Van Lanschot Kempen (VLK) Investor presentation summary

Business model and strategic priorities

• Independent specialist wealth manager serving private, wholesale and institutional, and investment banking clients through private banking, investment management and investment banking.

• Growth plan targets 10% annual AuM growth through organic growth, bolt-on acquisitions and market performance, with a focus on private banking in the Netherlands and Belgium and investment management in the Netherlands.

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

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 increased 1% to €203.7m, including securities commission income up 6% to €186.5m and other commission income down 30% to €17.2m.

• Interest income rose 67% to €116.2m; operating expenses increased 9% to €235.2m and the efficiency ratio was 74.5%, versus 73.7% in H1 2022.

• Client assets increased 5% YoY to €130.8bn and AuM grew 7% to €115.2bn; net AuM inflow was €3.2bn, including €2.2bn from Private Clients and €1.0bn from Wholesale & Institutional Clients.

Segment performance

• Private Clients reported €2.2bn net AuM inflow and €97.1m operating result before tax, versus €55.5m in H1 2022; commission income rose 5% to €144.4m.

• Wholesale & Institutional Clients recorded €1.0bn net AuM inflow and operating result before tax of -€1.9m, versus €0.6m; planned H2 measures include an intended reduction of over 20 FTEs.

• Investment Banking Clients faced challenging markets amid higher interest rates; commission income was €17.0m and operating result before tax was -€4.8m, versus €1.3m in H1 2022.