Van Lanschot Kempen (VLK) Investor presentation summary

Business profile and priorities

• Independent specialist wealth manager focused on private, wholesale and institutional, and investment banking clients; core activities are private banking, investment management and investment banking.

• Growth strategy combines organic expansion, bolt-on acquisitions and market performance, with a 10% annual AuM growth ambition and a capital-light balance sheet.

• Medium-term targets: CET1 ratio 15% plus 2.5% for M&A, efficiency ratio 70% and return on CET1 of 12%, through the cycle.

2022 financial performance

• Net result €84.3m versus €143.8m in 2021; underlying net result €117.8m versus €159.9m. Efficiency ratio was 73.1% versus 68.9%.

• Commission income rose 6% to €407.8m and interest income rose 6% to €162.7m; operating expenses increased 7% to €438.2m.

• Client assets were €124.2bn versus €131.2bn in 2021; AuM was €107.8bn versus €115.6bn. Loan book reached €9.4bn, up from €8.9bn.

• Net AuM inflow was €13.7bn, including €2.0bn at Private Clients and €11.6bn at Wholesale & Institutional Clients; negative market performance weighed on AuM.

Client and segment trends

• Private Clients had €2.0bn net inflows; operating profit before tax was €117.1m and underlying operating profit before tax was €151.4m.

• Wholesale & Institutional Clients recorded €11.6bn net inflows, including two large pension-fund wins; operating profit before tax was €2.2m versus €9.6m in 2021.

• Investment Banking Clients completed 37 transactions with €8.1bn total volume; operating profit before tax fell to €9.7m from €18.8m.

• Q1 2023 net AuM inflows were €2.2bn; client assets rose to €128.3bn and AuM to €112.8bn, with CET1 at 20.4%.