Breaking Down Van Lanschot Kempen NV Financial Health: Key Insights for Investors

Step into the story of Van Lanschot Kempen, the Netherlands' oldest independent financial institution-founded in 1737-that today manages roughly €149 billion in assets (as of 31 December 2024), employs about 2,200 professionals across five countries and trades on Euronext Amsterdam; guided by a mission to preserve and create wealth sustainably and core values of being personal, specialised, entrepreneurial, decisive and with integrity (including a reported 0% compliance breach rate in 2023), the firm targets an ambitious 10% average annual AuM growth through 2027 while pursuing financial goals such as a cost/income ratio of 67-70%, a Basel IV fully loaded CET1 ratio of 17.5%, a return on CET1 above 18% and a 70-90% dividend pay-out ratio, alongside measurable sustainability steps like a 20% reduction in carbon footprint from 2020-2023 and a €5 million investment in sustainable projects in 2023.

Van Lanschot Kempen NV (VLK.AS) - Intro

• Founded: 1737 - continuity and fiduciary heritage.
• Listed: Euronext Amsterdam - public presence and market transparency.
• Geographic footprint: active across five countries in Western Europe.
• People: ~2,200 employees (as of Dec 31, 2024).
• Assets under management (AUM): ~€149 billion (as of Dec 31, 2024).

Mission

• Client focus: bespoke advice for high-net-worth individuals, institutions and entrepreneurs.
• Responsibility: integrate ESG considerations and sustainable investing into solutions.
• Longevity: planning and stewardship across generations.

Vision

• Positioning: differentiation through independent advice and in-house investment expertise.
• Growth lens: sustainable, risk-aware expansion across client segments and geographies.
• Innovation: embed ESG research and thematic solutions while preserving fiduciary standards.

Core Values

• Client intimacy - deep relationships, bespoke strategies and high-touch service.
• Integrity - transparent, principled advice and governance.
• Expertise - specialist investment teams and continuous research.
• Long-termism - decisions weighted toward intergenerational outcomes.
• Responsibility - sustainable investing and corporate stewardship.

Van Lanschot Kempen NV (VLK.AS) - Overview

Van Lanschot Kempen's mission is to preserve and create wealth for clients and society in a sustainable way. That mission defines the bank's long-term approach to private banking, asset management and merchant banking by combining financial performance with environmental, social and governance (ESG) integration.

• Preserve and create wealth through tailored advice, active investment management and capital solutions.
• Embed sustainability: ESG factors are integrated across investment processes, lending and corporate operations.
• Long-term stewardship: prioritize durable client relationships and intergenerational wealth transfer.

Strategic emphasis on preservation and creation of wealth means balancing prudent capital preservation with initiatives to generate new value-through advisory services, alternative investments and sustainable financing.

Vision

• Be the leading independent specialist in private banking, wealth management and investment solutions in the Benelux and selected international markets.
• Deliver superior client outcomes via high-conviction investment strategies, bespoke advice and solutions with measurable ESG impact.
• Grow sustainably by aligning commercial success with societal value creation.

Core values

• Client focus - long-term relationships, confidentiality and tailored solutions.
• Expertise - deep sector and investment knowledge, active stewardship.
• Integrity - transparent governance, responsible behaviour and compliance.
• Sustainability - measurable ESG integration and impact orientation.
• Independence - preserving advisory autonomy and client-first decision making.

Selected financial and operational metrics (latest reported year)

Key sustainability positioning and targets:

• Commitment to net-zero financed emissions across lending and investments by mid-century, with interim reduction targets for portfolios.
• Integration of ESG scores and exclusion/engagement policies in discretionary mandates; growing range of impact and climate-focused funds.
• Corporate targets: reduction in operational CO2 emissions, sustainable procurement and gender balance in senior roles.

How mission translates into client offerings and governance:

• Private banking: tailored wealth planning, family office services and sustainable investment portfolios.
• Asset management: active equity and fixed income strategies with ESG integration and themed impact funds.
• Merchant banking: advisory, M&A and financing with sustainability due diligence and transition financing solutions.
• Governance: board-level sustainability oversight, integrated risk framework and publicly reported ESG metrics.

Further historical context and operational detail can be found here: Van Lanschot Kempen NV: History, Ownership, Mission, How It Works & Makes Money

Van Lanschot Kempen NV (VLK.AS) - Mission Statement

• Deliver tailored private banking and wealth management solutions for high-net-worth and institutional clients across the Netherlands, Belgium and Switzerland.
• Integrate Investment Management and Investment Banking capabilities to provide holistic, research-driven advice and execution for Private Clients.
• Preserve robust capital buffers and capital allocation discipline, returning excess capital to shareholders subject to regulatory approval.
• Pursue selective M&A and organic expansion to reach scale in core markets while keeping client outcomes central.

• Target average annual AuM growth: 10% (through organic growth, acquisitions and market returns).
• Geographic focus: deepen leading positions in the Netherlands and Belgium; selectively scale Swiss private banking activities.
• Operational focus: reposition Investment Management and Investment Banking for renewed profitability and stronger client support.

• Maintain a CET 1 ratio at or above 17.5% (Basel IV fully loaded) as the strategic capital floor.
• Return excess capital above the 17.5% CET 1 threshold to shareholders, subject to supervisory approval, to balance growth investment with shareholder remuneration.
• Target a progressive, higher dividend pay-out (70-90%) once capital and profitability targets are met to reflect stable cash generation.

• Private Banking acceleration: convert market momentum in the Netherlands, Belgium and Switzerland into net new client flows and share gains.
• Investment Management & Investment Banking: restore profitability through fee mix optimisation, product rationalisation and cost discipline to better support Private Clients.
• Selective M&A and partnerships: deploy capital for scale and capability uplift where return metrics meet thresholds.
• Operational efficiency: drive digital client servicing, advisory productivity and branch/network optimisation to lower the cost/income ratio toward target range.

Van Lanschot Kempen NV (VLK.AS) - Vision Statement

• Personal: Build and sustain long-term client relationships with client interests at the core, acting proactively to anticipate needs and opportunities.
• Specialised: Concentrate resources on clearly defined sectors and disciplines, uphold high standards of expertise and continually enhance quality.
• Entrepreneurial: Pursue ambitious, results-oriented strategies that identify opportunities aligned with client goals and favour sustainable, scalable solutions.
• Decisive: Deliver simple, clear, solution-oriented advice and services, honour commitments and accelerate decision-making where it benefits clients.
• Integrity: Maintain full transparency and ethical conduct in all dealings - recorded compliance incidents in 2023: 0%.
• Responsibility: Commit to measurable sustainability targets - carbon footprint reduced by 20% (2020-2023); €5 million invested in sustainable projects in 2023.

• Client-centric growth: deepen wallet share with existing clients and attract high-net-worth and institutional mandates aligned with specialist capabilities.
• Sector-specialisation: concentrate research, advisory and asset-management resources in priority sectors (e.g., healthcare, industrials, renewables, real estate financing).
• Responsible investing: expand sustainable product suite and integrate ESG across investment, lending and advisory processes.
• Capital and risk discipline: preserve strong capital ratios and liquidity to support client solutions and withstand market stress.

• Embed personal advisory throughout the client journey, increasing retention and lifetime value.
• Scale specialised capabilities (research, sector teams, sustainable finance) to capture higher-margin mandates.
• Drive measurable sustainability impact via targeted investments and client-facing sustainable solutions.
• Preserve decisiveness and integrity through streamlined governance, transparent reporting and strict compliance controls.