Kempen European High Dividend Fund N.V. N · EURONEXT:KEHDF
Kempen European High Dividend Fund N.V. N — Van Lanschot — Debt Investor Presentation (September 2014)
32 slides from Kempen European High Dividend Fund N.V. N's debt investor presentation, September 2014
Slide 1: Van Lanschot Credit Update September 2014
Van Lanschot Credit Update September 2014
Slide 2: Profile of Van Lanschot; 2014 half-year results; Funding and liquidity
Profile of Van Lanschot 2014 half-year results Funding and liquidity Execution of strategy on track 2
Slide 3: Executive summary
Executive summary Van Lanschot’s profile Key financials • Pure-play, independent wealth manager H1 2014 H1 2013 Net profit € 49.4m € 36.3m • Oldest bank in the Netherlands with a history dating back more than 275 years 30-06-2014 31-12-2013 • Three lines of business – Private Banking, Asset Manageme
Slide 4: Executive summary
Executive summary Strategy Progress We choose to be a pure-play, Solid profit in H1 2014 independent wealth manager Growth in client assets Our objective is to preserve Execution of strategic and create wealth for our initiatives on track clients Private Banking Asset Management Merchant B
Slide 5: Van Lanschot has chosen to be an independent wealth management firm
Van Lanschot has chosen to be an independent wealth management firm Why wealth management? Our commitment Building on our distinctive strengths Mission Preservation and creation of wealth for our We can build on our inherent strengths in clients private and institutional wealth management by working
Slide 6: Three-pronged strategy to realise strategic repositioning
We have created a three-pronged strategy to realise our strategic repositioning Focus - Reinforced Private Banking offering with specific service concepts - Specialist services for specific client segments (Entrepreneurs and family businesses, business professionals and executives, healthcare profes
Slide 7: Experienced and balanced management board
Experienced and balanced management board Karl Guha (1964) Constant Korthout Arjan Huisman (1971) Richard Bruens Ieko Sevinga (1966) Chairman of the Board (1962) CFO / CRO COO (1967) Private Banking Commercial activities Background: CRO at Background: 18 years at Background: Partner with Background:
Slide 8: Listed on the Amsterdam stock exchange with a stable shareholder base
Van Lanschot is listed on the Amsterdam stock exchange and has a stable shareholder base Holders of depositary receipts • Van Lanschot has issued ordinary shares A • These shares are held by Stichting Administratiekantoor van gewone aandelen A Van Lanschot (the Trust) • The Trust has issued deposita
Slide 9: Solid profile reflected in strong creditworthiness
Solid profile reflected in strong creditworthiness Fitch Standard & Poor’s Long-term credit rating: A- Long-term credit rating: BBB+ Outlook long-term credit rating: Negative Outlook long-term credit rating: Negative Short-term credit rating: F2 Short-term credit rating: A-2 Latest pre
Slide 10: Profile of Van Lanschot; 2014 half-year results; Funding and liquidity
Profile of Van Lanschot 2014 half-year results Funding and liquidity Execution of strategy on track 10
Slide 11: 2014 half-year results Highlights
2014 half-year results Highlights Net profit +36% to € 49.4 million (H1 2013: € 36.3 million) – Underlying net profit € 54.1 million (H1 2013: € 40.3 million) Solid profit – Income from operating activities +5% H1 2014 – Cost reduction on track; personnel costs lower, other administrative expenses h
Slide 12: 2014 half-year results Key figures
2014 half-year results Key figures € million H1 2014 H2 2013 H1 2013 H1-14 vs H1-13 Commission 113.8 115.3 119.5 -5% Interest 106.6 106.0 107.9 -1% Other income 74.0 27.6 53.5 38% Income from operating activities 294.4 248.9 280.9 5% Operating expenses 195.0 187.7 187.2 4% Non-recurring charges 6.2
Slide 13: Solid profit in H1 2014
Solid profit in H1 2014 Thanks to higher other income and lower loan losses Key drivers of profit in H1 2014 (€ million) H1 2014 net profit € 49.4 million Lower commission income due - 0.2 to lower income Merchant 1.4 Banking; stable securities - 7.9 6.3 commission income 20.5 Pressure on intere
Slide 14: Securities commission stable at €94.9 million
Securities commission stable at € 94.9 million Total commission income decreases 5% to € 113.8 million Commission income (€ million) Lower commission income due to lower other commission; stable -7.5 7.5 - 5.7 securities commission. Securities commission: Introduction of new fee structure leads to
Slide 15: Interest income stable, despite reduction of loan book
Interest income stable, despite reduction of loan book Higher clean interest margin* offset by lower hedge results Interest income down 1% at € 106.6 million, interest Interest income (€ million) margin H1 2014 1.21% (H1 2013: 1.23%) Interest income positively influenced by repricing of the privat
Slide 16: Other income increases to €74.0 million
