Dutch wealth manager Van Lanschot Kempen has reported a fall in profit amidst the challenging market caused by the Covid-19 pandemic. However, it continued to attract €4.7bn in inflows.
Highlights
Net profit at the group was €9.5m in H1 2020, a 70% slump from €31.4m a year ago.
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Operating profit before tax dropped to €9.9m from €39.1m in the prior year.
Operating expenses dipped 2% to €193.7m from €190.4m, driven by cost-saving measures.
Client assets were €103.4bn as of 30 June 2020, compared with €102bn at the end of December 2019 and €97.3bn as of 30 June 2019.
Assets under management reached €89.2bn in June 2020. The figure is a 2% rise from €87.7bn as of end-2019 and an 8% increase from €82.6bn a year ago.
Van Lanschot Kempen chairman Karl Guha calls the pandemic a “defining factor” at both societal and economic levels in H1 2020.
Guha stated: “Notwithstanding the economic challenges and market volatility confronting us as a result of Covid-19, we believe that we are well positioned from a capital and asset quality perspective to weather the storm.
“In no small part this is due to our focused wealth management strategy in a stable and wealthy corner of Europe.”
In Private Banking, client assets dropped to €33.1bn at the end of June 2020 from €34.2bn in 2019.
The segment reported savings of €800m in the Netherlands and Belgium. Hit by negative market performance, AuM declined to €23.5bn from €24.7bn in 2019. On the bright side, the business reported net inflows of €500m.
Earlier this month, Van Lanschot Kempen signed an agreement to acquire all shares in Dutch asset manager Hof Hoorneman Bankiers.
Hof Hoorneman Bankiers manages €1.9bn in client assets.
The deal awaits regulatory approval and is slated to close by the end of this year.
