2011 Annual results: Van Lanschot reports strong inflow of new money and solid balance sheet
(Thomson Reuters ONE) -
* Net inflow of new money of ? 3.4 billion (+10%), with assets under
management rising to ? 36.7 billion (2010: ? 34.5 billion)
* Turbulent market conditions, fewer investment transactions by clients and
lower interest margin impacted results; consolidated net profit ? 43.1
million
* Capital strength improved: Core Tier I ratio 10.9% (year-end 2010: 9.6%)
* Comfortable liquidity position; with a funding ratio of 91.8% (year-end
2010: 86.2%), the bank is not dependent on the capital market
* Proposed dividend: ? 0.40 per share
Floris Deckers, Chairman of the Board of Managing Directors of Van Lanschot:
"During the first half of 2011 it seemed that the recovery of the financial
markets was set to continue. However, the escalation of the European debt crisis
led to renewed uncertainty among investors and clients. The continued
uncertainty on the financial markets subdued the bank's income in the second
half of the year. Against this backdrop, Van Lanschot again succeeded in
recording a healthy inflow of new money.
As in 2010, Van Lanschot achieved a 10% net inflow of new assets under
management in 2011. This solid inflow reflects the trust placed by clients in
the bank and the quality of its service offering. In 2011, as it has since
2008, Van Lanschot gave priority to further reinforcing its capital and
liquidity position instead of focusing on profit maximisation.
Van Lanschot pursues a solid and steady course, as demonstrated by its
undiminished capital strength and liquidity position. Therefore, in accordance
with the dividend policy, the distribution of a dividend of ? 0.40 per share
will be proposed to the shareholders."
FURTHER REINFORCEMENT OF BANK'S SOLID PROFILE
* Core Tier I ratio increases further to 10.9% at 31 December 2011 (year-end
2010: 9.6%)
* The bank does not have investments in the European periphery
* European stress test performed in July 2011 demonstrates that Van Lanschot
is highly resistant to severe economic stress scenarios; under the adverse
stress scenario, the Core Tier I ratio rises to 9.7% at year-end 2012
compared with the starting point of 9.6% at year-end 2010
* Single A- (stable outlook) credit rating again confirmed by Fitch Ratings in
November 2011 and by Standard & Poor's in December 2011
* Leverage according to current definition[1] 12.2 (year-end 2010: 13.4)
STRONG FUNDING AND LIQUIDITY POSITION
* As a private bank, Van Lanschot - more than other banks - is financed by its
own clients; the funding ratio (the extent to which the loan book is funded
by the funds entrusted by clients) rose to 91.8% at 31 December 2011 (year-
end 2010: 86.2%)
* Further diversification and lengthening of the funding position through the
issue of ? 500 million of senior bonds to institutional investors, and ? 65
million of trigger notes and ? 90 million of floored floaters to private
investors in 2011
* Van Lanschot meets the published Basel III requirements: pro forma Liquidity
Coverage Ratio (LCR) 192.4% (minimum requirement 100%), pro forma Net Stable
Funding Ratio (NSFR) 104.4% (minimum requirement 100%), pro forma leverage
19.4 (maximum 33)
GROWTH IN ASSETS UNDER MANAGEMENT DESPITE NEGATIVE MARKET PERFORMANCE
* Total assets under management increased by 6% to ? 36.7 billion (year-end
2010: ? 34.5 billion)
* Total net inflow of new money ? 3.4 billion, i.e. 10% of assets under
management, of which ? 4.4 billion inflow at Asset Management and ? 1.0
billion outflow at Private & Business Banking
* Further rise in discretionary mandates; of the total assets under management
for Private & Business Banking clients, 33% comprised assets under
discretionary management (year-end 2010: 27%)
* Total client assets (assets under management plus funds entrusted by
clients) increased to ? 49.8 billion (year-end 2010: ? 48.0 billion)
INCOME UNDER PRESSURE, COST LEVELS STABLE & LOWER LOAN LOSS PROVISION
* Income from operating activities down 12% to ? 539.2 million (2010:
? 613.3 million)
* Net interest income decreased to ? 297.5 million (2010: ? 336.9 million) due
to a decline in the loan portfolio as well as pressure on the interest
margin due to the conscious reinforcement of the funding profile and
avoidance of risks; interest margin 1.57% (2010: 1.68%)
* Commission income ? 230.5 million (2010: ? 232.2 million); strong growth in
management fees thanks to further increase in discretionary asset
management; management fees[2] make up 72% of total securities commission
(2010: 60%)
* Negative results on financial transactions due to volatile financial markets
and increase in credit spreads
* Costs decreased by 2% to ? 412.3 million (2010: ? 422.3 million)
* Addition to loan loss provision down 26% to ? 64.3 million (2010: ? 86.5
million)
* Net profit ? 41.9 million (2010: ? 65.7 million)
* Earnings per share ? 0.81 (2010: ? 1.45)
INVESTMENTS IN QUALITY AND SIGNIFICANT COST SAVINGS
* Additional investment of ? 30 million in quality of the organisation and
service offering in 2012-2014
* Structural cost savings of ? 60 million from 2015 onwards, inclusive of
10-15% workforce reduction
ASSETS UNDER MANAGEMENT
Total assets under management were up 6% from ? 34.5 billion[3] at year-end
2010 to ? 36.7 billion at year-end 2011. Of this ? 2.2 billion increase, ? 3.4
billion (10%) resulted from a net inflow and ? 1.2 billion from negative market
performance.
