| | | | | | | | | |
Total remuneration of the individual members of the Management Board (\u20ac1,000)1 |
| | Fixed salary amount in cash | Fixed salary amount in shares2 | | | Pension and disability insurance | | | |
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| | | | | | | | | |
\u00a0 \u00a0 extraordinary item in 2021 relates to a sign-on payment in cash of \u20ac250,000, a sign-on payment in shares of \u20ac100,000 and deferred compensation of \u20ac95,000 for
\u00a0 \u00a0 lapsed rights to variable remuneration at Maarten Edixhoven's previous employer.
5\u00a0 Jeroen Kroes was appointed CFO on 1 September 2022.
6\u00a0 Wendy Winkelhuijzen was appointed CRO on 1 September 2022.
7\u00a0 Remuneration reported as of 1 January 2021; Erik van Houwelingen was appointed as a member of the Management Board on 27 May 2021.
8\u00a0 Constant Korthout stepped down as a member of the Management Board on 1 September 2022 and is entitled to a (one year gross salary) severance payment of
\u00a0 \u20ac787,000. He received remuneration under the same conditions for the remainder of 2022.
9\u00a0 Karl Guha resigned as Chairman of the Management Board on 1 October 2021. He received remuneration under the same conditions for the remainder of 2021.
| | | | | |
Number of depositary receipts for shares held by Management Board members in 2022 |
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Constant Korthout (until 1 September 2022) | | | | | |
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| | | | |
Loans to Management Board members at 31 December 2022 (\u20ac1,000) |
| | | | |
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Loans to Management Board members at 31 December 2021 (\u20ac1,000) |
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No advances or guarantees have been granted to members
of the Management Board. No impairments or write-offs
have occurred on loans granted to Management Board
members.
| | |
Remuneration of the Supervisory Board (\u20ac1,000) | | |
| | |
| | |
| | |
| | |
| | |
| | |
Brigitte Boone (from 22 September 2021) | | |
Jeanine Helthuis (until 27 May 2021) | | |
| | |
No loans or advances had been granted to members of the
Supervisory Board at 31\u00a0December 2022 and 31\u00a0December
2021.
The company and its subsidiaries only grant personal loans,
guarantees etc. to Supervisory Board members as part of
normal operations and in keeping with conditions laid down
in financial services regulations. Any such loans or
guarantees are subject to the approval of the Supervisory
Board. Loans are not forgiven.
Events after the reporting period
On 2 February 2023, we announced a strategic partnership
with Robeco and the acquisition of Robeco's online
investment platform \u2013 which will be joined with Evi van
Lanschot. At year-end 2022, both platforms combined had
\u20ac6.0 billion in AuM held for around 150,000 clients.
The transaction will have a negative impact on Van Lanschot
Kempen\u2019s CET 1 ratio of approximately 0.4 percentage
points. A two-year integration path is anticipated, and is
expected to involve one-off costs of between \u20ac8 million and
\u20ac11 million. The combined platform is expected to break even
by 2025 and to start making a positive contribution to Van
Lanschot Kempen\u2019s net profit thereafter. The transaction is
expected to be completed in June 2023, subject to any
regulatory approvals that may be required.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNotesAndOtherExplanatoryInformationExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
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"value": "
Summary of significant accounting principles
General
Van Lanschot Kempen NV is an independent specialist
wealth manager. Our purpose is to preserve and create\u00a0
wealth for our clients and for society in a sustainable way.\u00a0
Van Lanschot Kempen NV (\"Van\u00a0Lanschot Kempen\") has its
registered office at Hooge Steenweg 29, 5211 JN \u00b4s-
Hertogenbosch, the Netherlands. Van Lanschot Kempen is a
public limited company incorporated under Dutch law and
registered under number 16038212 at the Chamber of
Commerce. Depositary receipts for Class A ordinary shares
are publicly traded on the Euronext markets.
The consolidated financial statements of Van Lanschot
Kempen at 31 December 2022 were prepared by the
Management Board and approved by the Supervisory Board
on 22 February 2023, and will be submitted to the annual
general meeting of shareholders for adoption on
25\u00a0May\u00a02023.
Basis of preparation
The consolidated financial statements of Van Lanschot
Kempen and its subsidiaries have been prepared in
accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union (EU),
and with Part 9, Book 2 of the Dutch Civil Code. Unless
stated otherwise, assets and liabilities are measured at
historical cost.
Continuity
The Management Board has examined the ability of
Van\u00a0Lanschot Kempen to continue its operations and
concluded that Van Lanschot Kempen is able to do so for the
foreseeable future. Moreover, the Management Board is not
aware of any material uncertainties that cast significant
doubt on our \u2013 i.e. Van Lanschot Kempen's \u2013 ability to
continue as a going concern. The consolidated financial
statements have been prepared on this basis.
Economic context
Since the start of the Covid pandemic in 2020 and the war in
Ukraine in 2022, there has been a risk of an economic
recession. Although the outlook for the economic recovery
from the pandemic is positive, the war in Ukraine and
subsequent increased inflation, higher interest rates and
volatility in the equity markets have heightened uncertainty
about the future economic climate. A lot is still unknown
about the impact of these developments on the private
clients, entrepreneurs and family businesses we \u2013 as
Van\u00a0Lanschot Kempen \u2013 finance. That said, the impact of
current economic circumstances is considered to be limited
for Van Lanschot Kempen. During the pandemic and the war
in Ukraine, we have not experienced major disquiet among
our clients, either existing or new.
Van Lanschot Kempen has a solid capital and liquidity
position. Our capital and liquidity are above our targets and
our net result in 2022 amounted to \u20ac84.3 million (2021:
\u20ac143.8 million).
In 2022, the impact on our credit portfolio of the uncertain
economic circumstances caused, among other factors, by the
war in Ukraine and the Covid pandemic was minor. Even
after incorporating a management overlay for these
uncertain economic circumstances, the net impact on our
credit portfolio has been relatively limited. This is reflected
in a decrease in expected credit loss (ECL). The management
overlay takes into account uncertainties in the economic
outlook/macroeconomic climate which are not (yet)
considered to be reflected in the model parameters. For
more information, see \"Risk management\", under 3.8, Loss
allowance for expected credit losses (including sensitivity
analyses we have performed).
To summarise, Van Lanschot Kempen is well able to cope
with the uncertain economic circumstances, thanks to its
solid capital and liquidity position, and solid financial
performance. Considering the above, we can affirm that
there are no indications that cast significant doubt over
Van\u00a0Lanschot Kempen's ability to continue as a going
concern.
Functional and reporting currency
The consolidated financial statements are denominated in
euros, Van Lanschot Kempen's functional and reporting
currency. Unless stated otherwise, all amounts are
presented in thousands of euros. The totals may not always
match the sum of the individual values due to rounding.
