Kempen European High Dividend Fund N.V. N · EURONEXT:KEHDF
Kempen European High Dividend Fund N.V. N — Van Lanschot Kempen — FY2024 Earnings Presentation
31 slides from Kempen European High Dividend Fund N.V. N's earnings presentation, Feb 27, 2025
Slide 1: 2024 full-year results: Growing further together
2024 full-year results Growing further together Amsterdam, 27 February 2025
Slide 2: 2024 highlights
2024 highlights Connecting Driving growth Investing in talent Creating impact our network Shared “Growing further together” strategy Launch of Mercier Van Lanschot in Belgium c. 2,200 colleagues 381 new colleagues CO2 per FTE down 44% versus 2019 382 engagements Connected 10,000+ private banking cli
Slide 3: We continue our growth trajectory as a highly focused and independent wealth manager
We continue our growth trajectory as a highly focused and independent wealth manager Core to our strategy is to generate sustainable and profitable Organic growth in 2024 growth while maintaining our capital-light business model, with the target to grow our AuM by 10% a year on average • Total net i
Slide 4: All our client segments contributed positively to our result
All our client segments contributed positively to our result Private Clients Netherlands Investment Management Clients • Strong momentum continuing • Renewed focus starting to pay off • Net AuM inflow of €2.1bn • Net AuM inflow of €4.9bn • €134.9m operating profit before tax • €24.9m operating profi
Slide 5: We delivered on our people and sustainability targets
We delivered on our people and sustainability targets Our people • Gender balance senior staff: 21.1% (2023: 19.0% target: >30%*) • Corrected gender pay gap: 1.4% (2023: 3.0% target: <2.0%) • Staff turnover: 9.5% (2023: n/a target: 8-12%) • Employee engagement score: 90% (2023: 90% target: >80%) Imp
Slide 6: 2024 full-year results: Growing further together
2024 full-year results Growing further together Amsterdam, 27 February 2025
Slide 7: We achieved a net result of €142 million, with strong growth in assets under management
We achieved a net result of €142 million, with strong growth in assets under management AuM net inflow Commission income Net result Total balance sheet €9.2bn €511.2m (+20%) €141.9m (+13%) €17.0bn (2023: €16.8bn) Total AuM Interest income Proposed dividend Loan loss release/provision €149.3bn (+17%)
Slide 8: We are well on track to reach our 2027 financial targets while executing our strategy
We are well on track to reach our 2027 financial targets while executing our ‘growing further together’ strategy AuM growth Cost/income RoCET 1 Dividend CET 1 ratio (Basel IV fully loaded)** ratio pay-out ratio 17.2% 70.1% 16.2% 88.4% 18.0% Target: 10% Target: 67-70% Target: >18%* Target: 70-90% Tar
Slide 9: Net result increased by 13% on the back of a strong increase in commission income
Net result increased by 13% on the back of a strong increase in commission income Key drivers of net result (€m) -21.1 84.0 -9.0 -28.0 3.5 -0.1 -12.6 141.9 125.2 2023 Commission Interest income Other income Operating Impairments Other Tax 2024 income expenses • Strong increase in commission income d
Slide 10: Private Clients Netherlands expanded its market share thanks to high net inflows
Private Clients Netherlands expanded its market share thanks to high net inflows AuM (€bn) AuM breakdown (%) 4.8 43.7 2.1 Other 36.8 41% 13% Discretionary 42% Bonds 25% 59% Non-discretionary 58% 62% Equities 31/12/2023 Net AuM Market 31/12/2024 inflow performance • Gained market share in the Dutch p
