Half Year 2026 Van Lanschot Kempen NV Earnings Call

August 27, 2026

Operator: Good day, and thank you for standing by. Welcome to the Van Lanschot Kempen Analyst Call 2026 Half Year Results. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 and 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Maarten Edixhoven, Chairman of the Management Board. Please go ahead.

Speaker #1: Good day, and thank you for standing by. Welcome to the Van Lanschot Kempen Analyst Call 2026 Half-Year Results. At this time, all participants are in a listen-only mode.

Speaker #1: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1 and 1 on your telephone.

Speaker #1: You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 1, and then 1 again. Please be advised that today's conference is being recorded.

Speaker #1: I would now like to hand the conference over to your speaker today, Martin A. Dixhoven, Chairman of the Management Board. Oh, apologies.

Speaker #1: Please go ahead.

Speaker #2: Well, thank you, Sharon. And I can tell you, even in Dutch, it's a difficult name to pronounce, so thank you very much. And good morning, all.

Maarten Edixhoven: Well, thank you, Sharon, and I can tell you even in Dutch, it is a difficult name to pronounce. So thank you very much, and good morning, all. Thank you for joining us for this update on our H1 results today. I am here together with Jeroen Kroes, our CFO, and I will share some of the key financial strategic highlights with you before Jeroen talks you through the numbers in more detail. Of course, there will be ample opportunity for your questions afterwards. Let me start with saying that we have had strong results as we continue to deliver on our Growing further together strategy. This led to strong net inflows in AuM of EUR 19.5 billion in the H1, and I am proud to say we crossed the EUR 200 billion mark in clients' assets for the first time as Van Lanschot Kempen.

Speaker #2: Thank you for joining us for this update on our first-half results today. I'm here together with Jeroen Kroes, our CFO, and I will share some of the key financial and strategic highlights with you before Jeroen talks you through the numbers in more detail.

Speaker #2: And of course, there will be ample opportunity for your questions afterwards. Let me start by saying that we have had strong results as we continue to deliver on our "Growing Further Together" strategy.

Speaker #2: This led to strong net inflows in assets under management of €19.5 billion in the first half, and I'm proud to say we crossed the €200 billion mark in client assets for the first time as Van Lanschot Kempen.

Speaker #2: On the back of that, our net result rose by 30% to €88 million, and our focus on scalability resulted in a cost-income ratio of 66.4%, outperforming our target range of 67 to 70%.

Maarten Edixhoven: On the back of that, our net result rose by 30% to EUR 88 million, and our focus on scalability resulted in a cost-income ratio of 66.4%, outperforming our target range of 67% to 70%. Importantly, our CET1 ratio remains strong at 17%. If you go to the next slide. As you know, our strategy is focused on continuous and scalable client and revenue growth. We do this in a way that matters to our clients and is grounded in our expertise and highly personal approach, complemented by bolt-on acquisitions in our target markets. We continue to invest in our offering, our people, and technology. For five years now, we have grown our AuM by an average of 12% per year, and we continue to see momentum despite the volatile economic and geopolitical environment. Over the first six months, we again delivered strong growth.

Speaker #2: And importantly, our CET-1 ratio remains strong at 17%. If you go to the next slide, as you know, our strategy is focused on continuous and scalable client and revenue growth.

Speaker #2: We do this in a way that matters to our clients and is grounded in our expertise and highly personal approach, complemented by bolt-on acquisitions in our target markets.

Speaker #2: We continue to invest in our offering, our people, and technology. For five years now, we have grown our assets under management by an average of 12% per year, and we continue to see momentum despite the volatile economic and geopolitical environment.

Speaker #2: Over the first six months, we again delivered strong growth. I already mentioned the €200 billion client assets milestone. We see both new and existing clients entrusting us with significantly more of their wealth.

Maarten Edixhoven: I already mentioned the EUR 200 billion clients assets milestone. We see both new and existing clients entrusting us with significantly more of their wealth. This is the case in both private banking and fiduciary management on the institutional side. Importantly, growth increasingly translates into operating leverage. I just mentioned the inflows in fiduciary management, where our current scale supports profitable growth. We continue to invest in technology and AI-enabled client tools to drive this further. Our ambition is to be the best wealth manager in Western Europe for our clients. With a personal approach and deep expertise, we support them through market developments, wealth transitions, family business opportunities, and pension reforms. Our dedicated staff makes the real difference here. This is reflected in very high employee engagement scores and the widespread staff ownership of our shares.

Speaker #2: This is the case in both private banking and fiduciary management on the institutional side. Importantly, growth increasingly translates into operating leverage. I just mentioned the inflows in fiduciary management, where our current scale supports profitable growth.

Speaker #2: We continue to invest in technology and AI-enabled client tools to drive this further. Our ambition is to be the best wealth manager in Western Europe for our clients.

Speaker #2: With our personal approach and deep expertise, we support them through market developments, wealth transitions, family business opportunities, and pension reforms. Our dedicated staff makes the real difference here.

Speaker #2: This is reflected in very high employee engagement scores and the widespread staff ownership of our shares. We see the feedback we receive from clients and externally as encouragement to maintain our distinctive course as an independent wealth manager.

Maarten Edixhoven: We see the feedback we receive from clients and externally as an encouragement to maintain our distinctive course as an independent wealth manager. We are very pleased with the Net Promoter Score of 45 for private clients in Netherlands, for instance, up from 43 last year. Let's now look at some of the drivers of this growth. First, growth in private banking. In the Netherlands, we saw very strong net inflows, primarily from new clients. In Belgium, we recorded net inflows following a bit lower than the stellar net inflows of the past three years. Also in Switzerland, we saw positive net flows in a private banking franchise. Secondly, we continued to expand our private markets offering with total AuM in private market solutions growing to $6.5 billion. In July, we secured $120 million in commitments from private banking clients for our second North American private equity fund.

Speaker #2: We are very pleased with the Net Promoter Score of 45 for Private Clients Netherlands, for instance, up from 43 last year. Let's now look at some of the drivers of this growth.

Speaker #2: First, growth in Private Banking. In the Netherlands, we saw very strong net inflows, primarily from new clients. In Belgium, we recorded net inflows, although these were somewhat lower than the stellar net inflows of the past three years.

Speaker #2: Also in Switzerland, we saw positive net flows in our private banking franchise. Secondly, we continued to expand our private markets offering, with total assets under management in private market solutions growing to €6.5 billion.

Speaker #2: In July, we secured $120 million in commitments from private banking clients for our second North American private equity fund. More than €180 million was also committed to our new fund, investing in existing private equity portfolios.

Maarten Edixhoven: More than EUR 180 million was also committed to our new fund, investing in existing private equity portfolios, also known as secondaries. Since 2018, we have introduced six private equity funds. The third growth driver I want to mention here is fiduciary management, where we have won multiple large mandates over the last six months. This includes Dutch pension fund SPW, our largest single client ever. The mandate is a clear demonstration of our expertise and leading position in this area, both in the Netherlands and the UK. Finally, we saw healthy growth in private banking loans in line with the growth of our client assets. We increasingly support our clients, including the next generation, with a combination of investing and financing, providing liquidity. The further development of our wealth management lending product is an example of how we meet this demand.

