Van Lanschot Kempen (VLK) H1 2025 earnings summary

Executive summary

• Net profit for H1 2025 was €67.8 million, down 9% year-over-year, mainly due to lower interest income despite strong commission growth and robust net inflows of €4.6 billion, which offset negative market performance of €3.3 billion.

• Assets under management (AuM) surpassed €150 billion for the first time, reaching €151 billion, driven by both new and existing clients.

• Completed integration of Evi and Robeco’s online investment platform and announced acquisition of Wilton Family Office to strengthen private banking in the Netherlands and Belgium.

• Maintained a capital-light business model and strong CET1 ratio at 18.2%.

• Continued investment in scalable growth, digital solutions, and expansion of alternative investments and branch network.

Financial highlights

• Commission income rose 11% to €279.6 million, driven by higher AUM and inflows; securities commissions up 12%.

• Interest income declined 17% to €76.1 million due to lower margins after ECB rate cuts.

• Operating expenses increased 5% to €261.6 million, mainly from higher staff costs and investments in growth.

• Cost/income ratio rose to 71.8%, above the target range, due to higher costs and lower interest income.

• Return on CET1 capital at 15.8%, slightly down from 16.2% year-over-year.

Outlook and guidance

• Full-year 2025 interest income guidance unchanged at €155–€165 million, with expectations for a stronger H2 and continued positive trend into 2026.

• On track to meet 2027 financial targets, with cost control and scalable growth as priorities; cost/income ratio targeted to return to 67–70% by 2027.

• CET1 ratio expected to remain above 17.5% target, with excess capital to be returned to shareholders if the ratio remains clearly above this level.

• The second half of 2025 is expected to remain volatile, requiring agility and continued focus on strategic execution.

• Management remains confident in the integrated strategy, digital strength, and client focus to navigate market uncertainties.