Van Lanschot Kempen trading update: first quarter of 2020

• The unprecedented impact of Covid-19 on the world’s economies, financial markets and society at large has also affected our performance
• The underlying activities of primarily Private Banking and Asset Management are making good progress
• A series of incidental items related to the market volatility has resulted in net losses of €10.5 million
• Net AuM inflows of €1.8 billion underpins the success of our integrated wealth management model
• Limited credit exposure makes for low levels of provisioning
• Liquidity and solvency remain very robust at an LCR of 151.6% and a CET 1 ratio of 22.8%

          
Van Lanschot Kempen today published its trading update for the first quarter of 2020. Please note that due to the exceptional circumstances, additional financial information has been provided.

Constant Korthout, Chief Financial & Risk Officer, said: “The world is facing the substantial challenge of addressing the issues related to the coronavirus crisis. Current circumstances are extraordinary, with nearly 90% of our staff working from home. The pandemic has had an impact on our clients as well. We are very aware that these are times when we can make a difference by being there for our clients and by providing tailored and client-specific assistance, particularly with respect to our private banking clients. Needless to say, we are very grateful to our clients for their trust, as evidenced by the inflows recorded at Private Banking and Asset Management.

“Regrettably, we have to report a loss for this first quarter; the outcome of a very volatile market leading to a number of incidental items. As part of our 2013 strategic reorientation, we have been able to materially re-risk our balance sheet. Consequently, our credit exposure is limited, largely consisting of Dutch residential mortgages. As such, this has allowed us to maintain low levels of provisioning.

“Client assets and assets under management (AuM) have declined during the quarter – from €102.0 billion to €94.5 billion and from €87.7 billion to €80.6 billion respectively. The net inflows of €1.8 billion were not sufficient to offset the negative market impact. Savings and deposits were unchanged at €9.5 billion while the overall loan portfolio was marginally higher at €8.8 billion.

“Our capital and liquidity ratios have remained robust.

“First-quarter costs developed in line with the guidance given earlier. We have also proactively initiated a series of additional cost saving measures. With these measures and in normal market conditions, we expect the year to end on a positive note.”

PRESENTATION/WEBCAST
In view of the current circumstances, we will discuss our Q1 2020 results in a conference call to be held on 7 May at 9:00 am. 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
28 May 2020        Annual general meeting
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, Evi and Kempen brand names, is active in Private Banking, Asset Management and Merchant Banking, with the aim of preserving and creating wealth, in a sustainable way, for its clients. Van Lanschot Kempen, listed at Euronext Amsterdam, is the Netherlands’ oldest independent financial institution with a history dating back to 1737.

For more information, please visit 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, (k) changes in credit ratings, and (l) evolution and economic and societal impact of a pandemic.

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.

The financial data in this press release have not been audited, unless specifically stated otherwise. 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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• Press release Q1 2020 trading update