Van Lanschot Kempen: 2018 net profit of over €80 million

Next steps in wealth management strategy defined

Amsterdam/'s-Hertogenbosch, the Netherlands, 21 February 2019

Net profit comes in at €80.3 million (2017: €94.9 million) in the wake of lower interest income among other factors. Underlying net result is €103.0 million (2017: €112.3 million)
Commission income up 10% on solid AuM base and robust results at Merchant Banking
Increased cost focus translates into lower costs in the second half of 2018 in addition to extra cost-saving measures, for which an €8.3 million restructuring charge is taken
€1 billion net inflows despite volatile markets; negative stock market performance pushes net client assets down to €81.2 billion (2017: €83.6 billion) and AuM to €67.0 billion (2017: €69.0 billion)
Fully loaded CET 1 remains strong at 21.4% (2017: 20.3%)
Dividend proposal of €1.45 per share (2017: €1.45 per share)
Next steps in wealth management strategy defined
Financial objectives revisited for 2023, efficiency target adjusted to 70-72%

Van Lanschot Kempen today released its 2018 annual results. Karl Guha, Chairman, said: "We look back on a solid commercial year. Our commission income was 10% up on last year and we are pleased with the €0.5 billion net inflow in assets under management (AuM) at Private Banking. Meanwhile, Asset Management reported €0.4 billion in net inflow and has landed various fiduciary mandates, including the €8.5 billion mandate awarded by Stichting Pensioenfonds PostNL, which will take effect in 2019. We are proud of the results achieved by Merchant Banking, which saw strong commission income thanks to its involvement in many transactions. Our robust capital position allowed us to pay a special capital return of €1.50 per share in December and we propose a dividend of €1.45 per share for 2018.

"But 2018 also brought challenging market conditions, such as the volatile equity markets and persistently low interest rates. Our interest income decreased and this is reflected in a lower net profit of €80.3 million for the year (2017: €94.9 million). Income from securities and associates were also lower in 2018.

"Our cost levels and efficiency ratio had our full attention in the second half of 2018. As a result, we managed to reduce costs in the second half of the year and have adopted a series of additional cost-saving measures for the period ahead, involving a restructuring charge of €8.3 million. Our efficiency ratio now stands at 79.4% (2017: 76.2%).

"Supported by our strong client relationships, we want to be a leading player in our relevant markets and regions. To get there, we have defined clear next steps in our wealth management strategy. We are looking to further accelerate our growth and will continue our organic growth by pursuing a solutions-driven approach that helps us meet the needs of our clients even better. We also want to grow by possible acquisitions. By combining our strengths and expertise we are able to offer clients the full potential of our services. Digitalisation and advanced analytics are indispensable for identifying market trends and client needs, and further improving client experience, while digitalisation also helps us to enhance productivity. To be able to fully leverage the technological potential, we are investing in the talent and skills of our employees.

"We have revisited our financial objectives and set new targets for 2023. Our efficiency target has changed to 70-72% to reflect both our profile as a wealth manager and the economic environment in which we operate. Our target for the CET 1 ratio is unchanged at 15-17% nor will we alter our 10-12% target for the return on CET 1 or the one for our dividend pay-out ratio at 50-70%ⁱ. Coming in at 21.4% at year-end 2018, our CET 1 ratio very comfortably met our target. In the future, we will continue to optimise our capital base in terms of level and type of instrument.

"Today, we are also launching our non-financial KPIs, underlining the importance we attach to value creation in the long term."

FINANCIAL REPORT/PRESENTATION/WEBCAST
For a detailed discussion of Van Lanschot Kempen's results and balance sheet, please refer to our financial report and presentation on the 2018 annual results at www.vanlanschotkempen.com/en/financial/financial-results.

In a conference call for analysts on 21 February at 9.00 am CET, we will discuss our 2018 annual figures in greater detail. This may be viewed live at www.vanlanschotkempen.com/en/financial/financial-results and played back at any later date.

ADDITIONAL INFORMATION
For additional information, go to www.vanlanschotkempen.com/financial.

FINANCIAL CALENDAR
28 February 2019            Publication of 2018 annual report
24 April 2019                   Publication of Q1 trading update
22 May 2019                   Annual General Meeting
24 May 2019                   Ex-dividend date
3 June 2019                    Dividend payment
27 August 2019               Publication of 2019 half-year results

Media Relations: +31 20 354 45 85; mediarelations@vanlanschotkempen.com
Investor Relations: +31 20 354 45 90; investorrelations@vanlanschotkempen.com

About Van Lanschot Kempen
Van Lanschot Kempen, a wealth manager operating under the Van Lanschot, Evi and Kempen brand names, is active in Private Banking, Asset Management and Merchant Banking, with the aim of preserving and creating wealth for its clients. Van Lanschot Kempen, listed at Euronext Amsterdam, is the Netherlands' oldest independent financial services company with a history dating back to 1737.

Disclaimer and cautionary note on forward-looking statements
This press release may contain forward-looking statements on future events and developments. These forward-looking statements are based on the current insights, information and assumptions of Van Lanschot Kempen's management about known and unknown risks, developments and uncertainties. Forward-looking statements do not relate strictly to historical or current facts and are subject to such risks, developments and uncertainties which by their very nature fall outside the control of Van Lanschot Kempen and its management.

Actual results, performances and circumstances may differ considerably from these forward-looking statements as a result of risks, developments and uncertainties relating to, but not limited to, (a) estimates of income growth, (b) costs, (c) the macroeconomic and business climate, (d) political and market trends, (e) interest rates and currency exchange rates, (f) behaviour of clients, competitors, investors and counterparties, (g) the implementation of Van Lanschot Kempen's strategy, (h) actions taken by supervisory and regulatory authorities and private entities, (i) changes in law and taxation, (j) changes in ownership that could affect the future availability of capital, and (k) changes in credit ratings.

Van Lanschot Kempen cautions that forward-looking statements in this press release are only valid on the specific dates on which they are expressed, and accepts no responsibility or obligation to revise or update any information, whether as a result of new information or for any other reason.

Van Lanschot Kempen's annual accounts are prepared in accordance with International Financial Reporting Standards as adopted by the European Union ('IFRS-EU'). In preparing the financial information in this press release, except as described otherwise, the same accounting principles are applied as in the 2017 Van Lanschot Kempen consolidated annual accounts. The annual financial statements for 2018 are in progress and may be subject to adjustments from subsequent events. All figures in this press release are unaudited. Small differences are possible in the tables due to rounding.

This press release does not constitute an offer or solicitation for the sale, purchase or acquisition in any other way or subscription to any financial instrument and is not a recommendation to perform or refrain from performing any action.

Elements of this press release contain information about Van Lanschot Kempen NV and/or Van Lanschot NV within the meaning of Article 7(1) to (4) of EU Regulation No. 596/2014.

This press release is a translation of the Dutch language original and is provided as a courtesy only. In the event of any disparities, the Dutch language version will prevail. No rights can be derived from any translation thereof.

ⁱ50-70% of underlying net result attributable to shareholders.

Press release annual results 2018

This announcement is distributed by West Corporation on behalf of West Corporation clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Van Lanschot Kempen via Globenewswire

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