Annual general meeting Amsterdam, 28 May 2020
1. Opening
2a. Report of the Supervisory Board Discussion item
2b. Report of the Statutory Board for 2019 Discussion item
Core proposition of Van Lanschot Kempen The core proposition of Van Lanschot Kempen as a firm is an indepe epende dent, t, integ egrat rated ed wea ealth lth manag agem ement t house se with a very specific objective namely - preservatio servation and creatio ation of wea ealth lth in a susta tain inable able way ay for clients ents and the societ ieties ies we serve ve and in doing so provide an acceptable retu turn of 10-12 12% % to the shareholders and an good od workin orking environm ronment for her employees 5
We are a leading wealth manager in our markets We’re a well -capitalised, profitable wealth manager with a strong position in the market • Focuse cused wealth We believe that our knowledge and experience, personal, client-focused approach, unique combination of • manage gement activities and track record set us apart from the competition strategy We’re convinced our strategy offers ample growth opportunities • A leading wealth manager in the Benelux region • Leading g player in The number one online wealth management alternative for the mass affluent in selected markets • our relevant A prominent, active investment manager that delivers alpha in illiquid markets, as well as in income- • markets generating strategies and ESG in Europe The leading fiduciary manager in the Netherlands, and a challenger in UK fiduciary market • The preferred trusted adviser in selected merchant banking niches across Europe • We’re a conviction -based, active investor, focusing on the long term • From m responsi sible We’re convinced we can achieve significant social and environmental impact by advising our clients in • to sustainable making sustainable investment decisions invest sting We aim to increase our positive contribution and visibility • CET 1 ratio: 15-17% • 2023 23 financi cial RoCET 1: 10-12% • targe gets Dividend policy: 50-70% of underlying net result attributable to shareholders • Efficiency ratio: 70-72% • 6
In 2019, we have made good progress in delivering on our ambitions Client assets grew 26% to €102.0bn • Accelerate growth – orga ganica cally and Net inflows of AuM at Private Banking and at Asset Management • inorga ganica cally Ongoing search for acquisitions to accelerate our growth • Co-creation between Private Banking and Asset Management allows for swift and tailored product • Activate our full development (e.g. European Private Equity Fund and Global Impact Pool) potential Wealth management proposition for Evi’s mass affluents and closer collaboration between Evi and Private • Banking Merchant Banking and Private Banking working together on successful transactions for clients • Outsourced payment services to Fidor: new payments platform and payments app launched • Advance ce throug ugh Laid the foundation for a modern, cloud-based infrastructure for advanced analytics to enable faster • digital alisat sation and development analytics cs Transition to integrated HR practices and modernisation of employment conditions • Adapt the Implementation of agile approach with multidisciplinary set-up of several teams • workforce ce Encouraging development and training by launching a revamped learning management system to bring • different skills and capabilities into our organisation 7
From responsible to sustainable wealth manager 2019 highlights 98% of fund managers on the AuM at Private Banking approved list are scored on their Increa ease sed range of invested in sustainable or overall sustainability profile impact investing solutions grew sustain tainabl able and impact ct by 55% to more than €2 billion solut lutio ions ns • Global Impact Pool showed significant From 2023, we’ll actively offer We engaged with growth in 2019, our clients only sustainable 84 companies in passing the €100 million investment solutions which our funds mark invest • Sustainable solutions in various asset classes • Duurzaam+ proposition We’ve signed up to a financial • Launch of In 2019, over one-third of our sector initiative to Groenhypotheek new clients invested in our report on the climate impact of our Duurzaam+ proposition loan portfolio and investments 8
Our positioning in a changing environment Our posi sition oning ng Key themes s • Focus on wealth management, reducing dependence on interest income Low interest rates impact • Keep Private Banking loan portfolio stable our interest income • Charge negative interest rates for larger savings balances (above €1 million from 1 April) • Provide integrated wealth management solutions for private, institutional and Market volatility and flat corporate clients yield curve impact our • Swift, tailored alternative product development clients • Fulfil our role in combating money laundering and financial crime and undertake continuous efforts to further optimise our control arrangements Increased focus on • Have an advanced monitoring system and team of experts in place compliance • Make a clear choice for wealth management with capital-light balance sheet Pressure on • Benefit from focused strategy and client base to allow for swift implementation of sustainability of business new technology model for traditional banking 9
2019 annual results
2019 highlights Sale AIO II and Fourth closing of Successfully Infrastructure VLC & Partners European Private completed 37 for advanced Equity Fund at €193 Corporate Finance and analytics million ECM transactions 2019 19 2020 20 New payments Over €2.0 billion Special capital Niche strategies platform and in sustainable return of €1.50 showed strong payments app AuM at Private per share net inflow of launched €0.7 billion Banking 11
Good overall performance Net result €98.4m (2018: €80.3m) Commission income €290.4m ( -1%) Underlying net result €108.8m Interest income €175.3m (0%) (2018: €103.0m) Operating expenses Efficiency ratio 75.5% €384.1m ( -3%) (2018: 79.4%) Client assets €102.0bn (+26%) AuM net inflow €9.9bn AuM €87.7bn (+31%) Strong capital ratios Dividend per share stable at €1.45 CET 1 ratio rises to 23.8% 12
Net result considerably up to €98.4m Key driver vers s of net t result ult € m incl. book profit VLC & Partners 13
Cost-saving measures lead to operating expenses below the 2019 target Operat rating expe penses ses € m 14
Private Banking client assets rose 13% to €34.5bn Net t result lt Private vate Bankin ing* Privat ate e Banking client ent asset sets* s* € m € bn * As of 2019 Corporate Banking activities are integrated into our Private Banking segment. Comparative figures have been adjusted accordingly. 15
Succesful completion of strategic investment programme in 2019 Multi-chann annel el Omni-ch chann annel el Discretionary management app Introduced New website and online portal New payments platform and merged into investment app; Vermogenshorizon in 2018, for clients in 2018, functionality payments app in 2019 functionality further expanded integrated investment intake in consistently expanded in 2019 in 2019 2019 Budget c. €60m 2019 2016 Next steps ps in 2020 Outsourced mortgage servicing Improved and new workflows, Digital alerting and client to Stater in 2017 currently covering >80% of communication tools for client processes Rollout of secure (video) chat advisers and bankers • and document sharing Continuous expansion and • improvement of digital functionalities 16
Net inflow at Asset Management amounted to €9.8bn Net t result ult Asset et Manage ageme ment AuM Asset et Manag ageme ment € m € bn 17
Evi’s net result improved, client assets relatively stable Net t result lt Evi Evi Evi’s AuM € m € m 18
Solid results at Merchant Banking Commission mission Net t result lt Merch chan ant t Bankin ing € m € m 19
Margin pressure due to low interest rate environment Intere erest st Interest erest margin gin (12-mth mth moving g aver erag age) e)* € m % * The interest and clean interest margin are calculated excluding the one-off interest claim to be received from DSB NV ** The clean interest margin equals the gross interest margin adjusted for interest equalisation and interest-related derivatives amortisation 20
Client assets at €102.0bn ets * ement * Client ent asset Asset ets under er manag agem € bn € bn * As of 1 January 2018, €0.2 bn in AuM has been transferred to AuA. The comparative figures for 31 December 2017 have been adjusted accordingly 21
Net release of loan loss provisions thanks to positive economic conditions Loan portfoli tfolio o (ex exclu luding ding provis visio ions) ) Addit ition ions to to loan an loss provi visio sions at 31/12/2019 100% = €8.7bn € m - 22 bps* - 27 bps* - 27 bps* * Loan loss provision / Average total RWA 22
Strong capital position Commo mon Equity ity Tier er 1 ratio* tio* % * Some amounts differ from previously published reports, reflecting changes that result from the accounting changes related to provisions for pensions 23
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