Information unaudited Information ungeprüftConsolidated management report

Income statement

In the 2025 financial year, the LLB Group earned a net profit of CHF 166.5 million, a business result at the same level as in the previous year (2024: CHF 167.2 million). Undiluted earnings per share stood at CHF 5.47 (2024: CHF 5.47).

Operating income in 2025 rose by 8.1 per cent to CHF 611.6 million (2024: CHF 565.8 million).

Net interest income before expected credit losses fell year-on-year by 8.3 per cent to CHF 122.9 million (2024: CHF 134.1 million). Interest income was down by 26.0 per cent to CHF 367.9 million (2024: 496.9 million). Interest expense decreased by 32.5 per cent to CHF 245.0 million (2024: CHF 362.8 million). The decreases were attributable to lower interest rate levels. Although the margin contribution from lending business increased, the margin from deposits business came under pressure due to falling interest rates.

Risk provisions for expected credit losses in the 2025 financial year were reduced by net CHF 0.6 million (2024: CHF 9.2 million net release). In the previous year, settlements were reached in several long-standing legal cases enabling then to be brought to a successful close.

In comparison with the previous year, net fee and commission income rose by CHF 45.2 million to CHF 259.2 million (2024: CHF 214.0 million). The integration of ZKB Österreich played a substantial role in the extremely good result. Thanks to significant growth in client assets under management, higher portfolio-dependent fees were earned. These rose by 25.5 per cent to CHF 192.4 million (2024: CHF 153.3 million). In addition, intensified client activity led to a rise in transaction-related fees by 10.0 per cent to CHF 66.8 million (2024: CHF 60.7 million). The growth in volume of LLB Invest proved to be a further success in the previous year. Asset volumes in discretionary management mandates and investment advisory mandates expanded by over CHF 3 billion to CHF 22 billion.

Net trading income climbed by 9.9 per cent to CHF 219.7 million (2024: CHF 199.9 million). Foreign exchange business was largely responsible for this growth, rising to CHF 214.1 million, CHF 18.1 million higher than in the previous year (2024: CHF 196.0 million). The LLB Group benefitted here from the investment of client deposits in foreign currencies in Swiss franc currency swaps. The interest rate differential between foreign currencies and the Swiss franc had a positive effect. The more substantial reductions in Swiss franc interest rates relative to those of foreign currencies amplified this effect in the 2025 financial year. Furthermore, client trading activity in foreign exchange business intensified.

Income from financial investments stood at CHF 8.3 million and was therefore higher than in the previous year (2024: CHF 6.2 million), thanks principally to price gains.

Other income fell by CHF 1.3 million to CHF 1.0 million in comparison with the previous year (2024: CHF 2.4 million). Various special effects had had a beneficial influence in the previous year.

At CHF 410.4 million, operating expenses were 11.1 per cent higher than in the previous year (2024: CHF 369.5 million). The increase was in line with expectations and was primarily due to the takeover of ZKB Österreich, as well as the associated integration costs of around CHF 10 million.

Personnel expenses rose by 9.1 per cent or CHF 21.4 million to CHF 256.1 million (2024: CHF 234.7 million). The primary reason for the increase was a higher than average personnel headcount over the whole year plus the allocation of retructuring provisions in connection with the integration of ZKB Österreich. By the end of the year, the total number of full-time equivalent jobs at the LLB Group stood at 1ʼ294, almost the same as in the previous year (31.12.2024: 1ʼ286) despite the takeover of the employees of ZKB Österreich.

General and administrative expenses climbed by 15.6 per cent to CHF 113.8 million in comparison with the previous year (2024: CHF 98.4 million). Depreciation also increased by 11.2 per cent to CHF 40.4 million (2024: CHF 36.4 million). The increase was largely due to the inclusion of ZKB Österreich.

As expected, the Cost Income Ratio rose to 67.0 per cent (2024: 66.4 %) as a result of the integration of ZKB Österreich. Adjusted to exclude the integration costs of the takeover, it would have stood at 65.4 per cent.

Balance sheet

The consolidated balance sheet total increased to CHF 28.3 billion (31.12.2024: CHF 27.7 billion).

Equity capital amounted to CHF 2.4 billion as at 31 December 2025 (31.12.2024: CHF 2.2 billion). The Tier 1 ratio stood at 19.0 per cent (31.12.2024: 18.7 %) and was therefore substantially above the regulatory requirements. The return on equity amounted to 7.3 per cent (2024: 7.7 %).

Business volume

Compared with 31 December 2024, the business volume expanded by 10.9 per cent or CHF 12.4 billion to CHF 125.9 billion (31.12.2024: CHF 113.5 billion) and therefore exceeded the CHF 125-billion mark for the first time.

Loans to customers climbed by 3.2 per cent to CHF 17.0 billion compared with the previous year (31.12.2024: CHF 16.5 billion), whereby mortgage loans grew by 0.8 per cent to CHF 14.9 billion (31.12.2024: CHF 14.8 billion).

Client assets under management climbed by 12.2 per cent to CHF 108.9 billion (31.12.2024: CHF 97.0 billion). The increase was attributable to good organic growth, the integration of ZKB Österreich and the positive performance of the financial markets.

In the 2025 financial year, the LLB Group registered a net new money inflow of CHF 3.7 billion (2024: CHF 2.8 billion). The growth was achieved in all three booking centres as well as in the two market divisions, and was therefore broadly based.

Outlook

In 2025, the LLB Group successfully continued implementing its strategy as planned, and thereby attained key milestones. Global insecurity and a volatile market environment are also expected to persist in 2026. Nevertheless, the LLB Group will continue to pursue its strategic course and successfully complete its ACT-26 strategy on schedule. Following a phase of targeted investments in growth and innovation, in 2026 the focus of the final phase of the strategy will shift to the core element of efficiency. At the same time, work will commence on the succession strategy to ensure a seamless continuation of the LLB Group’s further development and to exploit opportunities that occur. The LLB Group expects to achieve a solid business result in 2026.