--- title: "LBBW Group half-yearly financial report 2026 Germany; Total assets rise to €358.9b." sdDatePublished: "2026-08-29T04:12:00Z" source: "https://www.lbbw.de/konzern/investor-relations/finanzberichte/halbjahresberichte/2026/lbbw_half-yearly-financial-report-2026_ancu38v7h4_m.pdf" topics: - name: "financial statement" identifier: "medtop:20000180" - name: "banking" identifier: "medtop:20000274" - name: "corporate earnings" identifier: "medtop:20000178" - name: "credit rating" identifier: "medtop:20000176" locations: - "Virginia" - "Bexleyheath" - "Baden-Württemberg" - "Meppen" - "Bavaria" - "Berlin" - "Hamburg" - "Frankfurt am Main" - "Rhineland-Palatinate" - "Sachsen" - "United States" - "Israel" - "Ireland" - "China" - "United Kingdom" - "Mexico" - "Iran" - "Germany" --- LBBW Group half-yearly financial report 2026 Germany; Total assets rise to €358.9b. Half-yearly financial report 2026 1 Half-yearly financial report 2026 2 Content Content of Half-yearly financial report 2026 Key figures of the LBBW Group ........................................................................................ 3 Foreword by the Board of Managing Directors .................................................................. 5 INTERIM GROUP MANAGEMENT REPORT Business report for the Group ........................................................................................... 8 Risk report ....................................................................................................................... 20 Forecast and opportunity report ...................................................................................... 28 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Income statement ............................................................................................................ 34 Statement of comprehensive income .............................................................................. 35 Statement of financial position ........................................................................................ 36 Statement of changes in equity ....................................................................................... 38 Condensed cash flow statement ..................................................................................... 39 Selected notes to the consolidated interim financial statements ..................................... 40 FURTHER INFORMATION Responsibility statement ................................................................................................. 88 Review report .................................................................................................................. 89 Note regarding forward-looking statements .................................................................... 90 Half-yearly financial report 2026 3 Key figures of the LBBW Group Key figures of the LBBW Group Income statement (EUR million) 01/01/2026 – 30/06/2026 01/01/2025 – 30/06/2025 Net interest income 1,547 1,281 Net fee and commission income 354 349 Net gains/losses on remeasurement and disposal 74 336 of which allowances for losses on loans and securities – 121 – 107 Other operating income/expenses – 4 50 Total operating income/expenses 1,971 2,016 Administrative expenses – 1,197 – 1,220 Expenses for resolution funds and deposit protection systems – 66 – 77 Net income/expenses from restructuring 0 – 14 Consolidated profit/loss before tax 708 705 Income taxes – 229 – 228 Net consolidated profit/loss 479 477 Key figures in % 01/01/2026 – 30/06/2026 01/01/2025 – 30/06/2025 Return on equity (RoE) 8.3 8.6 Cost/income ratio (CIR) 60.4 61.8 Balance sheet figures (EUR billion) 30/06/2026 31/12/2025 Total assets 358.9 347.3 Equity 17.4 17.3 Ratios in accordance with CRR III 30/06/2026 31/12/2025 Risk-weighted assets (EUR billion) 91.7 86.7 Common equity Tier 1 (CET 1) capital ratio (in %) 16.1 16.9 Total capital ratio (in %) 19.9 21.2 Employees 30/06/2026 31/12/2025 Group 10,722 10,821 Rating Moody’s Rating Fitch Rating DBRS Long-term Issuer Rating Aa2, stable Long-term Issuer Default Rating AA-, stable Long-term Issuer Rating A (high), stable Long-term Bank Deposits Aa2, stable Long-term Deposit Rating AA- Long-term Deposits A (high), stable Senior Unsecured Bank Debt Aa2, stable Long-term Senior Preferred Debt Rating AA- Long-term Senior Debt A (high), stable Junior Senior Unsecured Bank Debt A2 Long-term Senior Non-Preferred Debt Rating A+ Senior Non-Preferred Debt A, stable Short-term Ratings P– 1 Short-term Issuer Default Rating F1+ Short-term Ratings R-1 (middle), stable Baseline Credit Assessment (financial strength) baa2 Viability Rating (financial strength) bbb+ Intrinsic Assessment (financial strength) A Public-sector covered bonds Aaa Public-sector covered bonds - Public-sector covered bonds - Mortgage-backed covered bonds Aaa Mortgage-backed covered bonds - Mortgage-backed covered bonds - (As at 30 July 2026) Half-yearly financial report 2026 4 Foreword by the Board of Managing Directors Half-yearly financial report 2026 5 Foreword by the Board of Managing Directors Foreword by the Board of Managing Directors Dear Readers, The first half of 2026 was characterized by the further intensification of the geopolitical environment. In particular, the escalation in the Middle East, the blockade of the Strait of Hormuz and the resulting turbulence on the oil, commodity and financial markets led to a significant increase in uncertainty. At the same time, disrupted supply chains, price pressure and persistently weak economic momentum weighed on the economic outlook in Germany and Europe. Against this backdrop, LBBW recorded extremely solid performance in the first half of the year. With income remaining stable, we repeated the previous year’s very strong result with a profit before tax of EUR 708 million. This result underlines the operational resilience of our business model, the consistent customer focus adopted by our Bank and the impressive performance of the LBBW team. The sustainability of our broadly diversified universal bank model is also reflected in the development of our customer segments: All four segments achieved a profit in the hundreds of millions of euros. In our