Van Lanschot Kempen (VLK) Q4 2025 earnings summary

Executive summary

• Net profit increased by 11% to €157.4 million in 2025, driven by strong commission income, cost control, and strategic acquisitions.

• Client assets rose 7% to €180 billion, with net AuM inflows of €7.9 billion and notable growth in private equity and fiduciary mandates.

• Progressed on the "Growing Further Together" strategy, embedding AI and digital capabilities, and winning three FT PWM tech awards.

• Expanded scale in equities through a 50/50 joint venture with KBC Securities, pending regulatory approval.

• Proposed dividend of €3.00 per share and capital return of €0.80 per share, supported by a strong CET1 ratio.

Financial highlights

• Commission income grew 11% to €567.3 million, with strong growth in Belgium (+24%) and the Netherlands (+10%).

• Net interest income was €164.1 million, down 6%, but expected to grow to €180–195 million in 2026.

• Operating expenses increased by 4% to €521.8 million, mainly due to higher staff costs.

• Cost/income ratio improved to 69.2%, within the 67–70% target range.

• Earnings per share increased 13% to €3.50; return on CET1 capital reached 18.3%.

Outlook and guidance

• On track to achieve 2027 financial targets, including 10% average annual AuM growth and a CET1 ratio of 17.5% post-capital return.

• Interest income for 2026 expected between €180–€195 million, supported by balance sheet growth and normalized margins.

• Continued focus on digitalization, AI, and scalable growth to enhance client experience and efficiency.

• Envisaged JV with KBC Securities to impact CET1 ratio by -0.25 percentage points in Q4 2026.