Van Lanschot: Results of 2011 European stress test

  • Core Tier I ratio under adverse stress scenario (including sovereign risk impact) of 9.8% in 2011 and 9.7% in 2012 (minimum EBA benchmark of 5%), compared with a Core Tier I ratio of 9.6% at year-end 2010
  • Capital increases in period under review; Van Lanschot posts a net profit even under adverse stress scenario
  • No exposure to government bonds of Greece, Portugal, Ireland, Italy and Spain 

Constant Korthout, CFO/CRO of Van Lanschot: "Van Lanschot has a conservative risk profile, which is confirmed by the results of the European stress test. This is also reflected in the high quality of the loan book, about half of which is made up of home mortgages. Of the total loan book, 98% represents loans issued in the Netherlands and Belgium, and just 0.11% (approximately  15 million) in European periphery countries. Country risk in the bank's investment portfolio is limited to the Netherlands, Germany, Switzerland and Canada. Van Lanschot therefore has no exposure to government bonds of Greece, Portugal, Ireland, Italy and Spain. The bank has sufficient buffers in place to absorb unexpected shocks, even in the most adverse stress scenario. This is reflected in the results of the stress tests that we perform regularly as part of our risk management procedures and was again confirmed by the affirmation of the bank's Single A minus (stable outlook) credit rating by the rating agency Standard & Poor's on 13 July 2011."

The European Banking Authority (EBA), formerly CEBS, conducted the EU-wide stress test as part of its responsibility for the stability of the European financial system (macro-prudential) and that of financial institutions (micro-prudential). This stress test seeks to assess the resilience of financial institutions to shocks to the economy and the financial markets.

Van Lanschot is not one of the 90 European banks that were obliged to carry out this EU-wide stress test. In keeping with last year, Van Lanschot has carried out the same European stress test on its own initiative.

The test was performed using the methodology, scenarios and assumptions prescribed by the EBA, including a scenario of falling residential and commercial property prices, rising unemployment and a dip in share prices. The calculations (both baseline and adverse) assume a static balance sheet and 'what-if' scenarios for comparison purposes.

Based on the assumed impact of the adverse scenario, Van Lanschot's consolidated Core Tier I ratio would still be 9.7% at year-end 2012 (thanks to its private banking activities), compared with 9.6% at year-end 2010. This stress test shows that Van Lanschot has a capital buffer of 4.7% - i.e.  565 million - over and above the benchmark Core Tier I ratio of 5.0% used for this test.

The results of the stress test for Van Lanschot are attached in the annexe.

's-Hertogenbosch, the Netherlands, 20 July 2011

Van Lanschot Media Relations: Etienne te Brake, Media Relations Manager
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 Euronext Amsterdam.

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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