Van Lanschot: net profit rises in first half of 2013
(Thomson Reuters ONE) -
* Net profit rises to ? 33.7 million in first six months (H1 2012:
? 10.5 million) thanks to higher commission income and substantial cost
savings
* Underlying net profit excluding non-recurring charges ? 37.7 million (H1
2012: ?19.6 million)
* Solid capital base strengthened substantially: Core Tier I ratio up from
11.0% to 12.5%
* Client assets slightly down on balance at ? 51.3 billion (year-end 2012: ?
52.3 billion)
's-Hertogenbosch, the Netherlands, 13 August 2013
Van Lanschot today presents its results for the first six months of this year.
Karl Guha, Chairman of the Board of Managing Directors of Van Lanschot: "The
recovery in profit in the first half of 2013 is encouraging, particularly in
view of the continuing difficult economic conditions. This result was largely
attributable to higher securities commission and a 7% fall in operating
expenses.
The interest margin improved slightly compared with the second half of last year
owing to factors such as loan repayments and lower savings rates. Our private
and business banking clients continued to use savings and deposits to repay
mortgages and other loans. In addition, clients are increasingly inclined to
invest rather than save, in part prompted by the low deposit rates.
Higher loan repayments and the shift towards investments led to a fall in client
assets, which was partly offset by the inflow of new asset management mandates
from private and institutional clients. Consequently, total assets under
management rose to ? 41.2 billion. Our clients' preference for discretionary
mandates is reflected in higher management fees. The asset management and
merchant banking activities made a good contribution to profit in the first half
of the year.
The loan portfolio continued to decline as private and business banking clients
repaid their loans. The addition to the loan loss provision, which amounted to
? 41.5 million, is significantly lower than the second half of 2012 and is in
line with the same period last year. The challenging economic climate in the
Netherlands has meant that, for several years now, our loan losses have been at
elevated levels compared with prior periods. However, they now seem to have
stabilised.
The bank's solid profile is evidenced by its strong capital base and comfortable
liquidity position. There was a substantial rise in the Core Tier I ratio, which
stood at 12.5%, compared with 11.0% at year-end 2012. We are therefore on track
to achieve our long-term objective of a Core Tier I ratio of at least 15%. Our
robust capital base is also reflected in a leverage ratio of 7.5%, which is
strong compared with other Dutch banks. The bank also continues to focus on
diversifying its funding profile, in order to achieve a balanced funding mix
that draws on a range of sources. In the first half of this year we carried out
a number of funding transactions on the wholesale market, including a 5-year
unsecured bond and the securitisation of part of the mortgage portfolio.
The bank is making good progress with the implementation of the strategy
announced in May, which is aimed at strengthening our position as an
independent, specialised wealth manager. This autumn will see the launch of our
new personal banking service model, which will also result in the expansion of
our online services in the areas of asset management, investment advice and
savings. The establishment of the new Corporate Banking business unit, which
will be responsible for running off the corporate loan portfolio, is well
underway. The cost reduction programme is also progressing well, partly as a
consequence of a further reduction of the workforce."
H1 2013 HIGHLIGHTS
* Net profit ? 33.7 million (H1 2012: ? 10.5 million); underlying net profit
(excluding non-recurring charges) ? 37.7 million (H1 2012: ? 19.6 million)
* Earnings per share ? 0.71 (H1 2012: ? 0.23)
* Income from operating activities ? 277.4 million (H1 2012: ? 268.1 million)
* Interest income ? 109.6 million (H1 2012: ? 127.3 million); interest margin
1.24% (H1 2012: 1.38%; H2 2012: 1.20%)
* Commission income increases to ? 119.5 million (H1 2012: ? 108.3 million);
recurring commission[1] makes up 75% of total securities commission (H1
2012: 75%)
* Total costs down 7% to ? 187.2 million (H1 2012: ? 201.2 million) thanks to
cost saving measures
* Addition to loan loss provision stable at ? 41.5 million (H1 2012:
? 41.8 million)
SOLID BALANCE SHEET RATIOS AT 30 JUNE 2013
* Strong capital position: Core Tier I ratio 12.5% at 30 June 2013 (year-end
2012: 11.0%)
* Leverage ratio[2] 7.5% (year-end 2012: 7.0%)
* Highly diversified funding profile: loan portfolio is chiefly financed by
savings and deposits (funding ratio[3]: 77.5%)
CLIENT ASSETS
Total client assets fell slightly, from ? 52.3 billion at year-end 2012 to ?
