2011 half-year figures: Continued growth in assets under management thanks to solid profile
(Thomson Reuters ONE) -
* Strong solvency and liquidity position
* Core Tier I ratio 10.2%
* Funding ratio 87.8%
* Assets under management up ? 1.9 billion to ? 37.3 billion (+5%, or
annualised 11%)
* Commission income up 7%
* Good results in an environment of strong market effects
* Consolidated net profit (including non-strategic investments) up 111% to
? 42.8 million
* Net profit (core activities) up 85% to ? 40.8 million
Constant Korthout, CFRO of Van Lanschot: "We are pleased with the results
achieved in the first six months of 2011. During this period we devoted a great
deal of attention to maintaining the growth momentum, but also to further
strengthening the balance sheet. A certain friction between these two focus
areas of course exists. As a private bank, Van Lanschot is characterised by an
excellent solvency and liquidity position. In view of the deteriorating macro-
economic situation in the second quarter of the year, we made a conscious choice
to focus on the further reinforcement of this position. Thanks to this, Van
Lanschot meets the published Basel III requirements. Van Lanschot's solid base
is also reflected in its strong results in the European stress test.
Furthermore, the net inflow of new assets under management, in part underpinned
by the excellent investment results of the past years, reflects the trust our
clients place in us.
As a private bank, Van Lanschot's services revolve around wealth creation and
protection: assets under management were up 5% in the first half of 2011
(corresponding to annualised growth of 11%) to ? 37.3 billion. This means that
we are well on track to achieving the target of ? 50 billion in assets under
management by 2013. The increase in assets under management was fully due to the
inflow of new money. Considering our focus on the higher net-worth segments, we
were particularly pleased at being able to secure new mandates from high net-
worth individuals. Assets under discretionary management for private clients
climbed from 32% of total assets under management for private clients at year-
end 2010 to 35% in mid 2011. This contributed to the upswing in the bank's
commission income. Thanks to the shift from transaction commission to management
fees, the bank's income is less volatile. Our decision to diversify and lengthen
the funding profile led to higher funding costs. This in turn resulted in lower
interest income in the first six months of this year, which had the effect of
slowing down the profit growth.
The trend of declining loan losses, which started in the first half of 2010,
also continued into the first six months of this year. Van Lanschot is
maintaining its strict focus on cost control. The bank faces high pension
charges and additional costs in connection with new laws and regulations. At the
same time, we continue to invest in asset management and IT.
OUTLOOK
We expect the net inflow in assets under management to continue in the second
half of the year, from both private and institutional clients. In the latter
category, we have already contracted a mandate for the pension fund for the
grocery industry for approximately ? 2 billion.
If confidence in economic growth remains low across Europe, the economic
recovery will remain volatile. We are confident that Van Lanschot will make
further progress this year towards achieving normalised profit levels. Provided
that the revival in economic activity continues, this can be achieved in 2013.
This depends however on the turbulence on the financial markets not becoming too
severe. A positive factor is that the bank's investment in government bonds is
limited to the Netherlands, Germany, and small amounts in Switzerland, Canada
and France. In view of the uncertain market conditions, the bank is not giving
guidance on expected profit for 2011."
