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.

Securities commissions edged up by 1%, while other commissions came down. Merchant Banking had another good year, although commission income is slightly lower than the very robust 2018.

Van Lanschot Kempen’s capital position is very solid: the CET 1 ratio worked out at 23.8% (2018ⁱ: 21.1%) and enables the company to propose a dividend for 2019 of €1.45 per share. It achieved a return on equityⁱⁱ of 10.5% (2018: 9.8%) and improved the efficiency ratio to 75.5% (2018: 79.4%).

FINANCIAL REPORT/PRESENTATION/WEBCAST
For a detailed discussion of Van Lanschot Kempen’s results and balance sheet, please refer to our performance report and presentation on the 2019 annual results at www.vanlanschotkempen.com/results.

In a conference call for analysts on 20 February at 9.00 am CET, we will discuss our 2019 full-year results in greater detail. This may be viewed live at www.vanlanschotkempen.com/results and played back at a later date.

ADDITIONAL INFORMATION
For additional information, go to www.vanlanschotkempen.com/financial

FINANCIAL CALENDAR

27 February 2020  Publication of 2019 annual report
22 April 2020        Publication of Q1 trading update
28 May 2020        Annual General Meeting (AGM)
1 June 2020         Ex-dividend date
9 June 2020         2019 dividend payment date
26 August 2020    Publication of 2020 half-year results

Media Relations: +31 20 354 45 85; mediarelations@vanlanschotkempen.com
Investor Relations: +31 20 354 45 90; investorrelations@vanlanschotkempen.com

About Van Lanschot Kempen
Van Lanschot Kempen, a wealth manager operating under the Van Lanschot, Kempen and Evi brand names, is active in Private Banking, Asset Management and Merchant Banking, with the aim of preserving and creating wealth for its clients. Van Lanschot Kempen, listed at Euronext Amsterdam, is the Netherlands’ oldest independent financial services company with a history dating back to 1737.

vanlanschotkempen.com

Disclaimer and cautionary note on forward-looking statements
This press release may contain forward-looking statements on future events and developments. These forward-looking statements are based on the current insights, information and assumptions of Van Lanschot Kempen’s management about known and unknown risks, developments and uncertainties. Forward-looking statements do not relate strictly to historical or current facts and are subject to such risks, developments and uncertainties which by their very nature fall outside the control of Van Lanschot Kempen and its management.

Actual results, performances and circumstances may differ considerably from these forward-looking statements as a result of risks, developments and uncertainties relating to, but not limited to, (a) estimates of income growth, (b) costs, (c) the macroeconomic and business climate, (d) political and market trends, (e) interest rates and currency exchange rates, (f) behaviour of clients, competitors, investors and counterparties, (g) the implementation of Van Lanschot Kempen’s strategy, (h) actions taken by supervisory and regulatory authorities and private entities, (i) changes in law and taxation, (j) changes in ownership that could affect the future availability of capital, and (k) changes in credit ratings. 

Van Lanschot Kempen cautions that forward-looking statements in this press release are only valid on the specific dates on which they are expressed, and accepts no responsibility or obligation to revise or update any information, whether as a result of new information or for any other reason.

Van Lanschot Kempen’s annual accounts are prepared in accordance with International Financial Reporting Standards as adopted by the European Union (‘IFRS-EU’). In preparing the financial information in this press release, except as described otherwise, the same accounting principles are applied as in the 2018 Van Lanschot Kempen consolidated annual accounts. The annual financial statements for 2019 are in progress and may be subject to adjustments from subsequent events. All figures in this press release are unaudited. Small differences are possible in the tables due to rounding.

This press release does not constitute an offer or solicitation for the sale, purchase or acquisition in any other way or subscription to any financial instrument and is not a recommendation to perform or refrain from performing any action.

Elements of this press release contain information about Van Lanschot Kempen NV and/or Van Lanschot Kempen Wealth Management NV within the meaning of Article 7(1) to (4) of EU Regulation No. 596/2014.

This press release is a translation of the Dutch language original and is provided as a courtesy only. In the event of any disparities, the Dutch language version will prevail. No rights can be derived from any translation thereof.

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ⁱ Some amounts differ from previously published reports, reflecting changes that result from the accounting changes related to provisions for pensions.

ⁱⁱ Return on average Common Equity Tier 1 based on underlying net result attributable to shareholders.

Attachment

• Press release annual results 2019

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