Van Lanschot Kempen to recognise a goodwill impairment

Amsterdam/’s-Hertogenbosch, the Netherlands, 10 January 2020

Van Lanschot Kempen is to recognise an impairment of goodwill amounting to €35 million in its 2019 annual accounts. The impairment will not affect its liquidity position, CET 1 ratio or dividend policy.

This one-off impairment relates to the goodwill involved in the acquisition of Kempen & Co in 2007 and more specifically to its Merchant Banking activities, and is prompted by an adjustment in the discount rate and flattening growth expectations for these activities. Reflecting the volatile nature of the cash flows arising from the Merchant Banking activities, the cost of equity includes an additional risk premium now used to discount these cash flows. Meanwhile, the expected growth figures have been slightly adjusted to account for expectations of the economic cycle nearing its peak. Kempen Merchant Banking’s 2019 results are somewhat below those for 2018.

The impairment reflects the application of IFRS standards and does not affect Van Lanschot Kempen’s liquidity position or CET 1 ratio, as the determination of CET 1 capital already deducts goodwill.

No changes will be made to Van Lanschot Kempen’s dividend policy, which envisages a pay-out ratio of 50-70% of its underlying net resultⁱ. The 2019 underlying net result equals the net result adjusted exclusively for the company’s strategic investment programme and restructuring charges.

FINANCIAL CALENDAR

20 February 2020    Publication of 2019 annual results

22 April 2020           Publication of 2020 Q1 trading update

A conference call for analysts and media will be held today, 10 January at 9.00 am CET.

Media Relations: 5;

Investor Relations: 0;

About Van Lanschot Kempen

Van Lanschot Kempen, a wealth manager operating under the Van Lanschot, Kempen and Evi brand names, is active in Private Banking, Asset Management and Merchant Banking, with the aim of preserving and creating wealth for its clients. Van Lanschot Kempen, listed at Euronext Amsterdam, is the Netherlands’ oldest independent financial services company with a history dating back to 1737.

vanlanschotkempen.com

Disclaimer and cautionary note on forward-looking statements

This press release may contain forward-looking statements on future events and developments. These forward-looking statements are based on the current insights, information and assumptions of Van Lanschot Kempen’s management about known and unknown risks, developments and uncertainties. Forward-looking statements do not relate strictly to historical or current facts and are subject to such risks, developments and uncertainties which by their very nature fall outside the control of Van Lanschot Kempen and its management.

Actual results, performances and circumstances may differ considerably from these forward-looking statements as a result of risks, developments and uncertainties relating to, but not limited to, (a) estimates of income growth, (b) costs, (c) the macroeconomic and business climate, (d) political and market trends, (e) interest rates and currency exchange rates, (f) behaviour of clients, competitors, investors and counterparties, (g) the implementation of Van Lanschot Kempen’s strategy, (h) actions taken by supervisory and regulatory authorities and private entities, (i) changes in law and taxation, (j) changes in ownership that could affect the future availability of capital, and (k) changes in credit ratings. 

Van Lanschot Kempen cautions that forward-looking statements in this press release are only valid on the specific dates on which they are expressed, and accepts no responsibility or obligation to revise or update any information, whether as a result of new information or for any other reason.

The financial data in this press release have not been audited, unless specifically stated otherwise.

This press release does not constitute an offer or solicitation for the sale, purchase or acquisition in any other way or subscription to any financial instrument and is not a recommendation to perform or refrain from performing any action.

Elements of this press release contain information about Van Lanschot Kempen NV and/or Van Lanschot Kempen Wealth Management NV within the meaning of Article 7(1) to (4) of EU Regulation No. 596/2014.

This press release is a translation of the Dutch language original and is provided as a courtesy only. In the event of any disparities, the Dutch language version will prevail. No rights can be derived from any translation thereof.

ⁱ The underlying net result is the net underlying result attributable to shareholders.

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