Van Lanschot's 2010 half-year results[*]
(Thomson Reuters ONE) -
CONTINUED RECOVERY OF OPERATING PROFIT
* Total income for H1 2010 up 11% to ? 287.5 million (H1 2009:
? 258.9 million)
* Interest margin up to 1.59% for H1 2010 (H1 2009: 1.22%)
* Operating expenses for H1 2010 down 7% to ? 205.7 million (H1 2009: ? 220.0
million)
* Addition to loan loss provision lower at ? 43.9 million in H1 2010 (H1
2009: ? 50.6 million, H2 2009: ? 62.6 million)
* Operating profit before tax ? 30.7 million (H1 2009: operating loss of
? 59.8 million)
* Net profit for H1 2010 ? 22.1 million (H1 2009: net loss of ? 46.3 million)
GOOD INFLOWS OF ASSETS UNDER MANAGEMENT
* Total assets under management up 7% to ? 31.6 billion at 30 June 2010
(31 December 2009: ? 29.4 billion)
* 59% of increase in assets under management comes from inflow of new assets
and 41% from market performance
* Assets under discretionary management for Private Banking represent 33% of
total assets under management for Private Banking (31 December 2009: 30%)
ROBUST BALANCE SHEET
* Core Tier I ratio at 8.2% at 30 June 2010 (year-end 2009: 6.6%) thanks, in
part, to conversion of preference shares into ordinary shares on
1 June 2010; Tier I ratio at 10.3% (year-end 2009: 9.8%), BIS total capital
ratio at 12.2% (year-end 2009: 11.9%); low leverage of 14.0; the bank is
ready for the higher capital requirements under Basel III
* F-IRB introduced for retail portfolio as of 1 July 2010, to be introduced
for non-retail portfolio as of 1 July 2011
* 82% of balance sheet comprises client loans as a result of the bank's
premise that the balance sheet is for the bank's clients
* Funding ratio (the ratio of lending to funds entrusted by clients) of 79.6%
at 30 June 2010; successful issue of ? 400 million in bonds to institutional
investors in March 2010
* Liquidity buffer of over ? 1.5 billion at 30 June 2010
RISK MANAGEMENT
* European stress test: consolidated Tier I ratio under adverse stress
scenario (including sovereign risk impact) of 9.0% at the end of 2011;
impact of stress scenario on Tier I ratio is limited: 1.1%. Of total
sovereign bond portfolio at 30 June 2010, 98% comprised Dutch and German
government bonds or Dutch state-guaranteed bonds
* Standard & Poor's stable outlook Single A minus credit rating reconfirmed in
July 2010
MESSAGE FROM THE CHAIRMAN
Floris Deckers, Chairman of the Board of Managing Directors of Van Lanschot:
"The first half of this year confirms the gradual recovery of income which
kicked in in the second quarter of last year. Van Lanschot's income recovery
originates from its core operations: the bank's income is made up of interest
and commission and hardly from trading for the bank's own account. With a clear
business model, a low risk profile and specific services focused on high
net-worth individuals and entrepreneurs and their businesses, the bank has put
the banking crisis behind it, and has taken the first steps towards a normalised
profit level.
Confidence has not yet been fully restored in the banking sector as a whole. In
the private banking market, this translates into clients being hesitant to
switch banks. As this confidence returns, there will be more room for an
independent private bank of Van Lanschot's nature and calibre. We expect that
our full-service concept, in which duty of care, transparency and provision of
high-quality products and services take centre-stage, will lift customer
satisfaction to an even higher level, leading to an increase in the number of
clients and income growth. This supports the ambition we expressed in 2009 to
become the best private bank in the Netherlands and Belgium.
The reconfirmation by rating agency Standard & Poor's of its stable outlook
Single A minus credit rating in July 2010, in a time of sector-wide downgrades,
underscores Van Lanschot's managed risk profile. This was recently confirmed by
the outcome of the European stress test. The bank has zero exposure to bonds in
the European periphery and is able to withstand any future stress scenarios by
relying on its own strength."