Speaker #2: Also known as secondaries. Since 2018, we have introduced six private equity funds. The third growth driver I want to mention here is fiduciary management.

Speaker #2: Where we have won multiple large mandates over the last six months. This includes Dutch pension fund SPW—our largest single client ever.

Speaker #2: The mandate is a clear demonstration of our expertise and leading position in this area, both in the Netherlands and the UK. And finally, we saw healthy growth in private banking loans, in line with the growth of our client assets.

Speaker #2: We increasingly support our clients, including the next generation, with a combination of investing and financing, providing liquidity. The further development of our wealth management lending product is an example of how we meet this demand.

Speaker #2: To sum up, we continue to build momentum across our growth drivers. As is clear, AI and cybersecurity are both key topics impacting our industry.

Maarten Edixhoven: To sum up, we continue to build momentum across our growth drivers. As is clear, AI and cybersecurity are both key topics impacting our industry. We see AI as a great opportunity to deepen the relationships with our clients, make the work of our bankers and investment professionals even more rewarding, and improve our efficiency. AI has already become an enabler of our personal service, investment capabilities, and scalable growth. Today, we see AI helping us to prepare, process, and protect. Our focus here is on empowering our bankers and reducing administrative workload. This frees up time for personal contact and value-adding services for our clients. The current efficiency gain is about three hours per week per private banker. This is and will be a continuous process where our business and technology teams work very closely together to move relevant use cases into production rapidly.

Speaker #2: We see AI as a great opportunity to deepen the relationships with our clients, make the work of our bankers and investment professionals even more rewarding, and improve our efficiency.

Speaker #2: AI has already become an enabler of our personal service, investment capabilities, and scalable growth. Today, we see AI helping us to prepare, process, and protect.

Speaker #2: Our focus here is on empowering our bankers and reducing administrative workload. This frees up time for personal contact and value-adding services for our clients.

Speaker #2: The current efficiency gain is about three hours per week per private banker. This is, and will be, a continuous process where our business and technology teams work very closely together to move relevant use cases into production rapidly.

Speaker #2: In this slide, it's important to note that we see a very high adoption rate across our workforce. Ninety-seven percent of staff are using our AI tools, and one in two colleagues is using AI intensively.

Maarten Edixhoven: In this light, it is important that we see a very high adoption rate across our workforce. 97% of staff is using our AI tools, and one in two colleagues is using AI intensively. We also invest in our cybersecurity in order to protect client data and assets to the highest standards. How does this work in the day-to-day business of our bankers? They are supported by a proprietary private banker AI assistant, which makes it easier to prepare effectively for meetings with all relevant insights readily available for them. After the meeting, it securely captures what was discussed and the follow-up actions. It does all of this while taking into account compliance requirements. This reduces the workload for our bankers and relationship managers and lowers the risk of manual errors. Another area where we see efficiency gains is in continuous client due diligence and transaction monitoring.

Speaker #2: We also invest in our cybersecurity in order to protect client data and assets to the highest standards. So, how does this work in the day-to-day business of our bankers?

Speaker #2: They are supported by a proprietary, private banker AI assistant, which makes it easier to prepare effectively for meetings, with all relevant insights readily available to them.

Speaker #2: After the meeting, it securely captures what was discussed and the follow-up actions. It does all of this while taking into account compliance requirements. This reduces the workload for our bankers and relationship managers, and lowers the risk of manual errors.

Speaker #2: Another area where we see efficiency gains is in continuous client due diligence and transaction monitoring. It's easier to get signals in case of anomalies, and AI supports consistent and structured reviews.

Maarten Edixhoven: It is easier to get signals in case of anomalies, and AI supports consistent and structured reviews. This enables data-driven and risk-focused due diligence while maintaining essential human oversight. To continue to provide excellent service and to keep improving ourselves, we aim to retain and attract the best talent. I am proud to say that we are succeeding quite well in this regard. We continue to focus on balanced hiring, and our employee engagement remains high, very high. Turning to our environmental targets, we continue to lower our carbon footprint. We reduced the weighted average carbon intensity by 13% on average for the discretionary assets under management that are in scope. Within our own operations, the annual average carbon intensity per FTE dropped by 11%. As we continue to work towards our ambitions here, we invest in awareness and engagement among clients and employees through dedicated training, network, and initiatives.

Speaker #2: This enables data-driven and risk-focused due diligence, while maintaining essential human oversight. To continue to provide excellent service and to keep improving ourselves, we aim to retain and attract the best talent.

Speaker #2: I'm proud to say that we are succeeding quite well in this regard. We continue to focus on balanced hiring, and our employee engagement remains high—very high.

Speaker #2: Turning to our environmental targets, we continue to lower our carbon footprint. We reduced the weighted average carbon intensity by 13% on average for the discretionary assets under management that are in scope.

Speaker #2: Within our own operations, the annual average carbon intensity per FTE dropped by 11%. As we continue to work towards our ambitions here, we invest in awareness and engagement among clients and employees through dedicated training, networks, and initiatives.

Speaker #2: I also very much look forward to the planned move this year to our new Amsterdam office, where we aim to achieve the highest tenets in terms of sustainability, well-being, and hospitality for our clients. I also look forward to welcoming you there soon.

Maarten Edixhoven: I also very much look forward to the planned move this year to our new Amsterdam office, where we aim to achieve the highest standard in terms of sustainability, well-being, and hospitality for our clients, and also look forward to welcoming you there soon. Finally, from my side, we look back on a strong H1 of the year, for which I want to compliment and thank all of my colleagues for their contribution and our clients for their trust. With these results, we are making strong progress against our 2027 targets in terms of growth, cost income, capital, and capital returns. We have confidence in the H2 of the year whilst we continue to execute on our Growing Further Together strategy. Jeroen, over to you.

Speaker #2: Finally, from my side, we look back on a strong first half of the year, for which I want to compliment and thank all of my colleagues for their contribution, and our clients for their trust.

Speaker #2: With these results, we are making strong progress against our 2027 targets—in terms of growth, cost-to-income, capital, and capital returns. We have confidence in the second half of the year, while we continue to execute on our "Growing Further Together" strategy.

Speaker #2: Jeroen, over to you.

Speaker #1: Thanks, Martin. As you said, we delivered a strong set of results in the first half of 2026. Let's take a closer look at what we have achieved.

Jeroen Kroes: Thanks, Maarten. As you said, we delivered a strong set of results in the H1 of 2026. Let us take a closer look at what we have achieved. I will start with our assets under management. Our strategy is centered on sustainable, profitable growth while maintaining our capital light business model with a target of 10% average annual growth in assets under management. In the H1 of 2026, total AuM increased by more than 18%, with organic growth accounting for 12 percentage points and positive market performance for the remainder. We saw strong inflows in both private banking and investment management. Two large new pension fund mandates drove particularly strong AuM growth in fiduciary management. Over the past five years, we have delivered average annual AuM growth of around 12%. Now let us turn to our client segments.

Speaker #1: I will start with our assets under management. Our strategy is centered on sustainable, profitable growth while maintaining our capital-light business model, with a target of 10% average annual growth in assets under management.

Speaker #1: In the first half of 2026, total AUM increased by more than 18%, with organic growth accounting for 12 percentage points and positive market performance for the remainder.

