wk-2025-12-31-ixbrl

ALDERMANBURY INVESTMENTS LIMITED

Strategic report

The Directors present the Strategic report of Aldermanbury Investments Limited (the “Company”) for the year ended

31 December 2025.

Overview

The Company is incorporated and domiciled in England & Wales. It is an indirect subsidiary of JPMorgan Chase & Co.

("JPMorganChase" or the "Firm"). JPMorganChase is a financial holding Company incorporated under Delaware law in 1968,

a leading financial services firm based in the United States of America ("U.S."), with operations worldwide. The Company has

$119 million in assets and $114 million in total equity as of 31 December 2025.

Review of business

During the year, the Company held a variety of financial instruments and continued its strategic role within the Firm as

provider of funding to other JPMorganChase undertakings. The financial instruments include investments in bonds, equity

positions, hedge funds and certain collateralised debt obligations.

Key performance indicators ("KPls")

The results are monitored against expectations of the business activities.


Financial performance	2025	2024
	$'000	$'000
Earnings
(Loss)/Profit for the financial year	(1,677)	18,186

Capital and Balance Sheet
Total assets	118,667	146,350
Total liabilities	(5,157)	(31,163)
Total equity	113,510	115,187

Income statement

The income statement for the year ended 31 December 2025 is presented on page 17. The Company recorded a loss of

$1.7 million for the financial year (2024: profit of $18.2 million) primarily on account of sale of trading assets.

Balance sheet

The balance sheet is presented on page 18. As at 31 December 2025, the Company reported total assets of $118.7 million

(2024: $146.4 million) and total liabilities of $5.2 million (2024: $31.2 million). The decrease in total assets reflects the sale

of trading assets during the year.

Future outlook

The Company's outlook for the full 2026 year should be viewed against the backdrop of the global economy, financial

markets activity, the geopolitical and competitive environment, client activity levels and regulatory and legislative

developments in the countries where the Company does business. Each of these interrelated factors will affect the

performance of the Company and its line of business.

The duration and potential outcomes of geopolitical conflicts remain uncertain. The Firm and Company continue to monitor

and manage the operational risks associated with geopolitical tensions, including the conflict in the Middle East, compliance

with the financial and economic sanctions and the increased risk of cyberattacks.

Statement by the Directors in performance of their statutory duties in accordance with s172 (1) Companies Act 2006

The directors of Aldermanbury Investments Limited (the “Company”) are required under the Companies Act 2006 to act in the

way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members

as a whole. In doing so, the directors must consider certain factors in their decision-making and then make a statement about

how they have considered those factors.

ALDERMANBURY INVESTMENTS LIMITED

Strategic report (continued)

Statement by the Directors in performance of their statutory duties in accordance with s172 (1) Companies Act 2006

(continued)

The factors the directors must consider are:

• The likely consequences of a decision in the long term

• The need to foster the Company’s business relationships with suppliers, customers and others

• The impact of the Company’s operations on the community and the environment

• The desirability of the Company maintaining a reputation for high standards of business conduct

• The need to act fairly as between members of the Company

While not every factor may be relevant to every decision the Board makes, considering the Company’s stakeholders is a

fundamental aspect of the Board’s decision-making and the Board recognises that taking impacts on, and relationships with

stakeholders into consideration will help the directors to deliver the Company’s strategy in line with the wider

JPMorganChase How We Do Business principles.

Supporting the Board’s commitment to stakeholders

New directors joining the Board are provided with an induction program that includes training on directors’ duties and, with

regard to s.172(1), the factors that must be taken into consideration. Directors receive periodic refresher training on directors’

duties throughout their tenure. The induction program and continuing Board education sessions provide the directors with an

understanding of the Company’s business, risks, financial performance and regulatory landscape and help to provide them

with solid foundation for making decisions with stakeholders in mind.

The Board has determined that all decisions relating to the Company should be made by the Board itself unless there is a

specific delegation in place. Combined with a robust agenda-setting process, this schedule helps the Company to make sure

that decisions are made at the right level and that stakeholder impacts are particularly considered in the most significant

decisions.

The Board is also supported in its work by the Europe, Middle East and Africa (“EMEA”) Management Committee, EMEA

Regional Oversight Committee and EMEA Risk Committee.

Relationships with stakeholders

The Company has the benefit of belonging to a large international group. The board of the Company’s ultimate parent

company, JPMorgan Chase & Co. (“JPMC”), meets periodically throughout the year with shareholders, employees,

regulators, community and business leaders, and other persons interested in strategy, business practices, governance,

culture and performance. To the extent that feedback from any such engagement is relevant to the Company and/or its

relationship with stakeholders, it is provided to the Board through the internal communication channel relevant to the subject

matter. The Board utilises this information to take proper account of stakeholder impacts and interests in decision-making.

Decision-making

In making its decisions, the Board discusses relevant information and makes enquiries of relevant executive management

and control functions, including in relation to the factors set out in section 172(1). The following are examples of how the

Board considered the section 172(1) factors in its deliberations during 2025:

• Capital contribution to subsidiaries: The Board considered and approved capital contribution of $200,000 each to the

Company’s subsidiaries BAFM and CAFM to support funding of administrative expenses and maintain fund operations.

In making this decision, the Board considered the impact on the Company’s financial position and long-term prospects,

and the interests of key stakeholders (including the subsidiaries’ ability to operate effectively) in line with the section

172(1) factors.

• Modern Slavery: The Board considered and approved the Modern Slavery Act Group Statement for the year 2025 under

s.54 of the Modern Slavery Act 2015. In considering the statement, the board considered the importance of fostering

business relationships with suppliers and the impact of the decision within the community, in the context of the

Company’s ability to demonstrate the steps taken to combat slavery and human trafficking in its supply chain and its

own business. Setting out these steps provided the Board with a valuable check point on the Company’s effort in this

regard.

ALDERMANBURY INVESTMENTS LIMITED

Strategic report (continued)

Risk management

Risk is an inherent part of the Company’s business activities. The Company’s overall objective is to manage its business, and

the associated risks, in a manner that balances serving the interests of its clients, customers and investors, and protecting

the safety and soundness of the Company.

The Firm and Company believe that effective risk management requires, among other things:

• Acceptance of responsibility, including identification and escalation of risks by all individuals within the Company;

• Ownership of risk identification, assessment, data and management within each Line of Business ("LOB") and

Corporate; and

• A Firmwide risk governance and oversight structure.

The Firm's risk governance structure is based on the principle that each LOB is responsible for managing the risk inherent in

its business, albeit with appropriate corporate oversight. Each LOB risk committee is responsible for decisions regarding its

business risk strategy, policies (as appropriate) and controls. Therefore, each LOB within the Company forms part of the

Firmwide risk governance structure.

The Company exercises oversight through the Board of Directors which are aligned to the Firm risk management framework

and regulatory requirements.

All disclosures in the Risk management section (pages 3 - 10) are unaudited unless otherwise stated.

Risk Summary

The following sections outline the key risks that are inherent in the Company’s business activities.

A detailed description of the policies and processes adopted by the Firm may be found within the Firm's 2025 Annual Report

on Form 10-K. The report is available at https://jpmorganchaseco.gcs-web.com/financial-information/sec-filings.

Credit risk (audited)

Credit risk is the risk associated with the default or change in credit profile of a client, counterparty or customer. Credit risk

management monitors and measures credit risk throughout the Firm and defines credit risk policies, procedures and limits.

Risk identification and measurement

Credit Risk Management monitors and measures credit risk throughout the Firm, and defines credit risk policies, procedures

and limits. To measure credit risk, the Firm employs several methodologies for estimating the likelihood of obligor or

counterparty default. Methodologies for measuring credit risk vary depending on several factors, including type of asset, risk

measurement parameters, and risk management and collection processes. Credit risk measurement is based on the

probability of default of an obligor or counterparty, the loss severity given a default event and the exposure at default.

Risk monitoring and management

The Company is subject to the policies and practices developed by the Firm. The Firm has developed policies and practices

that are designed to preserve the independence and integrity of the approval and decision-making process of extending

credit so that credit risks are assessed accurately, approved properly and monitored regularly at both the transaction and

portfolio levels. The policy framework establishes credit approval authorities, concentration limits, risk-rating methodologies,

portfolio review parameters and guidelines for management of distressed exposures. In addition, certain models,

assumptions and inputs used in evaluating and monitoring credit risk are independently validated by groups that are separate

from the LOBs.

The Company estimates credit impairment through an expected credit losses ("ECL") allowance. ECL are recognised for

financial assets that are measured at amortised cost or at fair value through other comprehensive income (“FVOCI”) and for

specified lending-related commitments, such as loan commitments and financial guarantee contracts. The measurement of

ECLs must reflect:

• An unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes;

• The time value of money; and

• Reasonable and evidence-based information about past events, current (economic) conditions, and forecasts of future

economic conditions.

ALDERMANBURY INVESTMENTS LIMITED

Strategic report (continued)

Risk management (continued)

Credit risk (audited) (continued)

The measurement of ECL also reflects how the Company manages the financial instruments it uses for credit risk purposes

such as Traditional Credit Products (“TCP”), and Non-Traditional credit products (“Non-TCP”). The Company does not hold

any TCP instruments. Non-TCP include, but are not limited to, other third party and intercompany debt instruments such as

fee receivables and intercompany receivables (such as cash and deposits).

Expected credit loss measurement

Approach to measuring expected credit losses

The following table sets out the gross carrying amount (before ECL) of the Company’s financial assets which are measured

at amortised cost as of 31 December 2025 and 31 December 2024 respectively.


Balance sheet categories	31 December 2025
	Non- TCP
	$'000
Assets
Debtors	1,850
Cash and cash equivalents	75,917
	77,767


Balance sheet categories	31 December 2024
	Non- TCP
	$'000
Assets
Debtors	6,012
Cash and cash equivalents	37,634
	43,646

For Non-TCPs, the Company utilises a combination of an established provision matrix, as well as quantitative and qualitative

considerations to estimate ECLs.

During the year, the Company recognised no ECL on non-TCP balances as the ECL related to these exposures is assessed

as immaterial. The Company’s approach to measuring ECLs for Non-TCP portfolios depends on the type of instrument. Refer

to the Credit exposures section for an analysis per balance sheet line item.

