VAN LANSCHOT : Annual Results 2009

  * Recovery of revenues leads to net profit for second half of 2009 of EUR 30.6
    million; for the full year 2009, net loss of EUR 15.7 million
  * Underlying operating profit on core activities for 2009 (adjusted for
    exceptional items): EUR 32.6 million
  * Sound balance sheet: good liquidity and solvency
  * Proposal: no dividend for 2009
  * Outlook for 2010:an important step towards a normalised level of profit



Floris Deckers, Chairman of the Board of Managing Directors of Van Lanschot:
"Van Lanschot came through the banking crisis by relying on its own strength.
However the bank is now feeling the impact of the recession, which also goes for
our clients - high net worth individuals and family businesses. In 2009,
provisions for loan losses were at a level that can be termed high for Van
Lanschot. We are however seeing the first signs of a recovery of the economy.
Since the end of 2009 the inflow of impaired loans has declined. If the economic
upswing continues, we expect this to translate into a lower addition to the loan
loss provisions, in particular in the second half of this year and in 2011.
Thanks to further improving revenues and cost control, Van Lanschot has been on
a clear upward trend since the second half of 2009, a trend which continued into
the first months of this year. If the economic revival continues, we expect that
in 2010 Van Lanschot will be able to make an important step towards a normalised
level of profit."



Core activities

Van Lanschot acquired all shares in Robein Leven on 10 August 2009. The results
of this investment and other new investments are fully consolidated. These
investments are however not of a strategic nature and the bank intends to sell
them in due course. In order to provide insight into the developments in the
core activities of Van Lanschot, this press release concentrates on the
developments in Van Lanschot's results and balance sheet excluding the newly
consolidated investments, unless otherwise indicated.



Net profit for the core activities amounted to EUR 31.5 million for the second
half of 2009 (first half of 2009: net loss of EUR 46.3 million). The net loss for
the full year 2009 was EUR 14.8 million (2008: net profit of EUR 30.1 million).



Recovery of revenues

Since April 2009, revenues have gradually improved. Income from operating
activities amounted to EUR 568.5 million, i.e. a 15% increase on 2008 (EUR 493.6
million).



The high savings rates offered in the first half of 2009 have gradually come
down since the fourth quarter. In part thanks to this, the interest margin
recovered from 1.22% in the first half of 2009 to a level of 1.40% in the second
half of 2009 (average interest margin for the entire year 2009: 1.32%; average
interest margin for the entire year 2008: 1.39%). Securities commission recorded
a growth of 3.1% in 2009. Income from securities & associates and Profit on
financial transactions made a contribution to total income in 2009 of EUR 26.5
million (2008: EUR 17.3 million negative) and EUR 44.5 million (2008: EUR 0.9 million
negative) respectively. These items were hit extremely hard in 2008 by the
banking crisis.


The cost control and efficiency measures introduced and completed by the bank in
2009 led to a decline in operating expenses adjusted for exceptional items in
2009 of 2% relative to 2008. The workforce of Van Lanschot decreased by 191 FTEs
to 2,050 FTEs in 2009, which was according to plan. The financial impact of this
decline will largely take effect in 2010.



In the fourth quarter, Van Lanschot formed a provision of EUR 7.6 million (before
tax) for its obligations under the deposit guarantee scheme in connection with
the bankruptcy of DSB Bank.



As announced previously, the upgrade of the IT environment is being carried out
through partial re-use of the existing systems. This option provides a stable
basis for the core banking activities. The costs of the IT project have fully
been written off, involving a total amount of EUR 39.4 million (before tax) in
2009, of which EUR 4.9 million (before tax) was taken in the second half of the
year.



The recession is also hitting a number of Van Lanschot clients hard. The
addition to loan loss provisions in 2009 was EUR 113.2 million, i.e. 79 basis
points of the average risk-weighted assets. The addition to loan loss provisions
within the Business Banking segment was spread over all sectors and totalled
EUR 75.9 million in 2009 (2008: EUR 12.0 million). Within the Private Banking
segment, the addition to loan loss provisions totalled EUR 37.1 million (2008:
EUR 6.7 million), mainly involving loans to high net-worth individuals. Only a
very small provision was necessary on the mortgage portfolio. A further EUR 0.2
million was provided for other items.



Sound balance sheet

Van Lanschot consciously opts for a low risk profile. The balance sheet is
sound. This is apparent from, among other things, the low leverage (total assets
to shareholders' funds attributable to shareholders) of approximately 17 at
year-end 2009. Traditionally, Van Lanschot only uses its balance sheet for
client-related activities and hardly for the bank's own account; 82% of the
balance sheet at 31 December 2009 comprised loans and advances to clients. The
bank's lending activities are mainly financed with funds entrusted by clients
(funding ratio at year-end 2009: 79.0%).



The balance sheet is more and more focused on private banking services. As a
result, the main part of the institutional healthcare portfolio (approximately
EUR 550 million) was sold in 2009. Part of this portfolio will be transferred in
2010.



At 31 December 2009, the bank reported a Core Tier I ratio of 6.6%, a Tier I
ratio of 9.8% and a BIS total capital ratio of 11.9%. These ratios were achieved
without state support.



