Van Lanschot Kempen (VLK) Investor presentation summary

Business and strategy

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

• Strategy targets sustainable, profitable growth with a capital-light balance sheet and 10% annual AuM growth, through organic growth, bolt-on acquisitions and focus on NL and BE private banking and NL investment management.

• H1 execution included AuM growth of 7% to €115.2bn, progress integrating Mercier Vanderlinden and Robeco’s online platform, and hiring to support Private Clients growth.

H1 2023 financial performance

• Net result rose 8% YoY to €51.8m; underlying net result fell 10% to €54.7m. Operating profit before tax increased 18% to €71.3m.

• Commission income grew 1% to €203.7m, including securities commissions up 6% and other commissions down 30%; interest income rose 67% to €116.2m.

• Operating expenses increased 9% to €235.2m; efficiency ratio was 74.5% versus 73.7% in H1 2022, against a 70% medium-term target.

• AuM net inflow was €3.2bn: €2.2bn from Private Clients and €1.0bn from Wholesale & Institutional Clients; client assets reached €130.8bn and AuM €115.2bn.

Segment performance

• Private Clients recorded €2.2bn net AuM inflow and €97.1m operating profit before tax; commission income rose 5% to €144.4m and interest income 56% to €106.5m.

• Wholesale & Institutional Clients recorded €1.0bn net inflow and a €1.9m operating loss before tax; efficiency measures included a planned reduction of over 20 FTEs in H2 2023.

• Investment Banking Clients faced challenging higher-rate markets; commission income was €17.0m and operating result before tax was -€4.8m.