Van Lanschot Kempen Annual Report 2022
- Net profit €84.3 million (2021: €143.8 million), decline partly related to one-off charge related to the accelerated acquisition of the remaining 30%-stake in Mercier Vanderlinden
- Commission income and interest income both increased by 6%
- Net AuM inflows at Private Clients: €2.0 billion; Wholesale & Institutional Clients: €11.6 billion
- Client assets: €124.2 billion (2021: €131.2 billion) and AuM: €107.8 billion (2021: €115.6 billion)
- Strong capital ratio of 20.6% (2021: 23.7%), decrease attributable to higher capital requirements for residential mortgage loans and a €1.50 per share capital return in December 2022
- 2022 dividend proposed at €1.75 per share (2021: €2.00 per share)
- Intention to return excess capital of €2.00 per share in the second half of 2023, subject to regulatory approval
Maarten Edixhoven, Chair of the Management Board, said: “We are looking back on an eventful year in which the war in Ukraine, energy insecurity and inflation left marks on society at large and our clients. Negative market performances in virtually all asset classes left no investor untouched. We nevertheless achieved high net inflows in assets under management (AuM) and increased savings. I’m grateful to our clients for their confidence in us and would also like to thank my colleagues for their personal and entrepreneurial approach in the past year, helping our clients in these turbulent times.
“In 2022, we enhanced our financial and sustainability objectives as well as our capital strategy. Profitable growth, both organically and via acquisitions, remains our focus, while maintaining a capital-light balance sheet. We’re proud to have added two major Dutch clients to our fiduciary management activities and shortly before year-end we announced the acquisition of the remaining 30% stake in Mercier Vanderlinden, a further strengthening of our position in Belgium. As part of this transaction, Mercier Vanderlinden’s managing partners will obtain a significant stake in Van Lanschot Kempen, anchoring our shareholder base in our second home market.
“What really pleases me is that over 70% of our colleagues now hold shares in Van Lanschot Kempen, a clear sign of their engagement. I’m also proud that we’ve managed to retain and attract talent in a tight labour market. And on that note, I consider the addition of the Robeco Retail Nederland team to Evi van Lanschot a real boon. On 2 February 2023, we announced that we would enter into a strategic partnership with Robeco and acquire their online investment platform with €4.7 billion in AuM. We look forward to a great partnership and expect to complete the transaction in June 2023.”
Client assets and AuM
Net AuM inflows amounted to €13.7 billion and negative market performance was €21.5 billion, resulting in a decrease in total AuM to €107.8 billion (2021: €115.6 billion). Client savings rose to €12.7 billion (2021: €11.7 billion) and total client assets were €124.2 billion (2021: €131.2 billion).
Full-year net profit amounted to €84.3 million (2021: €143.8 million). The decrease can mainly be explained by high results on participating interests in 2021 and one-off charges related to the acquisition of the remaining 30% stake in Mercier Vanderlinden in 2022.
Commission income rose 6% to €407.8 million (2021: €385.5 million) on the back of higher average AuM levels. Interest income was up 6% to €162.7 million (2021: €153.6 million), reflecting the interest rate hikes the European Central Bank (ECB) embarked on in the second half of the year.
In 2022, operating expenses rose to €438.2 million (2021: €409.9 million), fuelled by higher staff costs. The increase mostly reflects an increase in FTE to 1,780 (2021: 1,654), including at the IT and compliance functions and at the teams responsible for investment solutions. Moreover, after the acquisition of the initial 70% stake in July 2021, Mercier Vanderlinden’s operating expenses were now recognised for the full calendar year.
2022 saw a release from loan loss provisions of €7.7 million (2021: €11.7 million), related to certain specific client cases. An underlying €3.7 million addition to loan loss provisions was made as a management overlay in light of rising inflation and uncertain economic conditions. The loan portfolio is comprised mainly of residential mortgages in the Netherlands. This residential mortgage portfolio expanded by around €350 million in 2022, with growth decelerating in line with the rest of the market in the final months of the year.
Underlying net profit amounted to €117.8 million (2021: €159.9 million). This figure reflects the net result adjusted for charges relating to the accounting treatment of the Mercier Vanderlinden acquisition, the provision for revolving consumer credit, and restructuring charges related to the Hof Hoorneman integration. Other one-off charges amounted to €6.5 million, mainly related to a settlement of an interest rate derivatives case for which we had taken a provision of €9.9 million in the first quarter of 2022.
Performance report, presentation and 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 full-year results at Financial results (VLK group website).
In a conference call on 23 February at 9.00 am CET, we will discuss our 2022 full-year results in greater detail. This may be viewed live at Financial results (VLK group website) and played back at a later date.
4 May 2023 - Publication of 2023 first-quarter trading update
25 May 2023 - Annual General Meeting
29 May 2023 - Ex-dividend date
6 June 2023 2022 - dividend payment date
24 August 2023 - Publication of 2023 half-year results
2 November 2023 -Publication of 2023 third-quarter trading update