Changes in accounting policies
The accounting policies adopted in the preparation of our
consolidated financial statements for the year ended
31\u00a0December 2022 remain unchanged, except for the
adoption of hedge accounting for micro fair value hedges
based on IFRS 9, new standards and interpretations
effective from 1 January 2022 and the adoption of the
amendments to IAS 1 on the disclosure of accounting
policies.
Changes in published IFRS standards and
interpretations
The IFRS standards listed below became effective from
1\u00a0January 2022 and have been applied to our financial
statements for 2022. Unless stated otherwise, application of
these standards had no material impact on Van Lanschot
Kempen\u2019s equity or result. Application of the amended
standards generally entails amendment or expansion of
notes.
Amendments to IFRS 3 \u2013 Reference to the Conceptual
Framework
The amendments are intended to update a reference to the
Conceptual Framework without significantly changing the
requirements of IFRS 3. The amendments add an exception
to the recognition principle of IFRS 3 that requires entities to
apply the criteria in IAS 37 or IFRIC 21, respectively, instead
of the Conceptual Framework, to determine whether a
present obligation exists at the acquisition date. At the same
time, the amendments add a new paragraph to IFRS 3 to
clarify that contingent assets do not qualify for recognition
at the acquisition date. The amendments must be applied
prospectively.
Property, Plant and Equipment: Proceeds before Intended
Use \u2013 Amendments to IAS 16
The amendments prohibit entities from deducting from the
cost of an item of property, plant and equipment any
proceeds from selling items produced while bringing that
asset to the location and condition necessary for it to be
capable of operating in the manner intended by
management. Instead, an entity recognises the proceeds
from selling such items, and the costs of producing those
items, in profit or loss.
Onerous Contracts \u2013 Costs of Fulfilling a Contract \u2013
Amendments to IAS 37
The amendments specify which costs an entity needs to
include when assessing whether a contract is onerous or
loss-making. The amendments apply a \u201cdirectly related cost
approach\u201d. The costs that relate directly to a contract to
provide goods or services include both incremental costs
and an allocation of costs directly related to contract
activities. General and administrative costs do not relate
directly to a contract and are excluded unless they are
explicitly chargeable to the counterparty under the contract.
Published IFRS standards and
interpretations not yet effective
In addition to the IFRS standards and interpretations
referred to above, a number of IFRS standards and
interpretations are new or have been amended, and apply to
financial statements for periods beginning on or after
1\u00a0January 2023. We have not applied the standards outlined
below in the 2022 financial statements. Unless stated
otherwise, standards will be applied as soon as they become
effective and have been endorsed by the EU.
Definition of Accounting estimates \u2013 Amendments to IAS 8
The amendments clarify the distinction between changes in
accounting estimates and changes in accounting policies and
the correction of errors. Also, they clarify how entities use
measurement techniques and inputs to develop accounting
estimates. The amendments should provide\u00a0 guidance for
entities in determining whether changes are to be treated as
changes in estimates, changes in policies, or errors. The
amendments apply to changes in accounting policies and
changes in accounting estimates that occur on or after the
start of the effective date. Earlier application is permitted.
The amendments are not expected to have a material impact
on the results or equity of the company.
Disclosure of Accounting Policies \u2013 Amendments to IAS 1
and IFRS Practice Statement 2
The amendments provide guidance and examples to help
entities apply materiality judgements to accounting policy
disclosures. The amendments intend for entities to disclose
more useful accounting policy disclosures by replacing the
requirement for entities to disclose their \"significant\"
accounting policies with a requirement to disclose their
\"material\" accounting policies. In addition, guidance is
provided on how entities apply the concept of materiality in
making decisions about accounting policy disclosures.
We decided to early adopt the amendments to IAS 1 and
revisited our accounting policy information to ensure
consistency with the amended standard.
Deferred Tax related to Assets and Liabilities arising from a
Single Transaction \u2013 Amendments to IAS 2
The amendments clarify that where payments that settle a
liability are deductible for tax purposes, it is a matter of
judgement (having considered the applicable tax law)
whether such deductions are attributable for tax purposes
to the liability recognised in the financial statements (and
interest expense) or to the related asset component (and
interest expense). This judgement is important in
determining whether any temporary differences exist on
initial recognition of the asset and liability.
Under the amendments, the initial recognition exception
does not apply to transactions that, on initial recognition,
give rise to equal taxable and deductible temporary
differences. It only applies if the recognition of a lease asset
and lease liability (or decommissioning a liability or
decommissioning an asset component) give rise to taxable
and deductible temporary differences that are not equal.
Nevertheless, it is possible that the resulting deferred tax
assets and liabilities are not equal (e.g. if the entity is unable
to benefit from the tax deductions or if different tax rates
apply to the taxable and deductible temporary differences).
In such cases, an entity would need to account for the
difference between the deferred tax asset and liability in
profit or loss.
An entity should apply the amendments to transactions that
occur on or after the beginning of the earliest comparative
period presented. In addition, at the beginning of the earliest
comparative period presented, it should also recognise a
deferred tax asset (provided that sufficient taxable profit is
available) and a deferred tax liability for all deductible and
taxable temporary differences associated with leases and
decommissioning obligations. The amendments are not
expected to have a material impact on the results or equity
of the company.
Significant accounting judgements and
estimates
We have identified those accounting policies which involve
the most complex or subjective decisions or assessments. In
the process of applying these accounting policies, we use
estimates, assumptions and judgements which can have a
significant impact on the amounts recognised in the financial
statements. These estimates and assumptions are based on
the most recent information available and include the impact
of the uncertain economic circumstances caused by
developments around the war in Ukraine among other
factors. The actual amounts may differ in the future. Where
applicable, the impact of the uncertain economic
circumstances on assumptions used are explained further in
the consolidated financial statements. The most significant
estimates and assumptions relate to the determination of
significant influence, fair value of financial instruments,
acquisitions, impairments of financial assets, carrying value
of goodwill and intangible assets.
Determination of significant influence
We have applied critical judgement to determine significant
influence in companies in which we hold minority interests
smaller than 20%. Our influence on the financial and
operating policy decisions at some minority interests is more
in line with that in an associate, e.g. veto rights in decisions
on the issuance of new shares and decisions on amendments
to the Articles of Association. For that reason, we classify
these as minority interests and apply equity accounting
instead of IFRS 9 fair value accounting. For further
information, see the disclosure on Investments in associates
using the equity method.
Determination of fair value
The determination of the fair value of financial instruments,
in so far as available and provided there is an active market,
is based on quoted prices in active markets at the reporting
date. For financial assets, the bid price is used; for financial
liabilities, the offer price.
The fair value of financial instruments not traded in an active
market is determined on the basis of cash flow, option and
other valuation models. These models are based on the
market circumstances prevailing at the reporting date.
Estimates mainly relate to future cash flows and discount
rates. For the fair value level classification and more details,
see \u201cRisk management\u201d, under 14, Fair value.
