Van Lanschot Kempen (VLK) H1 2024 earnings summary

Executive summary

• Net profit rose 44% year-over-year to €74.5 million in H1 2024, driven by strong commission income and robust net AuM inflows of €5.7 billion, with all client segments contributing positively.

• Total AuM increased over 9% to €139.3 billion, and client assets reached €156.8 billion, supported by favorable market conditions and acquisitions.

• Expanded presence in Belgium with the acquisition of Accuro and successful integration of Robeco Retail, supporting further growth and market share gains.

• All key financial KPIs exceeded or met targets, including CET1 ratio (18.5%), return on CET1 (17.0%), and cost/income ratio (69.0%).

• Sustainability targets exceeded, with significant reductions in carbon footprint for both AuM and the organization.

Financial highlights

• Net profit increased 44% year-over-year to €74.5 million; underlying net profit was €78.4 million, up 43% year-over-year.

• Commission income rose 23% to €251.5 million, mainly driven by AuM growth and improved M&A/ECM activity.

• Interest income declined 15% year-over-year to €92.2 million due to margin pressure.

• Operating expenses increased 6% to €248.2 million, mainly due to higher staffing costs and acquisitions; cost/income ratio improved to 69.0%.

• Other income increased from €4.1 million to €16 million, mainly from structured products and hedge accounting.

Outlook and guidance

• On track to meet 2027 financial targets, including 10% average annual AuM growth, CET1 ratio above 17.5%, and return on CET1 progressing toward >18%.

• Interest income for H2 2024 and 2025 expected to remain in line with H1 2024, despite anticipated ECB rate cuts.

• Plan to return excess capital above 17.5% CET1 to shareholders by year-end 2024 or 2025, subject to regulatory approval.

• Focus remains on scalable growth, sustainability, and long-term client value amid geopolitical uncertainty.