Ackermans & van Haaren A deep dive into the moat and valuation of the private banking segment

AvH's private banking segment (~50% of NAV), comprising Delen Private Bank (DPB) and Bank Van Breda (BVB), delivered outstanding performance YTD. This was driven by stable ownership, structural synergies, and superior execution in their niches. DPB excels through its focus on discretionary mandates, successful buy-and-build, record inflows, and investments in digital/client experience. This resulted in top-tier client satisfaction and exceptional efficiency that supported strong profitability. BVB stands out with its holistic integration of private and professional finances for entrepreneurs/liberal professions, prudent risk management, and IT/branch investments. This delivered high loyalty and solid growth despite rate headwinds. In this note, we evaluate the operational performance and the competitive landscape of both banks. We value DPB at €3.8bn and BVB at €1.3bn, based on our FY25 expectations on adjust peer-based multiples. We also forecast various growth scenario's with inputs including client inflows, market performance, acquisitions and loan growth. We conclude that even in a conservative case, both banks are attractively valued.