(x ? billion) 31-12-2011 31-12-2010[3] %
Assets under management 36.7 34.5 6
Assets under discretionary management 24.3 19.7 23
- of which double-counted 1.1 0.7 57
Assets under non-discretionary management 12.4 14.8 -16
Assets under management 36.7 34.5 6
Private & Business Banking 18.5 20.4 -9
- net inflow of new money -1.0 1.1 -
Asset Management 18.2 14.1 29
- net inflow of new money 4.4 2.1 -
Due to the uncertainty on the financial markets, private clients took a cautious
approach towards investing; in some cases, they chose to convert part of their
investments into cash. This resulted in a net outflow of ? 1.0 billion in assets
under management at Private & Business Banking. This includes the assets of two
major custody clients (? 0.6 billion) that were deposited elsewhere. Clients
increasingly opt for the discretionary asset management products of the bank;
the net inflow in A la Carte asset management was ? 960 million in 2011.
Discretionary asset management now makes up 33% of the total assets under
management for Private & Business Banking (2010: 27%).
Kempen Capital Management successfully attracted a number of new institutional
mandates, resulting in a ? 4.4 billion net inflow of new money for Asset
Management.
IMPLEMENTATION OF F-IRB AND BASEL III
Van Lanschot expects to finalise the implementation of F-IRB (application of
internal rating models to determine the capital for credit risk) in the course
of 2012. At the same time, the phased implementation of Basel III will commence
as from 1 January 2013. Van Lanschot estimates that the joint initial impact of
both developments will on balance lead to a decline in the Core Tier I ratio of
approx. 80 to 100 basis points. This means that the bank's capital remains well
above the minimum requirement of Basel III of 7.0% and the EBA standard of
9.0%. Van Lanschot had a leverage of 19.4 (pro forma) at 31 December 2011, which
is well below the maximum leverage of 33 as applied under Basel III.
In addition, Van Lanschot already complies with the new liquidity ratios, which
both have a minimum requirement of 100%. The Liquidity Coverage Ratio (LCR)
indicates the extent to which a bank maintains liquidity buffers sufficient to
cover its short-term obligations during a 30-day period under a severe stress
scenario. This ratio was 192.4% (pro forma) at year-end 2011. The Net Stable
Funding Ratio (NSFR) indicates the extent to which the available stable funding
sources cover the long-term loans. This was 104.4% (pro forma) at year-end 2011.
PENSIONS
Van Lanschot made an additional payment of ? 41.4 million to the Van Lanschot
Pension Fund at year-end 2011 in accordance with the 2009 recovery plan for the
pension fund. This was the result of the deficient coverage ratio of the pension
fund according to the requirements defined in the Financial Assessment Framework
of the Dutch Central Bank. Furthermore, two conditional payments will be made in
2012 and 2013 of at most ? 8.9 million per year. With effect from 2012, Van
Lanschot has rationalised its pension scheme and converted it into an average
earnings scheme and a defined contribution scheme. In addition, the annual
pension contribution now is subject to a maximum. On balance, the amended
pension scheme and the additional payment within the scope of the 2009 recovery
plan had a marginal effect on net profit for 2011.
PROGRESS OF INVESTMENT AND COST-CUTTING PROGRAMME
In response to the continued uncertain economic conditions and the changing
earnings model in the financial sector, the bank announced in January that it
will implement a programme for a structural cost reduction of ? 60 million from
2015 onwards. Simultaneously Van Lanschot will invest an additional ? 30 million
in the quality of the organisation in the coming three-year period. These
measures are aimed at accelerating the achievement of our ambition to be the
best private bank of the Netherlands and Belgium. A general request for opinion
has already been submitted to the Works Council and the first meetings have been
held with the trade unions about a new redundancy plan.
