Van Lanschot, a Dutch bank, has reported an underlying net profit for its private bank for 2016 of EUR 37.4million, up from EUR 15.1 million in 2015.
Total income dropped to EUR 256.2 million, compared to EUR 266.2 million in 2015. The bank said this was due to “lower interest income from a smaller loan portfolio as well as reduced fee income due to clients being reluctant to invest.” It was also offset by sharply lower addition to loan loss provisions – to EUR 1.2 million compared with EUR 22.1 million in 2015, and by a nine percent fall in costs (€202.9 million as against €222.9 million in 2015).
Assets under management at the private bank reached EUR 69.8 million, a year on year increase of 13.2 percent. The bank said the increase was primarily due to its acquisition of Staalbankiers’s private banking activities and a positive market performance.
“2016 saw clients searching for ways to optimise returns on their assets, both investments and savings. After client caution in the first half and net inflows in the third quarter, profit-taking by clients in the fourth quarter led to a net outflow of €0.2 billion, particularly at the investment advice and execution-only ends,” it said in its result statement.
Private Banking’s loan portfolio contracted by five percent to €7.9 billion, mainly because repayments exceeded new business. It stopped providing mortgage loans in Belgium in 2011 but continued to offer securities loans in line with client needs. In February 2017, it sold off the remaining approximate EUR 100 million Belgian mortgage portfolio as part of the bank’s drive to simplify.
During the year it launched Duurzaam+, a sustainable investment offering which forms part of its discretionary management service. The bank describes responsible and sustainable investment as an “integral part” of its investment service.
At the same time as announcing its results, Van Landschot launched an investment advice app. he app provides clients with a comprehensive view of their investment portfolios and returns, while putting them into contact with their personal investment advisers if they choose. It is the second such app Van Lanschot has introduced for its investor clients, following in the footsteps of the discretionary management app launched in 2016.