FURTHER STRENGHTENING OF THE BANK'S SOLID PROFILE IN H1 2011
* Core Tier I ratio up to 10.2% at 30 June 2011 (year-end 2010: 9.6%). With
this, the bank already meets one of its short-term targets (10%)
* Tier I ratio 12.7% at 30 June 2011 (year-end 2010: 12.1%), BIS total capital
ratio 14.0% at 30 June 2011 (year-end 2010: 14.2%)
* Investments in government bonds limited to the Netherlands, Germany,
Switzerland, Canada and France
* European stress test demonstrates that Van Lanschot is highly resistant to
major stress in economic conditions; under the adverse stress scenario, the
Core Tier I ratio rises to 9.7% at year-end 2012 compared with 9.6% at year-
end 2010
* Stable outlook credit rating was again confirmed by rating agency Standard &
Poor's in July 2011 at Single A- (stable)
* The balance sheet is for our clients; leverage of 13.1 under Basel II (year-
end 2010: 13.4)
STRONG FUNDING AND LIQUIDITY
* As a private bank, Van Lanschot - more than other banks - is funded by its
own clients
* Funding ratio (the extent to which the loan book is funded by the funds
entrusted by clients) 87.8% at 30 June 2011 (year-end 2010: 86.2%)
* Further diversification and lengthening of funding position through issue of
? 500 million in senior bonds to institutional investors in April 2011
* Van Lanschot meets the published Basel III requirements: Liquidity Coverage
Ratio (LCR) 191.0%, Net Stable Funding Ratio (NSFR) 106.2%, leverage 19.3
GROWTH IN CORE ACTIVITIES ON TRACK
* 5% rise in total assets under management to ? 37.3 billion (year-end 2010:
? 35.4 billion)
* Total inflow of new money ? 1.9 billion, i.e. 5% (corresponding to
annualised growth of 11%) of assets under management, in Private & Business
Banking and in Asset Management
* Further increase in discretionary mandates: of total assets under management
for Private & Business Banking clients, 35% comprised assets under
discretionary management at 30 June 2011 (year-end 2010: 32%)
* Total client assets (assets under management plus funds entrusted by
clients) up 3% to ? 50.5 billion (year-end 2010: ? 49.0 billion)
GOOD RESULTS IN AN ENVIRONMENT OF STRONG MARKET EFFECTS
* Income from operating activities up 1% to ? 289.7 million (H1 2010: ? 287.5
million)
* Interest margin under pressure, in particular due to the conscious choice to
reinforce the funding profile and reduce the balance sheet; interest margin
1.54% (H1 2010: 1.59%); adjusted for exceptional items, interest margin
1.60% in H1 2011
* Commission up 7% to ? 123.2 million (H1 2010: ? 115.2 million)
* Strong growth in management fees thanks to further increase in discretionary
asset management; management fees make up 68% of total securities commission
(2010: 64%)
* Expenses ? 211.6 million (H1 2010: ? 205.7 million); the bank faces high
pension charges, further investments in asset management and an additional
provision under the deposit guarantee scheme for DSB Bank; cost savings are
being achieved through efficiency benefits and workforce reduction
* Addition to loan loss provision down 38% to ? 27.4 million (H1 2010: ? 43.9
million).
* Operating profit before tax up 55% to ? 47.7 million (H1 2010: ? 30.7
million)
* Net profit up 85% to ? 40.8 million (H1 2010: ? 22.1 million)
* Earnings per share up 81% to ? 0.87 (H1 2010: ? 0.48)
* Return on equity 4.8% (H1 2010: 2.5%)
DEVELOPMENTS BY SEGMENT
With effect from H1 2011 income and expenses from the segment Other Activities
have been re-allocated to the segments Private & Business Banking, Asset
Management and Corporate Finance & Securities. This mainly concerns allocated
costs of corporate departments and amortisation charges on intangible assets.
After this re-allocation, the segment Other Activities mainly comprises income
and expenses relating to the treasury activities and results of the venture
capital unit. In addition, the segment Other Activities comprises income from
the trading and investment portfolio and the valuation results and dividends
received from minority shareholdings. In the consolidated figures, results of
non-strategic investments are included under Other Activities. The comparative
figures for 2010 have been adjusted accordingly.
PRIVATE & BUSINESS BANKING
Assets under management of Private & Business Banking increased in H1 2011 by
? 0.3 billion (+1%) to ? 21.6 billion (year-end 2010: ? 21.3 billion), of which
? 0.2 billion was the inflow of new money. In the first half of the year, one
major custody client transferred its assets to another bank. Adjusted for this,
the growth was ? 0.6 billion. The shift towards discretionary mandates is
continuing. Discretionary asset management now makes up 35% of total assets
under management for Private & Business Banking (year-end 2010: 32%).
Operating profit before tax of the segment Private & Business Banking was up
28% to ? 72.5 million in H1 2011 (H1 2010: ? 56.5 million). Net interest income
slightly declined to ? 186.4 million (H1 2010: ? 189.1 million), due to
increasing savings rates and a higher volume of savings and deposits, and a
decreasing lending volume. Commission rose by 8% to ? 71.9 million (H1 2010:
? 66.6 million). This increase can in particular be attributed to the higher
recurring management fees fuelled by the growth in assets under discretionary
management. Lower trading volumes led to a decline in transaction commission.