Corporate Customers business, income was largely stable despite a perceptible reluctance to invest. Our international activities are becoming increasingly important as many of our customers are making investments outside Germany to a greater extent. We again achieved a strong position in the TXF ranking for export finance, thereby confirming LBBW’s international competitiveness. We also maintained or expanded our market position in other business segments. We believe infrastructure finance continues to offer substantial potential, particularly in connection with the sustainable and digital transformation of the economy. Berlin Hyp generated robust new business in a persistently difficult real estate market. In Capital Markets Business, we reinforced our position as the leading capital market house of Sparkassen-Finanzgruppe. Despite intensive competition, we achieved further growth in Private Customers business with a continued focus on business with high-end private individuals and wealth management. Administrative expenses were down slightly on the previous year thanks to the integration of Berlin Hyp and consistent cost management. However, allowances for losses on loans and securities reflect the weak economic performance and the fact that the situation on the real estate markets remains strained, and we are observing this development extremely closely. After all, as encouraged as we are by our results for the first half of the year, we expect the environment to become perceptibly more challenging over the coming months. A slowdown in economic momentum, a reluctance on the part of companies to make investments and adverse developments in individual industries are likely to put additional pressure on earnings. This is why it is all the more important that we operate from a position of strength. Our capital and risk position is solid: At 16.1 percent, our common equity Tier 1 capital ratio is still far above the regulatory requirements. Our portfolio is broadly balanced and our business model is resilient. These foundations give us the stability we need to support our customers reliably even in a difficult market environment while also leveraging opportunities in a targeted manner. At the same time, we are systematically pressing ahead with our transformation. This includes continuing to improve our internal processes, upgrading our IT including with a view to cyber resilience, adhering to strict cost and capital discipline, and deploying artificial intelligence in a targeted manner. We already use AI in various areas, including our internal AI assistant Blue.gpt and in risk management. In this way, we are strengthening the efficiency, processing speed and scalability of our business model. As such, we remain cautious but optimistic with regard to the rest of the year. The economic conditions will remain challenging, and Germany is under substantial pressure to adapt to changes in the geopolitical and geoeconomic environment. The efforts of the German federal government to make reforms are a first step in the right direction. These will now need to be systematically implemented and accompanied by additional growth impetus as well as structural reforms. Half-yearly financial report 2026 6 Foreword by the Board of Managing Directors Our aspiration remains unchanged: We want to be a reliable partner to our customers, especially in difficult times – with expertise, commitment and quality. We would like to express our particular gratitude to the entire LBBW team for their hard work and to our owners for their trust and support. Sincerely, The Board of Managing Directors Rainer Neske Chair Anastasios Agathagelidis Joachim Erdle Andreas Götz Dirk Kipp Sascha Klaus Stefanie Münz Half-yearly financial report 2026 8 02 Interim Group management report | Business report for the Group Business report for the Group Economic development in the first half of 2026 The economic situation in the first half of the year was dominated by the war between Israel and the US on one side and Iran on the other. The military exchange began on 28 February with joint attacks by the Israeli Air Force and the US Air Force on targets in Iran. Air traffic in the Gulf region, which is extremely important for both passenger and air freight traffic between Europe and East Asia, was substantially impaired as a result. Shipping through the Strait of Hormuz was also massively disrupted. Exports of crude oil and petroleum products via the Strait of Hormuz came to a standstill for a while, with crude oil prices rising as a consequence. The evening before the war, a barrel of Brent crude oil on a one- month contract cost around USD 70. In the early stages of the war, the price peaked at almost USD 120. At the time this half-yearly financial report was prepared, the situation was still unresolved. Negotiations between the US and Iran only calmed the situation on a temporary basis, with both sides subsequently resuming military action. Irrespective of the military escalation in the Gulf region, the German economy enjoyed a better start to the year than anticipated, with economic performance improving by 0.4% compared with the previous quarter. The German economy benefited from export growth, as many overseas customers are likely to have brought forward their orders in anticipation of potential supply bottlenecks. By contrast, economic performance in the Eurozone stagnated in the first quarter of the year. This was due to a 7% contraction in Irish GDP compared with the previous quarter. Ireland is an EU member state that is home to numerous major international corporations, and transactions by these corporations in the reporting period appear to have been the reason for the record downturn. Based on initial estimates for the second quarter, German GDP increased by 0.2% compared with the previous quarter. The initial estimate for the Eurozone involves GDP growth of 0.4%. Economic performance in the US increased by 2.1% in the first quarter of the year (change compared with the previous quarter on an annualized basis). According to initial estimates, GDP in the US is set to have risen by 1.5% in the second quarter. Inflation on both sides of the Atlantic has increased on