2011 half-year results AMSTERDAM, 16 AUGUST 2011 - Focus on both - PDF document

2011 half-year results AMSTERDAM, 16 AUGUST 2011

- Focus on both grow th and solidity Floris Deckers, CEO - 2 0 1 1 half-year results Constant Korthout, CFRO - The best private bank in the Netherlands and Belgium Floris Deckers, CEO - Q&A 1

Focus on both growth and solidity in H1 2011 - Assets under management + 5% to € 37.3 billion - Inflow of net new money + 5% (annualised 11% ) to € 1.9 billion Grow th - Total client assets + 3% to € 50.5 billion - Commission + 7% to € 123.2 million - Net profit + 85% to € 40.8 million - Core Tier I ratio 10.2% - Funding ratio 87.8% - Diversification and lengthening of funding profile - European stress test: under adverse stress scenario, Core Tier I ratio Solidity increases to 9.7% in 2012 compared with 9.6% at year-end 2010 (minimum EBA benchmark 5% ) - Reconfirmation Single A- (stable outlook) credit rating by Standard & Poor’s in July 2011 Numbers based on core activities (excluding non-strategic investments) 2

Long-established focus on private banking, complemented by asset management Asset Corporate Managem ent Finance & Private & Business Banking Securities Client Assets H1 -1 1 vs H1 -1 0 Specialised team based in 4 offices Private + 8 % Office CA € 10 million + 5 % Private Banking Served through branch offices CA € 250,000 Centralised services Private Banking Services -5 % Van Lanschot aim s to be the best private bank in the Netherlands and Belgium 3

Strong inflow of assets under management - Total assets under management + 5% to € 37.3 billion - Inflow of net new money € 1.9 billion (+ 5% , or annualised 11% ) mainly due to increase in discretionary mandates - Assets under discretionary management of private clients increased from 32% to 35% - Total client assets + 3% to € 50.5 billion Assets under m anagem ent ( € billion) Total client assets ( € billion) 50.5 49.0 13.2 13.6 37.3 1.9 0.0 35.4 15.7 14.1 37.3 35.4 21.6 21.3 31- 12- 2010 Net new Market 30- 06- 2011 31- 12- 2010 30- 06- 2011 money performance Savings & deposit s Privat e & Business Banking Asset Management Asset s under management Numbers based on core activities (excluding non-strategic investments) 4

More focus on solidity due to deteriorating market conditions - Pressure on interest margin due to conscious decision to reinforce the funding profile and deleverage the balance sheet - Interest margin H1 2011 1.54% ; adjusted for exceptional items 1.60% - Commission + 7% to € 123.2 million (H1 2010: € 115.2 million) - Addition to loan loss provision down 38% to € 27.4 million (H1 2010: € 43.9 million) - Consolidated net profit + 111% to € 42.8 million (H1 2010: € 20.3 million) - Net profit (core activities) + 85% to € 40.8 million (H1 2010: € 22.1 million) Net profit ( € m illion) Total incom e ( € m illion) 43.6 40.8 31.5 22.1 290 326 288 - 46.3 259 310 H1 H2 H1 H2 H1 H1 H2 H1 H2 H1 2009 2009 2010 2010 2011 2009 2009 2010 2010 2011 Numbers based on core activities (excluding non-strategic investments) 5

Solid capital and funding position - Core Tier I ratio 10.2% ; Tier I ratio 12.7% ; BIS ratio 14.0% - Van Lanschot meets the published Basel III requirements - Diversification and lengthening of funding profile through issue of senior unsecured bonds to institutional investors for an amount of € 500 million Core Tier I ratio Funding ratio 0.2% 0.1% 0.3% 1 0 .1 % 10.2% 9 .9 % 9.6% 9 .6 % 77.4% 91.2% 89.7% 87.8% 79.0% 86.2% 31-12-2010 Reduction Profit Other 30-06-2011 2006 2007 2008 2009 2010 H1 2011 RWA Numbers based on core activities (excluding non-strategic investments) 6

Strong results in European stress test - Core Tier I ratio under adverse stress scenario increases to 9.7% in 2012 (year-end 2010: 9.6% ) - No exposure to government bonds of Greece, Portugal, Ireland, Italy and Spain - Sovereign risk in the bank’s investment portfolio is limited to the Netherlands, Germany and small amounts in France, Switzerland and Canada - High quality loan book: nearly half of the portfolio consists of residential mortgages in the Netherlands and Belgium - EBA stress test complements the risk management procedures and regular stress testing programmes performed by Van Lanschot Baseline scenario Adverse scenario 2011 2012 2011 2012 Risk-weighted assets (€ million) 11,764 12,027 11,766 12,031 Core Tier I capital (€ million) 1,170 1,227 1,152 1,167 Core Tier I ratio 9.9% 10.2% 9.8% 9.7% 7