Speaker #1: We saw strong inflows in both Private Banking and Investment Management. Two large new pension fund mandates drove particularly strong AUM growth in Fiduciary Management.

Speaker #1: And over the past five years, we have delivered average annual AUM growth of around 12%. Now let's turn to our client segments. Private Clients Netherlands delivered strong net inflows of €1.5 billion, which is in line with last year.

Jeroen Kroes: Private clients Netherlands delivered strong net inflows of EUR 1.5 billion, which is in line with last year. The commercial momentum is good, both in the Netherlands and in the Swiss part of the business. We continue to attract new clients, which account for two-thirds of net inflow in the H1 of the year. The Q1 also included some seasonal effects of clients converting savings into investments. The result before tax grew by more than 50%, driven by higher commission income and higher interest income. Costs remained well controlled and increased by 5%, mainly due to the expansion of our teams in order to serve a growing number of clients. As a result, the cost-income ratio improved to 59%. The margin for private banking remained stable. Looking at AuM, we see that AuM's margin increased further.

Speaker #1: The commercial momentum is good, both in the Netherlands and in the Swiss part of the business. We continue to attract new clients, which account for two-thirds of net inflow in the first half of the year.

Speaker #1: The first quarter also included some seasonal effects of clients converting savings into investments. The result before tax grew by more than 50%, driven by higher commission income and higher interest income.

Speaker #1: Costs remained well controlled and increased by 5%, mainly due to the expansion of our teams in order to serve a growing number of clients.

Speaker #1: As a result, the cost-income ratio improved to 59%. The margin for Private Banking remained stable. Looking at AV, we see that AV's margin increased further.

Speaker #1: This is driven by growth in the AV pension product, and the continued simplification and harmonization of our product offering. In Belgium, we delivered strong financial results.

Jeroen Kroes: This is driven by growth in the AV pension product and the continued simplification and harmonization of our product offering. In Belgium, we delivered strong financial results. Commission income increased by 18% and profit before tax by 11% to EUR 32 million. The net inflows amounted to EUR 0.2 billion. Compared with recent years, net inflows were lower in H1 2026 and reflected three developments. First, we continued to attract many new clients with inflows from new clients at a similar level to H1 last year. Second, following the launch of Mercier Van Lanschot two and a half years ago, we saw a significant increase in share of wallet among existing clients. That effect was less present in H1 2026. Third, our investment approach in Belgium focuses on quality companies at a reasonable price.

Speaker #1: Commission income increased by 18% and profit before tax by 11% to €32 million. The net inflows amounted to €0.2 billion. Compared with recent years, net inflows were lower in the first half of 2026 and reflected three developments.

Speaker #1: First, we continued to attract many new clients, with inflows from new clients at a similar level to the first half of last year.

Speaker #1: Second, following the launch of Marché Van Lanschot two and a half years ago, we saw a significant increase in share of wallet among existing clients.

Speaker #1: That effect was less present in the first half of 2026. And third, our investment approach in Belgium focuses on quality companies at a reasonable price.

Speaker #1: The market environment in the first half of the year has favored different investment styles, which led some existing clients to reallocate assets elsewhere. That partially offset the strong inflow from new clients.

Jeroen Kroes: The market environment in H1 has favored different investment styles, which led some existing clients to reallocate assets elsewhere, and that partially offset the strong inflow from new clients. The average AuM margin in Belgium increased to 83 basis points, driven by continued growth in higher-margin discretionary mandates. Turning to Investment Management clients. Investment Management clients delivered a strong H1 performance. The investments in this client segment in recent years continued to pay off, supporting growth across all activities. Profitability improved by 30% to EUR 15.7 million. Commission income increased by 7%, mainly driven by growth in private markets and fiduciary management. Looking at the inflows, our liquid investment strategies recorded net inflows of EUR 0.3 billion, primarily in our credits and dividend strategies. To accelerate growth in this part of the business, we are exploring potential strategic partnerships to increase our scale.

Speaker #1: The average AUM margin in Belgium increased to 83 basis points, driven by continued growth in higher-margin discretionary mandates. Then, turning to investment management clients, investment management clients delivered a strong first half-year performance.

Speaker #1: The investments in this client segment in recent years continued to pay off, supporting growth across all activities. Profitability improved by 30% to €15.7 million.

Speaker #1: Commission income increased by 7%, mainly driven by growth in private markets and fiduciary management. Looking at the inflows, our liquid investment strategies recorded net inflows of €0.3 billion.

Speaker #1: Primarily in our credits and dividend strategies. To accelerate growth in this part of the business, we are exploring potential strategic partnerships to increase our scale.

Speaker #1: Private market solutions generated net inflows of €0.2 billion, as we saw continued interest for these products from our private and fiduciary clients. Total AUM in private markets increased to €6.5 billion.

Jeroen Kroes: Private market solutions generated net inflows of EUR 0.2 billion, as we saw continued interest for these products from our private and fiduciary clients. Total AuM in private markets increased to $6.5 billion, with an additional EUR 1.5 billion in client-committed capital. We had strong inflows in fiduciary management, mainly driven by the new mandates, like Maarten mentioned, of Stichting Pensioenfonds voor de Woningcorporaties of EUR 1.5 billion and the mandate of Pensioenfonds van de Nederlandse Bisdommen of EUR 1.3 billion. As fiduciary management now takes up a larger share of the total AuM in this segment, the average AuM margin declined to 13 basis points, while the margin of our investment strategies remained stable. Looking at both private banking and investment management together, we see that the securities commission income grew year on year in line with AuM.

Speaker #1: With an additional €1.5 billion in client-committed capital, we had strong inflows in fiduciary management, mainly driven by the new mandates, like Martin mentioned, of Stichting Pensioenfonds voor de Woningcorporaties of €15 billion and the mandate of Pensioenfonds Huisvesting Nederland of €1.3 billion.

Speaker #1: As fiduciary management now takes up a larger share of the total AUM in this segment, the average AUM margin declined to 13 basis points, while the margin of our investment strategies remained stable.

Speaker #1: Looking at both Private Banking and Investment Management together, we see that the Securities Commission income grew year-on-year in line with AUM.

Speaker #1: The combination of strong inflows and positive market performance led to growth in our recurring securities commissions, which increased to €595 million on a full-year basis.

Jeroen Kroes: The combination of strong inflows and positive market performance led to growth in our recurring securities commissions, which increased to EUR 595 million on a full year basis. We see multiple engines to grow our commission income further, particularly by attracting new clients and expanding our private markets offering. Proceeding now to our investment banking activities. Commission income declined compared with H1 2025 and was broadly in line with H2 2025. This reflected lower activity levels in M&A and equity capital market transactions. While it is difficult to predict market conditions in investment banking, we see some improvements in our activity level and pipelines. We maintained disciplined cost management and operating expenses remained in line with the previous year.

Speaker #1: And we see multiple engines to grow our commission income further, particularly by attracting new clients and expanding our private markets offering. Proceeding now to our investment banking activities.

Speaker #1: Commission income declined compared with the first half of 2025 and was broadly in line with the second half of 2025. This reflected lower activity levels in M&A and equity capital market transactions.

Speaker #1: And while it's difficult to predict market conditions in investment banking, we see some improvements in our activity level and pipeline. We maintained disciplined cost management, and operating expenses remained in line with the previous year.