DEVELOPMENTS BY SEGMENT
PRIVATE BANKING
Private Banking's operating result before tax rose to ? 50.6 million for H1
2010 (H1 2009: ? 15.4 million). Interest income was up 19% to ? 124.3 million
for H1 2010 (H1 2009: ? 104.2 million). Commission income dropped 1% to ? 57.9
million. The headcount in FTEs was down 6% compared with 30 June 2009. Staff
costs for H1 2010 fell by 8% to ? 64.9 million (H1 2009: ? 70.3 million). The
addition to the loan loss provision decreased strongly by 25% to ? 9.1 million
for H1 2010 (H1 2009: ? 12.2 million; H2 2009: ? 24.9 million).
Assets under management at Private Banking increased to ? 19.2 billion at 30
June 2010 (year-end 2009: ? 18.3 billion). Of this increase, 44% was
attributable to an inflow of new assets; the other 56% was due to market
performance. 'A La Carte' and 'Select', two new and improved asset management
concepts, led to an inflow of new assets. Managed assets under A La Carte and
Select rose to ? 1.6 billion at 30 June 2010 (year-end 2009: ? 0.1 billion).
Clients increasingly opt for discretionary mandates: assets under discretionary
management made up 33% of total assets under management for Private Banking at
30 June 2010 (year-end 2009: 30%).
Van Lanschot's investment policy delivered excellent returns: all investment
profiles of 'A La Carte' outperformed the strategic benchmarks in the first half
of 2010. The outperformance ranged from 0.9% (2.7% versus the 1.8% benchmark)
for the income-oriented profile to 2.9% (4.5% versus the 1.6% benchmark) for the
aggressive profile.
ASSET MANAGEMENT
The operating result before tax for Asset Management went up to ? 6.0 million
for H1 2010 (H1 2009: ? 2.1 million), which was primarily attributable to the
30% increase in commission income to ? 22.8 million for H1 2010 (H1 2009: ? 17.5
million). The higher value of assets under management resulted in a rise in
management fees.
Assets under management for institutional clients increased to ? 7.4 billion at
30 June 2010 (year-end 2009: ? 6.6 billion); 50% of this increase was
attributable to an inflow of new assets and the other 50% to market performance.
The in-house funds rose to ? 4.3 billion at 30 June 2010 (year-end 2009: ? 3.7
billion), which was due chiefly to an inflow of new assets.
BUSINESS BANKING
At Business Banking, the operating result before tax rose to an operating profit
of ? 9.9 million for H1 2010 (H1 2009: operating loss of ? 5.1 million).
Interest income rose 12% to ? 66.6 million. Staff costs fell by 6% to ? 16.2
million (H1 2009: ? 17.2 million). The headcount in FTEs was down 3% compared
with 30 June 2009. The addition to the loan loss provision decreased to
? 34.7 million in H1 2010 (H1 2009: ? 38.3 million). In addition, shareholdings
were written down by an amount of ? 5.8 million.
CORPORATE FINANCE & SECURITIES
Corporate Finance & Securities saw its operating result before tax increase by
41%, rising to ? 5.5 million for H1 2010 (H1 2009: ? 3.9 million). The 33%
increase in commission income, which rose from ? 19.7 million to ? 26.2 million,
was largely attributable to success fees earned by Corporate Finance and higher
transaction fees posted by Securities.
OTHER ACTIVITIES
The operating result before tax of Other Activities improved to an operating
loss of ? 41.3 million (H1 2009: operating loss of ? 76.1 million). The
? 4.4 million conversion premium on the preference shares has been taken as a
cost in this segment. An exceptional item of ? 44.9 million was recognised in H1
2009.
OUTLOOK
As a private bank, Van Lanschot is sensitive to developments in savings rates.
