Van Lanschot Kempen (VLK) Investor Day 2024 summary

Strategic Vision and Growth Ambitions

• Aims to be the leading wealth manager in Western Europe, anchored in the Netherlands and Belgium, with a growing presence in Switzerland and the UK, focusing on scalable, capital-light growth and enhanced profitability.

• Targets 10% annual AuM growth through organic expansion, disciplined bolt-on acquisitions, and market performance, with a proven track record of successful integrations.

• Leverages proprietary investment management, technology (including GenAI and cloud migration), and a capital-light model to drive efficiency and support scalable growth.

• Maintains a disciplined M&A approach, prioritizing cultural fit and integration, with a focus on core markets and rapid integration.

• Strong focus on sustainability, aiming for net-zero operations by 2030 and net-zero asset management by 2050, with annual carbon intensity reduction targets.

Financial Targets and Capital Management

• Sets 2027 targets: 10% average annual AuM growth, 67–70% cost/income ratio, 17.5% CET1 ratio (Basel IV), >18% return on CET1 capital, and 70–90% dividend pay-out ratio.

• Raises dividend pay-out target from 50–70% to 70–90% of net profit, enabled by capital-light growth and strong capital position.

• Maintains a CET1 capital target of 17.5%, with a temporary buffer for M&A and a commitment to return excess capital above this threshold.

• Demonstrates strong historical performance, with €800 million returned to shareholders since 2016 and >13% AuM CAGR since 2016.

• Tight cost control and efficiency optimisation underpin investments in future growth and scalability, with recent productivity gains of ~60% in client administration.

Business Model and Client Focus

• Private banking is the core, serving entrepreneurs, families, and foundations with a highly personal, relationship-driven approach, and leveraging cross-segment growth.

• Investment Management and Investment Banking are positioned for scalable, profitable growth, supporting Private Banking and focusing on sector expertise and independent advice.

• Dedicated teams address demographic trends, succession, and the great wealth transfer, with Switzerland serving Dutch and Belgian clients seeking asset protection and diversification.

• Evi van Lanschot aims to be the platform of choice for affluent clients, with digital and personal offerings, and expects positive contribution from pension reform as early as 2025.

• All client segments are expected to contribute to overall AuM growth, with strong inflows and positive momentum in Belgium and the Netherlands.