Van Lanschot Kempen: net profit of over €83 million and capital return proposal

Amsterdam/’s-Hertogenbosch, the Netherlands, 27 August 2019

Van Lanschot Kempen: net profit of over €83 million and capital return proposal

Net profit moved significantly ahead of H1 2018 (€83.6 million compared with €39.3 million) on the back of book profits from the sale of two holdings
Underlying net result amounts to €92.5 million (H1 2018: €47.2 million)
Client assets rise 20% to €97.3 billion while AuM adds 23% to €82.6 billion on the back of net inflows of €8.7 billion and a positive stock market performance of €6.9 billion
Fully loaded CET 1 ratio increases to 22.7% (2018: 21.4%)
Capital return proposal in the amount of €1.50 per share

Van Lanschot Kempen today released its 2019 half-year results. Karl Guha, Chairman, said: “Our net result for the first half is significantly up on the year-earlier total and reflects book profits on the sale of our holdings in AIO II (€36.0 million net) and VLC & Partners (€16.1 million net). Ignoring the results of these holdings, our net profit is in line with last year. Our capital ratio increased further to 22.7% and our ample capital position enables us to propose a capital return to our shareholders in the amount of €1.50 per share.

“Conditions in the first six months of 2019 were turbulent, bringing market uncertainties and exceptionally low market rates. Our wealth management strategy makes us less dependent on interest income, but the pressure on interest income will increase if market rates fall further. We note more client uncertainty and a greater need for advice in these conditions.”

Net inflows of assets under management (AuM) and a favourable stock market performance added an impressive €16.1 billion to client assets, to €97.3 billion. AuM was up €15.6 billion to €82.6 billion, with strong net inflows fed in particular by Asset Management (€8.8 billion) landing the Stichting Pensioenfonds PostNL fiduciary mandate. Geopolitical and economic uncertainties across the world have made our clients more cautious about investing, and some have taken profits. As a result, savings were up by €0.4 billion, whereas Private Banking faced a minor net AuM outflow of €0.1 billion.

Over the past few years, we have nurtured Evi’s growth into a mature organisation with a strong brand. It’s now time for the next stage for Evi and we see opportunities to further enhance our proposition for mass affluenti clients. We have determined our next steps to this end, one of which will be to step up collaboration between Evi and Private Banking.

Commission income has been lower (−5%) in the wake of such factors as a changing AuM mix and lower fee income at Merchant Banking. Meanwhile interest income came down by 6% in the wake of persistently low interest rates. We are pleased with the 9% reduction in operating expenses to €190.4 million. Our aim for 2019 is a net cost level at around €390 million and we’re on course to stay within this range. Our efficiency ratio stands at 75.5% (H1 2018: 81.1%).

Our CET1 ratioii has gone up to 22.7% from 21.4%. Our strong capital base enables us to propose a capital return of €1.50 per share. If carried, this will lead to a pay-out to our shareholders – expected in December – of over €60 million. We will continue to optimise our capital base going forward, while leaving room for possible acquisitions. If possible, we will also consider paying out capital to our shareholders, subject to approval by the regulator.

FINANCIAL REPORT/ PRESENTATION/WEBCASTFor a detailed discussion of Van Lanschot Kempen’s results and balance sheet, please refer to our performance report and presentation on the 2019 half-year results at www.vanlanschotkempen.com/en/financial/financial-results.

In a conference call for analysts on 27 August at 9.00 am CET, we will discuss our 2019 half-year figures in greater detail. This may be viewed live at www.vanlanschotkempen.com/en/financial/financial-results and played back at any later date.

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

FINANCIAL CALENDAR 9 October 2019 Extraordinary general meeting 31 October 2019 Publication of Q3 trading update 20 February 2020 Publication of 2019 annual 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, Evi and Kempen 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.

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 semi-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 financial data in this press release have not been audited, unless specifically stated otherwise. Small differences in tables may be the result of 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 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.

i Mass affluent clients are high net worth individuals with investable assets up to €500,000.

ii Fully loaded, excluding retained earnings.

Attachment