Other income increases to € 74.0 million Gain on sale of a participation and financial transactions Other income (€ million) Sale of the 21% stake of Van Lanschot Participaties in DORC 74.0 Holding BV resulted in a material gain Van Lanschot Participaties is 53.6 part of the regular activities o
Slide 17: Cost reduction on track
Cost reduction on track Personnel costs lower, other administrative expenses higher Operating expenses (€ million) Operating expenses up 4% to € 195.0 million After a total cost reduction of 9% in 2012 and 2013 costs will stabilize this year 211.6 Personnel costs down 7% 200.7 201.2 196.1 187.2
Slide 18: Growth in client assets
Growth in client assets Strong market performance and inflow of assets under discretionary management Client assets (€ billion) Client assets grow 5% to € 56.1 billion 53.5 56.1 51.3 10.5 Savings and deposits up 3% to 10.2 10.1 € 10.5 billion Assets under management up Savings & deposits 5% to €
Slide 19: Deleveraging continues
Deleveraging continues Steady reduction in loan book in line with strategy Total loan book € 11.9 billion; 4% reduction in H1 2014 € million 30-06-2014 31-12-2013 Mortgages 6,269 6,483 -3% Mortgages Other private banking loans 1,565 1,695 -8% 51% of the loan book is made up of mortgages to wealt
Slide 20: Loan impairment charges
Loan impairment charges Loan loss provisioning continues to trend down Addition to loan loss provisions down 14% on H1 2013 Addition to loan loss provisions by type of loan Mortgages: -18% 62.2 Loan losses on mortgage book 8.8 traditionally very low: addition to loan loss provisions in H1 2014 onl
Slide 21: Robust balance sheet
Robust balance sheet Strong capital and funding position Significant capital buffer Total equity of € 1.3 billion Common Equity Tier I ratio Total assets € 17.7 billion 13.8%* Due to banks Cash and balances 1.6 1.2 with banks Leverage ratio (fully loaded) 4.9% Financial 3.4 The balance sheet i
Slide 22: Increase of Common Equity Tier I Ratio
Increase of Common Equity Tier I Ratio RWA reduction continued Risk-weighted assets Risk-weighted assets (€ billion) Corporate Banking run-off successfully; corporate loan book exposure reduced by over 0.3 € 300 million in H1 2014 Total RWA at 30-06-2014 0.7 € 8.1 billion (-10%) 9.0 0.1 Common
Slide 23: Profile of Van Lanschot; 2014 half-year results; Funding and liquidity
Profile of Van Lanschot 2014 half-year results Funding and liquidity Execution of strategy on track 23
Slide 24: Access to wholesale funding well maintained
Access to wholesale funding well maintained RMBS: 2010, 2012, 2013 Aim for further diversification of funding Senior Unsecured €: 2010, 2011, 2012, 2013, 2014 profile Senior Unsecured CHF: 2012 Regular presence in wholesale markets 15 wholesale market transactions since 2010 through (un)secured fund
Slide 25: Van Lanschot has various funding programmes
Van Lanschot has various funding programmes RMBS programmes Public Retained Lunet / Citadel RMBS Programmes Courtine RMBS Programme • Top quality residential mortgage portfolio, fully originated and • Residential mortgage loan portfolio, fully originated and serviced by Van Lanschot serviced by Van
Slide 26: Van Lanschot is a frequent issuer in the wholesale markets
Van Lanschot is a frequent issuer in the wholesale markets Strong funding position based on a stable level of bond issuance and a regular presence in wholesale markets Successful in raising funds in wholesale markets every year since 2010 Lunet 2013-I, € 1.075bn (€ 244 m Class A1 Notes placed, €
Slide 27: Well diversified funding profile
Well diversified funding profile Funding mix in 2014 Largely ‘self funded’ in line with a traditional Private Bank: funding 4.1% 7.5% ratio 87.9% per 30 June 2014 59.2% 6.4% As a Private Bank, majority of Customer savings and deposits funding is customer savings and Debt securities & subordinated lo
Slide 28: Profile of Van Lanschot; 2014 half-year results; Funding and liquidity
Profile of Van Lanschot 2014 half-year results Funding and liquidity Execution of strategy on track 28
Slide 29: Strategic priorities
Strategic priorities Results in H1 2014 and priorities for next 12 months Results in H1 2014 Priorities next 12 months Marketing campaign for Private Banking Evi developing towards € 1 billion Launch of Savings & Deposit account Private Banking Significant progress on establishing new servic
Slide 30: Financial targets Van Lanschot for 2017
Financial targets Van Lanschot for 2017 On track to achieve financial targets 2017 15% 13.8% Common Equity Tier I ratio 13.1% 31-12-13 30-06-14 10-12% Return on 8.1% Common Equity Tier I 5.4% H1 2013 H1 2014 Efficiency ratio 66.6% 66.2% 60-65% H1 2013 H1 2014 30
Slide 31: z¢ | Van Lanschot
4 z¢ | Van Lanschot
Slide 32: Disclaimer
Disclaimer Forward-looking statements This presentation contains forward-looking statements concerning future events. Those forward-looking statements are based on the current information and assumptions of Van Lanschot management concerning known and unknown risks, developments and uncertainties. F
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