Van Lanschot Kempen (VLK) investor relations material

Executive summary

• Net profit increased by 30% year-over-year to €88.2 million, driven by strong commission and interest income growth, robust net inflows, and operating leverage.

• Assets under management (AuM) rose 18% to €188.2 billion, with total client assets surpassing €200 billion for the first time, reflecting significant growth in both private banking and fiduciary management.

• Significant net inflows into AuM of €19.5 billion, mainly from new clients and pension fund mandates.

• Strategy focused on scalable, sustainable growth, leveraging technology, AI, and targeted acquisitions, with high employee engagement and strong client satisfaction (Net Promoter Score of 45 for private clients Netherlands).

• Maintained a scalable, capital-light business model with continued investment in digital innovation and private markets offerings.

Financial highlights

• Net profit: €88.2 million (+30% YoY); underlying net result: €95.0 million (+33% YoY).

• Commission income up 10% to €306.9 million; interest income up 27% to €96.9 million year-over-year.

• Cost/income ratio improved to 66.4%, outperforming the 67%-70% target range.

• CET1 ratio at 17.0% (Basel IV fully loaded), impacted by capital return and lending growth.

• Operating expenses rose 6%, mainly due to investments in staff and technology.

Outlook and guidance

• Full-year net interest income guidance raised to approximately €200 million, above previous range.

• On track to achieve 2027 financial targets, including >18% return on CET1 capital, 67-70% cost/income ratio, and ≥10% annual AuM growth.

• CET1 ratio target of 17.5% (Basel IV fully loaded) by 2027; intention to return excess capital to shareholders if exceeded.

• Continued investment in AI, technology, and digital innovation to enhance client service and operational efficiency.

• No significant change expected in NII for 2027 compared to 2026, barring major market shifts.