Information unaudited Information ungeprüftEconomic role

The LLB Group has a special role to play in the domestic market of Liechtenstein: With strong, stable business results, we contribute to the economic growth and stability of Liechtenstein as a financial centre. We share our economic success with those around us.

In Liechtenstein, we believe we have an economic role to play in two areas: As a financial services provider, we are an important local partner for companies and people. At the same time, we have a special responsibility for the economic well-being of Liechtenstein as well as its financial market stability. We share our success in the form of taxes and dividends paid out. We are also a sponsor and support projects and initiatives with a social impact.

1 General information

In connection with our economic role, we identified the following material impacts and risks as part of the double materiality assessment:

• We make positive impacts by supporting local projects as well as companies and people in the domestic market of Liechtenstein with tailored finance solutions. By doing this, we promote sustainable local development, strengthen the local economy and help to create and maintain jobs in the region.
• As a sponsor, we support various organisations and projects, which differ in terms of content and form, in the areas of sport, culture and competence. In doing so, we make a contribution to society and promote long-term development in Liechtenstein and other target markets.
• We promote financial market stability on the domestic Liechtenstein market through robust capital and liquidity resources, sound risk management, responsible management of client assets and an effective system of crisis planning.
• Risks exist in the form of major economic fluctuations and macro-economic crises, among others. These phenomena are mostly hard to predict; the financial effects on the LLB Group may be significant.

Any material impacts and risks are reflected in the investment and corporate strategy of the LLB Group. Our aim is to minimise any negative impacts through our business activity, promote positive impacts and manage our risks effectively. In preparing the following information, we have not drawn on available and relevant frameworks, initiatives, standards and benchmarks (for example, Global Reporting Initiative (GRI) standards). We provide detailed reporting on our role as an employer in the section Own workforce.

2 Policies relating to our economic role

The “Law on the Liechtensteinische Landesbank” (Gesetz über die Liechtensteinische Landesbank – LLBG) and the “Investment Strategy of the Government of the Principality of Liechtenstein for its Investment in Liechtensteinische Landesbank AG” define the general requirements for how we should behave in relation to the economy. In accordance with the investment strategy and art. 3 para. 2 LLBG, the LLB Group has the following purpose in particular:

• promoting economic development within the Principality of Liechtenstein while observing sound banking and commercial principles;
• aiming to achieve reasonable profits while remaining mindful of the need for economic responsibility;
• making appropriate provision for public and private borrowing needs;
• helping domestic and foreign clients to make secure and profitable investments and look after their assets.

The Government expects the value of the LLB Group as a business to grow sustainably over the long term. We must take deliberate account of the risks associated with the business activities of a universal bank and manage these accordingly. Our governing bodies are also obliged to consider in particular the bank’s economic significance to the country and its reputation. In addition, we should be aware of the ethical and social responsibility towards employees, business partners, clients and Liechtenstein society when defining and implementing our corporate strategy.

Our corporate strategy ACT-26 is based on the guidelines set out in the ownership strategy at national level (see chapter Strategy and organisation). It applies across the entire LLB Group and is available for public inspection. The corporate strategy is set by the Board of Directors; the Group Executive Board is entrusted with implementation at an operational level. In the course of an annual round of discussions, we give the Government an insight into how the investment and corporate strategy is being implemented. The Chairman of the Board of Directors and the Group CEO also inform the Prime Minister of the Principality of Liechtenstein about the strategic alignment of the LLB Group at least every six months.

2.1 Policies relating to our role as a financial services provider

Specific details on the implementation of strategic projects are set out in various internal documents. The LLB Group’s rules of procedure are of particular importance in this respect (responsibility: Group Legal & Regulatory). They provide the basis for various objectives, including:

• defining a clear and consistent corporate strategy;
• ensuring a client-orientated and competitive corporate policy;
• defining a clear, effective and efficient management and organisational structure;
• defining medium-term objectives in relation to growth and both cost and capital efficiency;
• implementing an appropriate risk management system for business activity;
• ensuring financial security and stability through adequate capitalisation;
• continual increase in the consolidated value of the LLB Group;
• adopting a value-preserving dividend policy.

The rules of procedure, together with the regulations issued by the Board of Directors, provide the corporate governance structure of our company. The focus is on roles and responsibilities, management and organisation as well as the principles of risk management. It therefore sets out the requirements for Group-wide management, collaboration and organisation, defines the duties and competencies of the Board of Directors, Group Executive Board and other Group functions, governs collaboration between bodies responsible for overall direction, management and control and contains requirements on the consistent management of Group companies. The Board of Directors of Liechtensteinische Landesbank Aktiengesellschaft or, if in place, the Board of Directors or Supervisory Board of the relevant Group company is responsible for overseeing the rules of procedure.

