Van Lanschot today released its full-year results for 2015. Karl Guha, Chairman, said: “We’re in good shape. Client satisfaction ratings for our services are improving. We’re well capitalised and the commission income growth improves the quality of our results. Commission now accounts for over half of our income in line with our wealth management strategy. Loan loss provisions for the year were 33% lower than last year, at €51 million. In view of these results we’re proposing an increased dividend payment of €0.45 per share.
“Client assets of both private individuals and institutional clients advanced from €58.5 billion to €62.6 billion, with our assets under management*** kicking ahead by 14% from €44.1 billion to €50.2 billion. Positive stock market conditions weren’t the only driver: Private Banking also contributed net inflows of over €300 million and the acquisition of MN UK by Kempen Capital Management added €4.6 billion. At the start of 2016, Asset Management enjoyed the rewards of its 2015 efforts when it was selected for a new fiduciary mandate for Univé as well as a new corporate bonds mandate for FRR. Merchant Banking had an excellent year and bolstered positions in its selected niches: our advisers were involved in larger-sized transactions and in more senior roles. We’ve also made important headway with the run-off of our corporate loan portfolio and have managed to slash its risk-weighted assets to
€1.9 billion, which actually exceeded our original run-off target for 2017.
“Our challenge is to accelerate our growth, enhance our returns and to position Van Lanschot as wealth manager for the future. The shift from collective to individual wealth creation in the Netherlands is an example of major new forces in our business. In addition, new technology and digitisation rapidly change client requirements. We need to make additional investment in improvement and innovation if we’re to leverage these trends.
And so we’re not merely reducing costs in the short term, we’re also investing in longer-term growth initiatives, having launched a range of new activities including Evi van Lanschot, our online savings and investment service. This conscious decision on our part does mean that we expect to achieve our 60-65% efficiency target by a later date than 2017 as originally envisaged. We are currently deepening our wealth management strategy as part of this drive and will explain this in further detail on 26 April 2016.”
*The underlying result in 2014 was the net result adjusted for the one-off pension gain. In 2015 it reflected the net result adjusted for the one-off charge arising from the sale of non-performing property loans.
** Common Equity Tier I ratio phase-in, including retained earnings.
*** Assets under management no longer includes the assets under administration. These latter assets are those that are merely administered by Van Lanschot, over which Van Lanschot has little or no control, and on which earnings are relatively limited. Comparative figures have been adjusted accordingly.
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