Speaker #1: With respect to the joint venture, we made good progress in preparing the combination of our specialist equities activities with KBC Securities. We expect the transaction to close in the fourth quarter of this year.

Jeroen Kroes: With respect to the joint venture, we made good progress in preparing the combination of our specialist equities activities with KBC Securities, and we expect the transaction to close in Q4 of this year. Let's turn to our loan portfolio. We are starting to see the proof points of our increased attention towards providing loans to our private banking clients. Total lending continued to grow, with mortgages increasing by 2% and other loans by 9%. The quality of the loan book remains good, with an impaired ratio of 1% and additions to the loan loss provisions, which amounted to EUR 3 million this H1. Our net interest income increased by 27% to EUR 97 million in H1 of the year. As expected, net interest income has recovered strongly from the low level that we reached in H1 2025.

Speaker #1: Let's turn to our loan portfolio. We are starting to see the proof points of our increased attention towards providing loans to our private banking clients.

Speaker #1: Total lending continued to grow, with mortgages increasing by 2% and other loans by 9%. The quality of the loan book remains good, with an impaired ratio of 1% and additions to loan loss provisions amounting to €3 million this half year.

Speaker #1: Our net interest income increased by 27% to €97 million in the first half of the year. And as expected, net interest income has recovered strongly from the low level that we reached in the first half of 2025.

Speaker #1: This is driven by balance sheet growth and the gradual repricing of the asset side of the balance sheet. Based on the strong first-half performance and the current market conditions, we now expect full-year net interest income to be around €200 million.

Jeroen Kroes: This is driven by balance sheet growth and the gradual repricing of the asset side of the balance sheet. Based on the strong H1 performance and the current market conditions, we now expect full-year net interest income to be around EUR 200 million, and this is above our previously guided range of EUR 180 to 195 million. Let's move on to costs. In H1 2026, we operated with a positive jump between income and costs. Income increased by 14%, while costs increased by 6%, and this resulted in a 36% increase in gross result. Our operating expenses include continued investments in growth. Staff costs increased, and we made additional investments in technology and AI. Our focus is on increasing scalability across the organization, particularly in support functions, while using AI to improve efficiency and enhance our services to clients.

Speaker #1: And this is above our previously guided range of 180 to 195 million. Let's move on to costs. In the first half of 2026, we operated with a positive gap between income and costs.

Speaker #1: Income increased by 14%, while cost increased by 6%. This resulted in a €36 million increase in gross result. Our operating expenses include continued investments in growth.

Speaker #1: Staff costs increased, and we made additional investments in technology and AI. Our focus is on increasing scalability across the organization, particularly in support functions, while using AI to improve efficiency and enhance our services to clients.

Speaker #1: The cost-income ratio improved to 66.4%, and that is outperforming our target range of 67 to 70%. Zooming in on our FTE cost, we can see the following: we expanded our workforce in line with business growth, primarily at client segments to support our growing client base.

Jeroen Kroes: The cost-income ratio improved to 66.4%, and that is outperforming our target range of 67% to 70%. Zooming in on our FTE cost, we can see the following. We expanded our workforce in line with business growth, primarily at client segments to support our growing client base. At the same time, we are centralizing selected activities in our client support teams and corporate center to improve scalability and free up front office capacity for client engagement. This all combined led to a rise in net result of 30% to EUR 88 million, underpinned by strong growth in both commission income and net interest income. Revenue growth more than offset the higher operating expenses, resulting in strong operating leverage. Our results included EUR 4.2 million of one-off costs related to our new Amsterdam headquarters.

Speaker #1: At the same time, we are centralizing selected activities in our client support teams and Corporate Center to improve scalability and free up front office capacity for client engagement.

Speaker #1: This all combined led to a rise in net result of 30%, to €88 million, and was underpinned by strong growth in both commission income and net interest income.

Speaker #1: Revenue growth more than offset the higher operating expenses, resulting in strong operating leverage. Our results included €4.2 million of one-off costs related to our new Amsterdam headquarters.

Speaker #1: And while these costs will not recur next year, premises costs will increase from 2027 on, reflecting a larger office footprint and the transition from a below-market legacy lease to market-based rental levels.

Jeroen Kroes: While these costs will not recur next year, premises costs will increase from 2027 on, reflecting a larger office footprint and a transition from a below-market legacy lease to market-based rental levels. Let me now take you through our capital developments. In June, we returned capital of EUR 0.80 per share to our shareholders. Further growth in the lending portfolio and client facilities led to a CET1 ratio of 17% at the end of H1, and this ratio does not include H1 retained earnings. Later this year, the DNB floor on risk weights for residential mortgages will be lifted. This floor currently has a negative impact on our CET1 ratio of approximately 1.3 percentage points, meaning our CET1 ratio would increase when the floor is lifted. Our capital strategy remains unchanged. We steer towards a ratio of 17.5%.

Speaker #1: Let me now take you through our capital developments. In June, we returned capital of €0.80 per share to our shareholders. Further growth in the lending portfolio and client facilities led to a CET1 ratio of 17% at the end of the first half.

Speaker #1: And this ratio does not include first-half retained earnings. Later this year, the DMB floor on risk weights for residential mortgages will be lifted.

Speaker #1: This floor currently has a negative impact on our CT1 ratio of approximately 1.3 percentage points, meaning our CT1 ratio would increase when the floor is lifted.

Speaker #1: Our capital strategy remains unchanged. We steer towards a ratio of 17.5%. If we expect that this ratio will be clearly above 17.5%, we intend to return the capital above 17.5% to our shareholders.

Jeroen Kroes: If we expect that this ratio will be clearly above 17.5%, we intend to return the capital above 17.5% to our shareholders. To conclude, our H1 financial performance reflects strong progress towards our 2027 financial targets, and we look forward to the H2 of the year. With that, I would like to hand it back to the operator to start our Q&A.

Speaker #1: To conclude, our first half-year financial performance reflects strong progress towards our 2027 financial targets, and we look forward to the second half of the year.

Speaker #1: And with that, I would like to hand it back to the operator to start our Q&A.

Speaker #2: Thank you. To ask a question, you will need to press star, one, and one on your telephone, and wait for your name to be announced.

Operator: Thank you. To ask a question, you will need to press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. Please stand by while we compile the Q&A roster. Whilst we wait, once again, if you would like to ask a question, please press star one and one on your telephone keypad. Thank you. We will now go to our first question. One moment, please. Our first question today comes from the line of Cor Kluis from ABN AMRO, OWFS. Please go ahead.

Speaker #2: To withdraw your question, please press star one and one again. Please stand by while we compile the Q&A roster. Whilst we wait, once again, if you would like to ask a question, please press star one and one on your telephone keypad.

Speaker #2: Thank you. We will now go to our first question. One moment, please. Our first question today comes from the line of Koert Kloese from ABN AMRO ODDO BHF.

Speaker #2: Please go ahead.

Speaker #3: Hello, good good morning and thanks for thanks for the for the figures which were better than expected from a bottom line point of view.