Acquisitions
In the case of acquisitions, it is necessary to determine the
fair value of the acquired assets (including any intangible
assets and goodwill acquired), as well as of liabilities and
obligations not recognised in the statement of financial
position. Estimates are used for this, particularly for those
items not traded on an active market. Management
consideration is also needed to determine the moment of the
change of control and thus the moment of consolidation of
an acquired entity.
Impairments of financial assets
We recognise a loss allowance for expected credit losses
(ECL) on financial assets measured at amortised cost or fair
value through other comprehensive income, as well as for
financial guarantees and loan commitments. When there has
been no significant deterioration in credit risk since initial
recognition, ECL is recognised based on a 12-month
expected credit loss (Stage 1). When a significant increase in
credit risk has occurred, ECL is recognised based on a
lifetime expected credit loss (Stage 2). For impaired loans
(Stage 3), a lifetime ECL is recognised. The impairments of
financial assets are determined as a critical estimate. For
more information on deterioration in credit risk, see \u201cRisk
management\u201d, under 3.8, Loss allowance for expected credit
loss.
Impairments of goodwill and other intangible assets
To measure the recoverable amounts, we calculate the value
in use for each cash-generating unit (CGU) or group of CGUs.
This calculation reflects an estimate of future cash flows,
base-case scenario analysis and discount rates. Future cash
flow estimates are based on our strategic plans and different
types of investigation into possible trends. Events and
factors that could have a significant impact on these
estimates include market expectations, effects of mergers
and acquisitions, competitive conditions, client behaviour
and changes in client relationships, cost structure, trends in
interest rates and risks, and other circumstances specific to
the industry and sector. In addition, an annual test is carried
out for indications of impairment of other intangible assets
with a finite useful life. For more information on the discount
rates used, see Note\u00a010, Goodwill and other intangible
assets.
Other accounting estimates
Impairments of non-financial assets
The recoverable amount of a non-financial asset is the higher
of the fair value of the asset less costs to sell and its value in
use. This fair value less costs to sell is the price that would be
received on the sale of an asset or paid on the transfer of a
liability in an orderly transaction between market
participants at the valuation date. To determine whether
assets are impaired, the individual assets are allocated to the
lowest level at which cash flows can be identified (cash-
generating units). Non-financial assets that have been
subject to impairment, other than goodwill paid, are
reviewed annually to determine whether the impairment can
be reversed. Non-financial assets, other than goodwill paid,
are tested for impairment annually by assessing whether
there are any indications that these assets are impaired.
Deferred tax assets
Deferred tax assets are recognised only if it is probable that
taxable profits will be realised in the near future against
which these temporary differences can be offset. Estimates
are used when determining future taxable profits, since
these are inherently subject to uncertainty.
Actuarial assumptions of provisions
Pension liabilities are determined using actuarial
calculations. These calculations use assumptions regarding
elements such as the discount rate, future trends in salaries
and returns on investments. These assumptions are subject
to estimation uncertainty. See Note 17, Provisions.
Other provisions
Other provisions are determined on the basis of the most
recent estimates of the expected costs. The timing of the
cash outflow related to these provisions is by nature
uncertain, given the unpredictability of the outcome and
time required to conclude these claims. In determining these
provisions, where applicable, we take into consideration the
opinion of legal experts.
Summary of significant accounting policies
Foreign currencies
Functional currency
Items in the statement of financial position pertaining to
each group company are stated in the currency of the
economic environment in which the entity operates (i.e. the
functional currency).
Group companies
The assets, liabilities, income and expenses of group
companies that use a functional currency other than the
reporting currency are translated as follows:
\u2013Assets and liabilities are translated using the closing
exchange rate at the reporting date;
\u2013Income and expenses are translated using the rate
prevailing on the transaction date;
\u2013Remaining exchange-related gains or losses are
recognised as a separate component of equity.
Upon consolidation, exchange-related gains or losses arising
from monetary items forming part of a net investment in
foreign subsidiaries are recognised in equity. Exchange-
related gains or losses on borrowings and other items
designated as hedging instruments for such investments are
also recognised in equity.
Transactions and line items
On initial recognition, transactions in foreign currencies are
translated into the functional currency at the exchange rates
prevailing on the transaction date. Translation differences
arising on the settlement of such transactions or on the
translation of monetary assets and liabilities denominated in
foreign currencies are recognised in the statement of
income, except where they are recognised in equity as
qualifying cash flow hedges or qualifying net investment
hedges in foreign subsidiaries.
In general, translation differences in the statement of
income are included in the result on financial transactions.
Translation differences on non-monetary items measured at
fair value through profit or loss are reported as part of the
fair value gain or loss. Non-monetary items are translated
into the reporting currency at the same time as the
determination of their fair value. By translation on the
reporting date, currency translation differences on non-
monetary items measured at fair value through equity are
included in the revaluation reserve in equity.
Non-monetary items not measured at fair value are
translated at the exchange rate prevailing on the original
transaction date.
Recognition of financial assets in the statement of financial
position
Purchases of financial assets designated at fair value
through profit or loss whose value is subject to change, or
financial assets at fair value through other comprehensive
income, or other financial assets at amortised costs, which
are settled according to standard market conventions, are
recognised on the transaction date, i.e. the date on which we
undertake to purchase or sell the asset concerned. Loans and
advances are recognised on the settlement date, i.e. the date
on which we receive the asset.
Derecognition of financial assets and liabilities in the
statement of financial position
Financial assets are derecognised when:
\u2013Our rights to the cash flows from the asset expire;
\u2013We have retained the right to receive the cash flows
from an asset, but have an obligation to pay these in full
to a third party under a special agreement;
\u2013We have transferred our rights to the cash flows from
the asset and have transferred substantially all the risks
and rewards;
\u2013We have not transferred substantially all the risks and
rewards but have transferred control over the asset.
If we have transferred our rights to the cash flows from an
asset, but have not transferred substantially all the risks and
rewards of the asset and have not transferred control, the
asset is recognised as long as we have continued
involvement in the asset.
A financial liability is derecognised as soon as the obligation
under the liability is discharged, cancelled or expired.
Special purpose entities
We have placed parts of our loan portfolio in special purpose
entities (SPEs), which comprise only covered bond
companies. If we have effective control over an SPE, it is
consolidated. We have control over an entity when we have
power over that entity and are exposed to or have rights to
variable income from our involvement in the entity and are
able to use our power over the entity to influence the
entity\u2019s income.
The accounting principles followed by Van Lanschot Kempen
are applied when consolidating SPEs.
Transfers of financial assets
All or a part of a financial asset is transferred if:
\u2013The contractual rights to receive the cash flows from
that financial asset are transferred; or
\u2013The contractual rights to receive the cash flows from
that financial asset are retained, but a contractual
obligation is assumed to pay the cash flows to one or
more recipients under an arrangement.
Derivatives
A derivative is initially recognised at fair value on the
effective date of the contract. After initial recognition, the
derivative is subsequently remeasured at fair value and
changes in value are taken to the statement of income under
Result on financial transactions. Fair values are based on
stock exchange prices, cash flow models, or option and other
valuation models.
