Conservative management. Sound funding and liquidity position. Satisfactory capitalization. Modest-size player in a competitive arena. Recently weak profitability and market-sensitive revenues. Elevated loan loss provisions. High fixed-cost base. The ratings on Netherlands-based private bank F. van Lanschot Bankiers N.V. reflect Standard&Poor's Ratings Services' view of its conservative management, satisfactory capital base, and sound funding position. Van Lanschot's rising credit risks, structurally modest profitability, as well as its limited size in a competitive banking segment mitigate the positive factors. After a weak performance in 2009, we believe Van Lanschot's core profitability is headed for recovery in 2010 but that pressure on revenues will persist. An increasing interest margin due to the repricing of the loan book and lower market
