Investor presentation August 2018
Van Lanschot Kempen at a glance Profile ile Solid id perf rfor orman ance ce on all l key ey financia ials ls H1 201 017 H2 20 2017 H1 H1 201 2018 • Specialist, independent wealth manager Net result € 62.3m € 32.7m € 39.3m • • Uniquely placed to support individual and institutional clients in Underlying net result € 69.6m € 42.7m € 47.2m • achieving their long-term goals through wealth • Strong brand names, reliable reputation, rich history CET1 ratio, fully loaded 19.6% 20.3% 21.4% • • Mutually reinforcing core activities with their own distinct Total capital ratio, fully loaded 20.6% 22.1% 23.3% • culture and positioning as niche players Funding ratio 99.1% 100.5% 103.6% • • Straightforward governance model with highly experienced Executive Board Client assets € 72.0bn € 83.6bn € 83.7bn • • Strong capital ratios and balance sheet AuM € 57.1bn € 69.0bn € 69.1bn • Loan book • € 9.5bn € 9.1bn € 9.0bn Our wealth ealth manage ageme ment t strate ategy gy Finan ancia ial l targe rgets ts • Strategy 2020: next phase of wealth management strategy, H1 2018 Target 2020 building on a strong foundation, adapting to a changing world, taking advantage of opportunities and creating value for clients • Common Equity Tier 1 ratio 21.4% 15 - 17% • Launch of € 60m investment programme for mid 2016-19 to • Return on CET1 8.7% 10 - 12% implement omni-channel Private Banking model and finalise IT • Efficiency ratio transformation 81.1% 60 - 65% • Efficiency gains to result from partnerships for standardised universal banking services, streamlining of operations and support functions, and transfer to omni-channel Private Banking offering • Continued run-off of Corporate Banking loan portfolio 2
H1 2018: solid results and proposal for special capital return Net result at € 39.3m Client assets at € 83.7bn (H1 2017: € 62.3m) (2017: € 83.6bn) Underlying net result at € 47.2m Assets under management at € 69.1bn (H1 2017: € 69.6m) (2017: € 69.0bn) Capital ratios continue to improve Proposal to return € 1.50 per share to shareholders CET1 ratio at 21.4% (2017: 20.3%) 3
Van Lanschot Kempen is a specialist, independent wealth manager
Van Lanschot Kempen’s rich history reaches back over 280 years Acquisition Staalbankiers ’ private banking activities Strategic review Successful placement secondary offering of 30% stake Capital return Launch of proposal of Van Lanschot Acquisition Strategy 2020 Evi van update € 1.50 per share Switzerland CenE Bankiers Lanschot 1737 1991 1995 1999 2004 2007 2013 2015 2016 2017 2018 Acquisition Cornelis van Van Lanschot Van Lanschot Acquisition Sale of portfolio UBS’ Dutch wealth Lanschot founds Belgium listed on Kempen & Co non-performing management Van Lanschot in Amsterdam stock real estate loans activities ‘ s-Hertogenbosch exchange Acquisition New name: fiduciary activities of MN UK Capital return of € 1 per share to shareholders 5
As a wealth manager Van Lanschot Kempen builds on the experience of its core activities Guiding clients in achieving their goals Digital savings and investment service to preserve and build wealth, • • Responsive, transparent and tailored personal service with an online coach • Specialist services for entrepreneurs, family businesses, high net- Focus on new entrants to the wealth market and clients who make a • • worth individuals, business professionals and executives, healthcare conscious choice for online service delivery professionals, foundations and associations In tune with the trend towards increasing individual responsibility in • AuM value of € 22.8bn areas such as pensions and healthcare • Savings and deposits of € 8.3bn, loan book of € 7.8bn AuM client base of 15,600 • • Strong network and local presence in 37 offices – 27 in the AuM of € 1.0bn, savings of € 0.5bn • • Netherlands, 8 in Belgium and 2 in Switzerland Active in the Netherlands and Belgium • Specialist European asset manager with a sharp focus and a clear Niche player combining equities research and trading with mergers & • • investment philosophy acquisitions services, capital market transactions and debt advisory Focusing on a number of investment strategies: small caps, real estate, services • high-dividend equities, fixed-income securities and funds of hedge Focusing on institutional investors, corporates, financial institutions and • funds