51.3 billion at 30 June 2013. This was partly attributable to a decline in
savings and deposits, caused among other things by the maturity of the premium
deposit (the Jubileumdeposito celebrating the 275(th) anniversary of the bank)
earning a relatively high rate which the bank did not extend. There has been
fierce competition in the savings market for a number of years owing to the
structural shortage of private savings compared with the total mortgage debt in
the Netherlands. Against this backdrop, Van Lanschot is deliberately not a price
leader on the savings market. Savings balances were also used by our clients for
loan repayments and investments.
Asset Management once again succeeded in attracting new institutional mandates.
Private clients continue to opt for discretionary mandates, with assets under
discretionary management accounting for 38% of total assets under management at
Private & Business Banking at 30 June 2013 (31 December 2012: 36%). The outflow
related primarily to custody deposits with relatively low fees. Furthermore, the
closure of the offices in Luxembourg and Curacao resulted in a decrease in
client assets. A sharp fall in the equity markets in June 2013 resulted in a
negative market performance of ? 0.1 billion for the first six months of the
year.
(x ? billion)
30-06-2013 31-12-2012
Client assets 51.3 52.3 -2%
Assets under management 41.2 40.9 1%
Savings and deposits 10.1 11.4 -11%
Assets under management 41.2 40.9 1%
Private & Business Banking 18.3 18.7 -2%
- of which net inflow of new money -0.4 -1.9
Asset Management 22.9 22.2 3%
- of which net inflow of new money 0.8 2.3
Savings and deposits 10.1 11.4 -11%
Savings 7.4 7.8 -5%
Deposits 2.7 3.6 -25%
KEY DATA
(x ? million)
H1 2013 H2 2012[4] H1 2012[5]
Statement of income
Income from operating activities 277.4 257.2 8% 268.1 3%
Operating expenses 187.2 196.1 -5% 201.2 -7%
Gross result before non-recurring
charges 90.2 61.1 48% 66.9 35%
Non-recurring charges 6.1 35.4 -83% 10.7 -43%
Impairments 46.5 189.2 -75% 46.2 1%
Operating profit before tax 37.6 -163.5 - 10.0 -
Net profit 33.7 -157.8 - 10.5 -
Underlying net profit 37.7 -8.5 - 19.6 92%
Efficiency ratio excluding non-
recurring charges (%) 67.5 76.2 75.0
(x ? million)
30-6-2013 31-12-2012 30-6-2012
Balance sheet and capital management
Equity attributable to shareholders 1.274 1.262 1% 1.453 -12%
Equity attributable to minority
interests 56 53 6% 51 10%
Savings and deposits 10,142 11,369 -11% 11,942 -15%
Loans and advances to customers 13,086 13,464 -3% 13,994 -6%
Total assets 17,054 17,941 -5% 18,410 -7%
Funding ratio (%) 77.5 84.4 85.3
Risk-weighted assets 9,505 10,535 -10% 11,050 -14%
Core Tier I ratio (%) 12.5 11.0 11.0
Tier I ratio (%) 12.5 11.0 11.0
BIS total capital ratio (%) 13.4 11.9 12.1
Leverage ratio (%) 7.5 7.0 7.9
(x ? billion)
30-6-2013 31-12-2012 30-06-2012
Client assets
Client assets 51.3 52.3 -2% 49.4 4%
- Assets under management 41.2 40.9 1% 37.5 10%
- Savings and deposits 10.1 11.4 -11% 11.9 -15%
Assets under management 41.2 40.9 1% 37.5 10%
- Discretionary 29.8 29.0 3% 25.2 18%
- Non-discretionary 11.4 11.9 -4% 12.3 -7%
30-6-2013 31-12-2012 30-06-2012
Key figures
Weighted average number of outstanding
ordinary shares (x 1,000) 40,891 40,891 40,865
Earnings per share based on average
number
of ordinary shares (?) 0.71 -3.90 0.23
Return on average Core Tier I
capital[6] (%) 5.0 -26.8 1.5
Number of staff (FTEs)[7] 1,871 1,862 1,908
RESULTS
(x ? million)
H1 2013 H2 2012 H1 2012
Interest 109.6 109.2 0% 127.3 -14%
Income from securities and associates 11.8 7.5 57% 13.6 -13%
Commission 119.5 108.5 10% 108.3 10%
Profit on financial transactions 36.5 32.0 14% 18.9 93%
Income from operating activities 277.4 257.2 8% 268.1 3%
Staff costs 111.7 104.2 7% 102.9 9%
Other administrative expenses 64.5 76.2 -15% 81.4 -21%
Depreciation and amortisation 11.0 15.7 -30% 16.9 -35%
Operating expenses 187.2 196.1 -5% 201.2 -7%
