Van Lanschot Kempen (VLK) H1 2024 earnings summary

Executive summary

• Net profit rose 44% year-over-year to €74.5 million in H1 2024, driven by strong commission income and robust net AuM inflows of €5.7 billion, with all client segments contributing positively and notable growth in Private Clients Netherlands and Belgium.

• Assets under management (AuM) increased over 9% since end-2023, reaching €139.3 billion, supported by net inflows, positive market performance, and acquisitions including Accuro and Robeco Retail.

• Client assets reached €156.8 billion, with significant growth in Private Clients Belgium and Investment Management Clients.

• Sustainability targets exceeded, with significant reductions in carbon footprint for both AuM and the organization.

• Presented new strategy and ambitious 2027 financial targets, focusing on scalable growth and enhanced profitability.

Financial highlights

• Net profit increased 44% year-over-year to €74.5 million for H1 2024; underlying net profit (adjusted) was €78.4 million, up 43% year-over-year.

• Commission income rose 23% year-over-year to €251.5 million, mainly from AuM growth and improved M&A/ECM activity.

• Interest income declined 15% year-over-year to €92.2 million due to margin pressure.

• Operating expenses increased 6% to €248.2 million, mainly due to higher staffing costs and acquisitions; cost/income ratio improved to 69.0%.

• Other income rose from €4.1 million to €16 million, mainly from structured products and hedge accounting.

Outlook and guidance

• On track to meet 2027 targets, including 10% average annual AuM growth, cost/income ratio 67–70%, CET1 ratio (Basel IV) above 17.5%, and return on CET1 >18%.

• Interest income for H2 2024 and 2025 expected to remain in line with H1 2024, factoring in ECB rate cuts and stable deposit pricing.

• Plans to return capital in excess of 17.5% CET1 to shareholders by year-end 2024 or 2025, subject to regulatory approval.

• Focus remains on scalable growth, sustainability, and long-term client value amid geopolitical uncertainty.