Information unaudited Information ungeprüftConsolidated interim management report

Income statement

In the first half of 2026, the LLB Group earned a net profit of CHF 105.0 million, a Group interim business result 15.3 per cent higher than in the same period in the previous year (first half of 2025: CHF 91.0 million). Undiluted earnings per share stood at CHF 3.45 (first half of 2025: CHF 2.99).

Operating income increased by 0.9 per cent to CHF 315.5 million (first half of 2025: CHF 312.8 million).

In comparison with the same period in the previous year, interest income before expected credit losses fell by 3.1 per cent to CHF 61.2 million on account of the fall in interest rates (first half of 2025: CHF 63.1 million). Interest income decreased by 14.6 per cent to CHF 168.3 million (first half of 2025: 197.1 million). Interest expense fell by 20.0 per cent to CHF 107.2 million (first half of 2025: CHF 134.0 million). The further improvement in lending business margins had a positive influence, while the targeted improvement in the profitability of the loan portfolio partly compensated for the fall in interest income.

In the first half of 2026, risk provisions for credit losses were increased by net CHF 4.7 million (first half of 2025: CHF 4.0 million net release).

In comparison with the previous year, net fee and commission income improved by CHF 7.5 million to CHF 133.8 million (first half of 2025: CHF 126.3 million). The average portfolio volume rose year-on-year by around CHF 10 billion. As a result, higher portfolio-related fees were collected; they increased to CHF 99.3 million (first half of 2025: CHF 92.6 million). Trading activity also expanded with a corresponding positive effect on net brokerage earnings. Transaction-related revenues improved by 2.4 per cent to CHF 34.5 million (first half of 2025: CHF 33.7 million).

Net trading income fell during the report period by 3.9 per cent to CHF 105.8 million (first half of 2025: CHF 110.1 million). The decrease was largely due to the lower difference between US dollar and Swiss franc interest rates.

Income from financial investments stood at CHF 8.0 million, slightly up on the previous year’s level (first half of 2025: CHF 7.2 million).

Other income climbed to CHF 11.4 million (first half of 2025: CHF 2.0 million). The increase was largely attributable to revenues received from the referral agreement concluded in connection with the strategic withdrawal from the Middle East business.

At CHF 190.6 million, operating expenses in the first half of 2026 were 6.8 per cent lower than in the previous year (first half of 2025: CHF 204.6 million). The fall was largely due to synergies realised in connection with the integration of the former ZKB Österreich, strict cost controls, as well as the LLB Group's focus on efficiency.

Headcount was reduced by around 60 full-time positions compared to the end of June 2025. The reduction was largely attributable to synergies realised in connection with the integration of the former ZKB Österreich, as well as the withdrawal from the Middle East business. Accordingly, personnel costs decreased by 8.1 per cent or CHF 10.6 million to CHF 119.9 million (first half of 2025: CHF 130.4 million).

At CHF 49.0 million, general and administrative expenses were 10.4 per cent down on the previous year’s level (first half of 2025: CHF 54.7 million). A large proportion of the decrease was attributable to the completed integration of the former ZKB Österreich, as well as additional measures to increase efficiency and reduce costs.

Depreciation rose to CHF 21.7 million (first half of 2025: CHF 19.5 million).

At 59.5 per cent, the Cost Income Ratio was substantially below the previous year’s level (first half of 2025: 65.7 %) and therefore clearly within the strategic target range of maximum 65 per cent. Even when adjusted to consider the additional income from the withdrawal from the Middle East business, at 61.6 per cent, the Cost Income Ratio would still be clearly under the value of the previous year.

Balance sheet

The consolidated balance sheet total stood at CHF 28.9 billion (31.12.2025: CHF 28.3 billion).

Equity capital stood at CHF 2.4 billion as at 30 June 2026 (31.12.2025: CHF 2.4 billion). The Tier 1 ratio amounted to 18.5 per cent (31.12.2025: 19.0 %) and therefore continued to be well above the regulatory requirements.

The return on equity amounted to 8.8 per cent (first half of 2025: 8.1 %).

Business volume

Compared to 31 December 2025, the business volume expanded by 5.0 per cent or CHF 6.3 billion to CHF 132.1 billion (31.12.2025: CHF 125.9 billion) and therefore attained a new record level.

In comparison with 31 December 2025, loans to customers increased by 1.0 per cent to CHF 17.2 billion (31.12.2025: CHF 17.0 billion), whereby mortgage loans rose by 0.7 per cent to CHF 15.0 billion (31.12.2025: CHF 14.9 billion).

Client assets under management climbed by 5.6 per cent to CHF 115.0 billion (31.12.2025: CHF 108.9 billion). This development was driven by a positive market performance and a net new money inflow of CHF 2.2 billion (first half of 2025: CHF 1.4 billion). The growth was broadly based and the result of contributions made by both market divisions, all key business areas, as well as all three booking centres.

Outlook

The challenging market environment is expected to persist in the second half of 2026. The LLB Group is well prepared to meet and master this situation. We expect to achieve a solid business result for the full year.

The LLB Group is completing ACT-26 according to plan while at the same time working on the new strategy, which will be presented in the second half of September. In this way, the LLB Group is ensuring its continued business development, while exploiting new opportunities and preparing for future challenges.