Van Lanschot Kempen trading update: first quarter of 2020

Published: 07:30 AM CET

• The unprecedented impact of Covid-19 on the world’s economies, financial markets and society at large has also affected our performance
• The underlying activities of primarily Private Banking and Asset Management are making good progress
• A series of incidental items related to the market volatility has resulted in net losses of €10.5 million
• Net AuM inflows of €1.8 billion underpins the success of our integrated wealth management model
• Limited credit exposure makes for low levels of provisioning
• Liquidity and solvency remain very robust at an LCR of 151.6% and a CET 1 ratio of 22.8%

Van Lanschot Kempen today published its trading update for the first quarter of 2020. Please note that due to the exceptional circumstances, additional financial information has been provided.

Constant Korthout, Chief Financial & Risk Officer, said: “The world is facing the substantial challenge of addressing the issues related to the coronavirus crisis. Current circumstances are extraordinary, with nearly 90% of our staff working from home. The pandemic has had an impact on our clients as well. We are very aware that these are times when we can make a difference by being there for our clients and by providing tailored and client-specific assistance, particularly with respect to our private banking clients. Needless to say, we are very grateful to our clients for their trust, as evidenced by the inflows recorded at Private Banking and Asset Management.

“Regrettably, we have to report a loss for this first quarter; the outcome of a very volatile market leading to a number of incidental items. As part of our 2013 strategic reorientation, we have been able to materially re-risk our balance sheet. Consequently, our credit exposure is limited, largely consisting of Dutch residential mortgages. As such, this has allowed us to maintain low levels of provisioning.

“Client assets and assets under management (AuM) have declined during the quarter – from €102.0 billion to €94.5 billion and from €87.7 billion to €80.6 billion respectively. The net inflows of €1.8 billion were not sufficient to offset the negative market impact. Savings and deposits were unchanged at €9.5 billion while the overall loan portfolio was marginally higher at €8.8 billion.

“Our capital and liquidity ratios have remained robust.

“First-quarter costs developed in line with the guidance given earlier. We have also proactively initiated a series of additional cost saving measures. With these measures and in normal market conditions, we expect the year to end on a positive note.”