2011 annual results AMSTERDAM, 8 MARCH 2012 - Putting solidity - PDF document

2011 annual results AMSTERDAM, 8 MARCH 2012

- Putting solidity before profit Floris Deckers, CEO - 2 0 1 1 annual results Constant Korthout, CFRO - Basel I I I Constant Korthout, CFRO - The best private bank in the Netherlands and Belgium Floris Deckers, CEO - Q&A 1

Van Lanschot reports strong inflow of new money and solid balance sheet - Core Tier I ratio 10.9% - Funding ratio 91.8% Further - Further diversification and lengthening of funding profile reinforcem ent of - European stress test: under adverse stress scenario, Core Tier I ratio bank’s solid increases to 9.7% in 2012 compared with 9.6% at year-end 2010 profile in 2 0 1 1 - Affirmation of Single A minus (stable outlook) credit rating by Standard & Poor’s and Fitch in December 2011 and November 2011 respectively - Income from operating activities -12% to € 539.2 million Giving priority to solidity puts - Operating expenses -2% to € 412.3 million profit under - Addition to loan loss provision -26% to € 64.3 million pressure - Net profit -36% to € 41.9 million - Total assets under management + 6% to € 36.7 billion Strong net inflow - Total net inflow of new assets + 10% to € 3.4 billion of new assets - Total client assets + 4% to € 49.8 billion Numbers based on core activities (excluding non-strategic investments) 2

Further reinforcement of solid capital and funding position Core Tier I ratio 1 0 .9 % - Further increase in capital ratios due to lower risk weighted assets, the repurchase of perpetual loans and retained earnings Funding ratio 9 1 .8 % - The extent to which the loan book is funded by customer deposits Core Tier I ratio Funding ratio 0.1% 0.2% 0.7% 0.3% 91.8% 10.9% 86.2% 9.6% 79.0% 31 -1 2-201 0 Gain on the Decrease Retained Other 31 -1 2-201 1 31-12-2009 31-12-2010 31-12-2011 repurchase of RWA earnings perpetuals * * The 2004 loans were redeemed for cash at 75% of the nominal amount. The 2005 loans were redeemed for cash at 82.5% of the nominal amount. Numbers based on core activities (excluding non-strategic investments) 3

Diversification and lengthening of funding profile - Strong funding position based on stable level of customer deposits - Long-term funding raised on the wholesale market in 2011: - April 2011, issue of 3-year senior unsecured bonds to institutional investors for € 500 million - April 2011, issue of approx. € 65 million of Trigger Notes with a three year term - May 2011, issue of Floored Floater for approx. € 90 million with a ten year term - Van Lanschot already complies with the published Basel III funding and liquidity ratios Custom er deposits ( € billion) Funding m ix at 3 1 Decem ber 2 0 1 1 5% 9% 1 3 .5 1 3 .4 1 3 .1 2% 4.2 4.8 4.3 13% 3.8 3.9 4.1 71% 5.5 4.9 4.5 Custom er savings & deposits Debt securities & subordinated loans 31-12-2009 31-12-2010 31-12-2011 I nterbank funding Shareholders' funds Deposits Savings Other Other funding Numbers based on core activities (excluding non-strategic investments) 4

Income and profit under pressure as a result of priority for solidity and difficult market conditions - Interest income -12% to € 297.5 million (2010: € 336.9 million) - Interest margin 1.57% (2010: 1.68% ) - Management fees + 19% to € 124.4 million (2010: € 104.4 million) - Other income -75% to € 11.2 million (2010: € 44.2 million) - Consolidated net profit -35% to € 43.1 million (2010: € 66.7 million) - Net profit (core activities) -36% to € 41.9 million (2010: € 65.7 million) I ncom e from operating activities ( € m illion) Net profit ( € m illion) 613.3 568.5 44.2 539.2 71.0 11.2 232.2 230.5 224.7 65.7 41.9 336.9 297.5 272.8 - 14.8 2009 2010 2011 2009 2010 2011 Int erest Commission Ot her income Numbers based on core activities (excluding non-strategic investments) 5

Strong inflow of assets under management - Total assets under management * + 6% to € 36.7 billion - Inflow of net new money € 3.4 billion (+ 10% ), mainly institutional mandates - Assets under discretionary management for Private & Business Banking increased to 33% (2010: 27% ) - 2011 difficult year for investment performance; long-term track record above the benchmark - Total client assets + 4% to € 49.8 billion Assets under m anagem ent ( € billion) Total client assets ( € billion) 49.8 48.0 3.4 - 1.2 36.7 34.5 42.0 13.1 13.5 14.1 18.2 13.4 20.4 36.7 18.5 34.5 28.6 31- 12- 2010 Net new Market 31- 12- 2011 money performance 31- 12- 2009 31- 12- 2010 31- 12- 2011 Privat e & Business Banking Asset Management Savings & deposit s * The definition of assets under management was refined in H2 2011. Comparative figures have been restated accordingly. Asset s under management Numbers based on core activities (excluding non-strategic investments) 6