Alongside the LLB Group’s business policy, the following regulations are also important:

• Group regulation on “Capital management” (responsibility: Group Risk Management): This sets out the principles for capital management at the LLB Group and defines the roles and responsibilities in relation to the Internal Capital Adequacy Assessment Process (ICAAP). The aim is to strengthen resilience during periods of stress by implementing effective internal processes for ensuring adequate capitalisation – including comprehensive stress tests and capital planning processes. The regulation applies across the Group.
• Group regulation on “Risk policy framework” (responsibility: Group Risk Management): This defines binding qualitative and quantitative standards for risk responsibility, risk management and risk control at the LLB Group. It also specifies an adequate organisational and methodological framework for the assessment and management of risks and describes the structure of the limits system. The risk policy framework represents the overarching framework for detailed regulations and supports a long-term business policy focused on risk and reward. The regulation applies across the Group.

All regulations are available in the collected body of rules and regulations on the LLB Group Intranet. Policies are not made accessible to external stakeholders.

2.2 Policies relating to our role as a sponsor

We strive to pass on some of our economic success to others. Our sponsoring and events strategy is aimed at promoting projects in our home markets that add value. We observe thereby the following principles:

• We want our four values (integrity, respect, excellence and passion) to be experienced on an emotional and professional level through our activities.
• We strengthen and enable platforms and partnerships which fit us best.
• We explain clearly what the LLB Group stands for using thematic areas.
• We coordinate partnerships and our own events Group-wide using a management tool.

Internal stakeholders were involved in creating the sponsoring and event strategy. The issue of sponsoring is also dealt with in the Group directive on “Group Marketing”. This sets out the responsibilities, the processes and the cost allocation by Group Marketing (since 1 Februar 2026: Group Marketing & Communications) at Group level and at the level of the parent bank and LLB Group companies. It ensures that:

• the strategies, principles and processes agreed by Group Marketing are implemented and complied with;
• resources are used efficiently and effectively in line with marketing objectives;
• a consistent image is ensured in accordance with the LLB Group’s corporate design principles;
• all measures in the area of branding and market development, including advertising, events and sponsoring, are recorded in a Group-wide marketing master plan and implementation is taken care of by the Group Marketing competence centre;
• all points of contact are aligned, and the independent points of contact continue to develop further.

The Group directive also sets out the general responsibilities and the process relating to the sponsoring activities of the LLB Group. This Group directive is accessible from the collected body of rules and regulations on the Intranet. The Group Marketing business area has overall responsibility for coordinating our sponsoring activities.

3 Measures relating to our economic role

3.1 Measures relating to our role as a financial services provider

The LLB Group exceeds regulatory requirements with regard to its capital base – see Consolidated management report. Additionally, we carry out regular scenario analyses and stress tests to review our resilience against economic fluctuations. This ensures we are prepared for potential negative trends and at the same time guarantees protection for our most important stakeholders and contributes to financial market stability in Liechtenstein.

LLB AG is affiliated with the Liechtenstein Deposit Guarantee and Investor Compensation Foundation (EAS). In the event of a compensation case, the EAS would ensure that the financial consequences for depositors and investors are at least mitigated by covering depositor claims from eligible deposits up to CHF 100ʼ000 and investor claims up to a maximum of CHF 30ʼ000. Eligible deposits are all kinds of account balances as well as call money and time deposits.

As a financial services provider, we offer our clients attractive banking products. In terms of lending, we support private clients and companies with tailored finance. We provide funding for regional projects and small- and medium-sized enterprises (SMEs). We also offer conventional payment services and reliable account management services. These measures are part of our statutory mandate and are therefore not associated with any specific timescales.

Our range also includes a series of environmentally friendly and socially responsible solutions. These include a wide selection of funds along with asset management and investment advice mandates, which invest in accordance with appropriate criteria, and also finance models aimed at promoting sustainable building and renovation (see chapter Climate change). We generate a reasonable profit, over 50 per cent of which we distribute to shareholders as dividends.

The measures mentioned – such as deposit guarantee schemes, product range review and payment services – are already part of the LLB Group’s ongoing banking operations. As a result, no separate financial resources were set aside; rather, the associated costs fall under regular operating expenses. It is not possible to provide direct figures, as the measures are not listed as separate budget items. In relation of the total operating expenses of CHF 410.4 million in 2025, the costs are relevant but within the scope of standard operational and regulatory requirements.

3.2 Measures relating to our role as a sponsor

We have implemented numerous measures in Liechtenstein as part of our sponsoring activity. For example, we have been supporting future talent at FC Vaduz, FC Schaan and FC Balzers for years now. As a partner to the Liechtenstein Olympic Committee, we are the main sponsor of the “LLB Nacht des Sports” (Night of Sports), at which the “LLB Sport Award” is also presented. We are also a presenting partner at the “Olympic Day”, a sporting event held annually for all fourth- and fifth-grade school classes in Liechtenstein. In the reporting year, we also put on the Business Day for Women again in Vaduz, as planned.

The “Finanzcoach” (Finance Coach) course for children and young people was launched at the Eschen branch in summer 2023. The initiative is designed to teach these age groups how to handle money and show them how finance and economics relate to our everyday lives. The course modules have been prepared to suit the respective age groups together with the Liechtenstein Bankers Association and are delivered by LLB employees in their role as Finance Coaches. The programme was run again in 2025.

