regulatory capital’ section.