Van Lanschot Kempen (VLK) Investor presentation summary

Covered bond programme

• €5.0bn soft bullet programme, rated AAA by S&P, with prime Dutch residential mortgage collateral, an 82% asset percentage and a maximum 12-month extension period.

• Registered with DNB; compliant with Dutch covered bond regulations and Article 129 CRR; carries the European Covered Bond (Premium) Label and is eligible for LCR Level 1 treatment and ECB repo operations.

• Dual recourse structure, with recourse to the cover pool and, if insufficient, unsecured recourse to the issuer; programme includes an asset cover test and an amortisation test.

• Programme established in March 2022; three benchmark soft bullet covered bonds outstanding. Mortgage book was €6.396bn at 31 Dec 2024, with low historic arrears and write-offs.

2024 financial performance

• Net result rose 13% to €141.9m; underlying net result increased 15% to €150.5m. Operating profit before tax was €193.5m, up 18%.

• Commission income rose 20% to €511.2m, while interest income fell 11% to €175.4m; income from operating activities increased 8% to €716.8m.

• Operating expenses increased 6% to €502.8m; cost/income ratio improved to 70.1% from 71.6%.

• AuM reached €149.3bn, up 17%; net AuM inflow was €9.2bn and total client assets were €167.6bn, up 16%.

• Proposed shareholder distributions: €2.75 dividend and €1.40 capital return per share.

Client businesses and growth targets

• Private Clients Netherlands recorded €2.1bn net AuM inflow and €134.9m operating profit before tax, up 9%; AuM grew 19% to €43.7bn.

• Private Clients Belgium delivered €2.2bn net AuM inflow; AuM rose 38% to €15.1bn and operating profit before tax increased 36% to €37.8m.

• Investment Management Clients generated €4.9bn net AuM inflow and €24.9m operating profit before tax, versus €10.1m in 2023; cost/income ratio improved to 80% from 90%.

• Investment Banking Clients returned to profitability, with €3.9m operating profit before tax versus a €4.4m loss in 2023; cross-business activity generated over €200m in AuM inflow.

• 2027 targets include average annual AuM growth of 10%, cost/income ratio of 67–70%, CET1 ratio of 17.5%, return on CET1 capital above 18% and dividend payout of 70–90%.