All sponsoring requests are recorded centrally via the Sponsoring Tool. We then check whether the request is compatible with the LLB brand. For this, we take into account a total of seven principles for brand and credibility fit. In a further step, we determine the potential benefit of the partnership – also based on seven principles for the return‑potential fit. All principles are set out within our sponsoring and events strategy and define the amount of discretion we have when making decisions. Any costs arising are generally covered by the marketing budget.

With all sponsoring contracts, the recipient organisation commits to enforcing sustainable practices and complying with the ten principles of the UN Global Compact. In this way, we can ensure that our understanding of sustainability is shared by those associations and projects to which we provide financial backing. Our subsidiaries are also involved in sponsoring. LLB Schweiz supports a range of organisations, with a similar focus on the three thematic areas of sports, culture and competence. LLB Österreich makes donations to numerous organisations engaged in the areas of art, culture and community service.

3.2.1 Future Foundation of Liechtensteinische Landesbank AG

In addition to our sponsoring commitments, through the Future Foundation of Liechtensteinische Landesbank AG we support future-orientated projects set up by people and organisations focusing on social and environmental causes. The charitable foundation was founded in 2011 on the occasion of the 150^th anniversary of LLB. The Foundation’s assets may be increased at any time by further contributions from LLB or third parties. The Future Foundation can also request further contributions from the Board of Directors of LLB once a year. The Future Foundation was deconsolidated in 2024. LLB made an additional donation of CHF 1 million in 2025.

4 Targets relating to our economic role

4.1 Targets relating to our role as a financial services provider

Our corporate strategy ACT-26 has defined specific quantitative targets for each core area (growth, efficiency, sustainability). These targets apply across the Group; the requirements are to be achieved over the course of the current strategy period, so in the 2022 to 2026 financial years.

In order to ensure we can grow over the long term, the strategy envisages a minimum 3 per cent annual increase in net new money and net new loans. The core capital ratio (Tier 1 ratio), an important indicator for the resilience of the LLB Group, should be above 16 per cent, which is significantly above the regulatory requirement. In each case, the previous year is the baseline year. In 2026, the cost-income ratio should not exceed 65 per cent. The main stakeholders are involved in the formulation of quantitative targets through our strategy process.

Our objectives defined within the framework of ACT-26 are based on key figures established within banking. Where possible, these key figures are calculated and disclosed in accordance with regulatory requirements. In cases where there are no standardised requirements, we refer to our Alternative performance measures (APMs). We use alternative financial figures that are not defined under the International Financial Reporting Standards (IFRS) to measure our performance.

We measure our contribution to the economy through further key figures, for which we have not defined any specific targets. These include the total direct taxes we pay and any dividends paid out. The lending volume in Liechtenstein provides an indication of our commitment to local companies and private individuals – see section Key figures relating to our role as a financial services provider.

4.2 Targets relating to our role as a sponsor

We have not specified any measurable, results-based and time-bound targets in relation to our role as a sponsor. We use the sponsoring expenses for each subsidiary as an alternative performance indicator – find more information in the section Key figures relating to our role as a sponsor.

We also undergo a brand tracking analysis carried out every two years by an external company. LLB brand tracking is a continuous process whereby companies or market researchers track and measure the performance and perception of a brand on the market. The aim is to gain insights into the strengths and weaknesses of a brand, boost brand awareness and improve brand image. Brand tracking assists with evaluating the success of marketing and sponsoring measures and making strategic decisions.

5 Key figures relating to our economic role

5.1 Key figures relating to our role as a financial services provider

Our key figures – net new money, net new loans, Tier 1 ratio and cost-income ratio – are included in the Consolidated management report of the LLB Group. The total of the direct taxes that we pay in Liechtenstein and the dividends we pay out was CHF 64.6 million in the reporting year (2024: CHF 59.3 million). The lending volume in Liechtenstein as of 31 December 2025 was CHF 9ʼ048 million (31.12.2024: CHF 8ʼ859 million), which corresponds to an increase of 2.1 per cent. The key financial figures used have been taken from the annual financial report of the LLB Group.

5.2 Key figures relating to our role as a sponsor

In the reporting year, LLB contributions for donations, membership fees and sponsoring in Liechtenstein amounted to CHF 232ʼ422 (2024: CHF 279ʼ729) and LLB Schweiz contributions to around CHF 431ʼ122 (2024: CHF 391ʼ743). LLB Österreich spent around CHF 219ʼ177 (2024: CHF 126ʼ159) on donations, membership fees and sponsoring.

Due to an internal error, different key figures regarding sponsorship were reported last year. The figure for LLB Liechtenstein was recorded too low by CHF 48ʼ971 and the figure for LLB Schweiz was too high by CHF 41ʼ243. LLB Österreich was reported as CHF 41ʼ949 too much.