public/semi-public entities Offering fiduciary services, with fully comprehensive asset Pursuing a niche strategy in the European market for real estate, life • • management solutions sciences, infrastructure, financial institutions & fintech, and the Benelux Targeting open architecture-based banks and asset managers, market • pension funds, insurers, foundations and associations, and family Successful structured products franchise and global property index • offices product offering AuM value of € 56.5bn*, AuMG of € 3.4bn Offices in Amsterdam, Antwerp, London and New York • • Offices in Amsterdam, London, Edinburgh and Paris • 6 * As of 30 June 2018, including € 11.1bn of AuM managed for Van Lanschot Private Banking and Evi
Next phase of our wealth management strategy Key themes for core activities Evi Private Bankin ing Offer accessible, high-quality online services Improve client experience with omni-channel • • backed by the know-how of a private bank service model Play into the trend towards more individual Grow client assets by exploiting opportunities and • • responsibility, for example in pensions reinforcing frontline effectiveness Asset et Manageme ment Merchan ant t Bankin ing Expand distribution to new markets and client Continue employing capital-light business model • • segments Build on solid, sustainable position in selected • Launch new investment strategies niches • Continue developing UK as a second home market • Supported by Right-size support Continue wind down Finalise transformation of Outsourcing standardised, departments and Corporate Banking IT landscape universal banking services streamline operations 7
Our transformation to a specialised wealth manager since 2013 Growth th in client ent assets ts Run-off f Corp rporat rate e Banking ing loan an portfo foli lio € bn € bn 83.7 +60% 4.0 -83% 52.3 0.7 2012 H1 2018 2012 H1 2018 Stron rong Comm mmon n Equity Tier 1 1 ratio io (fully ly load aded ed) Increa ease se of comm mmissi ission as % of operat rating ing income me % % 21.4% +16.8 pps* +12.1 pps* 58.1% 41.3% 9.3% 2012 H1 2018 2012 H1 2018 *Percentage points 8
2018 half-year results So Solid d resu sult lts s and proposa osal l fo for specia ial l capital tal return rn
Solid results and proposal for special capital return Net result lt € 39.3m 3m (H1 2017: € 62.3m) m), , underly lying ng net result lt € 47.2m m (H1 2017: : € 69.6m) m) Decline in net result predominantly driven by significant sale proceeds in 2017 • Stron rong increa ease se in commi missio ssion n income me (+13%) Increase driven by AuM growth at Private Banking and Asset Management, and strong results at Merchant Banking • Efficien ciency cy ratio io up to to 81.1% % Higher costs combined with the impact of current low interest rate levels push efficiency ratio to 81.1% • Efficiency ratio has full management attention • Clien ent t asset ets s stabl ble at at € 83.7bn, bn, AuM stable le at at € 69.1bn bn Net inflow of € 0.3bn AuM at Private Banking • Evi’s AuM client base expanded by 20% • Small outflow at Asset Management and promising pipeline • Run-off f Corp rporat rate e Banking ing loan an portfo foli lio continues tinues and net release ase of total al loan an loss ss provisi isions ns Further decline of loan book Corporate Banking to less than € 0.7bn • € 3.5m net release of total loan loss provisions • Stron rong increa ease se capit ital al ratio io: : CET1 ratio io at 21.4% % from 20.3% Increase as a result of Corporate Banking run-off and improved credit quality • Special cial capita ital return rn proposa posal Proposal for special capital return of € 1.50 per share (over € 60m) • In total € 210m in dividends and capital returns will be returned after approval • 10
Focus on changing client needs and digitisation Developing new Innovative wealth New website and online Comprehensive strategic payments platform and management apps portal for clients advice service launched payments app with Fidor • Private Markets Fund • Global Impact Pool • Investment funds will stop investing in tobacco • Engagement with companies New products for Private Merchant Banking licensed Wealth management Continued focus on Banking and Asset to act as underwriter in proposition for everyone integrated ESG approach Management equity issues on US markets 11
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