Credit exposures

Balance sheet exposure by financial asset

The following tables provide an analysis of the credit risk exposure to financial assets. The gross balance sheet exposure of

financial assets below also represents the Company's maximum exposure to credit risk on these assets. Net exposure is

presented after taking account of assets which are primarily exposed to market risk and the value of collateral received in

respect of financial assets.

ALDERMANBURY INVESTMENTS LIMITED

Strategic report (continued)

Risk management (continued)

Credit risk (audited) (continued)

Expected credit loss measurement (continued)


	Gross balance sheet exposure¹	Assets captured by market risk	Net balance sheet exposure	Net balance sheet exposure held with:
	Gross balance sheet exposure¹	Assets captured by market risk	Net balance sheet exposure	JPMorgan Chase undertakings	External counter parties
	$'000	$'000	$'000	$'000	$'000
At 31 December 2025
Financial assets:
Financial assets held at fair value through profit or loss	33,930	(33,897)	33	33	—
Debtors	8,820	—	8,820	1,337	7,483
Cash and cash equivalents	75,917	—	75,917	75,898	19

Total	118,667	(33,897)	84,770	77,268	7,502


	Gross balance sheet exposure¹	Assets captured by market risk	Net balance sheet exposure	Net balance sheet exposure held with:
	Gross balance sheet exposure¹	Assets captured by market risk	Net balance sheet exposure	JPMorgan Chase undertakings	External counter parties
	$'000	$'000	$'000	$'000	$'000
At 31 December 2024
Financial assets:
Financial assets held at fair value through profit or loss	94,311	(94,183)	128	111	17
Debtors	14,405	—	14,405	4,118	10,287
Cash and cash equivalents	37,634	—	37,634	37,634	—

Total	146,350	(94,183)	52,167	41,863	10,304

¹Gross exposure of $77 million (2024: $42 million) is held with other JPMorganChase undertakings that are of investment grade.

The Company’s credit exposures and credit risk mitigants are further described below:

Debtors

Debtors mainly consist of amounts due from other JPMorganChase undertakings and tax receivable.

These receivables generally have minimum credit risk due to low probability of default and the short-term nature of

receivables related to securities settlements which are predominately on a delivery versus payment basis. The Company

recognises no ECL on these receivable balances as the ECL related to these exposures is assessed as immaterial.

Cash and cash equivalents

Cash and balances with banks include deposits which are placed with other JPMorganChase undertakings.

The Company includes cash and cash equivalents in Stage 1 as they are of investment-grade and banking institutions are

considered to have high quality credit with low risk of default and therefore the Company has concluded there is no significant

increase in credit risk (SICR).

ALDERMANBURY INVESTMENTS LIMITED

Strategic report (continued)

Risk management (continued)

Liquidity risk (audited)

Liquidity risk is the risk that the Company will be unable to meet its contractual and contingent financial obligations as they

arise or that it does not have the appropriate amount, composition and tenor of funding and liquidity to support its assets and

liabilities.

Liquidity risk management

The Liquidity Risk Management ("LRM") group is part of CIO, Treasury and Corporate (“CTC") Risk, an independent risk

management function, reporting to the CTC CRO who also serves as the Firmwide Risk Executive ("FRE") of Liquidity Risk.

LRM is responsible for the independent assessment, measuring, monitoring, and control of liquidity risk across the firm. LRM

responsibilities include, but are not limited to:

• Defining, monitoring and reporting liquidity risk metrics;

• Independently establishing and monitoring limits and indicators including liquidity risk appetite;

• Developing a process to classify, monitor and report limit breaches;

• Performing an independent review of LRM processes to evaluate their adequacy and effectiveness based on LRM's

Independent Review Framework;

• Monitoring and reporting internal Firmwide and legal entity liquidity stress tests, regulatory defined metrics, as well as

liquidity positions, balance sheet variances, and funding activities; and

• Approving or escalating for review new or updated liquidity stress assumptions.

Liquidity management

Treasury and Chief Investment Office ("T/CIO") is responsible for liquidity management in conjunction with several teams

within the wider T/CIO and LOB specific space. The primary objectives of the Firm's liquidity management are to:

• Ensure that the Firm’s core businesses and material legal entities are able to operate in support of client needs and meet

contractual and contingent financial obligations through normal economic cycles as well as during stress events; and

• Manage an optimal funding mix, and availability of liquidity sources in support of assets and liabilities.

The Firm addresses these objectives through:

• Analysing and understanding the liquidity characteristics of the assets and liabilities of the Firm, LOB and legal entities,

taking into account legal, regulatory, and operational restrictions;

• Contributing to the development of internal liquidity stress testing assumptions and managing spot and forward Firmwide

and legal entity specific liquidity positions, to ensure compliance with regulatory requirements and internal targets;

• Oversee and manage Firmwide and significant legal entity liquidity forecasting and short term cash flow forecasting;

• Managing liquidity within the Firm's approved liquidity risk appetite tolerances and limits and taking necessary action

when needed; and

• Managing compliance with regulatory requirements related to funding and liquidity risk; and

• Managing the annual liquidity review of significant business lines and products to determine whether any business line or

product creates or has created any unanticipated liquidity risk, and whether the liquidity risk of each strategy or product

is within the Firm’s established liquidity risk tolerance.

Liquidity and funding are managed using a centralised, global approach in order to optimise liquidity sources and uses,

monitor exposures, identify constraints on the transfer of liquidity between the Firm’s significant legal entities, and maintain

the appropriate amount of surplus liquidity at a Firmwide and legal entity level, where relevant, as part of the Firm’s overall

liquidity management strategy.

• Optimise liquidity sources and uses;

• Monitor exposures;

• Identify constraints on the transfer of liquidity between the Firm’s legal entities; and

• Maintain the appropriate amount of surplus liquidity at a Firmwide and legal entity level, where relevant.

Liquidity risk is covered under the Firmwide Liquidity Management Framework. The Company is not subject to specific

regulatory liquidity requirements. Due to the nature of the business conducted by the Company, and the fact that its sole

source of funding is from the Firm, the Directors do not consider liquidity risk to be material.

ALDERMANBURY INVESTMENTS LIMITED

Strategic report (continued)

Risk management (continued)

Market risk (audited)

Market risk is the risk associated with the effect of changes in market factors such as interest and foreign exchange rates,

equity and commodity prices, credit spreads or implied volatilities, on the value of assets and liabilities held for both the short

and long term.

The following sections detail the market risk management framework at both the Firmwide and Company levels.

Market Risk Management monitors market risks throughout the Firm and defines market risk policies, procedures and other

guidance as appropriate. The Market Risk Management function reports to the Firm's CRO, and seeks to manage risk,

facilitate efficient risk/return decisions, reduce volatility in operating performance and provide transparency into the Firm’s

market risk profile for senior management, the Firm's Board and regulators.

Risk Governance & Policy Framework

The Company’s approach to market risk governance mirrors the Firmwide approach and additional oversight is provided by

the Board.

Risk Measurement

There is no single measure to capture market risk and therefore the Firm uses various metrics both statistical and non-

statistical to assess risk. The appropriate set of risk measures utilised for a given business activity is tailored based on

business mandate, risk horizon, materiality, market volatility and other factors.

Value-at-Risk ("VaR")

The Firm utilises VaR, a statistical risk measure, to estimate the potential loss from adverse market moves in the current

market environment.

The VaR framework is employed across the Firm using historical simulation based on data for the previous 12 months. VaR is

calculated assuming a one-day holding period and an expected tail-loss methodology which approximates a 95% confidence

level. These VaR results are reported to senior management, the Firm's Board and regulators.

The Company applies the Firmwide approach for VaR as described above, for internal risk management purposes.

The table below shows the result of the Company's Risk Management VaR:


	2025			2024			At 31 December
	Avg.	Min	Max	Avg.	Min	Max	2025	2024
	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000

95 % VaR	749	482	1,002	1,205	354	2,095	905	606

The Company’s market risk exposure is not material, with VaR driven by residual positions across businesses.

Stress testing

Along with VaR, stress testing is an important tool to assess risk. While VaR reflects the risk of loss due to adverse changes

in markets using recent historical market behaviour, stress testing reflects the risk of loss from hypothetical changes in the

value of market risk sensitive positions applied simultaneously.

The Firm and the Company run weekly stress tests on market-related risks across the lines of business using multiple

scenarios that assume significant changes in risk factors such as credit spreads, equity prices, interest rates, currency rates

and commodity prices.

The Firm and the Company use a number of standard scenarios that capture different risk factors across asset classes

including geographical factors, specific idiosyncratic factors and extreme tail events. The stress testing framework calculates

multiple magnitudes of potential stress for both market rallies and market sell-offs for each risk factor and combines them in

multiple ways to capture different market scenarios. The flexibility of the stress testing framework allows risk managers to

construct new, specific scenarios that can be used to form decisions about future possible stress events.

Stress testing complements VaR by allowing risk managers to shock current market prices to more extreme levels relative to

those historically realised, and to stress test the relationships between market prices under extreme scenarios. Stress-test

results, trends and qualitative explanations based on current market risk positions are reported to the respective LOB, Firm

and Company senior management as appropriate, to allow them to better understand the sensitivity of positions to certain

defined events and to enable them to manage their risks with more transparency.

ALDERMANBURY INVESTMENTS LIMITED

Strategic report (continued)

Risk management (continued)

Market risk (audited) (continued)

Stress testing (continued)

Stress scenarios are defined and reviewed by Market Risk, and significant changes are reviewed by the relevant LOB Risk

Committees and may be redefined on a periodic basis to reflect current market conditions.

Risk Monitoring and Control

Market risk limits are employed as the primary control to align the Firm’s market risk with certain quantitative parameters

within the Firm’s Risk Appetite framework.

Market Risk sets limits and regularly reviews and updates them as appropriate, with any changes approved by Firm or LOB

or Company management, as appropriate, and Market Risk, except for limit reductions which are approved by Market Risk

only. Limits that have not been reviewed within a specified time period by Market Risk are reported to senior management.

Limit breaches are required to be reported in a timely manner to limit approvers, which include Market Risk and senior

management. In the event of a limit breach, Market Risk consults with senior management to determine the course of action

required to return to compliance, which may include a reduction in risk or granting a temporary increase in limits to

accommodate an expected increase in client activity and/or market volatility. Certain Firm, LOB or Company level limit

breaches are escalated as appropriate.

The Company’s limit includes VaR and Stress limits established at the legal entity level.

The Board has oversight over the above VaR and Stress limits and delegates its approval authority to the Company’s Market

Risk Officer ("MRO").