Cor Kluis: Hello. Good morning, and thanks for the figures, which were better than expected from a bottom-line point of view. A couple of questions. Maybe first question is about private banking net inflow Belgium. I heard, of course, your explanation why it was somewhat low, or at least in the H1 of this year. Could you elaborate a little bit more on what kind of net inflows you expect in Belgium going forward? Was this something that is temporary and you expect high and a single digit or net inflows in the future, or is this something that is going to continue for a while? Second question is on loan growth. Loan growth in other loans that was better than expected, at least higher than we all expected. Lombard loans, business loans, could you elaborate a little bit which part is temporary and which part is recurring?

Speaker #3: A couple of questions. Maybe the first question is about private banking net inflow in Belgium. I heard, of course, your explanation as to why it was somewhat low, or at least in the first half of this year.

Speaker #3: Could you elaborate a little bit more on what kind of net inflows you expect in Belgium going forward? Was this something that's temporary and you expect high, missing a digit, or net inflows in the future, or is this something that's going to continue for a while?

Speaker #3: Second question is on loan growth. Loan growth in other loans was better than expected, or at least higher than we all expected.

Speaker #3: Lombard loans, business loans—could you elaborate a little bit on which part is temporary and which part is recurring? Because I think Lombard loans can be a little bit driven by what clients do in a specific period.

Cor Kluis: Because I think Lombard loans can be a little bit driven by what clients do in a specific period. So that might come back again. The reason why I ask is, of course, that we can estimate a little bit what the RWAs will be in the rest of the year, because this RWA growth was, I think, mostly driven by the growth in other loans. I think it grew by almost 9% in a half year. So could you elaborate a little bit more on the total loan growth for other loans for the rest of the year? Was this temporary or is this more recurring? My last question is about NII. You increased your NII guidance from 180, 195 to around 200. Is this mostly driven by this loan growth or is this also driven by deposit margins, which are better? That is for my question.

Speaker #3: So that might come back again. And the reason why I ask is, of course, that we can estimate a little bit what RWAs will be for the rest of the year, because this RWA growth was, I think, mostly driven by the growth in other loans.

Speaker #3: I think it grew by almost 9% in half a year. So could you elaborate a little bit more on the total loan growth for other loans for the rest of the year?

Speaker #3: Was this temporary, or is this more recurring? And my last question is about the NAI. Are you increasing your NAI guidance from 180–195 to around 200?

Speaker #3: Is this mostly driven by this loan growth, or is this also driven by deposit margins, which are better? Those were my questions. Thank you.

Cor Kluis: Thank you.

Speaker #1: All right. Thanks Core. And I think I will I will take all three of your questions and starting with with the first one. What about the inflows in Belgium going forward?

Jeroen Kroes: All right. Thanks, Cor. I will take all three of your questions, starting with the first one. What about the inflows in Belgium going forward? Let me start by saying that we see and we saw very strong inflows from new clients. This is a trend that is continuing and that is the same as before. What are the things that are different? One thing is the fact of increasing share of wallet. As we have said before, the fact that we entered the market as Mercier Van Lanschot led to an effect that we saw share of wallet at existing clients increase. This is an effect that now was less visible. As you can see with existing clients, increasing share of wallet is something that is a good thing, but this effect also had a one-time part of it.

Speaker #1: Let me start by saying that we see, and we saw, very strong inflows from new clients. So this is a trend that is continuing.

Speaker #1: And that is the same as before. So, what are the things that are different? One thing is the fact of increasing share of wallet.

Speaker #1: And as we have said before, the fact that we entered the market as Mercier Van Lanschot led to an effect that we saw share of wallet at existing clients increase.

Speaker #1: And this is an effect that now is less visible. As you can see, with existing clients, increasing share of wallet is something that is a good thing, but this effect also had a sort of one-time part to it.

Speaker #1: So but that was something that we we said before that that we expected some normalization in in that part. Then looking forward, when we look at our I also mentioned that our investment strategy and the way we invest that that was of of course less in favor in the markets than than let's say before.

Jeroen Kroes: That was something that we said before, that we expected some normalization in that part. Looking forward, when we look at our, I also mentioned that our investment strategy and the way we invest, that was of course, less in favor in the markets than, let's say, before. This is totally a normal effect. If you have an investment strategy that is value-based and that is based on high-quality companies at a good price, you see what we saw last H2 that this was very much AI growth driven, and then we saw that our investment strategy was lagging behind what markets. As I said, that is totally normal. We see that underlying our companies we invest in are doing really well.

Speaker #1: And this is totally normal effect if you have an investment that is an investment strategy that is value based and that is based on high quality companies at a good price.

Speaker #1: You see what we saw last half year, that this was very much AI growth driven. And then we saw that our investment strategy was lagging behind what markets did. That is totally normal.

Speaker #1: And and we see that underlying our companies we invest in are doing really well. So over time we see we see no reason that that returns wouldn't come back to to the levels that we have seen.

Jeroen Kroes: Over time, we see no reason that returns wouldn't come back to the levels that we have seen over the longer term in our investment strategy. That being said, the temporary effect of reallocating by some clients of part of their portfolio, that is, of course, not something that we expect to recur in future periods in the same way that we saw this H1. So we remain very confident in our investment strategy. The loan growth in other loans, yes, we see very good developments in Lombard lending, especially, and that is in the Netherlands, in Belgium and in Switzerland. We make an effort in providing more loans to our private banking clients. This is something that is part of our strategy, and we see that that is paying off.

Speaker #1: Over the longer term in our investment strategy. So that being said, the temporary effect of reallocating by some clients of of part of their portfolio that is of course not something that we expect to recur for for in in future periods in the same way that we saw this this half year.

Speaker #1: So we we remain very confident in the way of in our investment strategy. Then the loan growth in in other loans. Yes, we see very good developments in in Lombard lending.

Speaker #1: Especially, and that is in the Netherlands, in Belgium, and in Switzerland. And we make an effort in providing more loans to our private banking clients.

Speaker #1: And this is something that we that is part of our strategy. And and we see that that is is paying off. So we are doing more more loans to our private banking to our private banking clients.

Jeroen Kroes: We are doing more loans to our private banking clients. Therefore, you can say, as you say, is this recurring? It is part of our strategy to be more active in this part, and we see that our clients also, that it is in the client's interest and there is demand for this kind of service. Then on NII, yes, it is better than we expected, and it has to do with, of course, loan growth helps. What we also have seen is that over the past 6 months, we have seen upward interest rate movements that were not in our first guidance. These upward interest rate movements have increased our expectations and that is why we increased NII guidance.

Speaker #1: And therefore, you can say, and you asked, is this recurring? Yeah, it is part of our strategy to be more active in this part.

Speaker #1: And we see that our clients also have a— that it's in the client's interest and there's demand for this kind of service. Then on NAI, yes, it is better than we expected.

Speaker #1: And it has to do with, of course, loan growth helps, but what we also have seen is that, over the past six months, we've seen upward interest rate movements.

Speaker #1: That was not in our first guidance. And these upward interest rate movements have increased our expectations, and that's why we increased NAI guidance.

Speaker #2: Okay. Is that clear? Thank you very much.

Cor Kluis: Okay, very clear. Thank you very much.

Speaker #1: Thank you Core.

Maarten Edixhoven: Thank you, Cor.

Speaker #4: Thank you. Our next question today comes from the line of Jason Calambasses from ING. Please go ahead.