With the capital market remaining constrained for banks, the savings market will
continue to be an important source of funding for banks. The interest margin is
expected to stabilise at around the current level in the second half of the
year. Commission income will again reach normal levels only when markets begin
to steer a clear course and our clients start actively investing. Depending on
economic trends, Van Lanschot expects that the fall in the number of new loans
being transferred to the recovery section will lead to a lower addition to the
loan loss provision as of the third quarter of 2010.
The cost savings resulting from the measures taken in early 2009 were fully
achieved in the first half of 2010. The bank will continue to focus on cost
control in the second half of the year, without this interfering with its
investments in client service provision.
KEY DATA
INCOME STATEMENT H1 2010 H1 2010 H1 2009 ? % H2 2009 ? %
(x ? million) core activities[1]
Income from operating
activities 356.1 287.5 258.9 11 309.6 -7
Operating expenses 276.2 205.7 220.0 -7 208.8 -2
Gross result 79.9 81.8 38.9 110 100.8 -19
Addition to loan loss
provision 43.9 43.9 50.6 -13 62.6 -30
Other impairments 7.7 7.2 48.1 -85 14.7 -51
Operating profit
before tax 28.3 30.7 -59.8 23.5 31
Net profit 20.3 22.1 -46.3 31.5 -30
BALANCE SHEET 30-6-2010 30-6-2010 30-6-2009 ? % 31-12-2009 ? %
(x ? million) core activities
Shareholders' funds
attributable to
shareholders 1,426 1,428 1,117 28 1,239 15
Shareholders' funds
attributable to
minority interests 307 307 312 -2 313 -2
Public and private
sector liabilities 13,075 13,075 14,721 -11 13,380 -2
Loans and advances to
the public and
private sectors 16,498 16,418 17,487 -6 16,941 -3
Total assets 20,613 19,928 20,934 -5 20,569 -3
CAPITAL MANAGEMENT 30-6-2010 30-6-2010 30-6-2009 ? % 31-12-2009 ? %
core activities
Risk weighted assets
(x ? million) 13,521 13,459 14,386 -6 13,915 -3
BIS total capital
ratio (%) 11.9 12.2 11.2 11.9
BIS Tier 1 ratio (%) 10.1 10.3 9.2 9.8
BIS core Tier 1 ratio
(%) 8.0 8.2 6.1 6.6
Leverage 14.5 14.0 18.7 16.6
ASSETS UNDER 30-6-2010 30-6-2010 30-6-2009 ? % 31-12-2009 ? %
MANAGEMENT core activities
(x ? billion)
Total assets under
management 31.6 31.6 25.2 25 29.4 7
Assets under
discretionary
management 18.1 18.1 13.0 39 15.7 15
Assets under
non-discretionary
management 13.5 13.5 12.2 11 13.7 -1
KEY FIGURES 30-6-2010 30-6-2010 30-6-2009 31-12-2009
core activities
Average number of
ordinary shares
(x 1,000) 35,901 35,901 34,856 34,870
Earnings per share
based on average
number of ordinary
shares (?) 0.43 0.48 -1.48 -0.72
Efficiency ratio (%) 77.6 71.5 85.0 75.4
Return on average
shareholders' funds
(%) 2.3 2.5 -8.6 -2.0
Funding ratio (%) 79.3 79.6 84.2 79.0
Headcount (number of
FTEs) 2,230,0 2,041,6 2,122,6 2,050,0
RESULTS FOR FIRST HALF OF 2010
H1 2010 H1 2010 H1 2009 ? % H2 2009 ? %
core
(x ? million) activities
Interest 169.9 160.3 127.3 26 145.5 10
Income from securities and 9.1 7.0 5.0 40 21.5 -67
associates
Commission 115.7 115.2 106.8 8 117.9 -2
Profit on financial transactions 4.9 5.0 19.8 -75 24.7 -80
Profit on investments for account -3.2 - - - - -
and risk of policyholders
Net insurance premium revenue 58.7 - - - - -
Other income 1.0 - - - - -
Income from operating activities 356.1 287.5 258.9 11 309.6 -7
Staff costs 112.7 109.1 115.5 -6 103.0 6
Other administrative expenses 80.0 78.6 85.8 -8 87.4 -10
