Van Lanschot: commission income growth improves quality of results

• Underlying resultⁱ rises to €60.1 million (2014: €54.2 million)
• Net profit works out at €42.8 million (2014: €108.7 million, on the back of a one-off net pension gain of €54.5 million)
• Assets under management grow 14% to €50.2 billion (year-end 2014: €44.1 billion) supported by acquisition, favourable stock market climate and net inflows at Private Banking
• Capital base increases smartly to a CET I ratioⁱⁱ of 16.3% (year-end 2014: 14.6%)
• Ongoing investments in growth likely to push back achievement of efficiency ratio target
• Van Lanschot proposes dividend increase: €0.45 per share (2014: €0.40 per share)

's-Hertogenbosch, the Netherlands, 9 March 2016

Van Lanschot today released its full-year results for 2015. Karl Guha, Chairman, said: "We're in good shape. Client satisfaction ratings for our services are improving. We're well capitalised and the commission income growth improves the quality of our results. Commission now accounts for over half of our income in line with our wealth management strategy. Loan loss provisions for the year were 33% lower than last year, at €51 million. In view of these results we're proposing an increased dividend payment of €0.45 per share.

"Client assets of both private individuals and institutional clients advanced from €58.5 billion to €62.6 billion, with our assets under managementⁱⁱⁱ kicking ahead by 14% from €44.1 billion to €50.2 billion. Positive stock market conditions weren't the only driver: Private Banking also contributed net inflows of over €300 million and the acquisition of MN UK by Kempen Capital Management added €4.6 billion. At the start of 2016, Asset Management enjoyed the rewards of its 2015 efforts when it was selected for a new fiduciary mandate for Univé as well as a new corporate bonds mandate for FRR. Merchant Banking had an excellent year and bolstered positions in its selected niches: our advisers were involved in larger-sized transactions and in more senior roles. We've also made important headway with the run-off of our corporate loan portfolio and have managed to slash its risk-weighted assets to €1.9 billion, which actually exceeded our original run-off target for 2017.

"Our challenge is to accelerate our growth, enhance our returns and to position Van Lanschot as wealth manager for the future. The shift from collective to individual wealth creation in the Netherlands is an example of major new forces in our business. In addition, new technology and digitisation rapidly change client requirements. We need to make additional investment in improvement and innovation if we're to leverage these trends. And so we're not merely reducing costs in the short term, we're also investing in longer-term growth initiatives, having launched a range of new activities including Evi van Lanschot, our online savings and investment service. This conscious decision on our part does mean that we expect to achieve our 60-65% efficiency target by a later date than 2017 as originally envisaged. We are currently deepening our wealth management strategy as part of this drive and will explain this in further detail on 26 April 2016."


ⁱ The underlying result in 2014 was the net result adjusted for the one-off pension gain. In 2015 it reflected the net result adjusted for the one-off charge arising from the sale of non-performing property loans.

ⁱⁱ Common Equity Tier I ratio phase-in, including retained earnings.

ⁱⁱⁱ Assets under management no longer includes the assets under administration. These latter assets are those that are merely administered by Van Lanschot, over which Van Lanschot has little or no control, and on which earnings are relatively limited. Comparative figures have been adjusted accordingly.


ADDITIONAL INFORMATION

For additional information, please visit https://corporate.vanlanschot.nl/financial.

FINANCIAL REPORT/PRESENTATION

For a detailed discussion of Van Lanschot's results and balance sheet, please refer to our 2015 financial report and presentation of our 2015 full-year results at https://corporate.vanlanschot.nl/results.

Media Relations: +31 20 354 45 85; mediarelations@vanlanschot.com

Investor Relations: +31 20 354 45 90; investorrelations@vanlanschot.com

Van Lanschot NV is the holding company of F. van Lanschot Bankiers NV, the oldest independent bank in the Netherlands with a history dating back to 1737. Van Lanschot, a wealth manager operating under the Van Lanschot and Kempen & Co brand names, is active in Private Banking, Asset Management and Merchant Banking, with the aim of preserving and creating wealth for its clients. Van Lanschot NV is listed on Euronext Amsterdam.

Disclaimer and cautionary note on forward-looking statements

This document contains forward-looking statements on future events. These forward-looking statements are based on the current information and assumptions of Van Lanschot's management about known and unknown risks, developments and uncertainties. Forward-looking statements do not relate strictly to historical or current facts and are subject to risks, developments and uncertainties that by their very nature fall outside the control of Van Lanschot and its management. Actual results may differ considerably as a result of risks, developments and uncertainties relating to Van Lanschot's expectations regarding, but not limited to, estimates of income growth, costs, the macroeconomic and business climate, political and market trends, actions by supervisory and regulatory authorities and private entities, and changes in the law and taxation. Van Lanschot cautions that expectations are only valid on the specific dates on which they are expressed, and accepts no responsibility or obligation to revise or update any information following new information or changes in policy, developments, expectations or other such factors.

The financial data regarding forward looking statements concerning future events included in this document have not been audited. This document does not constitute an offer or solicitation for the sale, purchase or acquisition in any other way or subscription to any financial instrument and is not an opinion or a recommendation to perform or refrain from performing any action.

This document is a translation of the Dutch original and is provided as a courtesy only. In the event of any disparities, the Dutch version will prevail. No rights can be derived from the translated document.