Van Lanschot Kempen: net profit of nearly €10 million in first half

Amsterdam/’s-Hertogenbosch, the Netherlands, 26 August 2020
          

• Net profit of €9.5 million in H1 2020; strong second quarter performance with a net profit of nearly €20 million
• Strong net inflows of €4.7 billion, of which €4.4 billion in AuM. Client assets increase to €103.4 billion (2019: €102.0 billion)
• Good underlying operating performance, notwithstanding incidental items in Q1 due to Covid-19
• Limited credit exposure – addition to loan loss provisions of €1.3 million
• Robust capital ratio at 24.0%
• Successful next step in growth strategy: acquisition of Hof Hoorneman Bankiers, bringing in client assets of €1.9 billion

Van Lanschot Kempen today published its 2020 half-year figures. Karl Guha, Chairman, said: “Covid-19 has been a defining factor for the first half of this year – at a societal and an economic level. For our clients, this has been a period of profound uncertainty about the present and future. Our past investments in omni-channel capabilities have served us well, in the sense that we were able to serve our clients well and be there for them in their time of need. We were rewarded with meaningful growth in client assets during this period. For this we are very grateful to our clients. As such, our strong operational performance during a challenging first half, is a testimony to the investments we have made in the past in technology and in our people.

“We are absolutely delighted with the acquisition of Hof Hoorneman Bankiers – a respected Dutch wealth management house. This transaction is in line with our stated goal of pursuing growth via acquisitions. Furthermore, this is an important step in our pursuit of an integrated and focused wealth management strategy. Notwithstanding the economic challenges and market volatility confronting us as a result of Covid-19, we believe that we are well positioned from a capital and asset quality perspective to weather the storm. In no small part this is due to our focused wealth management strategy in a stable and wealthy corner of Europe. We believe that our unique integrated wealth management proposition will continue to allow us to serve our private, institutional and mass affluent clients well in the present and in the future.”

In the last six months client assets increased, from €102.0 billion to €103.4 billion driven by net inflow of €4.7 billion in assets under management (AuM) and savings. AuM increased from €87.7 billion to €89.2 billion. The strong net inflows of €4.4 billion derived from AuM from both new and existing clients, and materially offset the negative market impact of €2.9 million. Savings and deposits were at €9.8 billion (2019: €9.5 billion).

The acquisition of Hof Hoorneman Bankiers as announced last week will increase our client assets by €1.9 billion. Hof Hoorneman Bankiers is an excellent fit in terms of client mix, investment policy, corporate culture and personal approach, for both Private Banking and Evi. The acquisition is subject to the approval of the regulators and is expected to be completed by the end of 2020.

The first half saw a net result of €9.5 million (H1 2019: €31.4 million excluding one-time gains from two salesⁱ). Following the outbreak of Covid-19 in the first quarter of 2020, we have implemented cost-saving measures to improve our operating performance. The solid operational performance combined with cost savings generated second-quarter net profits of €19.9 million (Q1 2020: -€10.5 million).

 

PERFORMANCE 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 2020 half-year results at www.vanlanschotkempen.com/results. In a conference call on 26 August at 9:00 am CET, we will discuss our 2020 half-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
29 October 2020   Publication of 2020 third-quarter trading update
25 February 2021  Publication of 2020 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, in a sustainable way, for both its clients and the society of which it is part. Listed at Euronext Amsterdam, Van Lanschot Kempen is the Netherlands’ oldest independent financial services company, 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 the Covid-19 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. 

Van Lanschot Kempen’s semi-annual accounts are prepared in accordance with IAS 34 (Interim Financial Reporting), as adopted by the European Union. In preparing the financial information in this press release, except as described otherwise, the same accounting principles are applied as in the 2019 Van Lanschot Kempen consolidated annual accounts.

The financial data in this press release have not been audited. The external independent auditor has issued a review report with respect to the half-year results contained in the Van Lanschot Kempen Performance report half-year results 2020. Small differences in tables may be the result of rounding. Percentages are calculated based on unrounded figures.
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 Related to the sales of stakes in AIO II and VLC & Partners

 

 

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• Press release HY results 2020