Published: 07:30 AM CET
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% (2018[i]: 21.1%) and enables the company to propose a dividend for 2019 of €1.45 per share. It achieved a return on equity[ii] of 10.5% (2018: 9.8%) and improved the efficiency ratio to 75.5% (2018: 79.4%).
[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.
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 Financial results.
In a conference call for analysts on 20 February at 9.00 am CET, we will discuss our 2019 annual figures in greater detail. This may be viewed live at Financial results and played back at any later date.