Slide 11: Private Clients Netherlands achieved a strong result
Private Clients Netherlands achieved a strong result Result before tax (€m) Margins (bps) €m 2024 2023 % difference Private Banking (€36.5bn) Private Clients Commission income 234.2 193.8 21% 61 58 Netherlands (€43.7bn) Interest income 156.9 172.1 -9% 60 Other income 1.3 0.8 54% 55 Income from opera
Slide 12: Private Clients Belgium continues its strong commercial momentum, with AuM growing by 38%
Private Clients Belgium continues its strong commercial momentum, with AuM growing by 38% AuM (€bn) AuM breakdown (%) 0.7 15.1 1.2 Other 2.2 Bonds 5% 11.0 18% 77% Discretionary 78% Non-discretionary 22% 23% 76% 31/12/2023 Net AuM Market Acquisition 31/12/2024 Equities inflow performance (Accuro) • S
Slide 13: Private Clients Belgium achieved a strong result with an improved cost/income ratio
Private Clients Belgium achieved a strong result with an improved cost/income ratio Result before tax (€m) Margins (bps) €m 2024 2023 % difference Private Clients Belgium Commission income 105.8 80.0 32% (€15.1bn) Interest income 9.3 12.6 -26% 80 80 Other income 0.5 0.5 -1% Income from operating act
Slide 14: Investment Management Clients achieved positive inflows in its active strategies
Investment Management Clients achieved positive inflows in its active strategies AuM (€bn) AuM breakdown 6.1 90.5 Investment 3.9 79.5 0.5 0.5 strategies Equities Other 11.9 Alternative 19% investment 5.2 30% strategies (€bn) (%) 73.4 51% Fiduciary Bonds 31/12/2023 Net inflow Net inflow Net inflow Ma
Slide 15: Investment Management Clients capitalised on improvements in commercial strength and scalability
Investment Management Clients capitalised on improvements in commercial strength and scalability Result before tax (€m) Margins (bps) €m 2024 2023 % difference Own funds (€17.1bn) Investment Management Commission income 127.2 111.8 14% 57 57 Clients (€90.5bn) Interest income 0.9 0.4 125% 15 15 Other
Slide 16: Investment Banking Clients saw market momentum and profitability returning
Investment Banking Clients saw market momentum and profitability returning Commission income (€m) Operating profit before tax (€m) 56.0 9.7 40.2 36.5 3.9 -4.4 2022 2023 2024 2022 2023 2024 • Back to profitability, with a modest operating result before tax of €3.9m (2023: -€4.4m); focus remains on im
Slide 17: Current AuM base provides solid foundation for growing commission income in 2025
Current AuM base provides solid foundation for growing commission income in 2025 Annualised recurring securities commission* (€m) Annualised recurring securities commission per segment* (€m) 494 468 Investment Management 415 Clients 380 128 340 Private Clients €494m 243 Netherlands Private Clients 1
Slide 18: Interest income declined in a normalising interest rate environment
Interest income declined in a normalising interest rate environment Interest income (€m)* Interest margin (12-month moving average) 107.9 1.24% 93.0 92.2 88.6 1.18% 83.2 69.7 1.11% 1.06% 0.92% 0.88% H1 2022 H2 2022 H1 2023 H2 2023 H1 2024 H2 2024 H1 2022 H2 2022 H1 2023 H2 2023 H1 2024 H2 2024 H2 2
Slide 19: Solid other income
Solid other income Other income (€m) Income Income Book value Book value 2024 2023 YE2024 YE 2023 Van Lanschot Kempen Participaties (minority interests) 1.7 28.4 34.9 35.0 Bolster Investment funds* 4.9 3.9 83.2 76.3 Co-investments in own investment funds 5.8 5.2 61.7 83.8 Other equity investments 3.