Hedge accounting
We use derivatives, such as interest rate swaps, to hedge our
exposure to risks. The carrying amount of assets and
liabilities which are hedged through fair value hedging and
which would otherwise be recognised at cost is adjusted for
changes in the fair value that can be attributed to the hedged
risks. Any gains or losses arising from changes in the fair
value of derivatives not relating to the hedged risks are
taken directly to the statement of income.
At the inception of a hedge transaction, we formally
designate and document the hedge relationship and the
financial risk management objective when entering into the
hedge transaction. The documentation includes
identification of the hedging instrument, the hedged item or
transaction, the nature of the risk being hedged and how we
will assess the hedging instrument\u2019s effectiveness in
offsetting the exposure to risks.
Hedges that qualify for hedge accounting are recognised as
follows:
Fair value hedges
Fair value hedges are hedges of the exposure to changes in
the fair value of an asset or liability arising as a result of
interest rate changes. Changes in the value of the hedging
instrument are taken to the statement of income.
Any change in the fair value of the hedged item is also
recognised in the statement of income, in so far as the
hedging instrument has been effective in the preceding
period.
A hedge relationship ends if the hedging instrument is sold,
expires or is exercised, or if the hedging transaction no
longer meets the criteria for hedge accounting, with the
remaining value adjustment of the hedged item amortised
through profit or loss until the end of its term.
We apply micro fair value hedge accounting and macro fair
value hedge accounting.
Micro fair value hedges
From 1 January 2022 onwards, we have applied hedge
accounting for micro fair value hedges based on IFRS 9. A
fair value hedge is classified as a micro fair value hedge when
the hedged item (or group of items) is a distinctively
identifiable asset or liability hedged by one or a few hedging
instruments. Debt securities at fair value through other
comprehensive income and issued debt securities are
hedged for interest rate risk in a micro fair value hedge.
Effectiveness is assessed and documented on a monthly
basis in order to determine that the hedge has been highly
effective throughout the financial reporting periods for
which it was intended. If necessary, adjustments are made to
the hedge relationship.
Macro fair value hedges
We apply macro fair value hedges for fixed rate mortgages.
A portfolio of mortgages is identified comprising
homogeneous loans based on their contractual interest
rates, maturity and other risk characteristics. Mortgages
within the identified portfolio are allocated into repricing
term buckets based on expected repricing dates rather than
contractual repricing dates. The hedging instruments are
designated appropriately to those repricing term buckets.
Such hedges are considered to be effective if we may expect,
both upon inception and during the term of the hedge, that
changes in the fair value or cash flows of the hedged item will
be almost fully offset by changes in the fair value or cash
flows of the hedging instrument, in so far as they relate to
the hedged risk, and the actual outcome is within a range of
80-125%. Effectiveness is assessed and documented on a
monthly basis in order to determine that the hedge has been
highly effective throughout the financial reporting periods
for which it was intended. We apply the EU carve-out on
portfolio fair value hedges.
Cash flow hedges
Cash flow hedges are hedges of the exposure to fluctuations
in the cash flow of an asset, liability or future transaction
arising as a result of interest rate changes and/or inflation.
The portion of the gain or loss on the hedging instrument
that has been determined to be an effective hedge is
recognised directly in equity until the hedged item affects
the statement of income, while the ineffective portion is
recognised in the statement of income.
If the hedging instrument expires or is sold, or if it can no
longer be designated as a hedge, accumulated gains and
losses remain in equity until the expected future transaction
is taken to the statement of income. If the expected future
transaction is no longer likely to take place, the accumulated
result is transferred directly from equity to the statement of
income.
Embedded derivatives
Financial assets with embedded derivatives are considered
in their entirety when determining whether their cash flows
are solely payment of principal and interest.
If the hybrid contract contains a host that is not an asset, the
embedded derivatives are separated from the host contract
and treated as separate derivatives when:
\u2013The economic characteristics are not closely related to
those of the host contract;
\u2013A separate instrument with the same terms would meet
the definition of a derivative;
\u2013The hybrid contract is not measured at fair value through
profit or loss.
Day 1 profit
Discrepancies between the transaction price and the fair
value may arise if valuation techniques are applied at the
time of the transaction. Such a discrepancy is referred to as a
Day 1 profit. Any resulting profit or loss is recognised
directly in the statement of income if the valuation method is
based on observable inputs in an active market. In the event
of unobservable inputs, the gain or loss is amortised over the
term of the transaction.
Netting of financial assets and liabilities
Financial assets and liabilities are netted and presented in
the consolidated financial statements at the net amount
when we have a legally enforceable right to offset the
recognised amounts and there is an intention to settle on a
net basis, or to realise the asset and settle the liability
simultaneously. See 3.7, Risk management.
Statement of financial position
Cash and cash equivalents and balances at central banks
Cash and cash equivalents and balances at central banks
comprise, at nominal value, cash in hand and deposits with a
term of less than three months, investments readily
convertible into a known amount of cash with an
insignificant risk of value changes, balances at central banks
and balances withdrawable on demand at other banks in
respect of which the risk of value changes is insignificant.
The amount due from De Nederlandsche Bank (DNB) arising
from the minimum reserve requirement is also included in
this item.
Due from banks
Amounts due from banks are initially recognised at fair value
and subsequently at amortised cost using the effective
interest method.
Derivatives
Derivatives are carried at fair value. The positive and
negative values of derivatives are shown separately on the
face of the statement of financial position on the assets side
and the liabilities side, respectively. The values of derivatives
with a positive and negative value, concluded with the same
counterparty, are only netted if the cash flows are settled on
a net basis and this is permitted under law. Changes in the
value of derivatives are taken directly to the line item Result
on financial transactions. If the hedge is completely effective,
the net impact on the statement of income is nil. The
difference, in so far as this remains within the ranges set,
reflects ineffectiveness and is taken to the statement of
income.
Derivatives include:
\u2013The fair value of derivatives held for trading
Derivatives held for trading include transactions for own
account whereby the aim is to actively sell them in the
short term. Client option positions whereby offsetting
market transactions are conducted for all option
positions held by our clients on a one-on-one basis are
also included in this item;
\u2013Economic hedges
Economic hedges are derivatives used to manage risks
without applying hedge accounting;
\u2013Structured product derivatives
Structured product derivatives are instruments to hedge
structured products sold to clients, without application
of hedge accounting;
\u2013Derivatives with application of hedge accounting
These are derivatives used as hedging instruments in the
application of hedge accounting.
Financial assets at fair value through profit or loss
Assets that do not meet the criteria for amortised cost or fair
value through other comprehensive income (FVOCI) are
measured at fair value through profit or loss (FVPL).
Additionally, any instrument for which the contractual cash
flow characteristics are not solely payments of principal and
interest (SPPI) are measured at FVPL. No restrictions are set
for sales within the fair value through profit or loss portfolio.
