The ratings on Netherlands-based private bank F. van Lanschot Bankiers N.V. reflect Standard&Poor's Ratings Services' view of its conservative management, good capital base, and sound funding position. Van Lanschot's structurally moderate profitability—compounded by a high cost base—and its limited size in a competitive banking segment temper these positive factors. In line with our central expectations, the bank's performance started to recover in 2010, despite some residual, albeit abating, pressure on revenues and credit risk cost. This improved performance was the result of improved revenues, with an increase in the net interest margin and rise in management fees, as well as lower loan impairment charges and some benefits from recent cost initiatives. We expect a continuation of this trend