Risk Reporting

Models used to measure market risk are inherently imprecise and may be limited in their ability to measure certain risks or to

predict losses. This imprecision may be heightened when sudden or severe shifts in market conditions occur. For additional

discussion on model uncertainty, refer to the Model Risk section.

Market Risk Management periodically reviews the Firm’s and the Group's subsidiaries' existing market risk measures to

identify opportunities for enhancement, and to the extent appropriate, will calibrate those measures accordingly over time.

Operational risk

Operational risk is the risk of an adverse outcome resulting from inadequate or failed internal processes or systems; human

factors; or external events impacting the Firm's processes or systems. Operational Risk includes compliance, conduct, legal,

and estimations and model risk.

Operational risk is inherent in the Company’s activities and can manifest itself in various ways, including fraudulent acts,

business disruptions (including those caused by extraordinary events beyond the Firm's control), cyber-attacks, inappropriate

employee behaviour, failure to comply with applicable laws, and regulations or failure of vendors or other third-party providers

to perform in accordance with their agreements. Operational Risk Management attempts to manage operational risk at

appropriate levels in light of the Company’s financial position, the characteristics of its businesses, and the markets and

regulatory environments in which it operates.

The Firm's control and risk management places focus on the advancements in third-party and internal use of artificial

intelligence by the LOB, such as machine learning, and how it could potentially impact the control and operational risks.

Operational Risk Management Framework

The Company approach to Operational Risk is consistent with the Firmwide approach. The Company leverages the Firm’s

Compliance, Conduct, and Operational Risk ("CCOR") Management Framework which is designed to enable the Firm to

govern, identify, measure, monitor and test, manage and report on the Firm’s operational risk. The regional governance

framework incorporates the firmwide strategy, and the Firm’s policies, procedures and LOB/Corporate structure. The regional

framework is supplemental and complementary to the global framework and also provides the requisite link between the

EMEA companies and the LOBs/Corporates. Execution of the Company's CCOR assessments is conducted by the LOBs/

Corporates in line with the applicable standards and procedures, with independent review and challenge conducted by the

CCOR organisation, consistent with the approach taken at the Firmwide level.

Operational risk can manifest itself in various ways. Operational risk subcategories such as Compliance risk, Conduct risk,

Legal risk and Estimations and Model risk, as well as other operational risks, can lead to losses which are captured through

the Firm’s operational risk measurement processes.

ALDERMANBURY INVESTMENTS LIMITED

Strategic report (continued)

Risk management (continued)

Compliance risk

Compliance risk, a subcategory of operational risk, is the risk of failing to comply with laws, rules, regulations or codes of

conduct and standards of self-regulatory organisations.

Each of the LOBs and Corporate holds primary ownership of and accountability for managing their compliance risk. The

Firm’s Operational Risk and Compliance Organisation ("Operational Risk and Compliance"), which is independent of the

LOBs and Corporate, provides independent review, monitoring and oversight of business operations with a focus on

compliance with the laws, rules and regulations applicable to the delivery of the Firm’s products and services to clients and

customers.

These compliance risks relate to a wide variety of laws, rules and regulations across the LOBs and Corporate, and

jurisdictions, and include risks related to financial products and services, relationships and interactions with clients and

customers, and employee activities.

For example, compliance risks include those associated with anti-money laundering compliance, trading activities, market

conduct, and complying with the laws, rules, and regulations related to the offering of products and services across

jurisdictional borders. Compliance risk is also inherent in the Firm’s fiduciary activities, including the failure to exercise the

applicable standard of care to act in the best interest of fiduciary clients and customers or to treat fiduciary clients and

customers fairly.

Other functions provide oversight of significant regulatory obligations that are specific to their respective areas of

responsibility.

Operational Risk and Compliance implements policies and standards designed to govern, identify, measure, monitor and test,

manage, and report on compliance risk.

Governance and oversight

Operational Risk and Compliance is led by the Firm's Global Chief Compliance Officer (“CCO”) and the FRE for Operational

Risk and Qualitative Risk Appetite who reports to the Firm’s CRO. The regional Compliance, Conduct, and Operational Risk

("CCOR") Heads, including the EMEA CCO, are part of this governance structure.

The Firm maintains oversight and coordination of its compliance risk through the implementation of the CCOR Management

Framework. The Company's approach aligns with the Firmwide approach. The EMEA CCO is a member of the EMC.

Code of Conduct

The Firm has a Code of Conduct (the “Code”) that sets forth the Firm’s expectation that employees will conduct themselves

with integrity, at all times. The Code provides the principles that help govern employee conduct with clients, customers,

suppliers, vendors, shareholders, regulators, other employees, as well as with the markets and communities in which the

Firm and the Company operates. The Code requires employees to promptly report any potential or actual violation of the

Code, Firm policies, or law, rules or regulations applicable to the Firm’s business. It also requires employees to report any

illegal or unethical conduct, or conduct that violates the underlying principles of the Code, by any of the Firm’s employees,

consultants, clients, customers, suppliers, contract or temporary workers, or business partners, or agents.

Conduct training is assigned to newly hired employees after joining the Firm, and to current employees periodically thereafter.

Employees are required to affirm their compliance with the Code annually.

Employees can report any potential or actual violations of the Code through the Firm's Conduct Hotline (the "Hotline") by

phone, mobile device or the internet. The Hotline is anonymous, where permitted by law, is available at all times globally, has

translation services and is administered by an outside service provider. The Code prohibits retaliation against anyone who

raises an issue or concern in good faith. Periodically, the Audit Committee receives reports on the Code of Conduct program.

Legal risk

Legal risk, a subcategory of operational risk, is the risk of loss primarily caused by the actual or alleged failure to meet legal

obligations that arise from the rule of law in jurisdictions in which the Firm and the Company operates, agreements with

clients and customers, and products and services offered by the Firm and the Company.

ALDERMANBURY INVESTMENTS LIMITED

Strategic report (continued)

Risk management (continued)

Legal risk (continued)

Overview

The global Legal function (“Legal”) provides legal services and advice to the Firm and the Company. Legal is responsible for

managing the Firm’s exposure to legal risk by:

• Managing actual and potential litigation and enforcement matters, including internal reviews and investigations related

to such matters

• Advising on products and services, including contract negotiation and documentation;

• Advising on offering and marketing documents and new business initiatives;

• Managing dispute resolution;

• Interpreting existing laws, rules and regulations, and advising on changes to them;

• Advising on advocacy in connection with contemplated and proposed laws, rules and regulations; and

• Providing legal advice to the LOBs, Corporate and the Board.

Legal selects, engages and manages outside counsel for the Firm on all matters in which outside counsel is engaged. In

addition, Legal advises the Firm’s Conflicts Office which reviews the Firm’s wholesale transactions that may have the

potential to create conflicts of interest for the Firm.

Governance and oversight

The Firm’s General Counsel reports to the CEO and is a member of the Operating Committee, the Firmwide Risk Committee

("FRC") and the Firmwide Control Committee. The Firm’s General Counsel and other members of Legal report on significant

legal matters to the Firm’s Board and to the Audit Committee. Each region, including EMEA, has a General Counsel who is

responsible for managing legal risk across all lines of business and functions in the region.

Legal serves on and advises various committees and advises the Firm’s and the Company's LOBs and Corporate on

potential reputation risk issues.

Reputation risk

Reputation risk is the risk of damage to the trust, affinity or goodwill for the Firm held by clients, employees and investors that

can result from the Firm’s decisions to engage or not engage with a client or in a business activity and which may lead to

negative commercial impacts. The Firm’s decisions related to clients and business activities are made based on a range of

commercial considerations, including operational capabilities and expertise, servicing costs, risk relative to opportunity, the

prioritisation of finite resources and, when relevant, reputation risk considerations. The Firm manages reputation risk through

established policies, standards and procedures that are integrated across the LOBs and Corporate functions. Potential

reputation risk matters may be escalated to governance forums, as appropriate, including LOB Reputation Risk Committees.

The Firms Board Risk Committee also regularly receives information on reputation risk matters, as appropriate. Reputation

risk is assessed and defined at the Firmwide level and is applicable to the Company.

The Strategic report on pages 1-10 was approved by the Board of Directors and signed on behalf of the Board by:

______________________

Jennifer Ballinger

Director

3 August 2026

ALDERMANBURY INVESTMENTS LIMITED

Directors' report

The Directors present their report and the audited financial statements of Aldermanbury Investments Limited (the “Company”) for

the year ended 31 December 2025 . The Company is part of JPMorgan Chase & Co. The Company’s registered number is

03936272.

Results and dividends

The results for the year show a loss for the financial year after taxation of $1.7 million (2024: Profit of $18.2 million). No dividend

was paid or proposed during the year (2024: $300 million).

Post Balance sheet Events

The Company paid an interim dividend of $50 million to its sole member, The Bear Stearns Companies LLC on 31 March 2026.

Financial risk management

Refer to the Strategic report for details of how the Company manages its financial risks.

Other matters

Please refer to the Strategic report where the business review, including future outlook, has been disclosed.

Directors

The Directors of the Company who served during the year and up to the date of signing the financial statements were as follows:


Clare Griffith	Director
Jennifer Ballinger	Director
Kimberly Taylor	Director
Nazy Namazi	Director

Directors' interests

None of the Directors have any beneficial interest in the Company. The ultimate holding Company is a body corporate

incorporated outside England and Wales. The Directors are not required to notify the Company of any interests in shares of that

or any other body incorporated outside England and Wales.

Statement of directors' responsibilities in respect of the financial statements

The directors are responsible for preparing the Directors' report and the financial statements in accordance with applicable law

and regulation.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have

prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom

Accounting Standards, comprising FRS 101 “Reduced Disclosure Framework”, and applicable law).

Under company law, directors must not approve the financial statements unless they are satisfied that they give a true and fair

view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial

statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• state whether applicable United Kingdom Accounting Standards, comprising FRS 101 have been followed, subject to any

material departures disclosed and explained in the financial statements;

• make judgements and accounting estimates that are reasonable and prudent; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will

continue in business.

The directors are responsible for safeguarding the assets of the company and hence for taking reasonable steps for the

prevention and detection of fraud and other irregularities.

The directors are also responsible for keeping adequate accounting records that are sufficient to show and explain the company’s

transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure

that the financial statements comply with the Companies Act 2006.

