Van Lanschot Kempen (VLK) Investor Day 2024 summary

Strategic direction and growth ambitions

• Aims to be the leading wealth manager in Western Europe, anchored in the Netherlands and Belgium, focusing on private banking, investment management, and investment banking, with scalable, capital-light growth and enhanced profitability.

• Targets 10% annual growth in assets under management (AUM) through organic expansion, disciplined bolt-on acquisitions, and market performance, with a proven track record of successful integrations.

• Emphasizes a capital-light business model, aiming for a cost-income ratio of 67-70% and a return on CET1 capital above 18% by 2027.

• Plans to increase dividend payout ratio to 70-90% of net profit, reflecting higher expected dividends for shareholders and a focus on shareholder returns.

• Maintains a solid capital position with a CET1 target of 17.5% under Basel IV, allowing a temporary buffer for M&A activity and returning excess capital above target to shareholders.

Business model, market positioning, and client focus

• Private banking is the core, with a strong personal approach, high client satisfaction, and a growing market share in the Netherlands and Belgium, including the integration of Mercier Vanderlinden.

• Leverages in-house investment management to offer institutional-quality solutions, including impact investing and alternative assets, with scalable, profitable growth targeted.

• Expands in Belgium through a unified brand, targeting new money from business sales and wealth transfers, and strengthening Mercier Van Lanschot as a leading private bank.

• Swiss operations focus on Dutch and Belgian clients, with growth from both organic and selective inorganic opportunities.

• Ultra-high-net-worth and affluent segments are addressed with tailored offerings, including the integration of the Robeco platform and new pension products.

Operational efficiency, technology, and talent

• Achieved significant productivity gains through automation, robotics, and process optimization, enabling scalable growth without proportional increases in headcount.

• Invests in technology, including AI, GenAI, and cloud migration, to drive efficiency and support a personal client approach.

• Maintains tight cost control while investing in digital and operational capabilities, underpinning future growth and scalability.

• Attracts and retains talent through a strong ownership culture, with high employee engagement and a focus on diversity and generational renewal.

• Cross-collaboration between private banking, investment management, and investment banking drives integrated client solutions and growth.