Van Lanschot ready for Basel III through conversion of preference shares
(Thomson Reuters ONE) -
* Agreement reached with shareholders about early conversion of preference
shares into ordinary shares
* After conversion, Core Tier I ratio increases to about 8% (pro forma) at 31
March 2010
Conversion of preference shares
Van Lanschot and the holders of preference A and B shares have reached agreement
about the early conversion of the preference shares into ordinary A shares in
Van Lanschot. This results in an increase in the bank's core capital by
? 166 million to ? 1,092 million (pro forma) at 31 March 2010. After the
conversion, the Core Tier I ratio will rise to about 8% (pro forma) at 31 March
2010 (prior to the conversion: 6.8%). This conversion leads to a 15% increase in
the number of ordinary shares. The dilution effect on earnings per share is
limited due to the fact that the annual dividend on the preference shares of
? 11.25 million is no longer due.
In December 2008, Van Lanschot issued preference shares to institutional and
private investors for an amount of ? 150 million. With this issue, the bank
succeeded in reinforcing its solvency position during the banking crisis by
relying on its own strength.
Van Lanschot expects that this conversion of preference shares will enable it to
comply with the new capital adequacy requirements of the pending Basel III
framework. The bank expects to be able to further strengthen its capital
position through the internal generation of solvency. Thanks to its prudent
balance sheet management, Van Lanschot has a low leverage ratio, which already
comfortably meets the possible new requirements for this ratio.
An Extraordinary General Meeting of Shareholders (EGM) will be held shortly in
order to formalise the intended conversion, subject to approval of the Dutch
Central Bank, and the required amendment to the Articles of Association.
Refined long-term targets
During the Annual General Meeting of Shareholders which is to be held today, Van
Lanschot will present its refined long-term targets. These financial targets are
as follows:
+----------------------------+-------------------------------------------------+
| |Target |
+----------------------------+-------------------------------------------------+
|Capital ratios |Core Tier 1 ratio At least 8.0% |
| | |
| |Tier 1 ratio At least 10.0% |
| | |
| |BIS total capital ratio At least 12.5% |
| | |
| | |
+----------------------------+-------------------------------------------------+
|Leverage ratio |Ratio of total assets / shareholders' funds less |
| |than 20 |
| | |
| | |
+----------------------------+-------------------------------------------------+
|Return on equity |On average 2% higher than cost of equity |
| | |
| | |
+----------------------------+-------------------------------------------------+
|Growth in earnings per share|At least 5% per annum, based on normal profit |
| |levels |
| | |
| | |
+----------------------------+-------------------------------------------------+
|Dividend policy |Unchanged, between 40-50% |
| | |
| | |
+----------------------------+-------------------------------------------------+
In addition to financial targets, targets have also been defined in terms of
clients and staff, such as duty of care, market share, client satisfaction,
investment performance and employer status.
The full presentation for the Annual General Meeting of Shareholders will be
available on the website from 4 p.m. today (www.vanlanschot.nl/aboutvanlanschot
First quarter of 2010 confirms signs of recovery
In the first quarter of 2010, the signs of gradual recovery of income, as seen
since the second quarter of last year, were confirmed. Owing to declining market
rates on funds entrusted, the interest margin further increased in the first
quarter of 2010, compared with the last quarter of 2009. All months of the first
quarter were profitable.
Assets under management increased further in the first quarter, thanks to net
new money and positive value changes in respect of private individuals,
institutional clients as well as in-house funds. The new asset management
concepts A La Carte and Select are popular among private clients.
Operating expenses were slightly down on the last quarter of 2009. Loan loss
provisions were still at a high level for Van Lanschot. The inflow of accounts
to the recovery section further declined both in terms of number and size. As
noted in March, Van Lanschot expects this reduced inflow to have a positive
impact in the form of a lower addition to the loan loss provisions. Such lower
addition to the provisions will become visible in the second half of 2010 at the
earliest, provided that the upward economic trend persists.
The bank's liquidity position remained robust. With a funding ratio of nearly
80% Van Lanschot largely finances its lending activities with funds entrusted by
its clients. In order to diversify the type and term to maturity of its
liquidity, Van Lanschot issued bonds for an amount of ? 400 million to
institutional investors in March of this year.
The capital ratios at 31 March 2010 (core activities) were:
Core Tier I ratio: 6.8%, Tier I ratio: 10.1%, BIS total capital ratio: 12.2%.
If the revival in economic activity continues, the bank expects to be able to
make significant headway in 2010 towards achieving normalised profit levels.
's-Hertogenbosch, the Netherlands, 6 May 2010
Van Lanschot Media Relations: Etienne te Brake, Corporate Communication
spokesperson
Telephone +31 (0)73 548 30 26; Mobile phone +31 (0)6 12 505 110;
E-maile.tebrake(at)vanlanschot.com
Van Lanschot Investor Relations: Geraldine Bakker-Grier, Investor Relations
Manager
Telephone +31 (0)73 548 33 50; 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 focuses on three target groups: high net-worth individuals,
medium-sized businesses (including family businesses) and institutional
investors. Van Lanschot stands for high-quality services founded on integrated
advice, personal service and customised solutions. Van Lanschot NV is listed on
the Euronext Amsterdam Stock Market.
[HUG#1412360]
Press release (PDF): http://hugin.info/133415/R/1412360/364601.pdf
Unternehmensinformation / Kurzprofil:
Datum: 06.05.2010 - 07:31 Uhr
Sprache: Deutsch
News-ID 48213
Anzahl Zeichen: 8605
contact information:
Town:
's-Hertogenbosch
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 161 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Van Lanschot ready for Basel III through conversion of preference shares"
steht unter der journalistisch-redaktionellen Verantwortung von
Van Lanschot (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