ALDERMANBURY INVESTMENTS LIMITED

Directors' report (continued)

Directors' confirmations

In the case of each director in office at the date the directors’ report is approved:

• so far as the director is aware, there is no relevant audit information of which the company’s auditors are unaware; and

• they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant

audit information and to establish that the company’s auditors are aware of that information.

Qualifying third party indemnity provisions

An indemnity is provided to the Directors of the Company under the by-laws of JPMorgan Chase & Co. against liabilities and

associated costs which they could incur in the course of their duties to the Company. The indemnity was in force during the

financial year and also at the date of approval of the financial statements. A copy of the by-laws of JPMorgan Chase & Co. is

available from the registered office address of the Company.

Company secretary

The secretary of the Company who served during the year was J.P. Morgan Secretaries (UK) Limited.

Registered address

25 Bank Street

Canary Wharf

London

E14 5JP

England

United Kingdom

Independent auditors

The independent auditors, PricewaterhouseCoopers LLP, have expressed their willingness to continue in office.

The Directors' report on pages 11-12 was approved by the Board of Directors and signed on behalf of the Board by:

____________________

Jennifer Ballinger

Director

3 August 2026

Independent auditors' report to the members of Aldermanbury

Investments Limited

Report on the audit of the financial statements

Opinion

In our opinion, Aldermanbury Investments Limited's financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its loss for the year then

ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom

Accounting Standards, including FRS 101 "Reduced Disclosure Framework", and applicable law); and

• have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements, included within the Annual Report, which comprise:

• the Balance sheet as at 31 December 2025;

• the Income statement for the year then ended;

• the Statement of comprehensive income for the year then ended;

◦ the Statement of changes in equity for the year then ended; and

◦ the notes to the financial statements, comprising material accounting policy information and other explanatory information.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) ("ISAs (UK)") and applicable law. Our

responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements

section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

opinion.

Independence

We remained independent of the company in accordance with the ethical requirements that are relevant to our audit of the

financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities

in accordance with these requirements.

Conclusions relating to going concern

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,

individually or collectively, may cast significant doubt on the company’s ability to continue as a going concern for a period of at

least twelve months from when the financial statements are authorised for issue.

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the

preparation of the financial statements is appropriate.

Independent auditor's report to the members of Aldermanbury

Investments Limited (continued)

Conclusions relating to going concern (continued)

However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the company's

ability to continue as a going concern.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of

this report.

Reporting on other information

The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’

report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the

other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this

report, any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,

consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the

audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement,

we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a

material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material

misstatement of this other information, we are required to report that fact. We have nothing to report based on these

responsibilities.

With respect to the Strategic report and Directors' report, we also considered whether the disclosures required by the Companies

Act 2006 have been included.

Reporting on other information (continued)

Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and

matters as described below.

Strategic report and Director's Report

In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic report and Directors'

report for the year ended 31 December 2025 is consistent with the financial statements and has been prepared in accordance

with applicable legal requirements.

In light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we did not

identify any material misstatements in the Strategic report and Directors' report.

Responsibilities for the financial statements and the audit

Responsibilities of the directors for the financial statements

As explained more fully in the Statement of directors' responsibilities in respect of the financial statements, the directors are

responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that

they give a true and fair view. The directors are also responsible for such internal control as they determine is necessary to enable

the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Independent auditor's report to the members of Aldermanbury

Investments Limited (continued)

Responsibilities for the financial statements and the audit (continued)

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going

concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the

directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a

high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material

misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the

aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial

statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our

responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which

our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and

regulations related to the Companies Act 2006 and corporate tax legislation, and we considered the extent to which non-

compliance might have a material effect on the financial statements. We evaluated management’s incentives and opportunities for

fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal

risks were related to to posting inappropriate journal entries and the application of management bias in accounting estimates.

Audit procedures performed by the engagement team included:

• Discussions with management, including Internal Audit, and those charged with governance in relation to known or

suspected instances of non-compliance with laws and regulations and fraud;

• Evaluation of entity level controls put in place by management to prevent and detect irregularities, including additional

inquiries and discussion relating to any whistleblowing incidents during 2025;

• Identifying and testing journal entries with specific risk characteristics, in particular any journal entries posted by senior

management;

• Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in

relation to the valuation of financial instruments; and

• Incorporating unpredictability into the nature, timing and/or extent of our testing.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-

compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.

Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error,

as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at:

www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.

Independent auditor's report to the members of Aldermanbury

Investments Limited (continued)

Use of this report

This report, including the opinions, has been prepared for and only for the company's members as a body in accordance with

Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume

responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save

where expressly agreed by our prior consent in writing.

Other required reporting

Companies Act 2006 exception reporting

Under the Companies Act 2006 we are required to report to you if, in our opinion:

• we have not obtained all the information and explanations we require for our audit; or

• adequate accounting records have not been kept by the company or returns adequate for our audit have not been received

from branches not visited by us; or

• the company's financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors's remuneration specified by law are not made.

We have no exceptions to report arising from this responsibility.


Victoria McSherry (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
3 August 2026

ALDERMANBURY INVESTMENTS LIMITED

Income statement for the year ended 31 December 2025


For the year ended 31 December		2025	2024
	Note	$'000	$'000

Operating income	5	3,210	24,381
Administrative expenses	6	(608)	(2,454)
Impairment loss on Investment in JPMorganChase undertakings	12	(400)	—
Other (expense)/income	7	(5,032)	1,695

Operating (loss)/profit		(2,830)	23,622

Interest and similar income	8	532	1,387
Interest and similar expense	9	(7)	(171)

(Loss)/Profit before taxation		(2,305)	24,838

Tax (credit)/charge	11	628	(6,652)

(Loss)/Profit for the financial year		(1,677)	18,186

Statement of comprehensive income

There were no other items of comprehensive income or expense other than the (loss)/profit for the financial year shown above

(2024: $nil). As a result, (loss)/profit for the financial year represents total comprehensive (expense)/income in both the current

and prior financial year.

The notes on pages 20 - 36 form an integral part of these financial statements.

ALDERMANBURY INVESTMENTS LIMITED

Balance sheet as at 31 December 2025


As at 31 December		2025	2024
	Note	$'000	$'000

Current assets
Financial assets held at fair value through profit or loss	15	33,930	94,311
Debtors	14	8,820	14,405
Cash and cash equivalents	16	75,917	37,634
Total current assets		118,667	146,350

Total assets		118,667	146,350

Current liabilities
Financial liabilities held at fair value through profit or loss	17	(366)	(9)
Creditors and provisions	18	(4,791)	(31,154)
Total current liabilities		(5,157)	(31,163)

Net current assets		113,510	115,187

Net assets		113,510	115,187

Equity
Share capital	19	—	—
Retained earnings		113,510	115,187

Total equity		113,510	115,187

The notes on pages 20 - 36 form an integral part of these financial statements.

The financial statements on pages 17 to 36 were approved by the Board of Directors on 3 August 2026 and signed on its

behalf by:

_____________________

Jennifer Ballinger

Director

3 August 2026

ALDERMANBURY INVESTMENTS LIMITED

Statement of changes in equity for the year ended December 2025


	Notes	Share capital	Retained earnings	Total equity
		$'000	$'000	$'000

Balance as at 1 January 2024		—	397,001	397,001

Profit for the financial year		—	18,186	18,186
Dividend paid⁽¹⁾	20	—	(300,000)	(300,000)

Balance as at 31 December 2024		—	115,187	115,187

Loss for the financial year		—	(1,677)	(1,677)

Balance as at 31 December 2025		—	113,510	113,510

⁽¹⁾The Company paid an interim dividend of $100 million and $200 million to its sole member, The Bear Stearns Companies LLC

on 21 March 2024 and 11 December 2024 respectively.

ALDERMANBURY INVESTMENTS LIMITED

Notes to the financial statements

1. General Information

The Company is a private limited Company incorporated and domiciled in England and Wales. The address of its registered office

is 25 Bank Street , Canary Wharf, London, E14 5JP, United Kingdom. The Company's immediate parent undertaking is The Bear

Stearns Companies LLC, incorporated in the state of Delaware in the United States of America. The Company's ultimate parent

undertaking and controlling party is JPMorgan Chase & Co., which is incorporated in the state of Delaware in the United States of

America. JPMorgan Chase & Co. is also the parent undertaking of the smallest and largest group in which the results of the

Company are consolidated. The largest and smallest parent groups' consolidated financial statements can be obtained from the

Company's registered office.

Principal activities

The principal activity of the Company continued to be that of a booking and processing entity for investment banking activities

initiated by other JPMorganChase undertakings.

2. Basis of preparation

These financial statements have been prepared in accordance with Financial Reporting Standard 101, ‘Reduced Disclosure

Framework’ ("FRS 101"). FRS 101 applies the recognition and measurement requirements of International Financial Reporting

Standards (“IFRS”), as adopted by the U.K, in conformity with the requirements of the Companies Act 2006.

The financial statements have been prepared on a going concern basis under the historical cost convention as modified by the

revaluation of certain financial assets and financial liabilities measured at fair value through profit or loss, and in accordance with

the Companies Act 2006. As noted in the Strategic Report, the timeline for the proposed transfer of business activities and

associated assets and liabilities in the Company to other JPMorganChase subsidiaries is uncertain, and the Directors of the

Company have not taken any decision to liquidate the Company following this transfer. Therefore, the Directors have concluded

that this will allow the Company to continue as a going concern for the foreseeable future.

The following exemptions from the requirements of IFRS in conformity with the requirements of the Companies Act 2006 have

been applied in the preparation of these financial statements, in accordance with FRS 101:

• Comparative information disclosures for the following (paragraph 38, IAS 1 'Presentation of financial statements' ("IAS 1"))

for reconciliation of share capital (paragraph 79(a)(iv) of IAS 1);

• Statement of compliance with IFRS (paragraph 16, IAS 1);

• Cash flow statement and related notes (IAS 7 'Cash flow statements');

• Disclosures in relation to new or revised standards issued but not yet effective (paragraph 30 and 31, IAS 8 'Accounting

policies, changes in accounting estimates and errors');

• Key management compensation disclosures (paragraph 17, IAS 24 'Related Party Disclosures' ("IAS 24")); and

• Related party transactions with wholly owned group undertakings (IAS 24).

2.1 Accounting and reporting developments

Standards adopted during the year ended 31 December 2025

The Company has adopted a number of minor amendments to IFRS during 2025, none of which had a material impact on these

financial statements.

