Van Lanschot Kempen's Shareholders: A Bigger Dividend Awaits in 2024

As the financial world continues to evolve, so do the expectations of investors. One company that has been making waves in the Netherlands is Van Lanschot Kempen (AMS:VLK), a specialist wealth manager active in private banking, investment management, and investment banking. In 2024, the company's shareholders are set to receive a bigger dividend than last year, thanks to a combination of strong commercial momentum and strategic initiatives.

Van Lanschot Kempen's net profit rose by 13% to €141.9 million in 2024, compared to €125.2 million in 2023. This increase was driven by a 20% rise in commission income, reflecting the company's strong commercial momentum across all client segments. Additionally, the company's assets under management (AuM) grew by 17% to €149.3 billion, well ahead of its 10% target for average annual growth. This growth was supported by robust net AuM inflows of €9.2 billion, reflecting the trust that both existing and new clients have in the company.

The company's 'Growing further together' strategy played a significant role in achieving these impressive results. This strategy focuses on scalable growth with an emphasis on excellent service for clients, and it was implemented across all client segments. The strategy contributed to the following key achievements:

1. Market share gain in private banking: The strategy helped the company gain market share in private banking, reflecting the trust that both existing and new clients put in them, both in the Netherlands and in Belgium. This is evident in the net AuM inflows of €2.1 billion in the Private Clients Netherlands segment and €2.2 billion in Private Clients Belgium.
2. Successful positioning in the Belgian market: The company's brand, Mercier Van Lanschot, successfully positioned itself as a challenger in the growing Belgian private banking market since January 2024. This strategy proved attractive to both clients and prospects, contributing to the strong net inflows in the Belgian market.
3. Appreciation for in-house investment expertise: The Investment Management Clients segment also achieved solid net AuM inflows of €4.9 billion, with €1.0 billion coming through active investment strategies. This demonstrates the appreciation clients have for the company's in-house investment expertise, which is a key aspect of the 'Growing further together' strategy.
4. Investment in scalable growth: The company invested in scalable growth, particularly in private banking activities in the Netherlands, Belgium, and Switzerland. This included bringing in fresh talent, investing in IT infrastructure, and developing and expanding private markets solutions. These investments supported the client services and contributed to the overall commercial momentum.

In conclusion, Van Lanschot Kempen's shareholders can look forward to a bigger dividend in 2024, thanks to the company's strong financial performance and strategic initiatives. The company's 'Growing further together' strategy has proven successful in driving commercial momentum and net AuM inflows, leading to a 13% increase in net profit and a 17% increase in AuM. As the company continues to invest in scalable growth and excellent service for clients, shareholders can expect to see further dividends in the years to come.