Interest earned on these assets is recognised as interest
income under Other interest income. All other realised and
unrealised gains and losses on remeasuring debt instruments
at fair value are recognised under Result on financial
transactions. All realised and unrealised gains and losses on
remeasuring equity instruments at fair value are recognised
under Income from securities and associates.
Financial assets at fair value through profit or loss include
financial assets from trading activities. These are
transactions for our own account whereby the aim is to
actively sell these instruments in the short term. Financial
assets from trading activities consist of the trading portfolio
of both equity instruments and debt instruments. The
financial assets from trading activities are recognised at fair
value with effect from the trade date and value adjustments
are taken to the statement of income under the line item
Result on financial transactions.
Financial assets at fair value through other comprehensive
income
A debt instrument that is held within the hold to collect and
sell business model and meets the SPPI test is measured at
fair value, with fair value adjustments recognised in Other
comprehensive income unless the asset is designated at fair
value through profit or loss. Sales as a result of managing
everyday liquidity needs, maintaining a particular interest
yield profile on the secondary market, or to match the
duration and sales required by regulators, are consistent
with the objective of the hold to collect and sell portfolio.
Under FVOCI, a financial asset is measured at its fair value
and movements in the carrying amount are taken through
OCI, except for the recognition of impairment gains or
losses, interest revenue and foreign exchange gains and
losses on the instrument\u2019s amortised cost which are
recognised in the income statement. When the financial
asset is derecognised, the cumulative gain or loss previously
recognised in OCI is reclassified from equity to the income
statement and recognised in Result on financial transactions.
Interest income from these financial assets is included in
Interest income using the effective interest method.
Loans and advances to the public and private sectors
Loans and advances to the public and private sectors are
initially recognised at fair value plus transaction costs
directly attributable to the acquisition of the financial asset,
and are subsequently amortised using the effective interest
rate method less any allowance for impairment. The loss
allowance for expected credit losses is recognised in the
statement of income.
Other financial assets at amortised cost
A debt instrument that is held within the hold to collect
business model and meets the SPPI test is measured at
amortised cost unless the asset is designated at fair value
through profit or loss. Under this measurement category, the
financial asset is initially recognised at fair value plus
transaction costs that are directly attributable to the
acquisition of the financial asset, and subsequently
recognised at amortised cost less the principal repayments,
plus or minus the cumulative amortisation using the
effective interest method of any difference between that
initial amount and the maturity amount and adjusted for any
impairment allowance. The impairment is recognised in the
statement of income. Interest income from these financial
assets is included in Interest income using the effective
interest rate method.
Investments in associates using the equity method
These investments have been designated by management as
transactions held indefinitely, and as a result of the acquired
control can be classified as investments in associates using
the equity method. These are investments in entities where
we have significant influence but not control. If there is a
change in the equity of the associate, we recognise our share
in this change and include it in Other comprehensive income.
This also applies to results of associates recognised in our
statement of income.
In the first year of investment, investments classified as
investments in associates using the equity method are
recognised at cost, and where applicable are adjusted for any
changes in the value of the associate\u2019s individual receivables
and payables occurring after the acquisition, measured using
the policies applied by Van Lanschot Kempen.
The recoverable amount of the investments in associates
using the equity method is determined each quarter. The
valuation methods applied to assess the carrying value are
the capitalisation method (peer group analysis), the
discounted cash flow method and the disclosed net asset
value method. An impairment is recognised if the
recoverable amount is lower than the carrying amount.
The capitalisation method determines the value of a
business by multiplying the operating profit (EBIT) and the
operating profit before depreciation and amortisation
(EBITDA) by a multiplier factor derived from similar listed
companies (the peer group), if applicable also taking account
of a discount for poor liquidity and minority shareholding.
EBIT and EBITDA are adjusted for one-off items where
applicable.
The discounted cash flow method calculates the enterprise
value by discounting the forecast operational cash flows at a
discount rate for the planning period and a final value based
on the extrapolation of the operating profit.
The discount rate is determined on the basis of the discount
rate of listed companies with a high degree of similarity and
on the specific characteristics of the company. If applicable,
the discounted cash flow method takes account of a discount
for poor liquidity and minority shareholdings.
The company\u2019s net debt is then deducted from the value
resulting from the capitalisation method and/or discounted
cash flow method and multiplied by the share in the capital
structure in order to derive the shareholder value from the
enterprise value.
The disclosed net asset value method determines the value
of a company based on the statement of financial position.
If our share in the associate\u2019s losses is equal to or exceeds
our interest in the associate, no further losses are recognised
unless we have assumed obligations or made payments for
these associates.
Property and equipment
Property and equipment comprise buildings in own use,
right-of-use assets, operation system software and
information technology, communication and safety
equipment, alterations and furniture and fixtures. Property
and equipment are initially carried at cost and subsequently
measured at historical cost less accumulated depreciation
and accumulated impairments. The carrying value includes
the costs for replacement of part of the existing property as
soon as these costs are incurred, but excludes day-to-day
servicing costs. Depreciation is calculated on a straight-line
basis over the useful life of the asset.
Lease contracts which we entered into as a lessee are
classified as right-of-use assets. Right-of-use assets are
presented as part of Property and equipment in the
statement of financial position and are measured at cost,
comprising the following:
\u2013The amount of the initial measurement of the lease
liability;
\u2013Any lease payments made at or before the
commencement date less any lease incentives received;
\u2013Any initial direct costs;
\u2013Restoration costs.
Depreciation is applied using the same method as for wholly-
owned tangible assets.
The recoverable amount of individual property items within
the different CGUs or group of CGUs is determined every
year, irrespective of whether there is any indication of
impairment, and more often if market conditions so dictate.
The recoverable amount is the higher of the fair value less
costs to sell or the value in use. The fair value less costs to
sell is determined by an independent surveyor. If the fair
value less costs to sell is below the carrying amount, the
value in use is determined. This value is calculated using the
value-in-use method. If the value in use is also below the
carrying amount, an impairment is recognised for the
difference between the carrying amount and the higher of
the fair value less costs to sell and the value in use.
| |
Estimated useful life of property and equipment (years) |
| |
| |
Operating system software and IT | |
| |
| |
| |
| |
Tax assets and liabilities
Tax assets and liabilities are stated at face value. Current
and deferred tax assets and liabilities are offset if they relate
to the same tax authority, concern the same type of tax, if it
is permitted under law to offset these deferrals and if the
deferrals are expected to be settled simultaneously.
Deferred taxes are recognised on the face of the statement
of financial position if the valuation of an asset or liability
temporarily differs from the valuation for tax purposes.
Deferred taxes are calculated using the tax rates prevailing
on the reporting date. Deferred tax assets are recognised
only if it is probable that taxable profits will be realised in the
near future against which these temporary differences can
be offset.
Deferred tax assets and liabilities are assessed at every
reporting date and derecognised to the extent necessary.
This derecognition will be reversed if it is probable that
sufficient taxable profits will be available.
