Kempen European High Dividend Fund N.V. N · EURONEXT:KEHDF
Kempen European High Dividend Fund N.V. N — Van Lanschot Kempen — H1 2024 Earnings Presentation
31 slides from Kempen European High Dividend Fund N.V. N's earnings presentation, Aug 22, 2024
Slide 1: 2024 half-year results
2024 half-year results Amsterdam, 22 August 2024
Slide 2: We continued our strong momentum in H1 2024
We continued our strong momentum in H1 2024 • Strong growth in AuM to €139.3 billion, a 9.4% increase vs 2023 • Net result of €74.5 million, a 44% increase vs H1 2023 • All client segments contributed to the net result • Robust momentum in the Netherlands, especially with entrepreneurial clients • S
Slide 3: Growing further together
Growing further together Be a leading wealth manager in Western Europe, with a solid foundation in the Netherlands and Belgium Further capitalise on the momentum in Private Banking Netherlands, and unlock additional growth engines Reap the significant potential for growth in Private Banking Belgium,
Slide 4: All our segments are well positioned with clear USPs
All our segments are well positioned with clear USPs Private Clients Investment Investment • Foundation of our business Management Clients Banking Clients • Differentiating with our personal approach and • In-house investment • Specialist investment distinctive investment solutions engine banking ca
Slide 5: Key financial highlights H1 2024
Key financial highlights H1 2024 Net result Operating expenses AuM net inflow CET 1 ratio (Basel III) €74.5m (+44%) €248.2m (+6%) €5.7bn 18.8% (2023: 19.6%) Commission income Cost/income ratio Total AuM CET 1 ratio (Basel IV)* €251.5m (+23%) 69.0% (H1 2023: 74.5%) €139.3bn (+9%) 18.5% Interest incom
Slide 6: Delivering on our 2027 financial targets
Delivering on our 2027 financial targets Average annual AuM growth (€bn) Cost/income ratio Common Equity Tier 1 ratio (Basel III) Target 10% 2027 target 67–70% 2027 target 17.5% Basel IV fully loaded +21% 18.8% CAGR 85.7% 24.3% 23.7% 68.9% 73.1% 71.6% 69.0% 20.6% *** +8% 19.6% 18.5% 2020 2021 2022 2
Slide 7: Delivering on our sustainability and social targets
Delivering on our sustainability and social targets H1 2024 results Discretionary AuM Average annual reduction Annual weighted average carbon intensity 18% vs 2019 7% reduction (2019 baseline) Own organisation 1.47 tonnes CO2 per FTE, Annual average carbon intensity per FTE down 39% vs 2019, down 8%
Slide 8: 2024 half-year results
2024 half-year results Jeroen Kroes, Chief Financial Officer Amsterdam, 22 August 2024
Slide 9: Strong performance in H1 2024, net result up 44%
Strong performance in H1 2024, net result up 44% Significant increase in AuM, income and profit • AuM net inflow of €5.7bn and total AuM of €139.3bn (+9% vs 31/12/2023) • Commission income of €251.5m (+23%) and interest income of €92.2m (-15% vs H1 2023) • Operating expenses of €248.2m (+6% vs H1 20
Slide 10: Net result rises to €74.5m on the back of strong commission income
Net result rises to €74.5m on the back of strong commission income Key drivers of net result (€m) -15.7 11.9 -13.0 -3.6 4.1 -1.6 -7.2 47.8 83.8 83.8 82.7 79.1 79.1 81.7 74.5 74.5 51.8 51.8 H1 2023 Commission Interest income Other income Operating Impairments Non-strategic Special and Tax H1 2024 inc
Slide 11: Private Clients Netherlands: high inflow and strong result