2.2 New or revised standards issued but not yet effective

There are other new accounting standards, amendments to accounting standards and interpretations published that are not

mandatory for 31 December 2025 reporting periods and have not been early adopted by the Company. These standards,

amendments or interpretations are not expected to have a material impact on the Company's financial statements.

3. Critical accounting estimates and judgements

In the process of applying the Company’s accounting policies, management makes judgements, estimates and assumptions for

certain categories of assets and liabilities. These judgements, estimates and assumptions affect the reported amounts of assets

and liabilities and disclosure of contingent assets and liabilities at the balance sheet date, and the reported amounts of revenue

and expenses during the reporting period. Making judgements, estimates and assumptions can involve levels of uncertainty and

subjectivity and therefore actual results could differ from the reported amounts. The Company’s material accounting policy

information is described in Note 4.

Some of the judgements, estimates and assumptions management makes when preparing the Company’s financial statements

involve high levels of subjectivity and assessments about the future and other sources of uncertainty. Those that may have a

material impact on the Company’s financial condition, changes in financial condition or results of operations are described below.

ALDERMANBURY INVESTMENTS LIMITED

Notes to the financial statements (continued)

3. Critical accounting estimates and judgements (Continued)

Fair value measurement

The Company carries a significant portion of its assets and liabilities at fair value on a recurring basis. Certain financial

instruments are classified on the basis of valuation techniques that feature one or more significant market inputs that are

unobservable, and for them, the measurement of fair value is more judgemental:

• Judgements - In classifying a financial instrument in the valuation hierarchy judgement is applied in determining the

observability and significance of the inputs to the fair value measurement. A financial instrument's categorisation within

the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. Refer to

Note 21.

• Estimates - For instruments classified in level 3, management judgement must be applied to assess the appropriate

models and level of valuation adjustments. Detail on the Company's level 3 financial instruments and the sensitivity of

their valuation to the effect of applying reasonable possible alternative assumptions in determining their fair value are set

out in Note 21.

4. Material accounting policies

The following are the material accounting policy information applied in the preparation of these financial statements. These

policies have been applied consistently in each of the years presented, unless otherwise stated.

4.1 Consolidation

The Company is a subsidiary undertaking of The Bear Stearns Companies LLC, a Company incorporated in the United States of

America and of its ultimate parent JPMorgan Chase & Co., a Company incorporated in the United States of America. It is included

in the consolidated financial statements of JPMorgan Chase & Co. which are publicly available. Therefore, the Company has

elected not to prepare group financial statements in accordance with the dispensation set out in Section 401 of the Companies

Act 2006.

4.2 Functional and presentation currency

Items included in the financial statements of the Company are measured using the currency of the primary economic environment

in which the entity operates (the "functional currency”). U.S. dollars is considered as the functional currency and is also used as

the presentation currency of the Company.

4.3 Foreign currency translation

Monetary assets and monetary liabilities denominated in foreign currencies are translated into U.S dollars at the exchange rates

on the balance sheet date. Income and expense items denominated in foreign currencies are translated into U.S. dollars at

exchange rates prevailing at the date of the transactions. Any gains or losses arising on translation are taken directly to the

income statement. For foreign currency translation, FVOCI monetary financial assets are treated as if they were carried at

amortised cost in the foreign currency, such that translation differences on the amortised cost balance are recognised in profit or

loss.

Non-monetary items denominated in foreign currencies that are stated at historical cost are translated into U.S. dollars at the

exchange rate ruling at the date when the transaction was initially recognised.

Non-monetary items denominated in foreign currencies that are stated at fair value are translated into U.S. dollars at foreign

exchange rates ruling at the dates when the fair values were determined. Translation differences arising on non-monetary items

measured at fair value are recognised in the income statement.

4.4 Dividend recognition

Dividend income is recognised when the right to receive payment is established. Dividend distributions are recognised in the

period in which they are declared and approved.

ALDERMANBURY INVESTMENTS LIMITED

Notes to the financial statements (continued)

4. Material accounting policies (continued)

4.5 Financial instruments

4.5.1 Financial assets and financial liabilities

i. Recognition of financial assets and financial liabilities

The Company recognises financial assets and financial liabilities when it becomes a party to the contractual provisions of the

instrument. Regular way purchases and sales of securities are recognised on the trade-date, which is the date on which the

Company commits to purchase or sell an asset.

ii. Classification and measurement of financial assets and financial liabilities

On initial recognition, financial assets are classified as measured at amortised cost, fair value through other comprehensive

income ("FVOCI") or fair value through profit or loss ("FVTPL"). The classification is based on both the business model for

managing the financial assets and their contractual cash flow characteristics. Factors considered by the Company in determining

the business model for a group of assets include past experience on how the cash flows for these assets were collected, how the

assets’ performance is evaluated and reported to key management personnel, how risks are assessed and managed, and how

managers are compensated.

On initial recognition, financial liabilities are classified as measured at either amortised cost or FVTPL.

iii. Financial assets and financial liabilities measured at amortised cost

Financial assets are measured at amortised cost if they are held under a business model with the objective to collect contractual

cash flows ("Hold to Collect") and they have contractual terms under which cash flows are solely payments of principal and

interest ("SPPI"). In making the SPPI assessment, the Company considers whether the contractual cash flows are consistent

with a basic lending arrangement (i.e., interest includes only consideration for the time value of money, credit risk, other basic

lending risks and a profit margin that is consistent with a basic lending arrangement). Where the contractual terms introduce

exposure to risk or volatility that are inconsistent with a basic lending arrangement, the related financial asset is classified and

measured at fair value through profit or loss. Financial assets with embedded derivatives are considered in their entirety when

determining whether their cash flows are solely payment of principal and interest. As a result of the application of these criteria,

only debt financial assets are eligible to be measured at amortised cost.

Financial assets measured at amortised cost include cash and cash equivalents, debtors, amounts owed by other

JPMorganChase undertakings and other receivables.

Financial liabilities are measured at amortised cost unless they are held for trading or a designated as measured at fair value

through profit or loss. Financial liabilities measured at amortised cost include creditors, amounts owed to other JPMorganChase

undertakings and other liabilities.

Financial assets and financial liabilities measured at amortised cost are initially recognised at fair value including transaction

costs. The initial amount recognised is subsequently reduced for principal repayments and for accrued interest using the effective

interest method. In addition, the carrying amount of financial assets is adjusted by recognising an expected credit loss allowance

through to profit or loss.

The effective interest method is used to allocate interest income or interest expense over the relevant period. The effective

interest rate is the rate that discounts estimated future cash payments or receipts through the expected life of the financial asset

or financial liability or a shorter period when appropriate, to the net carrying amount of the financial asset or financial liability. The

effective interest rate is established on initial recognition of the financial asset or financial liability. The calculation of the effective

interest rate includes all fees and commissions paid or received, transaction costs, and discounts or premiums that are an integral

part of the effective interest rate. Transaction costs are incremental costs that are directly attributable to the acquisition, issuance

or disposal of a financial asset or financial liability.

Gains and losses arising on the disposal of financial assets measured at amortised cost are recognised in 'trading income' or

other non-interest revenue as relevant.

iv. Financial assets and financial liabilities measured at fair value through profit or loss

Financial assets and financial liabilities that are measured at FVTPL consist primarily of instruments that are held for trading.

Under IFRS 9 'Financial instruments', a financial asset or a financial liability is defined as “held for trading” if it is acquired or

incurred principally for the purpose of selling or repurchasing it in the near term, or forms part of a portfolio of identified financial

instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit taking or it is

a derivative. However, such financial instruments are used by the Company predominantly in connection with its client-driven

market-making and/or for hedging certain assets, liabilities, positions, cash flows or anticipated transactions (i.e. risk management

activities).

Financial assets and financial liabilities held for trading comprise both debt and equity securities, loans and derivatives, certain

securities purchased under agreements to resell and securities borrowed and the related unrealised gains and losses.

ALDERMANBURY INVESTMENTS LIMITED

Notes to the financial statements (continued)

4. Material accounting policies (continued)

4.5 Financial instruments (continued)

4.5.1 Financial assets and financial liabilities (continued)

iv. Financial assets and financial liabilities measured at fair value through profit or loss (continued)

In addition, certain financial assets that are not held for trading are measured at FVTPL if they do not meet the criteria to be

measured at amortised cost or FVOCI. For example, if the financial assets are managed on a fair value basis, have contractual

cash flows that are not SPPI or are equity securities. The Company has determined that securities purchased under agreements

to resell and securities borrowed within the Commercial and Investment Banking portfolios are managed on a fair value basis, and

they are therefore ineligible to be measured at amortised cost or FVOCI under IFRS 9 'Financial instruments'. These financial

instruments are classified as FVTPL. The Company did not elect to measure any equity instruments at FVOCI.

Financial instruments measured at FVTPL are initially recognised at fair value on the balance sheet. Transaction costs and any

subsequent fair value gains or losses are recognised in profit or loss as they arise.

The Company manages cash instruments, in the form of debt and equity securities, and derivatives on a unified basis, including

hedging relationships between cash securities and derivatives. Accordingly, the Firm reports the gains and losses on the cash

instruments and the gains and losses on the derivatives on a net basis in trading profits.

4.5.2 Interest income and interest expense

Unless a financial asset is credit-impaired, interest income is recognised by applying the effective interest method to the carrying

amount of a financial asset before adjusting for any allowance for expected credit losses. If a financial asset is credit-impaired,

interest income is recognised by applying the effective interest rate to the carrying amount of the financial asset including any

allowance for expected credit losses.

Interest expense on financial liabilities is recognised by applying the effective interest method to the amortised cost of financial

liabilities.

Interest income and expense on financial assets and financial liabilities, excluding those classified at FVTPL, are presented in

interest income from financial assets measured at amortised cost and interest expense from financial liabilities measured at

amortised cost respectively.

4.5.3 Trading profit

Profits and losses resulting from the purchase and sale of securities and the revaluation of financial instruments are recognised in

trading profit on a trade-date basis, including related transaction costs.

