Summary: F. van Lanschot Bankiers N.V.

Strong capitalization. Sound funding and liquidity position. Good brand name recognition and focused strategy to become a pure wealth manager. Modestly sized player in a competitive, relatively niche arena. High fixed-cost base and moderate pre-impairment profitability. Execution of the medium-term strategic plan to restore profitability. The stable outlook on F. van Lanschot Bankiers N.V. (Van Lanschot) primarily reflects S&P Global Ratings' expectation of successful implementation of its strategy and contemplated transition toward wealth management, and of a gradual medium-term improvement in its profitability from core operations, albeit to a still-moderate level. We also expect the bank's risk-adjusted capital (RAC) ratio before diversification will remain above 10% as a result of the winding down of the riskier property financing and midsize

...Execution of the medium-term strategic plan to restore profitability. Outlook The stable outlook on F. van Lanschot Bankiers N.V. (Van Lanschot) primarily reflects S&P Global Ratings' expectation of successful implementation of its strategy and contemplated transition toward wealth management, and of a gradual medium-term improvement in its profitability from core operations, albeit to a still-moderate level. We also expect the bank's risk-adjusted capital (RAC) ratio before diversification will remain above 10% as a result of the winding down of the riskier property financing and midsize corporate portfolios, controlled growth of core activities, and sufficient internal capital generation. We could take a negative rating action on Van Lanschot if the bank failed to sustainably improve its revenue base, or if its dividend policy deviated from our central forecast scenario and became excessively shareholder-friendly. The potential for an upgrade appears unlikely in the near term. However,...

Summary