Private Clients Netherlands: high inflow and strong result AuM (€bn) 2.9 AuM breakdown (%) 1.8 Other 11% 41.6 Bonds 26% Equities 36.8 36.8 38.6 63% 31/12/2023 Net AuM inflow Market performance 30/06/2024 • Net AuM inflow of €1.8bn: 77% non-discretionary, 23% discretionary; including strong inflow in
Slide 12: Private Clients Belgium: high inflow and strong result
Private Clients Belgium: high inflow and strong result AuM (€bn) 0.7 AuM breakdown (%) 0.9 1.1 Other 5% Bonds 20% 13.0 13.7 Equities 12.1 11.0 11.0 76% 31/12/2023 Net AuM inflow Market performance Acquisition (Accuro) 30/06/2024 • Gaining market share in the attractive Belgian private banking market
Slide 13: Investment Management Clients: capitalising on restructuring and scalable operating model
Investment Management Clients: capitalising on restructuring and scalable operating model AuM (€bn) 0.4 -0.2 2.6 1.8 AuM breakdown (%) Other 21% 29% Equities 79.5 79.5 79.9 79.7 82.3 84.1 50% Bonds 31/12/2023 Net investment Net alternative Net fiduciary Market 30/06/2024 strategies investment manage
Slide 14: Investment Banking Clients: profitability returning as momentum builds
Investment Banking Clients: profitability returning as momentum builds Commission income (€m) Operating profit before tax (€m) 10.3 8.4 8.4 31.7 29.0 26.3 24.3 24.0 3.0 1.3 0.4 19.6 17.0 -4.8 H1 2021 H2 2021 H1 2022 H2 2022 H1 2023 H2 2023 H1 2024 H1 2021 H2 2021 H1 2022 H2 2022 H1 2023 H2 2023 H1 2
Slide 15: Stable margins at all segments
Stable margins at all segments Annualised recurring fees* (€m) Stable margins • Private Clients Netherlands 55bps 468 415 (2023: 60bps) 360 380 330 340 • Evi van Lanschot 37bps (2023: 52bps) 307 • Private Clients Netherlands excl. Evi van Lanschot 58bps (2023: 60bps) • Private Clients Belgium 81bps
Slide 16: First half of 2024 shows resilient interest income
First half of 2024 shows resilient interest income Interest income (€m)* Interest margin (12-month moving average) 1.24% 1.18% 1.11% 108 1.01% 93 89 92 0.98% 76 78 70 0.88% 0.92% H1 2021 H2 2021 H1 2022 H2 2022 H1 2023 H2 2023 H1 2024 H1 2021 H2 2021 H1 2022 H2 2022 H1 2023 H2 2023 H1 2024 • Interes
Slide 17: Higher other income driven by better results at various components
Higher other income driven by better results at various components Other income (€m) Income Income Book value Book value Book value H1 2024 H1 2023 H1 2024 YE 2023 H1 2023 Van Lanschot Kempen Participaties 2.1 2.3 36.4 35.0 43.8 Bolster Investments Coöperatief UA 2.8 2.2 79.1 76.3 69.3 Co-investment
Slide 18: Operating expenses: focus on scalable growth
Operating expenses: focus on scalable growth Operating expenses (€m) Internal FTEs 3.5 10 23 9.6 244.8 248.2 1,844 1,904 1,904 1,914 1,937 235.2 235.2 H1 2023 Staff costs Other H1 2024 30/06/2023 31/12/2023 Accuro Other 30/06/2024 • Income from operating activities increased by 14% and operating exp
Slide 19: Stable loan portfolio
Stable loan portfolio Loan Loan % change Impaired Provision Impaired Coverage €m portfolio portfolio loans ratio ratio 30/06/2024 31/12/2023 30/06/2024 30/06/2024 30/06/2024 30/06/2024 30/06/2024 Mortgages 6,251 6,368 -2% 36 2 0.6% 6% Other loans 2,291 2,182 5% 93 28 4.1% 30% Loan portfolio 8,541 8,
Slide 20: Additions to loan loss provisions
