Yahoo Finance

• Net Income: EUR142 million, a 13% increase from 2023.

• Assets Under Management (AUM): Grew by 17% to almost EUR150 billion.

• Net Inflows: EUR9.2 billion, driven by private banking in the Netherlands and Belgium.

• Cost-Income Ratio: Improved by 1.5% to 70.1%.

• Return on CET1: Increased to 16.2%.

• Dividend Payout: EUR2.75 per share, translating to an 88.4% payout ratio.

• Capital Return: Proposed EUR1.40 per share.

• Commission Income: Increased by EUR84 million due to AUM growth.

• Interest Income: Decreased by 11% due to reduced interest margin.

• Operating Profit Before Tax (Private Clients Netherlands): Increased by 9% to EUR135 million.

• Operating Profit Before Tax (Private Clients Belgium): Increased by 36% to EUR37.8 million.

• Operating Profit Before Tax (Investment Management): More than doubled to EUR25 million.

• Interest Margin: Normalized to around 100 basis points.

• Loan Loss Provisions: Release of EUR1.4 million.

• CET1 Ratio: Ended at 19.3%, expected to be 18% after capital return.

• Warning! GuruFocus has detected 7 Warning Sign with FRA:VA3.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Van Lanschot Kempen NV (FRA:VA3) reported a successful year with a net result of EUR 142 million, a 13% increase from 2023.

• The company achieved a 17% growth in assets under management, reaching almost EUR 150 billion.

• Strong commercial momentum was observed across all segments, with significant net inflows of EUR 9.2 billion.

• The cost-income ratio improved by 1.5% compared to 2023, now at 70.1%, indicating better cost management.

• The company is on track to meet its 2027 financial targets, with a focus on scalable growth and investments in digital excellence and client-facing talent.

Negative Points

• Commission income from the investment banking segment was lower than expected, with some transactions delayed due to seasonality.

• Net interest income guidance for 2025 is slightly lower than anticipated, partly due to clients shifting assets from savings to investments.

• Operating expenses increased by 6%, driven by investments in growth and inflationary pressures, particularly in IT and wages.

• Margins in the Netherlands decreased due to a higher relative share of advisory products, which typically have lower margins.

• The integration of Robeco's online investment platform is still ongoing, with IT system integration expected to complete this year.

Q & A Highlights

Q: Why was there a miss on commission income from the merchant bank, and what actions are being taken to address this? A: Maarten Edixhoven, Chairman of the Management Board, explained that while the investment bank is profitable, commission income could have been higher. The trend is positive, and the bank is working on improving revenue. Some transactions were delayed due to seasonality, but the outlook is optimistic for returning to pre-2023 levels in the coming years.