Van Lanschot again saw a substantial inflow of clients and funds entrusted in the first quarter of 2008 and therefore continues to benefit from the consolidation battle currently taking place in the Dutch financial sector.
The fall in share prices (MSCI World Index: -16% in the first quarter of 2008) in particular led on balance to a decrease in assets under discretionary management for private clients. Total assets under discretionary management however increased. This was thanks to an increase in assets managed for institutional clients as a number of large management contracts came into effect.
Even with a growing balance sheet, the funding ratio as well as the capital ratios went up compared with the already solid levels at year-end 2007. As Van Lanschot does not have any direct or indirect investments in the subprime sector, it was not required to recognise any write-downs.
The negative market sentiment clearly had an impact on the bank's securities commission. Investors were less willing to trade, which led to fewer transaction fees, while the lower prices also put pressure on the custody and asset management fees. As a result, commission income in the first three months of the year lagged strongly behind last year. On the other hand, interest income rose on the back of higher volumes. The interest margin remained more or less stable, being the combination of tighter margins on the liabilities side and improved margins on the asset side. Total costs in the first three months were roughly the same as a year earlier. However, on balance, the profit for the first quarter remained considerably behind last year.
Based on the results for the first three months of the year, the bank expects earnings per share for 2008 to be lower compared with that for 2007. The final amount of earnings per share will depend in part on when the sentiment on the stock markets returns to normal.
's-Hertogenbosch, 8 May 2008
Van Lanschot press contacts: Etienne te Brake, Corporate Communication spokesperson.
Van Lanschot Investor Relations: Geraldine Bakker-Grier, Investor Relations Manager.
Van Lanschot NV is the holding company of F. van Lanschot Bankiers NV, the oldest independent bank in the Netherlands, with a history dating back to 1737. Van Lanschot Bankiers stands for high-quality services founded on integrated advice, personal service and customised solutions. Van Lanschot NV is listed on the Euronext Amsterdam Stock Market.
The press release can be downloaded from the following link: