Van Lanschot Kempen (VLK) H1 2024 earnings summary

Executive summary

• Net profit rose 44% year-over-year to EUR 74.5 million in H1 2024, driven by strong commission income and robust net AuM inflows of EUR 5.7 billion, with all client segments contributing positively.

• Total AuM increased over 9% to EUR 139.3 billion, supported by favorable market conditions and acquisitions.

• Expanded presence in Belgium with the acquisition of Accuro and continued strong performance in the Netherlands.

• Integration of Robeco Retail and Accuro acquisitions progressing well, supporting further growth and market share gains.

• Sustainability targets exceeded, with significant reductions in carbon footprint for both AuM and the organization.

Financial highlights

• Net profit increased 44% year-over-year to EUR 74.5 million for H1 2024; commission income up 23% to EUR 251.5 million; interest income declined 15% to EUR 92.2 million.

• Operating expenses rose 6% to EUR 248.2 million, mainly due to higher staffing costs and acquisitions; cost/income ratio improved to 69.0%.

• Other income increased from EUR 4.1 million to EUR 16 million, mainly from structured products and hedge accounting.

• Underlying net profit (adjusted) was EUR 78.4 million, up 43% year-over-year.

• Loan loss provisions at EUR 1.7 million, with impaired ratio at 1.4%.

Outlook and guidance

• On track to meet 2027 financial targets: average annual AuM growth of 10%, cost/income ratio 67-70%, CET1 ratio above 17.5%, return on CET1 above 18%, and dividend payout ratio 70-90%.

• Interest income for H2 2024 and 2025 expected to remain in line with H1 2024, despite anticipated ECB rate cuts.

• Plan to return excess capital above 17.5% CET1 to shareholders by year-end 2024 or 2025, subject to regulatory approval.

• Focus remains on scalable growth, sustainability, and long-term client value amid geopolitical uncertainty.