Van Lanschot Kempen (VLK) H2 2024 earnings summary

Executive summary

• Net profit increased 13% year-over-year to €141.9 million, driven by strong commission income growth and robust net AuM inflows of €9.2 billion.

• Assets under management (AuM) grew 17% to €149.3 billion, surpassing the 10% annual growth target, with positive market performance and strong inflows across all segments.

• All four business segments contributed positively, with notable market share gains in private banking in the Netherlands and Belgium.

• Continued execution of growth strategy, including expansion in Belgium, new private equity fund launch, and significant progress on sustainability targets.

• Proposed dividend of €2.75 per share and capital return of €1.40 per share.

Financial highlights

• Commission income rose 20% to €511.2 million, offsetting an 11% decline in net interest income to €175.4 million.

• Net inflows of €9.2 billion, mainly from private banking and investment management.

• Cost/income ratio improved to 70.1%, nearing the 2027 target range of 67–70%.

• Operating expenses increased 6% to €502.8 million, mainly from higher staff costs and integration of Robeco's platform.

• Loan loss provision released €1.4 million, reflecting high loan book quality.

Outlook and guidance

• Targeting 10% average annual AuM growth through 2027, with current momentum exceeding this.

• 2025 interest income expected at €155–165 million, reflecting client asset shifts and anticipated ECB rate cuts.

• Focus remains on profitable growth, cost discipline, and further digitalization.

• Continued intention to return excess capital to shareholders annually.