Published: 7.30 AM CET
Maarten Edixhoven, Chair, said: “2021 was an excellent year for Van Lanschot Kempen, bringing both organic and inorganic growth, strong net profit and a solid capital position. The integration of the Hof Hoorneman Bankiers acquisition and our partnership with Mercier Vanderlinden are making excellent progress.
“Creating and preserving financial and natural value across generations is the very essence of what Van Lanschot Kempen is about. Our clients increasingly recognise our sustainable solutions, but we’re aware that we still have big strides to make – and so we’ll be stepping up our activities in this area. In addition, starting this year we’ll be using a single brand – Van Lanschot Kempen – for all our activities, one step at a time. This should further boost our position as an independent, specialist wealth manager in Western Europe.
“Over the past few months, I’ve had the privilege of getting to know the organisation, clients and employees, and it’s great to experience entrepreneurial spirit and client focus all across the company. I would like to take this opportunity to thank our clients, employees and shareholders for their confidence, as well as for the warm welcome I’ve received from them.”
In 2021, client assets grew to €131.1 billion (2020: €115.0 billion). Assets under management (AuM) climbed to €112.1 billion (2020: €99.0 billion) on the back of a market performance of €9.5 billion and Mercier Vanderlinden’s AuM of €3.8 billion. Net inflows at Private Clients were very high at €3.8 billion, whereas Wholesale & Institutional Clients saw net outflows of €4.0 billion. With margins on Private Clients inflows higher than those on outflows at Wholesale & Institutional Clients, the combination made for a significant improvement in management fees, further aided by the positive market performance. Savings and deposits rose to €11.7 billion (2020: €10.1 billion).
In 2021, we completed the acquisition of our 70% stake in Belgium-based wealth manager Mercier Vanderlinden. We are very pleased with this new collaboration, as it eminently fits in with our strategy to become a key player in Belgium as an independent specialist wealth manager. Total client assets in Belgium grew to €10.7 billion by the end of 2021. Last year, we also welcomed Hof Hoorneman Bankiers’ employees and clients, according to plan. These clients now have access to our offering of products and services.
In 2021, net results increased to €143.8 million (2020: €49.8 million). Commission income, the core of our income flows, added 30% to €385.5 million, predominantly because of higher recurring commissions. Interest income was stable at €153.6 million (2020: 152.1 million), underpinned by growth in the loan portfolio and negative interest charged on savings.
As announced previously, operating expenses were well ahead of those in 2020, coming in at €409.9 million (2020: €371.8 million). In 2020, costs were low because of cost-saving measures related to Covid-19. The figures for 2021, by contrast, include Mercier Vanderlinden’s and Hof Hoorneman Bankiers’ regular expenses (around €16 million). Meanwhile, we are facing higher – to some extent variable – staff costs, partly as a result of the continuing growth of our IT and Compliance departments. Going forward, we will continue to invest, not least to lock in future growth.
Steeply higher income underpinned an efficiency ratio at 68.9% for the year, putting it well within our target of a maximum 70-72% by 2025.
2021 saw a total release from loan loss provisions of €11.7 million on the back of a high-quality loan portfolio mainly comprising residential mortgages in the Netherlands.
Sales from our private equity portfolio also chipped into our net profit in 2021. The sale of our stakes in Fire Safety Holding BV (Gerco) and Quint Wellington Redwood Holding BV generated book profits of over €10 million and around €5 million respectively, while divesting Global Property Research BV garnered a book profit of €2.7 million. In addition, the sale of non-strategic interest Holonite (Holowell BV) contributed some €2 million to net profit. And lastly, our stake in Newion II, a private equity fund in which we invest, added nearly €10 million in value.
The underlying net result rose to €159.9 million (2020: €51.0 million). This figure reflects the net result adjusted for the accounting treatment of the Mercier Vanderlinden acquisition, the provision for revolving consumer credit, restructuring charges related to the Hof Hoorneman Bankiers acquisition, and other one-off charges.
For a detailed discussion of Van Lanschot Kempen’s results and balance sheet, please refer to our performance report and presentation on the 2021 full-year results on Financial results.
In a conference call on 24 February at 9:00 am CET, we will discuss our 2021 full-year results in greater detail. This may be viewed live on Financial results and played back at a later date.
11 May 2022 - Publication of 2022 first-quarter trading update
11 May 2022 - Capital Markets Day
12 May 2022 - Retail Investor Day
25 May 2022 - Annual General Meeting
27 May 2022 - Ex-dividend date
9 June 2022 - 2021 dividend payment date
25 August 2022 - Publication of 2022 half-year results
4 November 2022 - Publication of 2022 third-quarter trading update