2Factors that influenced the economic situation of the institution during the reporting period and compared to the previous period

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.