- Focus on both grow th and solidity Floris Deckers, CEO - 2 0 1 1 half-year results Constant Korthout, CFRO - The best private bank in the Netherlands and Belgium Floris Deckers, CEO - Q&A 8

Results H1 2011 € m illion H1 2 0 1 1 H1 2 0 1 0 H2 2 0 1 0 Interest 150.5 160.3 176.6 Securities commission 93.9 86.5 86.9 Other commission 29.3 28.7 30.1 Other income 16.0 12.0 32.2 I ncom e from operating activities 2 8 9 .7 2 8 7 .5 3 2 5 .8 Operating expenses 211.6 205.7 216.6 Gross result 7 8 .1 8 1 .8 1 0 9 .2 Addition to loan loss provision 27.4 43.9 42.6 Other impairments 3.0 7.2 8.8 Operating profit before tax 4 7 .7 3 0 .7 5 7 .8 Tax 6.9 8.6 14.2 Net profit 4 0 .8 2 2 .1 4 3 .6 Numbers based on core activities (excluding non-strategic investments) 9

Increase in net profit due to higher commission and lower provisions - Net profit in H1 2011 € 40.8 million (H1 2010: € 22.1 million) - Operating profit before tax € 47.7 million (H1 2010: € 30.7 million) - Lower interest margin due to stricter focus on private banking strategy and diversification of the bank’s funding - Higher commission in line with increase in assets under management - Trend of decrease in addition to loan loss provision continues Operating profit before tax ( € m illion) 4.2 16.5 4.0 - - 5.9 - 9.8 8.0 47.7 30.7 H1 2010 Lower Higher Higher Higher Lower Lower H1 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) 10

Higher commission, lower interest margin I ncom e from operating activities ( € m illion) 325.8 - Commission up 7% on H1 2010 to € 123.2 million 25.2 289.7 287.5 7.0 - Securities commission + 9% to 2.4 5.0 € 93.9 million, due to an increase 13.6 7.0 in management fees 176.6 150.5 160.3 - Interest down 6% on H1 2010 to € 150.5 million - Interest margin 1.54% (H1 2010: 1.59% ) Financial t ransact ions Securit ies and associat es - Other income € 16.0 million 123.2 Int erest 115.2 117.0 Commission H1 2010 H2 2010 H1 2011 Numbers based on core activities (excluding non-strategic investments) 11

Pressure on interest margin due to deliberate reinforcement of funding profile and balance sheet deleveraging I nterest m argin ( % ) - Interest down 6% on H1 2010 to € 150.5 million - Diversification and lengthening of funding profile through issue of 1.60% RMBS (November 2010) and senior unsecured bonds (April 2011) 1.22% 1.54% - Stricter focus on lending to target group clients - ECB funding fully repaid in 2010 H1 H2 H1 H2 H1 2009 2009 2010 2010 2011 Int erest margin - Interest margin 1.54% (H1 2010: Int erest margin adjust ed for exept ional it ems 1.59% ) - Adjusted for exceptional items 1.60% Numbers based on core activities (excluding non-strategic investments) 12

More stable commission driven by shift to discretionary mandates - Just one third of securities commission is transaction related - Management fee * comprises 68% of total securities commission (H1 2010: 63% ), in part due to increase in discretionary asset management - Assets under discretionary management at the end of June 2011 comprise 35% of total assets under management Private & Business Banking clients (year-end 2010: 32% ) Assets under discretionary m anagem ent Securities com m ission ( € m illion) ( € billion) and m anagem ent fee ( € m illion) 93.9 41 bps 41 bps 37 bps 86.9 0.3 86.5 4.8 2.6 29.9 45.0 32.4 29.2 36.1 35.2 33.1 18.7 26.8 16.8 18.4 23.3 20.9 45.0 18.7 36.1 16.2 33.1 13.6 H1 2010 H2 2010 H1 2011 H1 H2 H1 H2 H1 2009 2009 2010 2010 2011 Management fee Port folio & cust ody fee Margin Aum discret ionary Management fee Transact ion relat ed Performance fee * Including portfolio commission and custody fee 13 Numbers based on core activities (excluding non-strategic investments)

Operating expenses relatively flat Operating expenses ( € m illion) – Staff costs up 4% on H1 2010 to € 113.8 million - Higher variable pay and higher 216.6 211.6 participation in employee share 205.7 18.0 plan 18.3 18.0 - Higher pension obligations - Number of FTEs decreased to 2,010 81.3 at 30 June 2011 79.5 78.6 (Van Lanschot 1,612; Kempen 398) (30 June 2010: 2,042 FTEs; Van Lanschot 1,654; Kempen 388) Depreciat ion and amort isat ion - Other administrative expenses up 1% 117.3 113.8 109.1 Ot her administ rat ive on H1 2010 to € 79.5 million expenses - Extra addition to deposit guarantee St aff cost s scheme for DSB H1 2010 H2 2010 H1 2011 Numbers based on core activities (excluding non-strategic investments) 14