Summary: Van Lanschot 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. Asset-quality indicators that are less favorable than peers', largely due to legacy exposures. The stable outlook on Van Lanschot N.V. (Van Lanschot), the operation bank of Van Lanschot Kempen group (VLK), primarily reflects S&P Global Ratings' expectation of successful implementation of its strategy and contemplated transition toward wealth management, and of a gradual improvement in its profitability from core operations in the next two years. We also expect the bank's risk-adjusted capital (RAC) ratio before diversification will stand in the 12%-13% range in the

...Outlook: Stable The stable outlook on Van Lanschot N.V. (Van Lanschot), the operation bank of Van Lanschot Kempen group (VLK), primarily reflects S&P Global Ratings' expectation of successful implementation of its strategy and contemplated transition toward wealth management, and of a gradual improvement in its profitability from core operations in the next two years. We also expect the bank's risk-adjusted capital (RAC) ratio before diversification will stand in the 12%-13% range in the next 24 months 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 raise the ratings on Van Lanschot if observed a track record of sustainably higher profitability from loans to private banking clients and asset-under-management (AuM) activities, and a further reduction of legacy problem exposures in the corporate book. We consider that profitability indicators and asset-quality...

Summary