4.5.4 Impairment of financial assets

Instruments in scope of TCP include loans and non-TCP instruments including debtors, cash and cash equivalents and other

receivables. The Company establishes an expected credit loss allowance (ECL) for these instruments to ensure they are reflected

in the financial statements at the Company’s best estimate of the net amount expected to be collected. The ECL is determined on

in-scope financial instruments measured at amortized cost or FVOCI. ECL is measured collectively via a portfolio-based

(modelled) approach for Stage 1 and 2 assets but is generally measured individually for Stage 3 assets. ECL is forecasted over

the 12-month term (Stage 1) or expected life (Stage 2 or 3) of in-scope financial instruments, where the forecast period includes

the reasonable and supportable (R&S) forecast period, the reversion period and the residual period and considers the time value

of money. In determining the ECL measurement and staging for a financial instrument, the Company applies the definition of

default consistent with the Basel definition of default to maintain uniformity of the definition across the Firm.

Determining the appropriateness of the allowance is complex and requires judgement by management about the effect of

circumstances that are inherently uncertain. Further, estimating the allowance involves consideration of a range of possible

outcomes, which management evaluates to determine its best estimate. Subsequent evaluations of the TCP portfolio, in light of

the circumstances then prevailing, may result in significant changes in the ECL in future periods.

The Company must consider the appropriateness of decisions and judgements regarding methodology and inputs utilised in

developing estimates of ECL at each reporting period and document them appropriately.

4.6 Derecognition of financial assets and financial liabilities

Financial assets are derecognised when the contractual right to receive cash flows from the asset has expired, or has been

transferred with either of the following conditions met:

• the Company has transferred substantially all the risks and rewards of ownership of the asset; or

• the Company has neither retained nor transferred substantially all of the risks and rewards; but has relinquished control of the

asset.

ALDERMANBURY INVESTMENTS LIMITED

Notes to the financial statements (continued)

4. Material accounting policies (continued)

4.6 Derecognition of financial assets and financial liabilities

Financial liabilities are derecognised when they are extinguished, that is when the obligation is discharged, cancelled or expires.

The Company also from time to time enters into certain ‘pass-through’ arrangements whereby contractual cash flows on a

financial asset are passed to a third party. Such financial assets are derecognised from the balance sheet if the terms of the

arrangement oblige the Company to only pass on contractual cash flows to the third party that are actually received without

material delay, and where the terms of the arrangement also prohibit the Company from selling or pledging the underlying

financial asset.

4.7 Fair value

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market

participants at the measurement date.

Fair values are determined by reference to observable market prices where available and reliable. Fair values of financial assets

and financial liabilities are based on quoted market prices or dealer price quotations for financial instruments traded in active

markets. Where market prices are unavailable, fair value is based on valuation models that consider relevant transaction

characteristics (such as maturity) and use as inputs observable or unobservable market parameters, including but not limited to

yield curves, interest rates, volatilities, equity or debt prices, foreign exchange rates and credit curves. Valuation adjustments may

be made to ensure that financial instruments are recorded at fair value. The Company manages certain portfolios of financial

instruments on the basis of net open risk exposure and has elected to estimate the fair value, of such portfolios on the basis of a

transfer of the entire net open risk position in an orderly transaction.

For financial assets and liabilities held at fair value, most market parameters in the valuation model are either directly observable

or are implied from instrument prices. When input values do not directly correspond to the most actively traded market parameters

the model may perform numerical procedures in the pricing such as interpolation.

The Company classifies its assets and liabilities according to a hierarchy that has been established under IFRS for disclosure of

fair value measurements. The fair value hierarchy is based on the transparency of inputs to the valuation of an asset or liability as

of the measurement date. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for

identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3 inputs).

A financial instrument’s categorisation within the fair value hierarchy is based on the lowest level of input that is significant to the

fair value measurement.

Further details on fair value measurements are provided in note 21 to the financial statements.

4.8 Recognition of deferred day one profit and loss

The Company enters into transactions where fair value is determined using valuation models that use significant unobservable

inputs. Such a financial instrument is initially recognised at the transaction price, although the value obtained from the relevant

valuation model may differ. The difference between the transaction price and the model value, commonly referred to as 'day one

profit and loss', is not recognised immediately in the income statement.

The timing of recognition of deferred day one profit and loss is determined for each class of financial asset and liability. It is either

amortised over the life of the transaction, deferred until the instrument's fair value can be determined using market observable

inputs, or realised through settlement. The financial instrument is subsequently measured at fair value, adjusted for the deferred

day one profit and loss

4.9 Offsetting financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount reported in the balance sheet when there is currently a

legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or to realise the asset

and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be

enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the

counterparty.

4.10 Current tax

Income tax payable on taxable profits (current tax) is recognised as an expense in the period in which the profits arise. Income tax

recoverable on tax allowable losses is recognised as a current tax asset only to the extent that it is regarded as recoverable by

offset against taxable profits arising in the current or prior period. Current tax is measured using tax rates and tax laws that have

been enacted or substantively enacted at the balance sheet date.

ALDERMANBURY INVESTMENTS LIMITED

Notes to the financial statements (continued)

4. Material accounting policies (continued)

4.11 Provisions for liabilities

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is

probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the

obligation can be made.

4.12 Segmental reporting

Business segments

The Company is not in scope of IFRS 8 'Operating segments', as its debt or equity are not traded on a public market, therefore

segmental analysis of the Company's revenue and assets by business is not required.

Geographical segments

The Company operates in three geographic regions as listed below:

• EMEA

• AMERICAS

• APAC

The following table presents revenues from business activities and total assets by geographic area.


	EMEA		AMERICAS		APAC		Total
	2025	2024	2025	2024	2025	2024	2025	2024
	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000

Interest income	532	1,387	—	—	—	—	532	1,387
Total assets	91,356	125,241	27,168	20,981	143	128	118,667	146,350

5. Operating income


	2025	2024
	$'000	$'000

Trading profit	1,461	5,302
Interest income on financial assets held at fair value through profit or loss	4,902	12,845
Other operating (expense)/income	(3,153)	6,234
	3,210	24,381

6. Administrative expenses


	2025	2024
	$'000	$'000

Auditors' remuneration for the audit of the Company's annual financial statements⁽¹⁾	163	252
Custodian fees	107	75
Legal and professional fees	120	1,814
Other administrative expenses	218	313
	608	2,454

⁽¹⁾The auditors' remuneration for the audit of the Company's annual financial statements is $163,253 (2024: $182,880). 2024

Audit fees paid to PricewaterhouseCoopers LLP include prior year adjustments after finalisation of the financial statements.

ALDERMANBURY INVESTMENTS LIMITED

Notes to the financial statements (continued)

7. Other (expense)/income


	2025	2024
	$'000	$'000
Foreign exchange translation (loss)/gain	(5,032)	1,695

8. Interest and similar income


	2025	2024
	$’000	$’000

Interest and similar income from other JPMorganChase undertakings	532	1,387

9. Interest and similar expense


	2025	2024
	$’000	$’000

Interest and similar expenses from other JPMorganChase undertakings	7	171

10. Directors' emoluments and staff costs


	2025	2024
	$'000	$'000
Aggregate emoluments	15	12
Total contributions to a defined contribution plan*	—	—

Number of Directors with shares received or receivable under LTIPs	4	4
Number of Directors to whom defined contribution pension rights accrued	3	3

*The amounts have been rounded off to zero due to thousands unit.

In accordance with the Companies Act 2006, the Directors emoluments above represent the proportion paid or payable in respect

of qualifying services to the Company including LTIPs (Long Term Incentive Plan) of $4,432 (2024: $2,412). Directors also

received emoluments for non-qualifying services, which are not required to be disclosed.

Highest paid Director

The emoluments of the highest paid Director is under £200,000 which is not required to be disclosed under the requirements of

the Companies Act 2006.

The Directors are employees of other companies in the Firm and all expenses, including remuneration, are paid by those

companies and not recharged.

The Company had no employees during the year (2024: none).

11. Tax (credit)/charge


	2025	2024
	$'000	$'000
(a) Analysis of tax (credit)/charge for the year
Current tax:
Current tax on profits for the year	(628)	6,652

Total tax (credited)/charged to income statement for the year	(628)	6,652

ALDERMANBURY INVESTMENTS LIMITED

Notes to the financial statements (continued)

11. Tax (credit)/charge(continued)

(b) Factors affecting the current tax charge for the year

The current tax charge for the year differs from the standard rate of corporation tax in the UK 25%(2024: 25%). The differences

are explained below:


	2025	2024
	$'000	$'000
(Loss)/Profit before taxation	(2,305)	24,838
Tax (credit)/charge based on the standard United Kingdom corporation tax rate of 25% (2024: 25%)	(576)	6,209

Recurring items:
Deductions not allowable for tax purposes	116	443
Non-taxable foreign exchange	(168)	—

Tax (credit)/charge for the year	(628)	6,652

Organisation for Economic Co-operation and Development ("OECD") Pillar Two model rules

The Organization for Economic Co-operation and Development (OECD) has published model rules and associated guidance

related to Pillar Two. The rules apply a system of top-up taxes that aim to ensure corporations are paying income tax at a

minimum rate of 15% in every jurisdiction. These rules began to take effect for corporations in 2024.

The UK Government enacted legislation on the Pillar Two Framework introducing a global minimum tax rate of 15%. The UK’s

Pillar Two rules applied from 1 January 2024. The International Accounting Standards Board issued, in May 2023, amendments to

IAS 12 Income Taxes, that introduced a mandatory temporary exception to recording deferred taxes associated with jurisdictions

implementing Pillar Two rules. The Company has applied the mandatory exception to recognising and disclosing information

about deferred tax assets and liabilities related to top-up taxes associated with Pillar Two. As such, any top-up taxes incurred will

be treated as a period cost in the period of occurrence.

The Company does not have top-up taxes associated with Pillar Two in the current year, given it is expected to qualify for the

temporary country-by-country safe harbour rule in effect this year.

12. Investments in JPMorganChase undertakings

The investments represent share capital in the following entities:


Name	Registered address	Holding	Shares held %


CAFM	Regus Business Centre, Nexsky Building, 7th Floor Ebene Cybercity, 72201 Mauritius	Direct	100.00
BAFM	Regus Business Centre, Nexsky Building, 7th Floor Ebene Cybercity, 72201 Mauritius	Direct	100.00


	2025
Company investment in other JPMorganChase undertakings	$'000

At 1 January	—
Add: Capital contribution in subsidiary	400
Less: Impairment loss on Investment in JPMorganChase undertakings	(400)
At 31 December	—

ALDERMANBURY INVESTMENTS LIMITED

Notes to the financial statements (continued)

13. Unconsolidated structured entities

Structured Entities

A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who

controls the entity, such as, when any voting rights relate to administrative tasks only and the relevant activities are directed by

means of other contractual arrangements.

