Van Lanschot has decided to take a one-off impairment on goodwill and other intangibles of 122 million in 2012. This non-recurring impairment relates to the acquisition of business banking activities of CenE Bankiers in 2004 and banking activities of Kempen & Co in 2006. The impairment does not relate to Kempen's current activities.
This is an accounting adjustment ('non-cash item') driven by International Financial Reporting Standards (IFRS). Goodwill and other intangibles do not form part of core capital. This one-off adjustment therefore has no impact on the bank's solid capital and liquidity position. The Core Tier I ratio remains strong at around 11%. Moreover, the bank's high funding ratio and excellent leverage ratio are not impacted by this adjustment.
The financial sector is currently experiencing lower interest and commission income and higher loan losses as a result of market conditions. Given that these difficult macro-economic conditions persist and the economic recovery is taking longer than expected, the forecast returns on the acquired activities are under pressure. Based on this outlook and in accordance with the IFRS rules, it has been decided for reasons of prudence to adjust the accounting valuation of goodwill and other intangibles accordingly.
The 2012 annual results will be presented on 8 March 2013.
's-Hertogenbosch, the Netherlands, 17 December 2012
A conference call will be held for investors and analysts at 9.30 am (CET)
Dial-in number: +31 10 294 42 28.
Van Lanschot Media Relations: Etienne te Brake, Corporate Communications Manager
Telephone +31 73 548 3026; mobile phone +31 6 12 505 110; e-mail firstname.lastname@example.org
Van Lanschot Investor Relations: Geraldine Bakker-Grier, Investor Relations Manager
Telephone +31 73 548 3350; mobile phone +31 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 offers high-quality financial services to high net-worth Individuals, entrepreneurs and their businesses and institutional investors. Van Lanschot NV is listed on Euronext Amsterdam.
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 regarding forward looking statements concerning future events included in this press release have not been audited.
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