Van Lanschot Results of 2011 European stress test
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* Core Tier I ratio under adverse stress scenario (including sovereign risk
impact) of 9.8% in 2011 and 9.7% in 2012 (minimum EBA benchmark of 5%),
compared with a Core Tier I ratio of 9.6% at year-end 2010
* Capital increases in period under review; Van Lanschot posts a net profit
even under adverse stress scenario
* No exposure to government bonds of Greece, Portugal, Ireland, Italy and
Spain
Constant Korthout, CFO/CRO of Van Lanschot: "Van Lanschot has a conservative
risk profile, which is confirmed by the results of the European stress test.
This is also reflected in the high quality of the loan book, about half of which
is made up of home mortgages. Of the total loan book, 98% represents loans
issued in the Netherlands and Belgium, and just 0.11% (approximately
EUR 15 million) in European periphery countries. Country risk in the bank´s
investment portfolio is limited to the Netherlands, Germany, Switzerland and
Canada. Van Lanschot therefore has no exposure to government bonds of Greece,
Portugal, Ireland, Italy and Spain. The bank has sufficient buffers in place to
absorb unexpected shocks, even in the most adverse stress scenario. This is
reflected in the results of the stress tests that we perform regularly as part
of our risk management procedures and was again confirmed by the affirmation of
the bank´s Single A minus (stable outlook) credit rating by the rating agency
Standard & Poor´s on 13 July 2011."
The European Banking Authority (EBA), formerly CEBS, conducted the EU-wide
stress test as part of its responsibility for the stability of the European
financial system (macro-prudential) and that of financial institutions (micro-
prudential). This stress test seeks to assess the resilience of financial
institutions to shocks to the economy and the financial markets.
Van Lanschot is not one of the 90 European banks that were obliged to carry out
this EU-wide stress test. In keeping with last year, Van Lanschot has carried
out the same European stress test on its own initiative.
The test was performed using the methodology, scenarios and assumptions
prescribed by the EBA, including a scenario of falling residential and
commercial property prices, rising unemployment and a dip in share prices. The
calculations (both baseline and adverse) assume a static balance sheet and
´what-if´ scenarios for comparison purposes.
Based on the assumed impact of the adverse scenario, Van Lanschot´s consolidated
Core Tier I ratio would still be 9.7% at year-end 2012 (thanks to its private
banking activities), compared with 9.6% at year-end 2010. This stress test shows
that Van Lanschot has a capital buffer of 4.7% - i.e. EUR 565 million - over and
above the benchmark Core Tier I ratio of 5.0% used for this test.
The results of the stress test for Van Lanschot are attached in the annexe.
´s-Hertogenbosch, the Netherlands, 20 July 2011
Van Lanschot Media Relations: Etienne te Brake, Media Relations Manager
Telephone +31 (0)73 548 30 26; mobile +31 (0)6 12 505 110; e-
maile.tebrake@vanlanschot.com
Van Lanschot Investor Relations: Geraldine Bakker-Grier, Investor Relations
Manager
Telephone +31 (0)73 548 33 50; mobile +31 (0)6 13 976 401; e-
mailg.a.m.bakker@vanlanschot.com
Van Lanschot NV is the holding company of F. van Lanschot Bankiers NV, the
oldest independent bank in the Netherlands with a history dating back to 1737.
Van Lanschot focuses on three target groups: high net-worth individuals, medium-
sized businesses (including family businesses) and institutional investors. Van
Lanschot stands for high-quality services founded on integrated advice, personal
service and customised solutions. Van Lanschot NV is listed on Euronext
Amsterdam.
Click the link below to read the complete press release including all tables and
annexes:
Press release (PDF):
http://hugin.info/133415/R/1532112/466477.pdf
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Source: Van Lanschot via Thomson Reuters ONE
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