Van Lanschot Kempen Wealth Management N.V.

Solid brand name recognition in the Netherlands and a focused wealth management strategy. Strong capitalization. Sound funding and liquidity position. Modestly sized player in a competitive segment, in which scalability is critical. High fixed-cost base and still low, albeit rising, share of high-margin fees from private banking assets under management (AuMs). Asset-quality indicators that are less favorable than peers', largely due to legacy loans exposures. S&P Global Ratings' outlook on Netherlands-based Van Lanschot Kempen Wealth Management N.V. (VLKWM), the operating bank of the Van Lanschot Kempen group (VLK), is negative. This is primarily because of our expectation that profitability could remain under pressure in 2021, especially due to heightened risk to revenue generation. We would take a negative rating action

...Strengths: Weaknesses: + Solid brand name recognition in the Netherlands and a focused wealth management strategy. + Strong capitalization. + Sound funding and liquidity position. + Modestly sized player in a competitive segment, in which scalability is critical. + High fixed-cost base and still low, albeit rising, share of high-margin fees from private banking assets under management (AuMs). + Asset-quality indicators that are less favorable than peers', largely due to legacy loans exposures. Outlook S&P Global Ratings' outlook on Netherlands-based Van Lanschot Kempen Wealth Management N.V. (VLKWM), the operating bank of the Van Lanschot Kempen group (VLK), is negative. This is primarily because of our expectation that profitability could remain under pressure in 2021, especially due to heightened risk to revenue generation....

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