The ratings on Netherlands-based private bank F. van Lanschot Bankiers N.V. (Van Lanschot) reflect its conservative management and adequate asset quality, together with a sound capital base and strong funding position. Its modest size in a competitive banking segment and the significant proportion of its earnings which is dependant on financial market conditions mitigate the positive factors. Although it has established a more conservative financial policy, the bank stands to incur additional losses from impairments in 2009, after it posted impairment charges in fiscal year 2008. A variety of extraordinary factors stand to affect bottom-line profitability, including provisions for efficiency measures (€6 million) and accelerated amortization on the bank's information technology (IT) improvement project (between €30 million and €35 million).