Typically, structured entities have one or more of the following characteristics:

• an insufficient amount of at-risk equity to permit the entity to finance its activities without additional subordinated financial

support;

• equity at-risk owners that, as a group, are not able to make significant decisions relating to the entity’s activities through

voting rights or similar rights; or

• equity at-risk owners that do not absorb the entity’s losses or receive the entity’s residual returns.

The most common type of structured entities is a special purpose entity (“SPE”). SPE are commonly used in securitisation

transactions in order to isolate certain assets and distribute the cash flows from those assets to investors. The party that has

power to direct the most significant activities of the entity and an exposure to the risks of the entity (together constituting control of

the entity) is required to consolidate the assets and liabilities of the structured entity.

The Company has involvement with various structured entities, originated within the Firm or by third parties. These typically

include securitisations, collateralised loan and debt obligations, and other structured financings.

Interest in unconsolidated structured entities

The Company’s interest in an unconsolidated structured entity is considered as the contractual and non-contractual involvement

that exposes the Company to variability of returns from the performance of the structured entity.

The following table shows, by type of structured entity, the carrying amounts of the Company’s interest in unconsolidated

structured entities recognised on the balance sheet. The maximum exposure to loss is considered as approximate to the carrying

amounts. It also provides an indication of the size of the structured entities, measured by the total assets held in the structured

entity. The carrying amounts do not necessarily reflect the risks faced by the Company, as factors such as economic hedges and

effect of collateral held by the Company are not included.


		Interest in unconsolidated structured entities
	Fair value of assets held by SPE	Financial assets and Liabilities at fair value through profit and loss	Total
31 December 2025	$'000	$'000	$'000

Other	—	—	—
Maximum exposure to loss	—	—	—
Total liabilities	—	—	—


		Interest in unconsolidated structured entities
	Fair value of assets held by SPE	Financial assets and Liabilities at fair value through profit and loss	Total
31 December 2024	$'000	$'000	$'000

Other	895,787	5,757	5,757
Maximum exposure to loss	895,787	5,757	5,757
Total liabilities	—	—	—

ALDERMANBURY INVESTMENTS LIMITED

Notes to the financial statements (continued)

13. Unconsolidated structured entities (continued)

Sponsored entities

The Company considers a “sponsored” SPE to include any entity where: (1) the Company is the primary beneficiary of the

structure; (2) the SPE is used by the Company to securitise assets; (3) the SPE issues financial instruments with the Company's

name; or (4) the entity is a Company-administered asset-backed commercial paper conduit.

SPE's for which the Company has an interest but no control, are included in the above table. The Company typically has either an

interest or control over sponsored SPE's, and instances where it has neither are rare.

14. Debtors


	2025	2024
	$'000	$'000
Current
Amounts owed by other JPMorganChase undertakings	1,337	4,119
Trade debtors	518	1,908
Corporation tax receivable	6,965	8,378
	8,820	14,405

15. Financial assets held at fair value through profit or loss


	2025	2024
	$'000	$'000

Debt and equity instruments	33,897	94,183
Derivative receivables	33	128
	33,930	94,311

Balances include those held with other JPMorganChase undertakings of $0.03 million (2024: $0.1 million).

16. Cash and cash equivalents

Bank balances include those held with other JPMorganChase undertakings of $76 million (2024 : $38 million).

17. Financial liabilities held at fair value through profit or loss


	2025	2024
	$'000	$'000

Derivative payables	366	9

	366	9

Financial liabilities at fair value through profit or loss includes $0.4 million held with JPMorganChase undertakings (2024: $0.01

million).

18. Creditors and provisions


	2025	2024
	$'000	$'000

Amounts owed to other JPMorganChase undertakings	3,502	27,486
Provision for liabilities	1,240	1,243
Bank overdraft	—	3
Other creditors	49	2,422
	4,791	31,154

ALDERMANBURY INVESTMENTS LIMITED

Notes to the financial statements (continued)

19. Share capital


	2025	2024
	$'000	$'000
Issued and fully paid share capital

1 (2024: nil) A ordinary shares of $1 each	—	—
	—	—

20. Dividends

No dividend was paid or proposed during the year (2024: $300 million).

21. Assets and liabilities measured at fair value

Certain of the financial instrument disclosures required by IFRS 7 are included in the Strategic Report but are deemed to be

incorporated into the financial statements.

Fair Value

Valuation process

The Company carries a portion of its assets and liabilities at fair value on a recurring basis. Certain assets, liabilities and

unfunded lending related commitments are measured at fair value on a non-recurring basis; that is, they are not measured at fair

value on an ongoing basis but are subject to fair value adjustments only in certain circumstances (for example, when there is

evidence of impairment).

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction

between market participants at the measurement date. Fair value is based on quoted market prices or inputs, where available. If

prices or quotes are not available, fair value is based on valuation models and other valuation techniques that consider relevant

transaction characteristics (such as maturity) and use as inputs, observable or unobservable market parameters, such as yield

curves, interest rates, volatilities, prices (such as commodity, equity or debt prices), correlations, foreign exchange rates and

credit curves. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value, as described

below.

The level of precision in estimating unobservable market inputs or other factors can affect the amount of gain or loss recorded for

a particular position. Furthermore, while the Company believes its valuation methods are appropriate and consistent with those of

other market participants, the methods and assumptions used reflect management judgement and may vary across the

Company’s businesses and portfolios. The use of different methodologies or assumptions by other market participants compared

with those used by the Company could result in a different estimate of fair value at the reporting date.

The Valuation Governance Forum (VGF), which is composed of senior finance and risk executives is responsible for overseeing

the management of risks arising from valuation activities conducted across the Firm. The Firmwide VGF is chaired by the

Firmwide head of the VCG (under the direction of the Firm’s Controller), and includes sub-forums covering the CIB, Consumer

and Community Banking ("CCB"), Asset and Wealth Management ("AWM") and certain corporate functions including T/CIO.

Risk-taking functions are responsible for providing fair value estimates for assets and liabilities carried on the balance sheet at fair

value. The Firm’s Valuation Control Group (VCG), which is part of the Firm’s Finance function and independent of the risk-taking

functions, is responsible for verifying these estimates and determining any fair value adjustments that may be required to ensure

that the Company's positions are recorded at fair value. The VCG verifies fair value estimates provided by the risk-taking

functions by leveraging independently derived prices, valuation inputs and other market data, where available. Where

independent prices or inputs are not available, the VCG aims to perform additional review to ensure the reasonableness of the

estimates. The additional review may include evaluating the limited market activity including client unwinds, benchmarking

valuation inputs to those used for similar instruments, decomposing the valuation of structured instruments into individual

components, comparing expected to actual cash flows, reviewing profit and loss trends, and reviewing trends in collateral

valuation. There are also additional levels of management review for more significant or complex positions. Some immaterial risks

for which there is no direct independent market data and additional review isn’t performed will remain untested.

The VCG determines any valuation adjustments that may be required to the estimates provided by the risk-taking functions. No

adjustments to quoted prices are applied for instruments classified within level 1 of the fair value hierarchy (refer to the discussion

below for further information on the fair value hierarchy). For other positions, judgment is required to assess the need for valuation

adjustments to appropriately reflect liquidity considerations, unobservable parameters, and, for certain portfolios that meet

specified criteria, the size of the net open risk position.

ALDERMANBURY INVESTMENTS LIMITED

Notes to the financial statements (continued)

21. Assets and liabilities measured at fair value (continued)

The determination of such adjustments follows a consistent framework across the Firm:

• The Firm manages certain portfolios of financial instruments on the basis of net open risk exposure and, as permitted by

IFRS, has elected to estimate the fair value of such portfolios on the basis of a transfer of the entire net open risk position in

an orderly transaction. Where this is the case, valuation adjustments may be necessary to reflect the cost of exiting a larger

than- normal market-size net open risk position. Where applied, such adjustments are based on factors that a relevant

market participant would consider in the transfer of the net open risk position, including the size of the adverse market move

that is likely to occur during the period required to reduce the net open risk position to a normal market-size.

• Liquidity valuation adjustments are considered where an observable external price or valuation parameter exists but is of

lower reliability, potentially due to lower market activity. Liquidity valuation adjustments are made based on current market

conditions. Factors that may be considered in determining the liquidity adjustment include analysis of: (1) the estimated bid

offer spread for the instrument being traded; (2) alternative pricing points for similar instruments in active markets; and (3) the

range of reasonable values that the price or parameter could take.

• Uncertainty adjustments related to unobservable parameters may be made when positions are valued using prices or input

parameters to valuation models that are unobservable due to a lack of market activity or because they cannot be implied from

observable market data. Such prices or parameters must be estimated and are, therefore, subject to management judgment.

Adjustments are made to reflect the uncertainty inherent in the resulting valuation estimate.

• Concentration adjustments should be calculated to reflect the impact of disposing of the outsized position in an orderly

market. A net open risk is considered concentrated when the size of the position exceeds the concentration threshold,

defined by the amount that may be traded within a reasonable time frame without significantly moving the market. When

holding a concentrated position, the Firm is unlikely to be able to exit the entire net open risk at the market mid without

adversely moving the market. As a result, an adjustment is made to move the mid-price to the point within the bid offer where

a third party participant would value the concentrated position.

Valuation model review and approval

Any valuation models used by the Company to determine fair value are reviewed and approved by the Model Risk function. The

function is independent of model owners, developers and users.

Further details on approach to model risk management are provided in Operational risk - Estimation and Model risk section on

page 8.

Fair value hierarchy

The Company classifies its assets and liabilities according to a valuation hierarchy that reflects the observability of significant

market inputs. The three levels are defined as follows:

Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets quoted

prices for identical or similar assets or liabilities in markets that are not active and inputs that are observable for the asset or

liability, either directly or indirectly, for substantially the full term of the financial

Level 3 - one or more inputs to the valuation methodology are unobservable and significant to the fair value measurement.

A financial instrument’s categorisation within the valuation hierarchy is based on the lowest level of input that is significant to the

fair value measurement.

ALDERMANBURY INVESTMENTS LIMITED

Notes to the financial statements (continued)

21. Assets and liabilities measured at fair value (continued)

Valuation methodologies

The following table describes the valuation methodologies used by the Company to measure its more significant products/

instruments at fair value, including the general classification of such instruments pursuant to the valuation hierarchy.


