Letter from the Board of Directors

Dear Shareholders
Dear Readers

We are pleased to present the 2025 Compensation Report of Luzerner Kantonalbank AG (LUKB).

Thanks to the growth in client business and targeted balance sheet management measures, LUKB generated consolidated profit of 295.5 million Swiss francs in 2025 in an environment shaped by falling interest rates. This represents a year-on-year increase of 8.9 million Swiss francs or 3.1 %. LUKB met or exceeded all quantitative targets set out in the ‘LUKB25‘ strategy (cumulative net profit).

We are continuing our longstanding transparent reporting on compensation systems and the amounts paid out with this Compensation Report. Among other things, the report shows you how we implemented the proposal for the compensation of the members of the Board of Directors and Executive Board approved by shareholders at the 2025 Annual General Meeting and which compensation proposals you will be able to vote on at this year's Annual General Meeting on 13 April 2026.

In addition to the various tasks in connection with the general compensation of employees and the compensation of the members of the Board of Directors and the Executive Board, the Nomination and Compensation Committee also dealt with other topics in its area of responsibility in 2025. The focus was on the development of the new 2026–2030 functional strategy for Human Resources (HR) and the review of the compensation system on the one hand, and on succession planning at Board of Director and Executive Board level on the other. Priority was given to finding a new member of the Board of Directors and appointing a new head of the Private Banking & Corporate Clients department.

Thank you for your interest in our Compensation Report and for placing your trust in Luzerner Kantonalbank.

Yours sincerely

Markus Hongler

Chair of the Board of Directors

Dr Martha Scheiber

Chair of the Nomination and Compensation Committee

Lucerne, 12 March 2026