Van Lanschot Kempen

net profit exceeds €98 million in 2019

Amsterdam/’s-Hertogenbosch, the Netherlands, 20 February 2020

• Net profit staged a significant increase to €98.4 million (2018: €80.3 million), with underlying net result up to €108.8 million (2018: €103.0 million)
• Operating expenses came down by 3% to €384.1 million and stayed within the target for 2019 of €390 million
• Client assets grew by 26% to €102.0 billion, with AuM adding 31% to €87.7 billion on the back of €9.9 billion net inflows
• CET 1 ratio increased to 23.8% (2018: 21.1%)
• Dividend proposal of €1.45 per share (2018: €1.45 per share)

Van Lanschot Kempen today released its 2019 full-year results. Karl Guha, Chairman, said: “We’re proud of what we’ve achieved in 2019. Our net profit added €18.1 million to €98.4 million, while cost-saving measures have helped us cut operating expenses to €384.1 million and keep costs levels below the €390 million target figure we had previously issued. Our client assets surged to €102.0 billion on the back of a net inflow in assets under management (AuM) at both Asset Management and Private Banking. Our robust capital position enabled us to pay yet another capital return of €1.50 per share in December, and we have completed our strategic investment programme on schedule with the achievement of the final milestone – the migration to the new payments platform.”

Ignoring exceptional items, the impact of the sale of the company’s stakes in AIO II and VLC & Partners, and the impairment of goodwill in Merchant Banking, net profit rose by 22% on the back of lower operating expenses and higher securities commissions. At the same time, interest result is being squeezed by persistently low interest rates. Despite the uncertainties facing the financial markets, economic sentiment in 2019 turned out more sanguine than previously expected, and investor clients also had a good year: Van Lanschot Kempen managed to achieve high returns on clients’ investment portfolios.

Van Lanschot Kempen is delighted with the €20.8 billion increase in total client assets to €102.0 billion, driven by a positive market performance and net AuM inflows at Asset Management and Private Banking – with Stichting Pensioenfonds PostNL (€9.0 billion) onboarded at Asset Management in 2019. It was also pleased with the net inflows into investment strategies to the tune of €0.7 billion. Private Banking recorded an inflow of €0.5 billion, breaking down into a slight net AuM inflow of €0.1 billion and an increase in savings of €0.4 billion. Assets under management in sustainable propositions at Private Banking surged by 55% to €2.0 billion.