Luzerner Kantonalbank (LUKN) investor relations material

Executive summary

• Achieved record half-year consolidated profit of CHF 161.4 million, up 7.1% year-over-year, marking the best result since inception.

• All income streams contributed positively, with non-interest income growing faster than interest operations.

• Strategic focus on efficiency, cost control, diversified income, and capital strength supported robust performance.

• Deliberately slowed lending growth after a strong 2025, prioritizing quality and capital leeway.

• S&P credit rating AA+ confirmed; ESG ratings remain strong across agencies.

Financial highlights

• Operating income rose 6.3% to CHF 369.2 million, with non-interest income up 12.7%.

• Net interest income reached CHF 238.9 million, up 3.1% year-over-year, the highest ever.

• Commission business and services income grew 11.1% to CHF 77.5 million, driven by asset management.

• Trading activities income increased 12.1% to CHF 45.5 million, mainly from structured products.

• Operating expenses rose 5.7% to CHF 170.9 million, reflecting investments in strategy and personnel.

Outlook and guidance

• Full-year 2026 consolidated profit target raised to CHF 305–320 million (previously at least CHF 295 million).

• Expects solid Swiss economic growth of 1.2% for 2026, inflation at 0.6%.

• Non-interest income target for 2026 set at over CHF 240 million.

• Strategic investments of CHF 50 million planned for 2026–2030 in digital, advisory, and capital market initiatives.

• Management expects a slightly weaker H2 due to seasonal factors and strategic investments.