Information unaudited Information ungeprüft Accounting principles

1.1 Basis for financial accounting

This interim financial reporting was prepared in accordance with the international accounting standard for interim financial reporting (IAS 34 “Interim Financial Reporting”). The accounting and valuation principles employed in the unaudited consolidated interim financial report correspond to those used in the 2023 annual report, which was prepared in accordance with the international financial reporting standards applied in the European Union (EU-IFRS) and the requirements stipulated in Article 17a of the Person and Company Law Ordinance of the Principality of Liechtenstein.

The unaudited interim financial reporting 2024 does not encompass all the data contained in the audited consolidated financial statement and should, therefore, be read together with the audited consolidated financial statement as at 31 December 2023.

1.2 Use of estimates in the preparation of financial statements

Areas having large scope for estimate judgements, which are of great significance for the financial statement, include estimates for expected credit losses, goodwill, provisions, fair value measurement, and liabilities for pension plans. Explanations regarding this point are shown under notes 12 and 13 in the 2024 consolidated interim financial statement and under notes 13, 17, 25 and 33, as well as in the chapter Pension plans and other long-term benefits in the 2023 consolidated financial statement.

The LLB Group updates the actuarial assumptions and parameters used for the calculation of pension obligations on every reporting date.

1.3 New IFRS, amendments and interpretations

1.3.1 Changes to accounting policies effective from 1 January 2024

There are no new or amended EU-IFRS or interpretations, which are relevant and applicable to the LLB Group.

The constant further development and evaluation of the materiality of the presented information led to two amendments in presentation in comparison with the 2023 annual report:

• In the consolidated balance sheet the position “Current tax assets” was assigned to the position “Other assets”.
• In the consolidated statement of cash flows the position “Rent paid for short-term and low-value leases” was assigned to the position “Payments for personnel, general and administrative expenses”.

The comparison period was adjusted in the notes.

1.3.2 Applicable for financial years beginning on 1 January 2025 and later

IFRS 18 “Presentation and Disclosure in Financial Statements” was issued by the International Accounting Standards Board (IASB) in April 2024. IFRS 18 comes into effect for financial years beginning on or after 1 January 2027, subject to it being incorporated in European law.

Amendments, which have been issued by the IASB but not yet incorporated in European law:

• Amendments to IFRS 9 “Financial Instruments” and IFRS 7 “Financial Instruments: Disclosures” — Relevant amendments contain clarifications and additional disclosure obligations regarding ESG characteristics with financial instruments and with equity instruments, which are recognised at fair value through other comprehensive income.

LLB will analyse the new requirements promptly.

During the first half of 2024, the Future Foundation of Liechtensteinische Landesbank AG was deconsolidated and removed from the scope of consolidation. The deconsolidation had no material effects.

The current situation has not changed substantially in comparison with the situation as at 31 December 2023. For more detailed information, we refer to the 2023 annual report. As part of the 2024 half year reporting, a brief qualitative disclosure regarding credit risks will be made.

In terms of the value of its absolute loans, the credit portfolio of the LLB Group has not changed materially during the first half of 2024. In the case of stage 1 and 2 loans, a net release of CHF 2.3 million for expected credit risks (first half of 2023: CHF 0.4 million net allocation) and for stage 3 positions a net release of CHF 8.7 million were made (first half of 2023: CHF 1.7 million net allocation). Across all stages the expected credit losses led to a total income of CHF 11.0 million (first half of 2023: CHF 2.1 million expense). This is reported in the consolidated income statement.

Liechtensteinische Landesbank AG (LLB) has signed a purchase agreement for the acquisition of 100 per cent of the shares of the Zurich Cantonal Bank Österreich AG with business locations in Salzburg and Vienna on 1 July 2024. This transaction, in line with its corporate strategy, will enable the LLB Group to increase its business volume by around CHF 3 billion. The transaction is subject to the approval of the Federal Competition Authority and the supervisory authorities.

No additional material events occurred after the balance sheet date which would have a significant influence on the asset, financial and earnings position of the LLB Group.