Additions to loan loss provisions Additions to loan loss provisions (€m) -9 bps* 18 bps* 8 bps* • Loan loss provisions relative to average risk-weighted assets worked out at 8 basis points 3.9 • Reflecting the high quality of the loan portfolio, mainly consisting of Dutch 1.7 residential mortgages -
Slide 21: Strong CET 1 ratio at 18.8%, Basel IV fully loaded 18.5%
Strong CET 1 ratio at 18.8%, Basel IV fully loaded 18.5% Common Equity Tier 1 ratio (%) -0.4 -0.4 -0.3 19.6 19.6 19.2 18.8 18.5 18.5 31/12/2023 Accuro Other 30/06/2024 Basel IV 30/06/2024 fully loaded Basel IV impact* fully loaded* • The acquisition of Accuro had a negative impact of 0.4 percentage
Slide 22: Delivering on our 2027 financial targets
Delivering on our 2027 financial targets Average annual AuM growth (€bn) Cost/income ratio Common Equity Tier 1 ratio (Basel III) Target 10% 2027 target 67–70% 2027 target 17.5% Basel IV fully loaded +21% 18.8% CAGR 85.7% 24.3% 23.7% 68.9% 73.1% 71.6% 69.0% 20.6% *** +8% 19.6% 18.5% 2020 2021 2022 2
Slide 23: Key financial highlights H1 2024
Key financial highlights H1 2024 Net result Operating expenses AuM net inflow CET 1 ratio (Basel III) €74.5m (+44%) €248.2m (+6%) €5.7bn 18.8% (2023: 19.6%) Commission income Cost/income ratio Total AuM CET 1 ratio (Basel IV)* €251.5m (+23%) 69.0% (H1 2023: 74.5%) €139.3bn (+9%) 18.5% Interest incom
Slide 24: Appendix
Appendix Amsterdam, 22 August 2024
Slide 25: Overview of net result H1 2024
Overview of net result H1 2024 €m H1 2024 H1 2023 % change Commission income 251.5 203.7 23% - Of which securities commissions 227.4 186.5 22% - Of which other commissions 24.1 17.2 40% Interest income 92.2 107.9 -15% Income from securities and associates 6.9 5.8 18% Result on financial transactions
Slide 26: Key figures by segment H1 2024
Key figures by segment H1 2024 Private Private Investment Investment €m Clients Clients Management Banking Other Total Netherlands Belgium Clients Clients Commission income 113.1 49.8 62.4 24.0 2.2 251.5 Interest income 86.2 4.4 0.4 -0.2 1.5 92.2 Other income 0.5 0.3 0.1 1.3 13.7 16.0 Income from op
Slide 27: Key figures by segment H1 2023
Key figures by segment H1 2023 Private Private Investment Investment €m Clients Clients Management Banking Other Total Netherlands Belgium Clients Clients Commission income 90.5 37.6 55.5 17.0 3.1 203.7 Interest income 100.2 6.3 0.1 -0.1 1.4 107.9 Other income 0.4 0.2 0.2 0.3 3.0 4.1 Income from ope
Slide 28: Key figures by segment H2 2023
Key figures by segment H2 2023 Private Private Investment Investment €m Clients Clients Management Banking Other Total Netherlands Belgium Clients Clients Commission income 103.3 42.4 56.2 19.6 2.0 223.5 Interest income 71.9 6.3 0.3 -0.2 10.2 88.6 Other income 0.4 0.3 -0.1 1.8 32.6 35.0 Income from
Slide 29: Progress on our non-financial KPIs
Progress on our non-financial KPIs Capital KPI Target H1 2024 2023 1 CET1 ratio Basel IV fully loaded 17.5% 18.5% 19.6%1 2 Financial capital 2 Return on equity (CET1) >18% 17.0% 14.2% 3 Cost/income ratio 67-70% 69.0% 71.6% Manufactured capital 4 Performance managed propositions vs their be
Slide 30: High scores on external ESG ratings
High scores on external ESG ratings Governance: 1 B- rating Lower governance risk = 1 On a scale of A+ to D- Higher governance risk = 10 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 11st place in a league table 4 and
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