Operator: Thank you. Our next question today comes from the line of Jason Kalamboussis from ING. Please go ahead.

Speaker #2: Yes. Hi, good morning. I just wanted to have a couple of follow-up questions, notably on the private bank. On Belgium, do you find scope for M&A, because now it has been some time since you have done your last deal?

Jason Kalamboussis: Yes. Hi, good morning. I just wanted to have a couple of follow-up questions, notably on the private bank. On Belgium, do you find scope for M&A? Because now it has been some time since you have done your last deal, and this was also part of your growth ambition in the market that at the end of the day, needs a bit more consolidation. If you could comment there, that would be great. On the inflows in Belgium, was the H1 a good representation of what we should be expecting for the H2? Also related to Belgium, you said that your strategies were more value-based. Does that mean that you have your eggs in one basket? Or would you consider, for example, having other strategies? Or you find that you are better off being based and known for having this value-based approach?

Speaker #2: And this was also part of, you know, your growth ambition in the market, that at the end of the day needs a bit more consolidation.

Speaker #2: So if you could comment there, that would be great. On the inflows in Belgium, do we now see the first half as a good representation of what we should be expecting for the second half?

Speaker #2: And also related to Belgium you said that you know your strategies were more value based. Would you consider you know is that does that mean that you have your eggs in one basket or would you consider for example having other strategies or you find that you know you are better off being based unknown for having this value based approach?

Speaker #2: And the second question is on the Netherlands. We saw, I mean, within the Netherlands, very good inflows in Switzerland. Do you find that Switzerland will be more the engine of growth in your inflows over the coming, you know, half years?

Jason Kalamboussis: The second question is on the Netherlands. We saw, within the Netherlands, very good inflows in Switzerland. Do you find that Switzerland will be more the engine growth in your inflows over the coming half years? Year?

Speaker #2: Year? Thank you.

Maarten Edixhoven: Well-

Jason Kalamboussis: Thank you.

Speaker #1: Yeah, thank you, Jason. Very good question. I'll take the first and the last one, and then the second and the third on Belgium for Jeroen.

Maarten Edixhoven: Yeah. Thank you, Jason. Very good questions. I will take the first and the last one, and then the second and the third on Belgium for Jeroen. With regard to your question for scope of M&A in Belgium, yes, our Growing Further Together strategy is autonomous growth and also bolt-on acquisitions. We have done two acquisitions in the last couple of years in Belgium, Mercier Vanderlinden and Accuro. Increased our presence there in five years' times, almost fivefold in terms of AuM. So yeah, it is a very strong engine now of our entire franchise. We will also be looking for more M&A opportunities in Belgium, of course, also in Holland, but especially also in Belgium. Of course, that always has to do with either increasing further our scale, but also looking for maybe additions of capabilities that we would like to add.

Speaker #1: With regard to your question for the scope of M&A in Belgium, yes, our strategy is to go further together. Our strategy is autonomous growth and also bolt-on acquisitions.

Speaker #1: We have done two acquisitions in the last couple of years in Belgium: a shave on the Linde and Acuro. We increased our presence there in five years' time almost fivefold in terms of assets under management.

Speaker #1: So yeah, we are—it's a very strong engine now of our entire franchise. And we will also be looking for more M&A opportunities in Belgium.

Speaker #1: Of course, also in Holland, but especially also in Belgium. And, of course, that always has to do with either further increasing our skill, but also looking for maybe additions of capabilities that we would like to add.

Speaker #1: And but always with a discipline on the financial side, and also it has to be a cultural match, because that will determine the future success.

Maarten Edixhoven: But always with a discipline on the financial side and also it has to be a cultural match, because that will determine the future success. So yes, we will be on the lookout for bolt-on acquisitions in Belgium. Then with regard to your question on Switzerland, which we indeed report on the segment of private clients, Netherlands, yes, we are quite positive on our franchise in Switzerland. We are the only Dutch-based wealth manager that has a fully licensed subsidiary in Switzerland. And we see also from clients, and those are predominantly Dutch and Belgium clients, increasing interest for our services that we offer in Switzerland. We have a great team there, so we expect future growth to come from our Swiss operations and also to reach more scale over there.

Speaker #1: So, yes, we will be on the lookout for bolt-on acquisitions in Belgium. Then, with regard to your question on Switzerland, which we indeed report on in the segment of Private Clients Netherlands...

Speaker #1: Yes, we are quite positive on our franchise in Switzerland. We are the only Dutch-based wealth manager that has a fully licensed subsidiary in Switzerland.

Speaker #1: And we see also from clients, and those are predominantly Dutch and Belgian clients, increasing interest for our services that we offer in Switzerland.

Speaker #1: We have a great team there, so we expect future growth to come from our Swiss operations, and also to reach more scale over there.

Speaker #1: So that’s what I would say on Switzerland. And then, over to you, Jeroen, on—I think you already answered part of the net flow question.

Maarten Edixhoven: So that I would say on Switzerland and then over to you, Jeroen on. I think you already answered part of the net flow question.

Speaker #3: Yeah. I think I I I answered the part of it. But but let me let me rephrase it. Such that in Belgium we we have the the value way of investing.

Jeroen Kroes: Yeah. I think I answered the part of it, but let me rephrase it such that in Belgium, we have the valuable way of investing, and it's a very strong investing together philosophy that we have in Belgium that works well, and has led to very good returns over the years. So we are convinced that this is a good strategy, and we will continue with that strategy. And over the long term, that strategy has led to very good yields and returns. And that being said, that is also what we said, that over time, this will also lead to continued inflow. And as I said, new clients keep coming and inflow in the H1 from new clients was very strong. So that's what I can say about it.

Speaker #3: And it's a very strong investing-together philosophy that we have in Belgium, which works well and has led to very good returns over the years.

Speaker #3: So there is—there's certainly—we are convinced that this is a good strategy, and we will continue with that strategy. Over the long term, that strategy has led to very good yields and returns.

Speaker #3: And that being said, that is also what we—what we say, that over time, this will also lead to continued inflow.

Speaker #3: And as I said, new clients keep coming, and inflow in the first half of the year from new clients was very strong. So that's also what—yeah, I think that's what I can say about this.

Speaker #2: Very good. Just on follow-up—I did ask, I think, about the first half inflows. Do they reflect what we should expect for the second half?

Jason Kalamboussis: Very good. Just on a follow-up, or I did ask, I think the H1 inflows, do they reflect what we should expect for the H2? Is it the new normal, essentially?

Speaker #2: Is it the new normal, essentially?

Speaker #3: Yeah. I think what I did say is that the effect—I explained the inflow of the first half with the effect that we saw in the first half of the relatively lower returns of our strategy.

Jeroen Kroes: Yeah, I think what I did say is that the effect. I explained the inflow of the H1 with the effect that we saw in the H1 of the relatively lower returns of our strategy. As I try to answer is that over the longer term, we expect our strategy to do very well as it did as of the beginning that we run this strategy, which is more than 20 years ago. That effect of temporary lower returns, which is normal given our investment philosophy, that effect can be seen as a temporary effect.

Speaker #3: And as I tried to answer, over the longer term we expect our strategy to do very well, as it did at the beginning when we started to run this strategy, which is more than 20 years ago.

