Van Lanschot's operating result for the third quarter of 2010 is markedly higher than for the first and second quarters of this year. Third-quarter interest income rose thanks to the higher interest margin. The conversion of the preference shares into ordinary shares in June 2010 also lowered interest expense. Assets under management were up in the third quarter, as a result of both an inflow of new assets and the favourable market performance. Assets under discretionary management in particular posted a healthy increase. Third-quarter transaction volumes and commission were in line with the first six months of the year. Costs remained stable at the level of the first two quarters of 2010.
The bank's Core Tier I ratio at 30 September 2010 (core activities) was 9.3%, the Tier I ratio 11.6% and the BIS total capital ratio 13.7%. In the third quarter, the scale-down of the risk-weighted assets in the corporate portfolio was continued. The 13.7 leverage at 30 September 2010 reflects the bank's low risk profile and is well below the maximum of 33 as applied under Basel III. Van Lanschot largely finances its loans and advances from the funds entrusted by its clients. This is expressed in the bank's funding ratio, which stood at over 81% at 30 September 2010.
The trend in the third quarter is a positive sign for the further recovery in results. The gradual revival of the economy is expected to translate into reduced additions to the loan loss provision. If the upward economic trend persists and the sentiment on the securities investment market improves, Van Lanschot expects to be able to make significant headway in the full year 2010 towards achieving normalised profit levels.
Publication of 2010 annual results
The publication date of the 2010 annual results has been moved to Friday 18 March 2011.
's-Hertogenbosch, the Netherlands, 12 November 2010
Van Lanschot Media Relations: Etienne te Brake, Corporate Communication spokesperson
Telephone +31 (0)73 548 30 26; Mobile phone +31 (0)6 12 505 110; E-mail firstname.lastname@example.org
Van Lanschot Investor Relations: Geraldine Bakker-Grier, Investor Relations Manager
Telephone +31 (0)73 548 33 50; Mobile phone +31 (0)6 13 976 401; E-mail email@example.com
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. The bank focuses on three target groups: high net-worth individuals, medium-sized businesses (including family businesses) and institutional investors. Van Lanschot stands for high-quality services founded on integrated advice, personal service and customised solutions. Van Lanschot NV is listed on Euronext Amsterdam.
Forward looking statements
This press release contains forward looking statements concerning future events. Those forward looking statements are based on the current information and assumptions of the Van Lanschot management concerning known and unknown risks and uncertainties.
Forward looking statements do not relate to definite facts and are subject to risks and uncertainty. The actual results may differ considerably as a result of risks and uncertainties relating to Van Lanschot's expectations regarding such matters as the assessment of market risk or possible acquisitions, or business expansion and premium growth and investment income or cash flow predictions or, more generally, the economic climate and changes in the law and taxation.
Van Lanschot cautions that expectations are only valid on the specific dates, and accepts no responsibility for the revision or updating of any information following changes in policy, developments, expectations or the like. The financial data included in this press release have not been audited.