Van Lanschot Kempen N.V.

Our stable outlook on Netherlands-based VLK reflects its focus on wealth management and our anticipation that its AUM base will remain resilient over the next two years, through organic and potential M&A, and excluding market effects. With costs remaining broadly under control, we expect the bank to improve efficiency to be in line with the industry and consistent with the current ratings. We also expect VLK's capital will remain a key rating strength based on a risk-adjusted capital (RAC) ratio, before diversification, of 10.0%-12.5% over the next 24 months. This reflects the controlled expansion of core activities and sufficient internal capital generation. We could take a negative rating action if the bank's strategy proves unsuccessful, for example if its domestic

...We expect Van Lanschot Kempen (VLK) to continue building its wealth management franchise over the next few years. Over the past decade, the bank has transitioned toward a more focused business model as an almost pure wealth manager. It has seen steady growth in assets under management (AUM), which have increased at a cumulative annual growth rate (CAGR) of 8% over the past five years and stood at 139.3 billion as of end-June 2024. VLK aims to increase its AUM further, through organic and potential acquisitions if opportunities arise, at a CAGR of 10% by 2027. Considering the experienced and stable management team, we consider those ambitions as realistic despite the challenging macroeconomic environment. VLK is looking to further diversify in Belgium. VLK's AUM in Belgium stood at 13.7 billion as of end-June 2024, growing at a CAGR of 13% since 2019. This was supported by multiple acquisitions such as Mercier Vanderlinden, whereby VLK acquired the remaining 30% stake in 2023, and the recent...

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