Speaker #3: So that effect of temporary lower returns which is normal given our our investment philosophy that effect is a is can be seen as a temporary effect.

Speaker #2: Okay. So essentially, it is more about the strategy rather than the share of wallet, if I should put it this way.

Jason Kalamboussis: Okay. So essentially, it is more around the strategy rather than the share of wallet, if I should put it this way, which is how I should see the H1. The impact.

Speaker #2: How should I view the first half?

Speaker #3: The impact. There there are two things. So the the the thing you mentioned the the part with the returns that's the temporary part. The then there's the thing of share of wallet.

Jeroen Kroes: There are two things. The thing you mentioned, the part with the returns, that's the temporary part. Then there's the thing of share of wallet. As explained before, 2.5 years ago, we started with Mercier Van Lanschot in Belgium and brought together Mercier Vanderlinden and Van Lanschot Belgium. That combination got to a very strong start and is rightfully seen as a good challenger party in Belgium. That effect 2.5 years ago led existing clients to say, "Okay, this is a party that is making a next step, so I'm going to entrust more of my AuM to this party." So that is an increase in share of wallet from existing clients. We saw this effect over the last years. Naturally, this effect will fade out over time.

Speaker #3: And as I explained before, two and a half years ago we started with Mercier Van Lanschot in Belgium, and brought together Mercier Van de Linde and Van Lanschot Belgium.

Speaker #3: That combination got off to a very strong start, and is rightfully seen as a good challenger party in Belgium. That effect, two and a half years ago, led existing clients to say, "Okay, this is a party that is making a next step."

Speaker #3: So I'm going to entrust more of my AUM to this party, so that is an increase in share of wallet from existing clients. And we saw this effect over the last years.

Speaker #3: And naturally, this effect will fade out over time.

Jason Kalamboussis: Super. Fully understood. Thank you very much.

Speaker #2: Super. Fully understood. Thank you very much.

Speaker #1: Thank you Jason.

Jeroen Kroes: Thank you, Jason.

Maarten Edixhoven: Thank you, Jason.

Speaker #4: Thank you. We will now go to our next question. The next question today comes from the line of Benoit Petra from Kepler Cheuvreux.

Operator: Thank you. We will now go to our next question. The next question today comes from the line of Benoit Pétrarque from Kepler Cheuvreux. Please go ahead.

Speaker #4: Please go ahead.

Benoît Pétrarque: Yes, good morning. The first question is again on Belgium. I see that you had a 3.8% performance in your investment, so it is much lower than the 8% in the Netherlands. 3.8% looks quite low. I appreciate the comments on the investment strategies. But that in H1, like we've seen, it sounds quite low, and I was wondering if there have been maybe specific calls from the investment team on some assets or geographies which could explain this performance. Also, could you provide maybe the outflow part of the equation, which will be useful to assess what is recurring and not. The second question is on the cost income ratio, 66.4%, clearly below the low end of your guidance, a sign that your operating leverage works extremely well. What do you think in terms of guidance on cost income ratio going forward?

Benoit Pétrarque: Yes, good morning. The first question is again on Belgium. I see that you had a 3.8% performance in your investment, so it is much lower than the 8% in the Netherlands. 3.8% looks quite low. I appreciate the comments on the investment strategies. But that in H1, like we've seen, it sounds quite low, and I was wondering if there have been maybe specific calls from the investment team on some assets or geographies which could explain this performance. Also, could you provide maybe the outflow part of the equation, which will be useful to assess what is recurring and not. The second question is on the cost income ratio, 66.4%, clearly below the low end of your guidance, a sign that your operating leverage works extremely well. What do you think in terms of guidance on cost income ratio going forward?

Speaker #2: Yes. Good morning. So the first question is again on Belgium. I see that you had a 3.8% performance in your investment, so it is much lower than the 8% in the Netherlands.

Speaker #2: You know 3.8% looks looks quite low. I mean I appreciate the comments on the investment strategies. But that's in a in a H1 like we've seen it it sounds sounds like quite low.

Speaker #2: And I was wondering if there have been maybe specific calls from the investment team on some assets or geographies which could explain this performance.

Speaker #2: And also, could you provide maybe the outflow part of the equation, which will be useful to assess what is recurring and what is not?

Speaker #2: The second question is on the cost/income ratio: 66.4%, clearly below the low end of your guidance. A sign that the operating leverage works extremely well.

Speaker #2: What what what what do you think in terms of of guidance on cost income ratio going forward? Do you think you can you can sustain a low end of of that guidance going forward?

Benoît Pétrarque: Do you think you can sustain a low end of that guidance going forward, or do you expect any type of cost ramp-up in other directions, like maybe tech or real estate? Then on NII, thanks for the new guidance. Very useful. Just thinking about 2027, what do you expect? We see the forward rates obviously going up further. Do you think the equation on NII will be more a function of volume growth and less margin expansion going forward? Just try to get a feeling about the direction into 2027. Thank you.

Benoit Pétrarque: Do you think you can sustain a low end of that guidance going forward, or do you expect any type of cost ramp-up in other directions, like maybe tech or real estate? Then on NII, thanks for the new guidance. Very useful. Just thinking about 2027, what do you expect? We see the forward rates obviously going up further. Do you think the equation on NII will be more a function of volume growth and less margin expansion going forward? Just try to get a feeling about the direction into 2027. Thank you.

Speaker #2: Or do you expect any—yeah, any type of cost ramp up in other directions, like maybe tech or real estate? And then on NI, thanks for the new guidance.

Speaker #2: Very useful. Just thinking about 2027, what do you expect? We see the forward rates obviously going up further. Do you think the equation on NI will be more a function of volume growth and less margin expansion going forward?

Speaker #2: Just try to, yeah, get a feeling about the direction into '27. Thank you.

Speaker #3: Okay, Benoit, thank you. A lot of questions. I think that I can take the first one on the returns of Belgium. Let me be very clear.

Jeroen Kroes: Okay, Benoit. Thank you. A lot of questions I think that I can take. First on the returns of Belgium. Let me be very clear. Our investment focus and the way we invest for our clients is on a long-term basis. For us, we look at the long-term returns of our investment strategies. As you know and have seen, they are very strong in Belgium, just like elsewhere in VLK, but also in Belgium. So that is the answer. The situation of what happens in a couple of months is, for us, less relevant. We really look at the long term there. With respect to further information on outflows, unfortunately, Benoit, we will not provide that detail. Going forward, the cost income, yes, 66.4% is below the target range. What do we think going forward?

Speaker #3: Our investment focus and the way we invest for our clients is on a long-term basis. So, for us, we look at the long-term returns of our investment strategies.

Speaker #3: And as you know and have seen they are very strong in in Belgium just like elsewhere in VOK but also in Belgium. So so that that is that is the answer.

Speaker #3: And the situation of what happens in a couple of months is for us less relevant. We really look at the long term there.

Speaker #3: With respect to inflows and further information on outflows, unfortunately, Benoit, we will not provide that detail. Then, going forward, on the cost/income ratio – yes, 66.4 is below the target range.

Speaker #3: And what do we think going forward? Yes we will invest in further growth in AI and technology so yes investments will will continue. But of course we we are very motivated to keep this cost income at at a level that that is around where it where it is now.

