Van Lanschot Kempen (VLK) Q4 2025 earnings summary

Executive summary

• Net profit increased by 11% to €157–157.4 million for 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.

• Continued execution of scalable growth, digitalization, and AI initiatives, winning three FT PWM Tech Awards.

• Expanded scale in equities through a planned 50/50 joint venture with KBC Securities, expected to close in Q4 2026.

• High client satisfaction maintained across all segments.

Financial highlights

• Commission income grew 11% to €567.3 million, with securities commissions up 12% and strong growth in Belgium (+24%) and the Netherlands (+10%).

• Net interest income was €164–164.1 million, improving in H2 but down 6% year-over-year.

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

• Cost/income ratio improved to 69–69.2%, 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, CET1 ratio of 17.5% post-capital return, and cost/income ratio of 67–70%.

• Interest income for 2026 expected between €180–€195 million, reflecting portfolio growth and stable margins.

• Cost discipline and AI-driven efficiency gains remain a priority.

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

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