Changes in the value of investments at fair value through
other comprehensive income and movements in the value of
derivatives forming part of a cash flow hedge are recognised
in equity net of deferred tax. Deferred tax assets and
liabilities cease to be recognised when these movements in
value are realised. Current tax is taken to the statement of
income on realisation of the movement in value.
Other assets
Other assets comprise interest, commission and other
receivables, and are carried at the lower of cost or the
recoverable amount. This recoverable amount is the
estimated selling price in the ordinary course of business less
the relevant variable costs to sell. The recoverable amount
less the relevant variable costs to sell is based on the
appraisal value as determined by an independent surveyor.
Other assets are initially recognised at fair value excluding
transaction costs. After initial recognition, they are
recognised at amortised cost using the effective interest
method.
Due to banks
Amounts due to banks are initially recognised at fair value
excluding transaction costs. After their initial recognition,
they are recognised at amortised cost using the effective
interest method.
Public and private sector liabilities
Public and private sector liabilities are initially recognised at
fair value excluding transaction costs. After their initial
recognition, they are recognised at amortised cost using the
effective interest method.
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss
comprise financial instruments which management believes
should be recognised at fair value through profit or loss
based on one of the following reasons:
\u2013Designation eliminates or significantly reduces
inconsistencies in measurement and recognition which
would otherwise arise as a result of liabilities being
valued or income and expenses being recognised under
different accounting policies; or
\u2013The contract in which the financial instrument is included
contains one or more embedded derivatives and the
entire contract is recognised at fair value through profit
or loss. This is only permitted if the embedded derivative
has significant influence on the contractually agreed cash
flows.
The valuation takes account of our own credit risk. Own
credit risk is recognised in equity under the line item Other
reserves. See also Note 21, Equity. The remaining amount of
change in the fair value is recognised in Result on financial
transactions.
Financial liabilities at fair value through profit or loss include
financial liabilities from trading activities. These are
transactions for own account whereby the aim is to
repurchase these instruments in the short term. These
instruments are stated at fair value, with movements in
value recognised in the statement of income under Result on
financial transactions. This line item comprises short
positions on the trading portfolio in both equity instruments
and debt instruments. Recognition is from the date on which
the contract is concluded.
Issued debt securities
Issued debt securities are initially recognised at fair value
excluding transaction costs. After initial recognition, issued
debt securities are carried at amortised cost using the
effective interest method. Repurchase of our own debt
securities is offset in the consolidated financial statements
against the liability; the difference between the cost and the
carrying amount based on the remaining term is taken to the
statement of income.
Provisions
A provision is a liability of uncertain timing or amount. A
provision is included in the statement of financial position if
we have an obligation as a result of a past event, it is
probable that an outflow of resources will be required to
settle the obligation, and a reliable estimate can be made.
Provisions are discounted if the time value of money for the
liability has a material effect. The most material types of
provisions are the provision for pensions, provisions for
long-service benefits and restructuring provisions.
Provision for pensions
We operate defined benefit plans and defined contribution
plans. Under defined contribution plans, contributions to
pension providers are taken to the statement of income as
staff costs. We have no further payment obligations with
respect to defined contribution plans once the contributions
have been paid.
A defined benefit plan is a pension plan which defines the
amount of pension benefit that an employee will receive on
retirement. Factors such as age, years of service and salary
are taken into account when determining the amounts to be
paid. The provision for defined benefit plans is the present
value of the defined benefit obligation at the reporting date
less the fair value of plan assets.
Differences between the expected and actual return on plan
assets, actuarial gains and losses and changes in the effect of
the asset ceiling are recognised directly in equity; net
interest is recognised under Other interest expense in the
statement of income.
Provisions for long-service benefits
Employees receive a bonus to mark a long-service
anniversary of 25 and 40 years. The obligation is calculated
on an actuarial basis.
Restructuring provision
A provision for restructuring is recognised only if the
recognition criteria are met. We have a constructive
obligation if we have a detailed formal restructuring plan
identifying at least the business or part of the business
concerned, the principal locations affected, the number of
employees affected, a detailed estimate of the expenditure
to be undertaken and a suitable timeframe. Employees are
also notified of the main features of the plan.
Other liabilities
Other liabilities are initially recognised at fair value
excluding transaction costs. After their initial recognition,
they are recognised at amortised cost using the effective
interest method.
Lease liabilities are presented in the statement of financial
position as part of Other liabilities. Interest payments and
amortisation in the year are charged to the income
statement on a straight-line basis over the term of the lease,
and disclosed within the statement of income.
Lease liabilities consist of interest and amortisation
payments and are initially measured at the present value of
the remaining lease payments, discounted using the lessee\u2019s
incremental borrowing rate.
Subordinated loans
Subordinated loans are initially recognised at fair value
excluding transaction costs. After initial recognition, they
are carried at amortised cost. Purchases of our own
subordinated loans are offset against the liability in the
consolidated financial statements; the difference between
cost and the carrying amount based on the remaining term is
taken to the statement of income.
Equity
Direct costs of new share issues are deducted from equity,
taking account of taxes.
If we purchase treasury shares, the purchase price, including
direct transaction costs after tax, is deducted from equity.
Treasury shares that we purchase do not qualify for profit or
dividend and are not included in the calculation of earnings
per share.
Obligations not recognised in the statement of financial
position
This includes obligations that represent a potential credit
risk and where it is either not probable that it will lead to an
outflow of resources or that a reliable estimate can be made.
For the other obligations not recognised in the statement of
financial position, see \u201cCommitments\u201d in the supplementary
notes.
Contingent assets and liabilities and irrevocable
commitments
Contingent liabilities are carried at the contract value and
relate in particular to guarantees and irrevocable letters of
credit. This item consists of unused overdraft facilities, sale
and repurchase commitments, irrevocable payment
commitments for the Single Resolution Fund (SRF)\u00a0and all
other obligations resulting from irrevocable commitments
that could give rise to loans.
Statement of income
General
Revenue is recognised when it is likely that the economic
benefits will flow to Van Lanschot Kempen and the revenue
can be measured reliably. Costs are allocated as far as
possible to the period in which the services were rendered
or to the relevant proceeds.
Net interest income
This item consists of income earned on lending and costs of
borrowing, derivatives, related commission, and other
income/expense similar to interest. The amortisation of
remaining value adjustments on mortgage portfolios of fair
value hedges which expired in the past is presented under
Interest income.
Interest income and interest expense are recognised in the
statement of income on an accrual basis, using the effective
interest method. The effective interest rate is the rate that
exactly discounts estimated cash flows over the life of the
financial instrument, or a shorter period when appropriate,
to the net carrying amount of the financial asset or liability.
When calculating the effective interest rate, we take into
account all contractual terms of the financial instrument (for
example early repayment) but not future losses due to
uncollectible amounts.
Negative interest paid is recognised under Interest income,
and negative interest received is recognised under Interest
expense.\u00a0
Income from securities and associates
All dividends received from investments in equity
instruments are recognised directly in the statement of
income under Other income from securities and associates
when they are made payable.