Product/ instrument	Valuation methodology, inputs and assumptions	Classifications in the valuation hierarchy

Derivatives	Exchange-traded derivatives that are actively traded and valued using the exchange price.	Level 1
	Derivatives that are valued using models such as the Black Scholes option pricing model, simulation models, or a combination of models, that may use observable or unobservable valuation inputs as well as considering the contractual terms.	Level 2 or 3
	The key valuation inputs used will depend on the type of derivative and the nature of the underlying instruments and may include equity prices, commodity prices, interest rate yield curves, foreign exchange rates, volatilities, correlations, credit default swaps (“CDS”) spreads and recovery rates. Additionally, the credit quality of the counterparty and of the Company as well as market funding levels may also be considered.

Equity, debt, and other securities	Quoted market prices	Level 1
	In the absence of quoted market prices, securities are valued based on: • Observable market prices in a less liquid market or prices for similar securities • Relevant broker quotes • Discounted cash flows	Level 2 or 3

Assets and liabilities measured at fair value on a recurring basis

The following table presents the asset and liabilities reported at fair value as at 31 December 2025 and 31 December 2024, by

major product category and fair value hierarchy.


	Level 1	Level 2	Level 3	Total
	$’000	$’000	$’000	$’000
At 31 December 2025

Financial assets at fair value
Debt and equity instruments	368	12,089	21,440	33,897
Derivative receivables	—	33	—	33
Total assets at fair value	368	12,122	21,440	33,930

Financial liabilities at fair value
Derivative payables	—	366	—	366
Total liabilities at fair value	—	366	—	366


	Level 1	Level 2	Level 3	Total
	$’000	$’000	$’000	$’000
At 31 December 2024

Financial assets at fair value
Debt and equity instruments	13,507	1,333	79,343	94,183
Derivative receivables	—	117	11	128
Total assets at fair value	13,507	1,450	79,354	94,311

Financial liabilities at fair value
Derivative payables	—	9	—	9
Total liabilities at fair value	—	9	—	9

ALDERMANBURY INVESTMENTS LIMITED

Notes to the financial statements (continued)

21. Assets and liabilities measured at fair value (continued)

Level 3 valuations

The Company has established well-structured processes for determining fair value, including for instruments where fair value is

estimated using significant unobservable inputs (level 3).

Estimating fair value requires the application of judgement. The type and level of judgement required is largely dependent on the

amount of observable market information available to the Company. For instruments valued using internally developed valuation

models and other valuation techniques that use significant unobservable inputs and are therefore classified within level 3 of the

fair value hierarchy, judgements used to estimate fair value are more significant than those required when estimating the fair value

of instruments classified within levels 1 and 2.

The following table presents the Company’s primary level 3 financial instruments, the valuation techniques used to measure the

fair value of those financial instruments, the significant unobservable inputs and the range of values for those inputs. While the

determination to classify an instrument within level 3 is based on the significance of the unobservable inputs to the overall fair

value measurement, level 3 financial instruments typically include observable components (that is, components that are actively

quoted and can be validated to external sources) in addition to the unobservable components.

The range of values presented in the table is representative of the highest and least observable level input used to value the

significant groups of instruments within a product/instrument classification. Where provided, the weighted averages of the input

values presented in the table are calculated based on the fair value of the instruments that the input is being used to value.

In the Company’s view, the input range, weighted and arithmetic average values do not reflect the degree of input uncertainty or

an assessment of the reasonableness of the Company’s estimates and assumptions. Rather, they reflect the characteristics of the

various instruments held by the Company and the relative distribution of instruments within the range of characteristics. For

example, two option contracts may have similar levels of market risk exposure and valuation uncertainty, but may have

significantly different implied volatility levels because the option contracts have different underlying’s, tenors, or strike prices.

The input range and weighted average values will therefore vary from period-to-period and parameter-to-parameter based on the

characteristics of the instruments held by the Company at each balance sheet date.


Product/instrument	Asset	Liability	Net fair value	Principal valuation technique	Unobservable input	Range of input values	Weighted average
At 31 December 2025	$'000	$'000	$'000

Debt and equity instruments
Equity securities	21,440	—	21,440	Market comparables	Price	$0-$200	$8
Total assets and liabilities	21,440	—	21,440


Product/instrument	Asset	Liability	Net fair value	Principal valuation technique	Unobservable input	Range of input values	Weighted average
At 31 December 2024	$'000	$'000	$'000

Debt and equity instruments
Debt and equity securities	73,573	—	73,573	Market comparable s	Price	$0-$85,000	$2,067
Commercial mortgage backed securities	5,770	—	5,770	Market comparable	Price	$0.004-$0.78	$0.73
Total assets and liabilities	79,343	—	79,343

The categories presented in the tables have been aggregated based upon the product type, which may differ from their

classification on the balance sheet and fair values are shown net.

ALDERMANBURY INVESTMENTS LIMITED

Notes to the financial statements (continued)

21. Assets and liabilities measured at fair value (continued)

Changes in and ranges of unobservable inputs

The following discussion provides a description of the impact on a fair value measurement of a change in each unobservable

input in isolation, and the interrelationship between unobservable inputs, where relevant and significant. The impact of changes in

inputs may not be independent as a change in one unobservable input may give rise to a change in another unobservable input;

where relationships do exist between two unobservable inputs, those relationships are discussed below. In addition, for each of

the individual relationships described below, the inverse relationship would also generally apply.

Price -

Equity securities - The price of an equity security reflects the price at which the buyer agrees to purchase the asset

which can be determined through fundamental analysis or market comparables. An increase in the price would result in an

increase in a fair value measurement.

Commercial mortgage backed securities - The price of a mortgage backed security is a function of the yield, credit spread and

subordination of the security being valued. These inputs in turn are representative of the risk inherent in the instruments based on

the characteristics of the underlying mortgages in the collateralised pool.

Fair value financial instruments valued using techniques that incorporate unobservable inputs

The potential impact as at 31 December of using reasonable possible alternative assumptions for the valuations including

significant unobservable inputs have been quantified in the following table:


Sensitivity analysis of valuations using unobservable inputs	Fair Value			Favourable change	Unfavourable change
	Asset	Liability	Net	Income statement
At 31 December 2025	$'000	$'000	$'000	$'000	$'000

Debt and equity instruments
Equity securities	21,440	—	21,440	6,110	(6,110)
Total	21,440	—	21,440	6,110	(6,110)


Sensitivity analysis of valuations using unobservable inputs	Fair Value			Favourable change	Unfavourable change
	Asset	Liability	Net	Income statement
31 December 2024	$'000	$'000	$'000	$'000	$'000

Debt and equity instruments
Debt and equity securities	73,573	—	73,573	10,266	(10,266)
Commercial mortgage backed securities	5,770	—	5,770	583	(583)
Total	79,343	—	79,343	10,849	(10,849)

ALDERMANBURY INVESTMENTS LIMITED

Notes to the financial statements (continued)

21. Assets and liabilities measured at fair value (continued)

Changes in level 3 recurring fair value measurements

The following tables include a roll forward of the balance sheets amounts (including changes in fair value) for financial instruments

classified by the Company within level 3 of the fair value hierarchy.

Movement in assets in Level 3 during year ended 31 December 2025


	Debt and equity instruments	Derivative receivables	Total financial assets
	Debt and equity instruments	Derivative receivables	Total financial assets
	$’000	$’000	$’000
Financial Assets
At 1 January 2025	79,343	11	79,354
Total loss recognised in income statement	(4,099)	(10)	(4,109)
Purchases	2,315	—	2,315
Settlements	(47,426)	—	(47,426)
Transfers in Level 3	38	—	38
Transfers out of Level 3	(8,731)	(1)	(8,732)

At 31 December 2025	21,440	—	21,440
Change in unrealised loss related to financial instruments held at 31 December 2025	(438)	—	(438)

Movement in assets in Level 3 year ended 31 December 2024


	Debt and equity instruments	Derivative receivables	Total financial assets
	Debt and equity instruments	Derivative receivables	Total financial assets
	$’000	$’000	$’000
Financial Assets
At At 1 January 2024	83,226	50	83,276
Total profit/(loss) recognised in income statement	16,319	(108)	16,211
Purchases	11,493	—	11,493
Settlements	(12,350)	—	(12,350)
Transfers in Level 3	—	173	173
Transfers out of Level 3	(19,345)	(104)	(19,449)

At 31 December 2024	79,343	11	79,354
Change in unrealised gains related to financial instruments held at 31 December 2024	14,526	11	14,537

Transfers between levels for instruments carried at fair value on a recurring basis

For the years ended 31 December 2025 and 31 December 2024, there were no significant transfers between levels 1 and 2.

Transfers into level 3 included the following:

• $nil (2024: $0.2 million) of assets driven by reduction in observability of derivative instruments.

• $0.04 million (2024: $nil) of assets driven by reduction in observability of debt and equity instruments.

Transfers out of level 3 included the following:

• $0.001 million (2024: $0.1 million) of assets driven by increase in observability of derivative instruments.

• $8.73 million (2024: $19.3 million) of assets driven by increase in observability of debt and equity instruments.

All transfers are assumed to occur at the beginning of the period in which they occur.

ALDERMANBURY INVESTMENTS LIMITED

Notes to the financial statements (continued)

21. Assets and liabilities measured at fair value (continued)

Fair value of financial instruments not carried on balance sheet at fair value

Certain financial instruments that are not carried at fair value on balance sheet are carried at amounts that approximate fair value,

due to their short- term nature and generally negligible credit risk. These instruments include cash and cash equivalents, debtors

and creditors. The Company has $78 million (2024: $44 million) of financial assets and $3.5 million (2024: $30 million) of financial

liabilities that are not measured at fair value.

All other instruments are of a short-term nature and the carrying amounts in the balance sheet approximate fair value.

Offsetting financial assets and financial liabilities

No financial assets and liabilities have been offset in the balance sheet as at 31 December 2025 (2024: $nil).

No financial instruments as at 31 December 2025 recognised within financial assets and financial liabilities held for trading were

subject to enforceable master netting arrangements or other similar agreements (2024: $nil).

22. Post Balance sheet Events

The Company paid an interim dividend of $50 million to its sole member, The Bear Stearns Companies LLC on 31 March 2026.


Contents		Page(s)

Strategic report		1 - 10

Directors' report		11 - 12

Independent auditors' report		13 - 16

Income statement		17

Statement of comprehensive income		17

Balance sheet		18

Statement of changes in equity		19

Notes to the financial statements		20 - 36