Van Lanschot Kempen: third-quarter trading update 2024
Published: 7.00 CET
- Third-quarter results in line with the first half of 2024
- Strong commercial momentum continues: net inflow in AuM of €7.1 billion in the first nine months
- Client assets increased by 12% to €162.3 billion and AuM by 14% to €145.2 billion, compared with the end of 2023
- Strong capital ratio of 18.8%; Basel IV fully loaded capital ratio of 19.0%
Jeroen Kroes, Chief Financial Officer: "We can look back on a good third quarter, with growth in assets under management (AuM) and a solid result in line with the first half of the year. Securities commission income continued to increase while interest income slightly declined. All four client segments contributed positively to the result. Collectively and individually, they support our 'Growing further together' strategy, launched in June, with a focus on scalable growth and the best, most personal experience for our clients."
After favourable stock market conditions in the first half of the year, market volatility briefly increased in August. Declining inflation, interest rate cuts by the ECB in Europe and the Fed in the United States subsequently led to increased expectations of a soft economic landing and rising stock markets. In turn, the inflow of AuM remained strong in the third quarter at €1.4 billion. The net inflow in the first nine months totalled €7.1 billion, made up of Private Clients Netherlands: €2.3 billion, Private Clients Belgium: €1.6 billion, and Investment Management Clients: €3.2 billion.
Within Private Clients, we continue to experience strong growth with sustained commercial momentum in both the Netherlands and Belgium. We saw existing clients entrusting more of their assets to us and new clients choosing us to manage their wealth, coupled with a limited conversion of savings into AuM. Client satisfaction remained high, reflected by a strong Relationship NPS of 43 in the first nine months of the year at Private Clients Netherlands.
Investment Management Clients achieved good net inflow in AuM as well. Notably, we have been selected to manage an active sustainable European small-cap mandate for Pension Fund PNO Media with an initial value of €195 million. Our decades-long track record and expertise in small-caps, along with our integrated sustainability approach within our investment policy, were decisive factors. Furthermore, we have announced a collaboration with Collective Action to further deepen our impact-investing activities for our clients.
Our capital position remains robust with a CET 1 ratio of 18.8%. According to the "Basel IV fully loaded" definition, our CET 1 ratio stood at 19.0% (based on Van Lanschot Kempen’s current interpretation of Basel IV), including the risk weight floor for residential mortgages as set by DNB. The increase from 18.5% (Basel IV fully loaded) at the end of June 2024 reflected further optimalisation of our equity positions and several other smaller factors.
As communicated at the June 2024 Investor Day, we plan to return the portion of our capital exceeding our target of 17.5% CET 1 ratio (Basel IV fully loaded) to our shareholders by the end of 2024, subject to regulatory approval. We expect this return to take place in June 2025. Both the dividend for 2024 and the exact amount of the capital return will be announced at the same time as the annual results for 2024.
Financial calendar
27 February 2025 - Publication of 2024 annual results
More information
Media Relations: +31 20 354 45 85; mediarelations@vanlanschotkempen.com
Investor Relations: +31 20 354 45 90; investorrelations@vanlanschotkempen.com