CORPORATE RESPONSIBILITY (CR)
The bank made great strides in the field of CR in 2011. The stakeholder dialogue
was intensified and a risk filter was introduced for loans and advances to
corporate clients. This filter is used to identify any potential risks in areas
such as human rights violations, child labour and controversial arms. Where
relevant, the bank calls borrowers to account on their responsibilities. This
engagement approach has already been used in the investment business for some
time now, where, in addition to equity funds, it is now also applied to property
funds, individual European government bonds and the Kempen Euro Credit Fund. As
a result, the Assets under Engagement percentage rose sharply. Thanks to these
actions, Van Lanschot substantially improved its position in several
sustainability benchmarks.
KEY DATA
INCOME STATEMENT 2011 2011 2010 % H2 2011 H1 2011
(x ? million) core[4]
Income from operating 552.4 539.2 613.3 -12 249.5 289.7
activities
Operating expenses 426.5 412.3 422.3 -2 200.7 211.6
Gross result 125.9 126.9 191.0 -34 48.8 78.1
Addition to loan loss 61.1 64.3 86.5 -26 36.9 27.4
provision
Other impairments 18.3 14.0 16.0 -13 11.0 3.0
Operating profit before tax 46.5 48.6 88.5 -45 0.9 47.7
Discontinued operations 2.8 - - - - -
Net profit 43.1 41.9 65.7 -36 1.1 40.8
BALANCE SHEET AND CAPITAL 31-12-2011 31-12-2011 31-12-2010 % 30-6-2011
MANAGEMENT (x ? million) core
Equity attributable to 1,507 1,506 1,462 3 1,466
shareholders
Equity attributable to 59 59 323 -82 320
minority interests
Public and private sector 13,100 13,100 13,546 -3 13,225
liabilities
Loans and advances to the 14,270 14,278 15,710 -9 15,059
public and private sectors
Total assets 18,454 18,430 19,590 -6 19,272
Risk-weighted assets 11,000 10,996 11,695 -6 11,467
BIS total capital ratio (%) 11.9 11.9 14.2 - 14.0
Tier I ratio (%) 10.9 10.9 12.1 - 12.7
Core Tier I ratio (%) 10.9 10.9 9.6 - 10.2
Leverage 12.2 12.2 13.4 - 13.1
BASEL III[5] 31-12-2011 31-12-2011 31-12-2010 % 30-6-2011
core
Liquidity Coverage Ratio 192.4 - 130.0 - 191.0
(%)
Net Stable Funding Ratio 104.4 - 104.6 - 106.2
(%)
Leverage (current 19.4 - 21.5 - 19.3
definition)[6]
ASSETS UNDER MANAGEMENT[7] 31-12-2011 31-12-2011 31-12-2010 % 30-6-2011
(x ? billion) core
Total assets under 36.7 36.7 34.5 6 36.1
management
Assets under discretionary 24.3 24.3 19.7 23 22.2
management
- of which double-counted 1.1 1.1 0.7 57 0.7
Assets under non- 12.4 12.4 14.8 -16 13.9
discretionary management
KEY FIGURES 31-12-2011 31-12-2011 31-12-2010 30-6-2011
core
Weighted average number of
outstanding ordinary shares 40,870 40,870 38,367 40,865
(x 1,000)
Earnings per share based on
average
0.84 0.81 1.45 0.87
number of ordinary shares
(?)
Efficiency ratio (%) 77.2 76.5 68.9 73.0
Return on average Core Tier 3.0 2.9 5.5 6.2
I capital (%)
Funding ratio (%) 91.8 91.8 86.2 87.8
Number of staff (FTEs) 2,170.5 2,008.8 2,042.8 2,009.7
RESULTS 2011 BY SEGMENT
Private & Asset Corporate Other Total
Business Management Finance & Activities
Banking Securities
(x ? million)
Income from
operating 514.3 49.6 46.5 -71.2 539.2
activities
Operating 325.9 39.6 41.9 4.9 412.3
expenses
GROSS RESULT 188.4 10.0 4.6 -76.1 126.9
Addition to loan 64.3 - - - 64.3
loss provision
Other 3.3 - 1.2 9.5 14.0
impairments
Operating profit 120.8 10.0 3.4 -85.6 48.6
before tax
Income tax 27.8 3.4 0.9 -25.4 6.7
NET PROFIT 93.0 6.6 2.5 -60.2 41.9
Efficiency ratio 63% 80% 90% -7% 77%
(%)
Number of staff 1,547.4 198.0 191.1 72.3 2,008.8
(FTEs)
RESULTS 2010 BY SEGMENT
Private & Asset Corporate Other Total
Business Management Finance & Activities[8]
Banking Securities
(x ? million)
Income from
operating 531.4 50.0 59.7 -27.8 613.3
activities
Operating 329.7 39.6 47.4 5.6 422.3
expenses
GROSS RESULT 201.7 10.4 12.3 -33.4 191.0
Addition to
loan loss 85.0 - -0.2 1.7 86.5
provision
Other 0.4 - 2.1 13.5 16.0
impairments
Operating
profit before 116.3 10.4 10.4 -48.6 88.5
tax
Income tax 29.5 3.4 0.6 -10.7 22.8
NET PROFIT 86.8 7.0 9.8 -37.9 65.7
Efficiency 62% 79% 79% -20% 69%
ratio (%)
Number of staff 1,606.2 180.9 189.0 66.7 2,042.8
(FTEs)
More detailed (consolidated) segment information is provided in the 2011
financial report.