Operating expenses increased by 1% in H1 2011 to ? 162.1 million (H1 2010:
? 160.4 million). Staff costs were slightly up to ? 84.3 million (H1 2010:
? 83.1 million). Although the number of employees in this segment decreased to
1,545.6 FTEs, other staff costs, including pension costs, increased. The
addition to the loan loss provision in this segment saw a strong decline of 38%
to ? 27.4 million (H1 2010: ? 43.9 million).
(x ? billion) 30-6-2011 31-12-2010 %
Assets under management 37.3 35.4 5
Assets under discretionary management 23.3 20.9 11
- of which double-counted 0.7 0.7 -
Assets under non-discretionary management 14.0 14.5 -3
Assets under management 37.3 35.4 5
Private & Business Banking 21.6 21.3 1
Asset Management 15.7 14.1 11
ASSET MANAGEMENT
Assets under management in this segment rose ? 1.6 billion (+11%) in H1 2011 to
? 15.7 billion (year-end 2010: ? 14.1 billion). This rise can almost fully be
attributed to the inflow of new money. Kempen Capital Management secured a
number of new institutional mandates, including Yarden (? 0.7 billion) and a
major private client (? 0.5 billion).
The Asset Management segment posted a 21% increase in operating profit before
tax to ? 3.4 million in H1 2011 (H1 2010: ? 2.8 million). Commission rose by
11% to ? 25.2 million (H1 2010: ? 22.8 million), in particular thanks to the
increase in assets under management. Performance fees in H1 2011 were lower at
? 0.3 million (H1 2010: ? 2.7 million). Staff costs rose to ? 13.2 million
(H1 2010: ? 11.1 million) due in part to the increase in the number of staff to
193.2 FTEs and higher accruals for variable pay.
CORPORATE FINANCE & SECURITIES
Corporate Finance & Securities posted an operating profit before tax in H1 2011
of ? 3.5 million (H1 2010: ? 3.0 million). Commission declined slightly to
? 24.7 million (H1 2010: ? 26.2 million). Higher fees relating to capital market
transactions were partially offset by lower success fees. Staff costs were up
slightly; a decrease in the number of FTEs to 195.2 was offset by higher
accruals for variable pay.
OTHER ACTIVITIES
The segment Other Activities posted a negative operating profit before tax of
? 31.7 million in H1 2011 (H1 2010: loss of ? 31.6 million). Higher income from
securities and associates can in part be attributed to gains on sales in the
amount of ? 4.4 million and higher valuation results.
INVESTMENTS
Van Lanschot completed the sale of Robein Leven to the investment company Ohpen
on 27 July 2011. The formal transfer of the shares in Robein Leven is pursuant
to the signing of the agreement for the acquisition of Robein Leven by Ohpen, as
announced on 10 December 2010. The transaction does not have a material impact
on Van Lanschot's profit and loss account.
VAN LANSCHOT SHARE BUY-BACK PROGRAMME
Van Lanschot will start a share buy-back programme for at most 200,000 shares
(ordinary A shares) on 16 August 2011. The purpose of the share buy-back
programme is to cover the award of shares to employees under the current
remuneration policy and the employee share plan.
This share buy-back programme will be carried out in accordance with the mandate
given by the General Meeting of Shareholders on 11 May 2011. The share buy-back
programme will terminate on 31 December 2011, unless the maximum number of
200,000 shares has been repurchased prior to that date. Van Lanschot has
mandated Rabobank International to execute the share buy-back programme.
Rabobank International will make its trading decisions with regard to the number
of shares and the timing of the purchases independently of Van Lanschot.
Updates on the progress of the share buy-back programme will be made available
on a weekly basis on the bank's website (www.vanlanschot.nl/sharebuyback).
VARIABLE PAY FOR 2010 FOR MEMBERS OF BOARD OF MANAGING DIRECTORS
In light of the continuance of the bank's recovery, Van Lanschot's Supervisory
Board has decided to pay out the deferred variable pay for 2010 for the members
of the Board of Managing Directors. This variable pay is already reflected in
the 2010 financial statements.
CORPORATE SOCIAL RESPONSIBILITY
In the field of corporate social responsibility, the bank made major progress in
the first half of this year. For instance, Van Lanschot introduced a risk filter
in the lending process, with which potential risks in such fields as human
rights violations, child labour and controversial weapons can be identified.