Our share in the results of equity-valued associates is
recognised under Income from securities and associates
using the equity method. Dividends received are deducted
from the carrying amount of the equity-valued associate.
Due to the fact that these investments in associates using
the equity method are part of our investment strategy, we
present income from these as part of our operating
activities.
Net commission income
This item comprises the income, other than income similar to
interest, earned on wealth management services provided to
third parties. It also includes fees charged to managed
investment funds. Commission paid to third parties is
accounted for as commission expense.
We receive commission for the wide range of services we
provide to clients. This can be divided into commission on a
transaction basis and periodic commission charged to the
client during the year.
Commission on a transaction basis
Commission income on a transaction basis is recognised in
the periods in which we provide the services. Transaction
commission for which we only provide a service on the
transaction date (e.g. commission on buying and selling
shares) is taken directly to the statement of income.
Transaction commission for which we have to provide a
service in the future (e.g. commission on structured
products) forms part of the amortised cost and is recognised
in the statement of income over the expected term of the
instrument.
Periodic commission
Periodic commission (e.g. management fees) is recognised in
the statement of income in the period in which the services
are provided.
Result on financial transactions
Result on securities trading includes realised and unrealised
value differences on gains and losses on financial
instruments relating to the securities trading portfolio.
Exchange and price gains and losses on trading in other
financial instruments are recognised under Result on foreign
currency trading. Gains and losses due to ineffectiveness in
hedge accounting are recognised under Unrealised gains/
losses on derivatives under hedge accounting. When
financial assets at fair value through OCI are derecognised,
the cumulative gain or loss is reclassified to Realised gains or
losses on financial assets at fair value through other
comprehensive income. Result on economic hedges includes
realised and unrealised gains and losses on derivatives that
are not included in a hedge accounting model. Result on
financial instruments at fair value through profit or loss
comprises unrealised value differences and interest
expenses on financial liabilities at fair value through profit or
loss.
Other income
Other income comprises income from categories not listed
above, for example income resulting from the consolidation
of non-banking subsidiaries.
Staff costs
Staff costs comprise wages and salaries, pension and early
retirement costs, other social security costs and other staff
costs such as remuneration in the form of share-based
employee benefits.
Partnership plan
The partnership is a participation plan that will allow key
senior staff to contribute to and participate in the success of
Van Lanschot Kempen. Its purpose is to anchor leadership
more broadly in our organisation, to further encourage
ownership and entrepreneurial spirit, and to create more
long-term alignment with our shareholders and clients.
Partners' contributions remain in the partnership (FGR)
during their full tenure as a partner. Partners receive a
share-based discount of 18.5% and are subject to a lock-up
period of five years.
Share-based payments
Employees may be eligible to receive remuneration in the
form of share-based payments. The cost of equity-settled
transactions with employees is measured by reference to the
fair value at the date on which the equity instruments are
granted. The fair value is determined based on the share
price on the grant date, taking into account the discounted
value of expected dividends over the vesting period. The
cost of equity-settled transactions is recognised, together
with a corresponding increase in equity, in the period in
which the employee\u2019s performance criteria are fulfilled,
ending on the date on which the employee becomes fully
entitled to the award (the vesting date).
Partnership investment incentive
The purpose of the partnership investment incentive is to
enhance the return perspective of the contributions with
respect to which it is awarded. If awarded, a partnership
investment incentive will apply with respect to the
contributions made in the relevant contribution round for
five financial years and will be calculated at the end of each
of those five financial years in accordance with the
partnership investment incentive formula.
The partnership investment incentive will be paid to the
partners in two components: 70% in Van Lanschot Kempen
shares and 30% in cash.
Other administrative expenses
Other administrative expenses comprise IT expenses, costs
of marketing and communication, accommodation expenses,
office expenses and other administrative expenses.
Depreciation and amortisation
Depreciation and amortisation costs are determined on the
basis of estimated useful life and charged to the statement of
income.
Impairments
This item comprises the balance of the required impairments
and reversals of such impairments, including those on
financial instruments, on investments in associates using the
equity method, on goodwill and intangible assets, and on
property and equipment.
Income tax
Tax on operating profit is recognised in the statement of
income in accordance with applicable tax law in the
jurisdictions in which we operate. Tax effects of any losses
incurred in certain jurisdictions are recognised as assets
when it is probable that sufficient future profits will be
available in the relevant jurisdiction against which these
losses can be offset.
Earnings per ordinary share
Earnings per ordinary share are calculated by dividing the
profit for the year available to ordinary shareholders by the
weighted average number of ordinary shares outstanding
during the period. Diluted earnings per ordinary share are
calculated by dividing the profit available to ordinary
shareholders by the weighted average number of ordinary
shares outstanding during the period, adjusted for possible
dilution as a result of, for example, outstanding option rights.
Statement of cash flows
The statement of cash flows is prepared using the indirect
method. It distinguishes between cash flows from operating,
investing and financing activities. Cash flows from operating
activities include net changes in loans and advances,
deposits from/with banks, and public and private sector
liabilities. Investing activities include acquisition,
redemption and sales of debt instruments, equity
investments, associates using the equity method, property
and equipment, and goodwill and other intangible assets.
Financing activities include issues and repayments of share
plans, debt instruments and issued debt securities. Cash and
cash equivalents comprise, at face value, all cash in hand,
balances at central banks and balances withdrawable on
demand at other banks. Investing and financing transactions
that do not require the use of cash or cash equivalents are
excluded from the statement of cash flows.
Segment information
The different operating segments form the basis for our
primary segmentation. An operating segment is a business
unit that can earn revenues and incur expenses and whose
operating results are regularly reviewed by management or
the chief operating decision maker and for which discrete
financial information is available. Additional information is
reported geographically based on where the business
activities are located. Intra-segment transactions are
conducted on commercial terms and market conditions (at
arm\u2019s length).
",
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"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
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"value": "
General
Van Lanschot Kempen NV is an independent specialist
wealth manager. Our purpose is to preserve and create\u00a0
wealth for our clients and for society in a sustainable way.\u00a0
Van Lanschot Kempen NV (\"Van\u00a0Lanschot Kempen\") has its
registered office at Hooge Steenweg 29, 5211 JN \u00b4s-
Hertogenbosch, the Netherlands. Van Lanschot Kempen is a
public limited company incorporated under Dutch law and
registered under number 16038212 at the Chamber of
Commerce. Depositary receipts for Class A ordinary shares
are publicly traded on the Euronext markets.
The consolidated financial statements of Van Lanschot
Kempen at 31 December 2022 were prepared by the
Management Board and approved by the Supervisory Board
on 22 February 2023, and will be submitted to the annual
general meeting of shareholders for adoption on
25\u00a0May\u00a02023.
