Van Lanschot Kempen half-year results 2022
- Net profit €48.2 million (H1 2021: €58.3 million), underlying net profit €60.7 million (H1 2021: €59.2 million)
- Client assets: €118.5 billion (2021: €131.2 billion) and AuM: €99.6 billion (2021: €112.1 billion)
- Net AuM inflows at Private Clients: €1.4 billion and at Wholesale & Institutional Clients: €3.5 billion
- Strong capital ratio at 20.2% (2021: 23.7%), decrease driven by steeper capital requirements for residential mortgages
- Capital return pro Chposal in the amount of €1.50 per share
Maarten Edixhoven, Chair of the Management Board, said: “In the first six months of the year geopolitical tensions, inflation and rising interest rates caused more uncertainty in financial markets. In these circumstances we ensure we stay close to our clients by intensifying our contacts even further. Our existing and new clients maintained confidence in investing their wealth, as evidenced by strong total net inflows of €4.9 billion in assets under management. We’re seeing inflows both in the private as institutional segments.
“Earlier in the year, we enhanced our financial and non-financial targets and capital strategy. We continue to focus on further profitable growth with full energy, both organic and inorganic, while maintaining a capital-light balance sheet. In addition, we’ve made good progress on implementing our sustainability strategy and developing our new inclusion & diversity policy.
“I’d like to take this opportunity to thank our colleagues for their commitment that enabled us to achieve this solid result in the first half of the year. I’m proud of their engagement and dedication to our clients – which they also appreciate greatly. I also want to thank our clients for their trust.”
Client assets and assets under management
Total client assets decreased in the first half year in the wake of the negative market performance to €118.5 billion (2021: €131.2 billion). Net assets under management (AuM) inflow was high, at €4.9 billion. Due to the negative market performance of €17.5 billion, overall AuM decreased to €99.6 billion (2021: €112.1 billion).
Net AuM inflows in the Private Clients remained robust, with €1.4 billion in the first half of the year. Net AuM inflows at Wholesale & Institutional Clients amounted to €3.5 billion. Client savings rose slightly to €11.9 billion (2021: €11.7 billion).
Results in the first half of 2022
Net profit was €48.2 million (H1 2021: €58.3 million). The decrease was mainly the result of a €9.9 million provision related to an interest-rate derivatives case, as reported in our Q1 trading update in May of this year.
Commission income was up 15% to €201.3 million (H1 2021: €175.7 million), partly as a result of the acquisition of a 70% stake in Belgian wealth manager Mercier Vanderlinden. Interest income fell to €69.7 million (H1 2021: €76.1 million), mostly due to lower margins on mortgages and reduced revenues from early repayment fees.
Operating expenses rose €19.2 million to €216.0 million (H1 2021: €196.8 million). This increase was partly due to the Mercier Vanderlinden acquisition (around €6 million), as anticipated, and to higher staff costs. In the years ahead, we will continue to invest to achieve future growth.
The increase in both income and expenses resulted – on balance – in an efficiency ratio of 73.7%, slightly up from the same period last year (H1 2021: 73.1%).
The high quality of the loan portfolio – mainly comprising residential mortgages in the Netherlands – again allowed for a release from loan loss provisions, of €7.2 million for H1 2022 (H1 2021: €3.5 million).
Underlying net result was €60.7 million (H1 2021: 59.2 million), reflecting the net result adjusted for expenses related to the accounting treatment of the Mercier Vanderlinden acquisition, restructuring charges related to the takeover of Hof Hoorneman Bankiers and other incidental charges.
Performance report, presentation, webcast
For a detailed discussion of Van Lanschot Kempen’s results and balance sheet, please refer to our performance report and presentation on the 2022 half-year results on the Van Lanschot Kempen website in the Financial results section.
In a conference call on 25 August at 9.00 am CEST, we will discuss our 2022 half-year results in greater detail. This is available for live viewing in the Financial results section as well and can be played back at a later time.