The Dutch independent wealth manager’s result from structured product activities increased 157% YoY.

Van Lanschot Kempen (VLK) has announced a net profit of €74.5m (US$83.2m) for the first half of 2024 – an increase of 44% year-on-year (YoY).

Favourable stock market conditions encouraged more investment by clients and contributed to robust net inflows in assets under management - Maarten Edixhoven

Commission income, at €251.5m, was up 23% YoY (H1 2023: €203.7m) while net assets under management (AuM) inflows of €5.7 billion and a strong market performance of €5.6 billion brought the total AuM to €139.3 billion (2023: €127.3 billion).

The result for financial transactions, at €9.1m, was driven by strong currency trading and securities trading – both used to provide liquidity for clients – at €5.4m and €1.2m, respectively (H1 2023: €4.2m and €0.3m). The €2.4m positive result on hedges was achieved mainly by structured products activities, which recorded a result of €1.5m (H1 2023: -€0.1m).

In H1 2024, other income rose to €16m (H1 2023: €4.1m) on the back of improved results from own fund investments, equity trading and structured products. The result of the latter, at €1.8m, increased by 157% YoY (H1 2023: 0.7m).

Total income on structured products activities came in at €3.4m (H1 2023: €2.0m), including commission income.

‘Favourable stock market conditions encouraged more investment by clients and contributed to robust net inflows in assets under management,’ said Maarten Edixhoven (pictured), Chair of the management board.

Source: VLK performance report 2024 half-year results

VLK was recognised with the awards for Best Performance, Benelux, and Best Distributor, The Netherlands at SRP Europe 2024.

The bank launched three public offers in H1 2024, all issued on its own paper. Of these, two were Trigger Plus notes (Phoenix autocalls) on the Eurostoxx 50 while the third product was a capital-protected Index Guarantee Note, also on the SX5E, which offers 105% uncapped participation in the index over a five-year investment term.

In the prior year semester, VLK marketed two public offers in the Netherlands, including the Trigger Plus Note Eurozone 23-28, which autocalled at the first opportunity on 12 February 2024.

During H1 2024, VLK also distributed several products targeted at its private banking clientele – again all issued via Van Lanschot Kempen. Most of these structures were linked to a single equity index, of which the Eurostoxx 50 was the most frequently used, followed by the S&P 500, Eurostoxx Select Dividend 30, and Stoxx Europe 600 Oil & Gas Index, among others.

Three of its private placements were linked to exchange-traded funds, including the iShares MSCI Brazil ETF (two products) and iShares MSCI Emerging Markets ETF (one), while the bank also issued autocalls linked to the shares of Microsoft and Nestle, respectively.

Private clients Netherlands & Belgium

Total AuM for the private clients Netherlands segment increased to €41.6 billion (2023: €36.8 billion) with net inflows of €1.8 billion. Commission income rose by 25% on the first half of 2023 to €113.1 million (H1 2023: €90.5 million).

In Belgium, where VLK operates under the Mercier Van Lanschot brand, private banking activities achieved an operating result before tax of €16.7m (H1 2023: €12.5m), which was driven by a 33% increase in commission income.

Client assets at private clients Belgium increased by 23% in H1 2024 to €15 billion as a result of strong net AuM inflow of €1.1 billion. In addition, market performance was positive at €0.9 billion. At the end of H1 2024, assets under discretionary management made up 75% of total AuM and non-discretionary management amounted to 25%.

Funding

VLK aims to retain access to both retail and wholesale markets through diversified funding. At the end of H1 2024, its loan to-deposit ratio increased to 74.8% from 72.9% at year-end 2023.

In January 2024, the group issued a €100m AT1 bond with an 8.875% fixed coupon, which refinances an existing AT1 instrument that was called by VLK on its first redemption date.

As of 30 June 2024, the common equity tier 1 (CET1) capital ratio was 18.8%, down from 19.6% end-December. 

Click the link to read the Van Lanschot Kempen first half 2024 results, presentation, and performance report.

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