Slide 20: Operating expenses increased but at a slower pace than income
Operating expenses increased but at a slower pace than income – testament to our scalable business model Changes in operating expenses (€m) Internal FTEs 15.8 5.1 32 4.7 15 30 8.5 1.4 -7.6 27 10 474.8 502.8 2,018 1,904 2023 Robeco Accuro Internal External Other Other 2024 2023 Accuro External Privat
Slide 21: Our loan portfolio remained stable
Our loan portfolio remained stable Loan portfolio Loan portfolio % change Impaired Impaired Coverage €m Provision 31/12/2024 31/12/2023 loans ratio ratio Mortgages 6,396 6,368 0% 36 2 0.6% 6% Other loans 2,348 2,182 8% 90 26 3.8% 29% Loan portfolio 8,744 8,550 2% 127 28 1.4% 22% Mortgages distribute
Slide 22: Limited loan loss provisions reflect high quality of loan book
Limited loan loss provisions reflect high quality of loan book Additions to or releases from loan loss provisions (€m) 4 bps* -29 bps* -19 bps* 5 bps* -3 bps* 1.9 2.0 -1.4 -7.7 -11.7 2020 2021 2022 2023 2024 • Release from loan loss provisions relative to average risk- weighted assets worked out at
Slide 23: Strong CET 1 ratio allows for dividend proposal and excess capital return proposal
Strong CET 1 ratio allows for dividend proposal of €2.75 per share and excess capital return proposal of €1.40 per share Common Equity Tier 1 ratio (%) 0.7% 0.3% 0.5% 0.3% c. -1% 19.6% -0.4% -0.3% -1.3% 19.3% -0.3% c. 18.5% 18.0% 31/12/2023 Basel IV 31/12/2023 Accuro Lease new Partial sale Additiona
Slide 24: We are well on track to reach our 2027 financial targets
We are well on track to reach our 2027 financial targets Average annual AuM growth (€bn) Cost/income ratio Common Equity Tier 1 ratio Target 10% 2027 target 67–70% Target 17.5% Basel IV fully loaded* Basel III fully loaded Basel IV fully loaded* 85.7% CAGR 68.9% 73.1% 71.6% 70.1% 24.3% 23.7% 10.0% 2
Slide 25: 2024 full-year results: Growing further together
2024 full-year results Growing further together Amsterdam, 27 February 2025
Slide 26: Overview of net result 2024
Overview of net result 2024 €m 2024 2023 % change Commission income 511.2 427.2 20% - of which securities commissions 469.3 389.8 20% - of which other commissions 41.9 37.4 12% Interest income 175.4 196.5 -11% Income from securities and associates 16.3 38.1 -57% Result on financial transactions 13.9
Slide 27: Key figures by segment 2024
Key figures by segment 2024 Investment Private Clients Private Clients Investment €m Management Other Total Netherlands Belgium Banking Clients Clients Commission income 234.2 105.8 127.2 40.2 3.8 511.2 Interest income 156.9 9.3 0.9 -0.4 8.6 175.4 Other income 1.3 0.5 0.1 5.8 22.5 30.1 Income from o
Slide 28: Key figures by segment 2023
Key figures by segment 2023 Investment Private Clients Private Clients Investment €m Management Other Total Netherlands Belgium Banking Clients Clients Commission income 193.8 80.0 111.8 36.5 5.0 427.2 Interest income 172.1 12.6 0.4 -0.3 11.7 196.5 Other income 0.8 0.5 0.1 2.1 35.6 39.1 Income from
Slide 29: Progress on our KPIs
Progress on our KPIs KPIs Targets Performance Performance in 2024 in 2023 4. CET 1 ratio (Basel IV fully loaded) 17.5% @ | 19.3% 18.6% 2. Return on CET 4 capital > 18% in 2027, progress ahead of our grawth @ [162% 14.2% path of 1 percentage point per year 3. Cost/income ratio 67-70% © [701% 71.6% 4,
Slide 30: High scores on external ESG ratings
High scores on external ESG ratings Governance: 1st decile B- rating Environment: 3rd decile On a scale of A+ to D- Social: 3rd decile ISS ESG Corporate Rating 6th place in league table of AA rating 491 entrants On a scale of AAA to CCC on resilience to ESG risks 7th place in a league table 4 and 5
Slide 31: Disclaimer
Disclaimer Disclaimer and cautionary note on forward-looking statements This document may contain forward-looking statements and targets on future events and developments. These forward-looking statements and targets are based on the current insights, information and assumptions of Van Lanschot Kemp