Where relevant, the bank engages with its borrowers on their responsibilities.
This engagement approach has been used in the investment operations for some
time. The engagement policy is currently applied to equity and property funds -
for instance in the sustainable Kempen SeNSe fund - and the inclusion of other
asset classes is being investigated.
KEY DATA
Income statement H1 2011 H1 2011 H1 2010 % H2 2010 %
(x ? million) core[1]
Income from operating 294.4 289.7 287.5 1 325.8 -11
activities
Operating expenses 217.0 211.6 205.7 3 216.6 -2
Gross result 77.4 78.1 81.8 -5 109.2 -28
Addition to loan loss 27.4 27.4 43.9 -38 42.6 -36
provisioning
Other impairments 3.5 3.0 7.2 -58 8.8 -66
Operating profit before 46.5 47.7 30.7 55 57.8 -17
tax
Discontinued operations 2.8 - - - - -
Net profit 42.8 40.8 22.1 85 43.6 -6
BALANCE SHEET 30-6-2011 30-6-2011 30-6-2010 % 31-12-2010 %
(x ? million) core
Equity attributable to 1,466 1,466 1,428 3 1,462 -
shareholders
Equity attributable to 320 320 307 4 323 -1
minority interests
Public and private sector 13,225 13,225 13,075 1 13,546 -2
liabilities
Loans and advances to the 15,059 15,059 16,418 -8 15,710 -4
public
and private sectors
Total assets 19,286 19,272 19,928 -3 19,590 -2
CAPITAL MANAGEMENT 30-6-2011 30-6-2011 30-6-2010 % 31-12-2010 %
core
Risk-weighted assets (x ? 11,528 11,467 13,459 -15 11,695 -2
million)
BIS total capital ratio 14.0 14.0 12.2 - 14.2 -
(%)
BIS Tier I ratio (%) 12.6 12.7 10.3 - 12.1 -
BIS Core Tier I ratio (%) 10.1 10.2 8.2 - 9.6 -
Leverage 13.2 13.1 14.0 - 13.4 -
ASSETS UNDER MANAGEMENT 30-6-2011 30-6-2011 30-6-2010 % 31-12-2010 %
(x ? billion) core
Total assets under 37.3 37.3 32.2 16 35.4 5
management
Assets under 23.3 23.3 18.7 25 20.9 11
discretionary management
- of which double-counted 0.7 0.7 0.7 - 0.7 -
Assets under non- 14.0 14.0 13.5 4 14.5 -3
discretionary
management
KEY FIGURES 30-6-2011 30-6-2011 30-6-2010 31-12-2010
core
Average number of 40,865 40,865 35,901 38,367
ordinary shares
(x 1,000)
Earnings per share based 0.92 0.87 0.48 1.45
on average
number of ordinary shares
(in euros)
Efficiency ratio (%) 73.7 73.0 71.5 68.9
Return on average equity 5.1 4.8 2.5 4.1
(%)
Funding ratio (%) 87.8 87.8 79.6 86.2
Number of staff (FTEs) 2,151.5 2,009.7 2,041.6 2,042.8
[1] Since 2009, the annual figures have reflected the impact of a number of non-
strategic investments. In order to allow an adequate comparison, the figures in
this financial report are adjusted for these investments. In all cases, the
comparative figures solely concern the core activities.