Jeroen Kroes: Yes, we will invest in further growth in AI and technology. So yes, investments will continue. But of course, we are very motivated to keep this cost income at a level that is around where it is now. That is, of course, our ambition. We're certainly not trying to go to the upper end of our target range.

Speaker #3: That is of course our ambition. And we'll certainly not not trying to to go to the upper end of our target range. So we we like where we are now and we will we have the ambition to to to stay the course as as much as possible.

Maarten Edixhoven: We like where we are now and we have the ambition to stay the course as much as possible. I have to say that in the H1, markets have been beneficial, of course, for private banks, and that was helpful as well. NII 2027. As you know, I will provide guidance, but I'll do that with the annual figures, so you will not get guidance today. A couple of words, though. The things that we are seeing now with interest rate environment, growing balance sheets, if you take those as a basis, then you can, of course, see that NII for 2027, there's not a lot of reason to expect that it will be a lot different from what we will see in the H2 2026.

Jeroen Kroes: We like where we are now and we have the ambition to stay the course as much as possible. I have to say that in the H1, markets have been beneficial, of course, for private banks, and that was helpful as well. NII 2027. As you know, I will provide guidance, but I'll do that with the annual figures, so you will not get guidance today. A couple of words, though. The things that we are seeing now with interest rate environment, growing balance sheets, if you take those as a basis, then you can, of course, see that NII for 2027, there's not a lot of reason to expect that it will be a lot different from what we will see in the H2 2026.

Speaker #3: I have to say that in the first half of the year, markets have been beneficial, of course, for private banks, and that was helpful as well.

Speaker #3: Then, and in 2027, as you know, I will provide guidance, but I'll do that with the annual figures. So, you will not get guidance today.

Speaker #3: Couple of words though. The things that we are seeing now with interest rate environment growing balance sheet if you take those as as a basis then you can can of course see that that NII for 2027 there's there's not a lot of reason to expect that it will be a lot different from what we will what we will see in the second half of 2026.

Speaker #3: So the this so everything that we expect for 2026 you could project further on to to 2027. That that will be that there's no reason to say that in 2027 things will be a lot different.

Maarten Edixhoven: Everything that we expect for 2026, you could project further on to 2027. There's no reason to say that in 2027 things will be a lot different.

Jeroen Kroes: Everything that we expect for 2026, you could project further on to 2027. There's no reason to say that in 2027 things will be a lot different.

Speaker #2: Great. Thank you very much. Just maybe a small one on on the on the Dutch business. The the Dutch private banking business. I think it the growth is actually accelerating there.

Benoît Pétrarque: Great. Thank you very much. Just maybe a small one on the Dutch business, the Dutch private banking business. I think the growth is actually accelerating there. You have a new number of clients going up. I think it is 5.5% net new money in H1 and normalized. You also see marketing expenses up, and we actually see VLK also clearly more visible on the marketing side in the Netherlands. How do you think about your marketing budget going forward? Do you think it could be slightly higher than we have seen in the past? Thank you.

Benoit Pétrarque: Great. Thank you very much. Just maybe a small one on the Dutch business, the Dutch private banking business. I think the growth is actually accelerating there. You have a new number of clients going up. I think it is 5.5% net new money in H1 and normalized. You also see marketing expenses up, and we actually see VLK also clearly more visible on the marketing side in the Netherlands. How do you think about your marketing budget going forward? Do you think it could be slightly higher than we have seen in the past? Thank you.

Speaker #2: You have a net new number of clients going up. I think it's to 5.5% net new money in H1 and normalized. You also see marketing expenses up.

Speaker #2: And we actually see VLK also clearly more visible on the on the marketing the marketing side in the Netherlands. So what what you know how do you how do you think about your marketing budget going forward?

Speaker #2: Do you think it could be slightly higher than we've seen in the past? Thank you.

Speaker #3: Yeah, thank you for that question. We are indeed very excited also about our growth opportunities in the Netherlands. And like you said, we are investing significantly in the private banking activities in the Netherlands.

Maarten Edixhoven: Yeah. Thank you for that question. We are indeed very excited also about our growth opportunities in the Netherlands. Like you said, we are investing significantly in the private banking activities in the Netherlands. We opened up some new offices in Utrecht, Maastricht. We see that also bankers from the competition joined us and attracting, of course, new clients. We invest strongly in our new branding and hospitality. In that sense, we also look forward to moving to our new building, which will also be really next level in hospitality for our clients here in Amsterdam. Yeah, we expect to continue to see momentum and that growth. There is one remark I want to make there. In the Netherlands, always, we have this effect in the last quarter, of course, of people from also fiscal reasons, moving more towards saving.

Speaker #3: We opened up some new offices in Utrecht and Maastricht. We see that bankers from the competition have also joined us, and we are attracting, of course, new clients.

Speaker #3: And we invest strongly in our new branding and and and and hospitality. In that sense we also look forward to moving to our new building which will also be really a next level in hospitality for for our clients here in in Amsterdam.

Speaker #3: So yeah we expect to to continue to continue to see momentum and that growth. There's one remark I want to make there. In the Netherlands always we have this effect in the in the last quarter of course of people from also fiscal reasons moving more to towards savings.

Speaker #3: So that has always, in the last couple of years, had an effect there. But to your point, driven by those investments and our opportunity to gain market share, we expect to continue that momentum.

Maarten Edixhoven: That is always the last couple of years, an effect there. To your point, driven by those investments and our opportunity to gain market share, we expect to continue that momentum.

Speaker #2: Great. Thank you very much.

Benoît Pétrarque: Great. Thank you very much.

Benoit Pétrarque: Great. Thank you very much.

Speaker #1: Thank you. Thank you. As a reminder, if you would like to ask a question, please press star one and one on your telephone and wait for your name to be announced.

Operator: Thank you.

Maarten Edixhoven: Thank you.

Operator: Thank you. As a reminder, if you would like to ask a question, please press *1 and 1 on your telephone and wait for your name to be announced. That is *1 and 1 if you would like to ask a question. There are currently no further questions. I will now hand the call back to Maarten for closing remarks.

Speaker #1: That is star one and one if you would like to ask a question. There are currently no further questions. I will now hand the call back to Martin for closing remarks.

Speaker #3: Well, thank you very much, Sharon, and thank you for listening to us and for your questions. Wrapping up today with our strong results, we are firmly on track to achieve our 2027 financial targets.

Maarten Edixhoven: Well, thank you very much, Sharon, and thank you for listening to us and your questions. Wrapping up today with our strong results, we are firmly on track to achieve our 2027 financial targets. Our strategy, focused on scalable growth, is delivering with momentum in the core growth drivers we see in our markets. As we also discussed, we see that momentum continuing and are really convinced that we can further gain our market shares in the Netherlands, Belgium, Switzerland, and the UK. So thank you for your questions and interest, and I wish you a very great day today.

Speaker #3: Our strategy focused on scalable growth is delivering with momentum in the core core drivers growth drivers we see in our markets. And as we also discussed we we see that momentum continuing and our our really convinced that we can further gain our market shares in the Netherlands, Belgium, Switzerland and and the UK.

Speaker #3: Thank you for your questions and your interest. I wish you a wonderful day.

Operator: Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

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Half Year 2026 Van Lanschot Kempen NV Earnings Call

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