Asset management

Asset management plays a key role in our services to private individuals and
institutional clients. In 2009 total assets under management (for private and
institutional clients and in-house funds) increased by 20% to EUR 29.4 billion
(31 December 2008: EUR 24.6 billion), in particular thanks to the positive trend
in share prices. In 2009, several large mandates were granted by institutional
parties involving a total amount of over EUR 800 million. Client assets (assets
under management plus savings accounts and deposits) of private clients
increased 4% to EUR 27.6 billion at 31 December 2009 (31 December 2008:
EUR 26.6 billion), partly due to active management of the interest margin.



In the second half of 2009, a new wealth management proposition was introduced
offering the client more options and more transparency. Asset management clients
may choose among various alternatives in line with their risk profile and
investment wishes. Van Lanschot is the first Dutch bank to pass on distribution
fees received from investment fund managers to its asset management clients.



Priorities for 2010

Van Lanschot sets itself apart by its unique service level. The bank has always
sought close personal contact with its clients, valuing a direct line of
communication. The fact that the balance sheet is primarily for the client
protected Van Lanschot during the past banking crisis against major losses on
for instance Collateralized Debt Obligations (CDO's), structured credit products
and Structured Investment Vehicles (SIV's). Van Lanschot did not need any state
support, as a result of which the bank retains its freedom of movement in all
respects.



Van Lanschot aims to be the best private bank in the Netherlands and Belgium.
For the implementation of its strategy, Van Lanschot has defined a number of
priorities for 2010:



1.     Focus on private banking; full-service banking and increased acquisition
focus on high net-worth individuals and the entrepreneur and his business.

2.     Enhance commercial effectiveness; growth in client satisfaction, number
of clients and revenues.

3.     Invest continually in service quality; duty of care and a transparent and
high-quality product and service offering. By streamlining the processes, with a
view to operational excellence, bankers will have more time to spend on their
clients.

4.     Maintain a solid profile; risk management, cost control and anticipation
of the expected higher capital requirements through stricter deployment of
capital for the client. Against the background of the expected higher capital
requirements, Van Lanschot will adjust its capital targets. The capital targets
will be presented to the shareholders during the Annual General Meeting of
Shareholders on 6 May 2010.



Corporate Social Responsibility

Van Lanschot has signed both the UN Global Compact Principles and the UN
Principles for Responsible Investment, which marks an important step towards
formalisation of a number of principles in the field of sustainability, which
principles have long governed the bank's activities. This follows logically from
the bank's core values. These principles were fleshed out into the so-called
engagement policy applicable to investment portfolios of the bank's clients and
in the purchasing policy. The translation of these principles into the credit
and client acceptation policy will follow in 2010.



Code for Banks

Van Lanschot is progressing well in implementing the Code for Banks. A number of
elements from the Code are in line with common practice within Van Lanschot. For
instance, at Van Lanschot, the balance sheet is primarily for the benefit of
clients. The bank's regulations have been updated in line with the provisions of
the Code and have been posted on the corporate website (www.vanlanschot.nl
<http://www.vanlanschot.nl>). In addition, the members of the Board of Managing
Directors have signed a moral-ethical statement. Further information about the
bank's current and future implementation of the Code will be provided in the
2009 annual report and during the Annual General Meeting of Shareholders.



Based on the Code for Banks, the remuneration structure of the Board of Managing
Directors of Van Lanschot will also be amended. The proposal for the revised
remuneration policy will be put to the shareholders for their approval on 6 May
2010. In view of the fact that the year 2009 as a whole was not profitable, no
variable remuneration has been granted to the members of the Board of Managing
Directors or to the general managers for 2009.





Outlook

The recovery in revenues following the low point in April 2009 continued into
the first months of 2010. If the economic upswing continues, we expect this to
translate into a lower addition to the loan loss provisions, in particular in
the second half of this year and in 2011. Moreover, no further write-offs will
be made for the IT project. Depending on how the economic upturn will develop,
Van Lanschot expects to make an important step in 2010 towards a normalised
level of profit.







Key Dates 2010/2011


  Annual General Meeting of Shareholders 2010   6 May 2010

  Trading update Q1                             6 May 2010

  Publication of 2010 half-year results         10 August 2010

  Trading update Q3                             12 November 2010

  Publication of 2010 annual results            11 March 2011

  Annual General Meeting of Shareholders 2011   11 May 2011

  Trading update Q1                             11 May 2011

  Publication of 2011 half-year results         16 August 2011





's-Hertogenbosch, the Netherlands, 12 March 2010





Van Lanschot Media Relations: Etienne te Brake, Corporate Communication
spokesperson

Telephone [phone]; Mobile phone [phone]; E-mail
[e-mail] 



Van Lanschot Investor Relations: Geraldine Bakker-Grier, Investor Relations
Manager

Telephone [phone]; Mobile phone [phone]; E-mail
[e-mail] 



Van Lanschot NV is the holding company of F. van Lanschot Bankiers NV, the
oldest independent bank in the Netherlands with a history dating back to 1737.
The bank focuses on three target groups: high net-worth individuals,
medium-sized businesses (including family businesses) and institutional
investors. Van Lanschot stands for high-quality services founded on integrated
advice, personal service and customised solutions. Van Lanschot NV is listed on
the Euronext Amsterdam Stock Market.


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