Depreciation and amortisation 20.1 18.0 18.7 -4 18.4 -2
Underwriting expenses 63.4 - - - - -
Operating expenses 276.2 205.7 220.0 -7 208.8 -2
GROSS RESULT 79.9 81.8 38.9 110 100.8 -19
Addition to loan loss provision 43.9 43.9 50.6 -13 62.6 -30
Other impairments 7.7 7.2 48.1 -85 14.7 -51
Operating profit before tax 28.3 30.7 -59.8 23.5 31
Income tax 8.0 8.6 -13.5 -8.0
NET PROFIT 20.3 22.1 -46.3 31.5 -30
RESULTS FOR FIRST HALF OF 2010 BY SEGMENT[§]
Private Asset Business Corporate Other Total
Banking Management Banking Finance & activities
(x ? million) Securities
Income from
operating 183.7 22.8 80.9 26.9 -26.8 287.5
activities
Operating 124.0 16.7 30.5 20.0 14.5 205.7
expenses
GROSS RESULT 59.7 6.1 50.4 6.9 -41.3 81.8
Addition to
loan loss 9.1 0.0 34.7 0.1 0.0 43.9
provision
Other 0.0 0.1 5.8 1.3 0.0 7.2
impairments
Operating
profit before 50.6 6.0 9.9 5.5 -41.3 30.7
tax
Income tax 13.2 1.7 2.2 1.1 -9.6 8.6
NET PROFIT 37.4 4.3 7.7 4.4 -31.7 22.1
Efficiency 67.5 73.2 37.7 74.3 -54.1 71.5
ratio (%)
Headcount
(number of 1,298.4 149.6 294.9 211.2 87.5 2,041.6
FTEs)
KEY DATES 2010/2011
Trading update Q3 12 November 2010
Publication of 2010 annual results 11 March 2011
's-Hertogenbosch, the Netherlands, 10 August 2010
Van Lanschot Media Relations: Etienne te Brake, Corporate Communication
spokesperson
Telephone +31 (0)73 548 3026; 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 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 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 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.
ADDITIONAL INFORMATION
For additional information, please log on towww.vanlanschot.nl/aboutvanlanschot
FINANCIAL REPORT AND WEBCAST OF PRESENTATION FOR ANALYSTS
The half-year financial report contains a detailed explanation of the results
and balance sheet of Van Lanschot NV.
The presentation for analysts will be held in Amsterdam on 10 August 2010 at
2.00 pm, and can be followed live online via a video webcast on the website.
The financial report and the webcast can be found on
viawww.vanlanschot.nl/results
2010 INTERIM FINANCIAL STATEMENTS OF F. VAN LANSCHOT BANKIERS NV
The 2010 interim financial statements of F. van Lanschot Bankiers NV are
available online at the corporate website (www.vanlanschot.nl/aboutvanlanschot)
from Tuesday 10 August 2010.
--------------------------------------------------------------------------------
[*] All figures represent Van Lanschot's core activities, unless otherwise
indicated.
[1] The impact of the acquisition of a number of non-strategic investments is
reflected in the figures as from the second half of 2009. To allow an adequate
comparison, the figures in this press release have been adjusted for these
investments. The comparative figures in all cases relate solely to the core
activities.
[§] More detailed segment information is provided in the half-year financial
report.
[HUG#1436774]
Press release (PDF):
http://hugin.info/133415/R/1436774/381732.pdf
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All reproduction for further distribution is prohibited.
Source: Van Lanschot via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 10.08.2010 - 07:30 Uhr
Sprache: Deutsch
News-ID 48216
Anzahl Zeichen: 21827
contact information:
Town:
's-Hertogenbosch
Kategorie:
Business News
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