RESULTS FOR THE FIRST HALF OF 2011
H1 2011 H1 2011 H1 2010 % H2 2010 %
(x ? million) core
Interest 149.4 150.5 160.3 -6 176.6 -15
Income from securities and 13.1 13.6 7.0 94 7.0 94
associates
Commission 123.2 123.2 115.2 7 117.0 5
Profit on financial transactions 2.4 2.4 5.0 -52 25.2 -90
Other income 6.3 - - - - -
Income from operating activities 294.4 289.7 287.5 1 325.8 -11
Staff costs 117.0 113.8 109.1 4 117.3 -3
Other administrative expenses 81.6 79.5 78.6 1 81.3 -2
Depreciation and amortisation 18.4 18.3 18.0 2 18.0 2
Operating expenses 217.0 211.6 205.7 3 216.6 -2
GROSS RESULT 77.4 78.1 81.8 -5 109.2 -28
Addition to loan loss provision 27.4 27.4 43.9 -38 42.6 -36
Other impairments 3.5 3.0 7.2 -58 8.8 -66
Operating profit before tax 46.5 47.7 30.7 55 57.8 -17
Income tax 6.5 6.9 8.6 -20 14.2 -51
Discontinued operations 2.8 - - - - -
NET PROFIT 42.8 40.8 22.1 85 43.6 -6
RESULTS FOR THE FIRST HALF OF 2011 BY SEGMENT
Private & Asset Corporate Other Total
Business Management Finance & Activities
(x ? million) Banking Securities
Income from operating 262.0 25.2 26.5 -24.0 289.7
activities
Operating expenses 162.1 21.8 22.6 5.1 211.6
GROSS RESULT 99.9 3.4 3.9 -29.1 78.1
Addition to loan loss 27.4 - - - 27.4
provision
Other impairments - - 0.4 2.6 3.0
Operating profit before tax 72.5 3.4 3.5 -31.7 47.7
Income tax 16.0 0.5 -0.2 -9.4 6.9
NET PROFIT 56.5 2.9 3.7 -22.3 40.8
Efficiency ratio (%) 62% 87% 85% -21% 73%
Number of staff (FTEs) 1,545.6 193.2 195.2 75.7 2,009.7
RESULTS FOR THE FIRST HALF OF 2010 BY SEGMENT
Private & Asset Corporate Other Total
Business Management Finance & Activities
(x ? million) Banking Securities
Income from operating 260.8 22.8 26.9 -23.0 287.5
activities
Operating expenses 160.4 19.9 22.5 2.9 205.7
GROSS RESULT 100.4 2.9 4.4 -25.9 81.8
Addition to loan loss 43.9 - - - 43.9
provision
Other impairments - 0.1 1.4 5.7 7.2
Operating profit before 56.5 2.8 3.0 -31.6 30.7
tax
Income tax 14.3 0.9 0.4 -7.0 8.6
NET PROFIT 42.2 1.9 2.6 -24.6 22.1
Efficiency ratio (%) 62% 87% 84% -13% 72%
Number of staff (FTEs) 1,593.4 175.5 191.2 81.5 2,041.6
RESULTS FOR THE SECOND HALF OF 2010 BY SEGMENT
Private & Asset Corporate Other Total
Business Management Finance & Activities
(x ? million) Banking Securities
Income from operating 270.7 27.1 32.8 -4.8 325.8
activities
Operating expenses 166.0 22.8 25.0 2.8 216.6
GROSS RESULT 104.7 4.3 7.8 -7.6 109.2
Addition to loan loss 41.2 - -0.2 1.6 42.6
provision
Other impairments 0.3 -0.1 0.7 7.9 8.8
Operating profit before tax 63.2 4.4 7.3 -17.1 57.8
Income tax 15.2 2.5 0.2 -3.7 14.2
NET PROFIT 48.0 1.9 7.1 -13.4 43.6
Efficiency ratio (%) 61% 84% 76% -58% 69%
Number of staff (FTEs) 1,596.5 180.9 189.0 76.4 2,042.8
More detailed (consolidated) segment information is provided in the Financial
Report on the 2011 half-year results.
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 half-year results contains a detailed
explanation of the results and balance sheet of Van Lanschot NV.
The presentation for analysts will be held in Amsterdam on 16 August 2011 at
11.30 am, and can be followed live online via a video webcast on the website.
For the financial report on the 2011 half-year results, the presentation for
analysts and the webcast, please visit www.vanlanschot.nl/results2011.
2011 INTERIM FINANCIAL STATEMENTS OF F. VAN LANSCHOT BANKIERS NV
The 2011 interim financial statements of F. van Lanschot Bankiers N.V. are
available online at the corporate website (www.vanlanschot.nl/results2011) from
Tuesday 16 August 2011.
KEY DATES 2011
Publication of trading update third quarter of 2011 8 November 2011
's-Hertogenbosch, the Netherlands, 16 August 2011
Van Lanschot 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
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.
Press release (PDF):
http://hugin.info/133415/R/1538581/469966.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#1538581]
Unternehmensinformation / Kurzprofil:
Datum: 16.08.2011 - 07:30 Uhr
Sprache: Deutsch
News-ID 57273
Anzahl Zeichen: 30501
contact information:
Town:
's-Hertogenbosch
Kategorie:
Business News
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