Van Lanschot

stable performance in challenging markets

· Underlying net result^[1] stable at €37.7 million (H1 2015: €37.7 million)
· Net profit works out at €31.5 million (H1 2015: €37.7 million)
· Client assets grow by 5% to €66.2 billion (year-end 2015: €63.0 billion) supported by net inflows and positive market performance
· Improved credit quality underpins release of loan loss provisions
· Capital base increases further: CET I ratio^[2] comes in at 17.3% (year-end 2015: 16.3%)

's-Hertogenbosch, the Netherlands, 24 August 2016

Van Lanschot today released its half-year results. Karl Guha, Chairman, said: "An increase in our assets under management has further strengthened our position as an independent, specialist wealth manager. Our client assets increased from €63.0 billion to €66.2 billion. Assets under management were up 8% from €50.3 billion to €54.3 billion, mainly driven by Asset Management's net inflows of €2.7 billion and a favourable market performance of €1.6 billion. AuM at Private Banking decreased marginally. The announced acquisition of Staalbankiers' private banking activities would add up to €1.7 billion in assets in 2017. These activities' key features, namely client groups, client service and investment policy, are an excellent fit for Van Lanschot. As such, this would be a good example of an add-on acquisition that truly enhances our position.

"Our focus on wealth management underpins our steady results in today's uncertain and volatile markets. Difficult markets cause our clients to proceed with caution and enter into fewer transactions - implying less commission income. In the meantime, we regularly bring our clients up to speed on the latest market developments and our long-term investment decisions, building their confidence in their chosen investment course and in their investments.

"With reduced activity in the European capital markets in the past six months, Merchant Banking returned sharply lower income compared with an exceptionally robust first half in 2015. Our niche strategy and international client base continue to put us in an excellent position to make the most of any upturn in the markets.

The continued run-off of our corporate loan portfolio, combined with the improvement in our clients' financial positions, significantly enhanced our loan portfolio. The period ended in a net release of €1.7 million from our loan loss provisions compared with the year-earlier net addition of €31.9 million. Net profit works out at €31.5 million including a €8 million charge related to the derivatives recovery framework. Our capital position developed well and our CET I ratio progressed to 17.3%.