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
