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

Published: 7.30 CET

  • 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 billion. 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 sales[i]). 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).

First-half commission income added €6.7 million on the figure for H1 2019, to €148.9 million, reflecting higher average AuM volumes and higher transaction fees. Interest income decreased to €77.0 million (H1 2019: €84.7 million) and is under persistent pressure from the low interest-rate environment, despite the introduction of negative interest rates for current, securities and savings accounts with balances in excess of €1 million, effective 1 April.

Operating expenses decreased slightly to €187.5 million (H1 2019: €190.4 million). As previously indicated, we expected operating expenses to rise slightly for 2020. However, due to the cost-saving measures in the past six months, we have turned this expected increase into a decrease.

[i] Related to the sales of stakes in AIO II and VLC & Partners

Full press release

Read the full press release on our 2020 half-year results (pdf)

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 Financial 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 Financial results and played back at a later date.

Financial calendar

29 October 2020 - Publication of 2020 third-quarter trading update
25 February 2021 - Publication of 2020 annual results

More information

Media Relations: +31 20 354 45 85; mediarelations@vanlanschotkempen.com
Investor Relations: +31 20 354 45 90; investorrelations@vanlanschotkempen.com