Consolidated notes

The accounting and valuation principles comply with the Swiss Code of Obligations, the Swiss Banking Act and the related ordinance as well as the Accounting Ordinance of the Swiss Financial Market Supervisory Authority (FINMA) (FINMA AO) and the accounting rules for banks, investment firms, financial groups and conglomerates in accordance with FINMA Circular 2020/01 ‘Accounting – Banks’.

The consolidated financial statements present a true and fair view of the assets, financial position and results of operations of the LUKB Group. The individual figures are rounded for publication. The calculations, however, were made on the basis of unrounded figures.

There were no material adjustments to the accounting and valuation principles compared with the previous year.

Higher energy prices as a direct consequence of the conflict in the Middle East have led to an increase in inflation over the past few months. However, the medium-term inflationary pressure hardly changed in the first few months of 2026, which, in addition to the general economic conditions, prompted the Swiss National Bank (SNB) to leave the policy rate unchanged at zero percent as part of its monetary policy assessments of 19 March 2026 and 18 June 2026.

Following the significant growth in lending in the 2025 financial year, LUKB was deliberately more cautious in the first half of 2026, with the lending business recording further growth in line with the strategy. With regard to liabilities, LUKB is continuing its long-term strategy of expanding long-term bonds and mortgage-backed loans to safeguard liquidity and minimise interest rate risks.

LUKB also aims to expand its securities trading and trading business in the current strategy period to achieve broader income diversification. During the past half-year, it was able to continuously expand its asset management and advisory mandates as well as the fund portfolios managed by LUKB Expert Fondsleitung AG, which contributed to a sustained increase in commission income. The broad diversification of trading activities over recent years is enabling LUKB to achieve sustainable trading success even in a volatile market environment.

LUKB monitors financial market developments closely to counter any adverse effects early. LUKB is well equipped to cushion negative developments in the income statement with its provisions and value adjustments, recognised reserves for general banking risks and other equity. Thanks to an ambitious and broad-based business model, LUKB once again managed to achieve a very good half-year result in the first half of 2026.

Extraordinary income

Extraordinary expenses

No extraordinary events that would have had a material effect on the assets, financial position or results of operations of Luzerner Kantonalbank AG occurred after the balance sheet date in the previous half-year.