Gross result before non-recurring charges 90.2 61.1 48% 66.9 35%
Non-recurring charges 6.1 35.4 -83% 10.7 -43%
Gross result after non-recurring charges 84.1 25.7 - 56.2 50%
Addition to loan loss provision 41.5 73.4 -43% 41.8 -1%
Other impairments 5.0 115.8 -96% 4.4 14%
Impairments 46.5 189.2 -75% 46.2 1%
Operating profit before tax 37.6 -163.5 - 10.0 -
Operating profit before tax of non-strategic
investments[8] 0.2 -12.8 - 0.9 -78%
Income tax 4.1 -18.5 - 0.4 -
Net profit 33.7 -157.8 - 10.5 -
Underlying net profit excluding non-recurring 37.7 -8.5 - 19.6 92%
charges
(x ? million)
H1 2013 H2 2012 H1 2012
Underlying net profit excluding non-recurring
charges 37.7 -8.5 - 19.6 92%
Non-recurring charges -6.1 -35.4 -83% -10.7 -43%
Impairment on goodwill and intangible assets - -126.6 - - -
Tax effect 2.1 12.7 -83% 1.6 31%
Net profit 33.7 -157.8 - 10.5 -
ADDITIONAL INFORMATION
For additional information, please visit www.vanlanschot.nl/aboutvanlanschot.
FINANCIAL REPORT / PRESENTATION
For a detailed explanation of the results and balance sheet of Van Lanschot NV,
reference is made to the financial report and the presentation on the 2013 half-
year results at www.vanlanschot.nl/results2013.
2013 INTERIM FINANCIAL STATEMENTS OF F. VAN LANSCHOT BANKIERS NV
The 2013 interim financial statements of F. Van Lanschot Bankiers NV are
available online at www.vanlanschot.nl/reportsfvlbankiers.
KEY DATES 2013
Publication of trading update for third quarter of 2013 8
November 2013
Media Relations: +31 73 548 35 25; mediarelations(at)vanlanschot.com
Investor Relations: +31 73 548 33 50; investorrelations(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.
Van Lanschot, a wealth manager operating under the Van Lanschot and Kempen & Co
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 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 or income
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 and the
like. The financial data regarding forward-looking statements concerning future
events included in this document have not been audited.
[1] Recurring commission comprises management fees, portfolio commission and
custody fees
[2] The leverage ratio is the ratio of equity attributable to shareholders to
total assets
[3] The funding ratio is the extent to which the loan portfolio is financed by
customer savings and deposits
[4] The revised IAS 19 applies to all financial statements as from 1 January
2013. The new standard has consequences for the accounting treatment of employee
benefits, including the disclosure of the provision for pensions in the interim
report. The new standard has been applied with retroactive effect in the interim
financial statements. The comparative figures in this document have been
restated accordingly.
[5] The banking activities in Curaçao and the trust business in the Netherlands,
Curaçao and Jersey were classified as held for sale in the 2012 interim report.
These operations were ultimately closed down rather than being sold. The
statement of income at 30 June 2012 has been restated accordingly.
[6] Annualised on the basis of half-year data
[7] Number of FTEs excluding non-strategic investments; including additional 54
FTEs following the insourcing of IT activities
[8] A number of non-strategic investments have been included in the consolidated
figures of Van Lanschot since 2009. Van Lanschot has stated that it intends to
sell these investments in due course as their activities are not in line with
the bank's wealth management strategy.
The press release can be downloaded from the following link:
Press release (PDF):
http://hugin.info/133415/R/1722577/573906.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#1722577]
Unternehmensinformation / Kurzprofil:
Datum: 13.08.2013 - 07:30 Uhr
Sprache: Deutsch
News-ID 286964
Anzahl Zeichen: 19298
contact information:
Town:
's-Hertogenbosch
Kategorie:
Business News
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