Foreword

Dear Shareholders
Dear Readers

The Swiss economy proved largely resilient in the face of global uncertainty in the first half of 2026. LUKB also benefited from this: at just over 160 million Swiss francs, we achieved the best half-year result since the company was founded. Increased profitability, sustained cost efficiency and financial stability are strategically relevant building blocks of this outstanding result.

The new strategy period got off to a brisk start

We want to make LUKB one of the top-five full-service banks in Switzerland by 2030. With this aim in mind, we are positioning ourselves as a champion in the Lucerne economic area with a strong regional presence and as a specialist throughout Switzerland with extensive expertise in the investment, financing, pension and capital market businesses.

We measure our target achievement by means of transparently communicated strategic financial targets. We made a spirited start to the new strategy period with our half-year results for 2026. As a result, LUKB was able to significantly boost its profitability. All income components made a positive contribution, with the non-interest income sources posting significantly higher growth rates than interest operations, as planned. The development of mandated client assets is key to us in the interests of sustainable and reliable income diversification. Here, we have already achieved two-thirds of our target for the year as a whole. We have deliberately lowered the pace of our lending business. After a sharp increase in loans last year, we made a cautious start to the new year. In the coming months, we will be able to use our additional capital leeway to establish and strategically expand key client relationships.

Profitable, efficient and robust

We have undertaken to implement LUKB's growth strategy with our usual prudence. LUKB aims to be one of the most efficient full-service banks in Switzerland, both now and in the future. As we start the new strategy period with a consistently low cost-income-ratio, we are demonstrating that a high level of efficiency and innovation go hand-in-hand at LUKB and will continue to do so.

We are equally concerned about our capital base and have formulated strict guidelines accordingly. In view of the return on equity, we want to meet these requirements for the total capital ratio and the Common Equity Tier 1 (CET1) ratio comfortably with our strategic requirements.

The bank's healthy balance sheet and high level of financial stability are also reflected in the rating confirmations: S&P confirmed the credit rating of AA+/Stable/A-1+ on 23 April 2026, and MSCI confirmed the ESG risk rating of AA on 1 June 2026.

Positive outlook for 2026

We expect a largely positive economic environment for Switzerland in the second half of 2026. We are commensurately optimistic about the outlook for LUKB. However, as all of the key revenue streams are in better shape than expected as at the middle of the year, we are raising our expectations for consolidated profit for 2026 to 305 to 320 million Swiss francs (2025: 295.5 million Swiss francs).

The positive outlook for the 2026 annual result includes significant investments in the further development and geographical expansion of our business model. Thank you for your interest in our progress.

Detailed information on the 2026 half-year results and the outlook for the year as a whole can be found in the Progress report.

Yours sincerely

Luzerner Kantonalbank

Markus Hongler

Chair of the Board of Directors

Daniel Salzmann

CEO