Van Lanschot: Results of European stress test

  • Tier I ratio under the adverse stress scenario (including sovereign risk impact) of 9.0%,
    or 50% above the threshold of 6.0%
  • No exposure to countries with high sovereign risk
  • 97% of the total sovereign bond portfolio consists of German and Dutch government bonds or bonds guaranteed by the Dutch state


Floris Deckers, chairman of the Board of Managing Directors of Van Lanschot: "It's a well known fact that Van Lanschot has a conservative risk profile. The bank has virtually no country risk exposure in its investment portfolio. This policy is consistently reflected in the results of the various stress tests that we regularly perform as part of our risk management procedures and is again evident in the results of the CEBS stress test. The same solid capital and liquidity positions of the bank also formed the basis for the reconfirmation by Standard & Poor's of our Single A- stable outlook credit rating at the beginning of July 2010."

Van Lanschot performed the EU-wide stress testing exercise coordinated by the Committee of European Banking Supervisors (CEBS) in cooperation with the European Central Bank and national supervisory authorities, including the Dutch Central Bank. This stress test complements the risk management procedures and regular stress testing programmes performed by Van Lanschot as part of its Internal Capital Adequacy Assessment Process (ICAAP), and under the Pillar 2 framework of the Basel II and Capital Requirements Directive (CRD) requirements.

The exercise was conducted using the scenarios, methodology and key assumptions provided by CEBS (see the aggregate report published on the CEBS website). As a result of the assumed shock under the adverse scenario, the estimated consolidated Tier I capital ratio would change to 9.3% at year-end 2011 compared with 10.1% as of end of 2009. An additional sovereign risk scenario would have a further impact of 0.3 percentage points on the estimated Tier I capital ratio, bringing it to 9.0% at the end of 2011, compared with the regulatory minimum of 4.0%.

The results of this stress test show that Van Lanschot has a capital buffer of 50% - or  465 million - of the Tier I capital relative to the threshold of 6.0% for the Tier I capital adequacy ratio agreed exclusively for the purposes of this exercise. This threshold should by no means be interpreted as a regulatory minimum (the regulatory minimum for the Tier I capital ratio is set to 4.0%), nor as a capital target reflecting the risk profile of the institution determined as a result of the supervisory review process in Pillar 2 of the CRD.

The stress test was carried out under a number of key common simplifying assumptions (e.g. constant balance sheet). The information on the scenarios (both the benchmark and the adverse scenarios) is therefore provided only for comparison purposes and should in no way be construed as a forecast.

In the interpretation of the outcome of the exercise, it is imperative to differentiate between the results obtained under the different scenarios developed for the purposes of the EU-wide exercise. The results of the adverse scenario should not be considered as representative of the current situation or possible present capital needs. A stress testing exercise does not provide forecasts of expected outcomes since the adverse scenarios are designed as "what-if" scenarios including plausible but extreme assumptions, which are therefore not very likely to materialise. Different stresses may produce different outcomes depending on the circumstances of each institution.

The results of the stress test for Van Lanschot are attached in Annexe I. A summary of Van Lanschot's exposure to central and local government by country is attached in Annexe II.

's-Hertogenbosch, 26 July 2010


Van Lanschot Media Relations:
Etienne te Brake, Corporate Communication spokesperson
Telephone +31 (0)73 548 30 26; mobile +31 (0)6 12 505 110; e-mail e.tebrake@vanlanschot.com

Van Lanschot Investor Relations: Geraldine Bakker-Grier, Investor Relations Manager
Telephone +31 (0)73 548 33 50; mobile +31 (0)6 13 976 401; e-mail g.a.m.bakker@vanlanschot.com

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. Van Lanschot 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.


Click the link below to read the complete press release including all tables and annexes:

Stock Van Lanschot (AEX): LANS More stock exchange information

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