- Putting solidity before profit Floris Deckers, CEO - 2 0 1 1 annual results Constant Korthout, CFRO - Basel I I I Constant Korthout, CFRO - The best private bank in the Netherlands and Belgium Floris Deckers, CEO - Q&A 7

2011 annual results € m illion H1 2 0 1 1 H2 2 0 1 1 2 0 1 1 2 0 1 0 Interest 150.5 147.0 297.5 336.9 Securities commission 93.9 78.0 171.9 173.4 Other commission 29.3 29.3 58.6 58.8 Other income 16.0 - 4.8 11.2 44.2 I ncom e from operating activities 2 8 9 .7 2 4 9 .5 5 3 9 .2 6 1 3 .3 Operating expenses 211.6 200.7 412.3 422.3 Gross result 7 8 .1 4 8 .8 1 2 6 .9 1 9 1 .0 Addition to loan loss provision 27.4 36.9 64.3 86.5 Other impairments 3.0 11.0 14.0 16.0 Operating profit before tax 4 7 .7 0 .9 4 8 .6 8 8 .5 Tax 6.9 - 0.2 6.7 22.8 Net profit 4 0 .8 1 .1 4 1 .9 6 5 .7 Numbers based on core activities (excluding non-strategic investments) 8

Lower operating profit before tax due to decrease in interest income and other income - Net profit 2011 € 41.9 million (2010: € 65.7 million) - Operating profit before tax € 48.6 million (2010: € 88.5 million) - Lower interest margin due to strict focus on the private banking strategy, fewer loan applications, higher loan redemptions, diversification of the funding profile and placing excess liquidity at the ECB - Lower other income, in particular due to lower profit on financial transactions - Addition to loan loss provision down 26% Operating profit before tax ( € m illion) - 39.4 - 1.7 2.0 - 33.0 22.2 88.5 10.0 48.6 2010 Lower Lower Lower Lower Lower Lower 2011 int erest commission ot her operat ing loan loss ot her income expenses provision impairment s Numbers based on core activities (excluding non-strategic investments) 9

Interest margin down due to conscious choice to put solvency and liquidity before profit - Interest income -12% to € 297.5 million (2010: € 336.9 million) - Client loan book decreased by I nterest m argin € 1.1 billion due to a strict focus on the private banking strategy, fewer loan applications and higher loan redemptions; mortgage portfolio 1.57% reduced by approximately € 0.3 billion - Diversification and lengthening of funding profile resulted in higher 1.32% funding costs - Excess liquidity placed at the ECB at 2009 2010 2011 low interest rate - Interest margin 1.57% (2010: 1.68% ) - Van Lanschot already complies with the published Basel III funding and liquidity ratios Numbers based on core activities (excluding non-strategic investments) 10

Commission income: further shift to discretionary asset management leads to higher management fees - Commission income –1% to € 230.5 million (2010: € 232.2 million) - Management fees * comprise 72% of total securities commission (2010: 60% ), in particular due to increase of assets under discretionary management and growth of institutional asset management - Assets under discretionary management comprise 33% * * (2010: 27% * * ) of the total assets under management for Private & Business Banking clients Com m ission incom e ( € m illion) Securities com m ission ( € m illion) 1 7 3 .4 1 7 1 .9 0.4 7.4 20.0 - 7.0 - 14.5 - 0.2 47.1 61.6 232.2 230.7 230.5 230.5 217.7 217.7 124.4 104.4 2010 Transact ion Management Performance Ot her 2011 2010 2011 commission fee* fee commission Managem ent fee* Transaction com m ission Perform ance fee Numbers based on core activities (excluding non-strategic investments) * Including portfolio commission and custody fee 11 * * Definition of AuM was refined in H2 2011. Comparative figures have been restated accordingly.

Higher commission income driven by increase in assets under management and shift to discretionary mandates Total assets under m anagem ent ( € billion) Net inflow AuM ( € billion) 10% 36.7 34.5 11% 28.6 12.4 14.8 13.7 3.4 3.1 24.3 1% 19.7 14.9 0.2 2009 2010 2011 Non- discret ionary % related to total amount of AuM at the start of the period Discret ionary Assets under discretionary m anagem ent 31- 12- 2009 31- 12- 2010 31- 12- 2011 Private & Business Banking ( % ) Managem ent fee and transaction com m ission ( % ) 27% 36% 46% 67% 73% 77% 73% 64% 54% Transaction related 33% 27% Non- discret ionary 23% com m ission Discret ionary Managem ent fee* 31- 12- 2009 31- 12- 2010 31- 12- 2011 2009 2010 2011 * Including portfolio commission and custody fee 12 Numbers based on core activities (excluding non-strategic investments)