ADDITIONAL INFORMATION
For additional information, please log on towww.vanlanschot.nl/aboutvanlanschot.
FINANCIAL REPORT, PRESENTATION AND WEBCAST OF ANALYST MEETING
The financial report on the 2011 annual figures contains a detailed explanation
of the results and balance sheet of Van Lanschot NV.
The presentation for analysts will be held in Amsterdam on 8 March 2012 at 9.30
am, and can be followed live online via a video webcast on the website.
For the financial report on the 2011 annual figures, the presentation for
analysts and the webcast, please visit www.vanlanschot.nl/results2011.
KEY DATES 2012
Publication of trading update first quarter of 2012 10 May 2012
Annual General Meeting of Shareholders 10 May 2012
Publication of 2012 half-year results 14 August 2012
's-Hertogenbosch, the Netherlands, 8 March 2012
Media Relations: Etienne te Brake, Media Relations Manager
Telephone +31 (0)73 548 3026; mobile phone +31 (0)6 12 505 110; e-
maile.tebrake(at)vanlanschot.com
Investor Relations: Geraldine Bakker-Grier, Investor Relations Manager
Telephone +31 (0)73 548 3350; mobile phone +31 (0)6 13 976 401; e-
mailg.a.m.bakker(at)vanlanschot.com
Van Lanschot NV is the holding company of F. van Lanschot Bankiers NV, the
oldest independent bank in the Netherlands with a history dating back to 1737.
The bank offers high-quality financial services to high net-worth
Individuals, director-owners and their businesses and institutional investors.
Van Lanschot NV is listed on Euronext Amsterdam.
DISCLAIMER
Forward looking statements
This press release contains forward looking statements concerning future events.
Those forward looking statements are based on the current information and
assumptions of the Van Lanschot management concerning known and unknown risks
and uncertainties.
Forward looking statements do not relate to definite facts and are subject to
risks and uncertainty. The actual results may differ considerably as a result of
risks and uncertainties relating to Van Lanschot's expectations regarding such
matters as the assessment of market risk and revenue growth or, more generally,
the economic climate and changes in the law and taxation.
Van Lanschot cautions that expectations are only valid on the specific dates,
and accepts no responsibility for the revision or updating of any information
following changes in policy, developments, expectations or the like. The
financial data regarding forward looking statements concerning future events
included in this press release have not been audited.
[1] Leverage = total assets / equity attributable to shareholders.
[2] Recurring commission, inclusive of management fee, portfolio commission and
custody fee.
[3] In H2 2011, the definition of assets under management was refined. The
comparative figures have been restated accordingly. Consequently, the share of
discretionary assets in the total assets under management for Private & Business
Banking has also been restated.
[4] In order to allow an adequate comparison, the figures in this financial
report are adjusted for the non-strategic investments. In all cases, the
comparative figures solely concern the core activities.
[5] The Basel III figures are based on the consolidated figures, including non-
strategic investments
[6] Leverage = total assets / equity attributable to shareholders.
[7] In H2 2011, the definition of assets under management was refined. The
comparative figures have been restated accordingly.
[8] With effect from 2011, income and expenses from the segment Other Activities
were re-allocated to the segments Private & Business Banking, Asset Management
and Corporate Finance & Securities. This mainly concerns the costs of headoffice
departments and intangible asset amortisation. Furthermore, the associate Van
Lanschot Participaties was transferred from the segment Private & Business
Banking to the segment Other Activities. The comparative figures have been
restated accordingly.
The press release can be downloaded from the following link:
Press release (PDF):
http://hugin.info/133415/R/1592306/500698.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Van Lanschot via Thomson Reuters ONE
[HUG#1592306]
Unternehmensinformation / Kurzprofil:
Datum: 08.03.2012 - 07:30 Uhr
Sprache: Deutsch
News-ID 122950
Anzahl Zeichen: 24714
contact information:
Town:
's-Hertogenbosch
Kategorie:
Business News
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