Introduction
Luzerner Kantonalbank AG (LUKB) clearly meets all regulatory requirements.
The previous year's key regulatory capital figures were calculated in accordance with the regulation applicable at the time and are therefore only comparable to a limited extent. As part of the transition to the requirements of Basel III final, LUKB has revised its calculation approach for market risk (now the standardised market risk approach – FRTB). In addition, the calculation methodology required under the regulatory requirements for operational risk has also changed.
Positive and negative replacement values of derivative financial instruments and cash collateral posted in this context are now netted on counterparty level in the balance sheet under certain conditions. For reasons of consistency, the affected balance-sheet items in this Disclosure Report are presented netted in the same way as in the Financial Report. Where applicable, any prior-year figures included have been adjusted accordingly for comparison purposes.
As at 31 December 2025 the total capital ratio amounted to 20.6 % (as at 31 December 2024: 18.5 %). This value lies within the internal LUKB target of 19.0 % to 21.0 %, which has been in force since 1 July 2025 (regulatory minimum requirement as at 31 December 2025: 13.2 %1). This also complies with the minimum requirement of 19.0 % set out in the Ownership Strategy of the Canton of Lucerne for LUKB published on 17 April 2025.
The Common Equity Tier 1 (CET1) capital ratio was 14.7 % as at 31 December 2025 (as at 31 December 2024: 13.9 %) and clearly exceeds the minimum LUKB internal ratio. With effect from 1 July 2025, the Board of Directors increased this LUKB minimum ratio to 14.0 % (regulatory minimum requirement: 9.0 %1).
The leverage ratio was 7.7 % as at 31 December 2025 (as at 31 December 2024: 7.7 %).
The average short-term liquidity ratio (LCR) for the third and fourth quarter of 2025 stood at 135.8 % and 129.7 %, respectively. The net stable funding ratio (NSFR) as at 31 December 2025 was 121.6 % (as at 30 September 2025: 120.9 %) with a minimum requirement under the Liquidity Ordinance (LiqO) of 100 % for both ratios.
This Disclosure Report complies with the information required by the ‘FINMA Ordinance on Disclosure Obligations’. Where the figures and explanations required by the ordinance are not applicable to LUKB (e.g. because either the relevant business activities are not conducted or the standards, calculation approaches and models are not used), the corresponding tables or rows in the tables are not shown. Although LUKB discloses financial information on a quarterly basis, it may limit itself to semi-annual disclosure in accordance with the ordinance. Unless stated otherwise, the figures refer to the LUKB Group.