",
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"value": "Van Lanschot Kempen NV is an independent specialist wealth manager. Our purpose is to preserve and create\u00a0 wealth for our clients and for society in a sustainable way.",
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"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
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"value": "Van Lanschot Kempen NV",
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}
},
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"value": "Van Lanschot Kempen NV",
"dimensions": {
"concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNDgvZnJhZzpiMzljMDEwYjc1ZDk0Y2Q4OWQ0MDZjNTdkMzZhZDQxNS90ZXh0cmVnaW9uOmIzOWMwMTBiNzVkOTRjZDg5ZDQwNmM1N2QzNmFkNDE1XzE3MDIx_ee29d975-827c-4eb1-8869-690a88b5f7a2": {
"value": "Van Lanschot Kempen NV",
"dimensions": {
"concept": "ifrs-full:NameOfUltimateParentOfGroup",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNDgvZnJhZzpiMzljMDEwYjc1ZDk0Y2Q4OWQ0MDZjNTdkMzZhZDQxNS90ZXh0cmVnaW9uOmIzOWMwMTBiNzVkOTRjZDg5ZDQwNmM1N2QzNmFkNDE1XzE3MDIy_b121a2b6-69d5-4f70-a607-cc171716f020": {
"value": "Hooge Steenweg 29, 5211 JN \u00b4s-Hertogenbosch, the Netherlands",
"dimensions": {
"concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNDgvZnJhZzpiMzljMDEwYjc1ZDk0Y2Q4OWQ0MDZjNTdkMzZhZDQxNS90ZXh0cmVnaW9uOmIzOWMwMTBiNzVkOTRjZDg5ZDQwNmM1N2QzNmFkNDE1XzE3MDE1_5f4c9f29-1189-4c1b-a22d-6989afea7003": {
"value": "the Netherlands",
"dimensions": {
"concept": "ifrs-full:DomicileOfEntity",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNDgvZnJhZzpiMzljMDEwYjc1ZDk0Y2Q4OWQ0MDZjNTdkMzZhZDQxNS90ZXh0cmVnaW9uOmIzOWMwMTBiNzVkOTRjZDg5ZDQwNmM1N2QzNmFkNDE1XzE3MDE2_6a420fef-f909-44db-b235-865562c02b14": {
"value": "the Netherlands",
"dimensions": {
"concept": "ifrs-full:CountryOfIncorporation",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNDgvZnJhZzpiMzljMDEwYjc1ZDk0Y2Q4OWQ0MDZjNTdkMzZhZDQxNS90ZXh0cmVnaW9uOmIzOWMwMTBiNzVkOTRjZDg5ZDQwNmM1N2QzNmFkNDE1XzE3MDIw_109be0cb-4618-49cb-a5a9-883f73476c5f": {
"value": "the Netherlands",
"dimensions": {
"concept": "ifrs-full:PrincipalPlaceOfBusiness",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNDgvZnJhZzpiMzljMDEwYjc1ZDk0Y2Q4OWQ0MDZjNTdkMzZhZDQxNS90ZXh0cmVnaW9uOmIzOWMwMTBiNzVkOTRjZDg5ZDQwNmM1N2QzNmFkNDE1XzE3MDE4_501d9ed6-9774-4fe8-84dc-a42277dc4bce": {
"value": "public limited company",
"dimensions": {
"concept": "ifrs-full:LegalFormOfEntity",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNDgvZnJhZzpiMzljMDEwYjc1ZDk0Y2Q4OWQ0MDZjNTdkMzZhZDQxNS90ZXh0cmVnaW9uOmIzOWMwMTBiNzVkOTRjZDg5ZDQwNmM1N2QzNmFkNDE1XzUzMzI2MzE0MDExNDIw_317de4ad-1304-4b65-a868-6d6b2e85638c": {
"value": "
The consolidated financial statements of Van Lanschot
Kempen at 31 December 2022 were prepared by the
Management Board and approved by the Supervisory Board
on 22 February 2023, and will be submitted to the annual
general meeting of shareholders for adoption on
25\u00a0May\u00a02023.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNDgvZnJhZzpiMzljMDEwYjc1ZDk0Y2Q4OWQ0MDZjNTdkMzZhZDQxNS90ZXh0cmVnaW9uOmIzOWMwMTBiNzVkOTRjZDg5ZDQwNmM1N2QzNmFkNDE1XzUxNjc3MDQ2NTgxNjYz_e13c2839-ef5b-44a1-8b5e-b1cc700eda8d": {
"value": "
Basis of preparation
The consolidated financial statements of Van Lanschot
Kempen and its subsidiaries have been prepared in
accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union (EU),
and with Part 9, Book 2 of the Dutch Civil Code. Unless
stated otherwise, assets and liabilities are measured at
historical cost.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNDgvZnJhZzpiMzljMDEwYjc1ZDk0Y2Q4OWQ0MDZjNTdkMzZhZDQxNS90ZXh0cmVnaW9uOmIzOWMwMTBiNzVkOTRjZDg5ZDQwNmM1N2QzNmFkNDE1XzUxNjc3MDQ2NTgxNjYy_478fc317-700b-4083-95e3-35a81a04ca61": {
"value": "
The consolidated financial statements of Van Lanschot
Kempen and its subsidiaries have been prepared in
accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union (EU),
and with Part 9, Book 2 of the Dutch Civil Code. Unless
stated otherwise, assets and liabilities are measured at
historical cost",
"dimensions": {
"concept": "ifrs-full:StatementOfIFRSCompliance",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNDgvZnJhZzpiMzljMDEwYjc1ZDk0Y2Q4OWQ0MDZjNTdkMzZhZDQxNS90ZXh0cmVnaW9uOmIzOWMwMTBiNzVkOTRjZDg5ZDQwNmM1N2QzNmFkNDE1XzUxNjc3MDQ2NTc2NDE2_eb92759a-fc7b-41ec-b9a8-deb6718cd305": {
"value": "
Continuity
The Management Board has examined the ability of
Van\u00a0Lanschot Kempen to continue its operations and
concluded that Van Lanschot Kempen is able to do so for the
foreseeable future. Moreover, the Management Board is not
aware of any material uncertainties that cast significant
doubt on our \u2013 i.e. Van Lanschot Kempen's \u2013 ability to
continue as a going concern. The consolidated financial
statements have been prepared on this basis.
Economic context
Since the start of the Covid pandemic in 2020 and the war in
Ukraine in 2022, there has been a risk of an economic
recession. Although the outlook for the economic recovery
from the pandemic is positive, the war in Ukraine and
subsequent increased inflation, higher interest rates and
volatility in the equity markets have heightened uncertainty
about the future economic climate. A lot is still unknown
about the impact of these developments on the private
clients, entrepreneurs and family businesses we \u2013 as
Van\u00a0Lanschot Kempen \u2013 finance. That said, the impact of
current economic circumstances is considered to be limited
for Van Lanschot Kempen. During the pandemic and the war
in Ukraine, we have not experienced major disquiet among
our clients, either existing or new.
Van Lanschot Kempen has a solid capital and liquidity
position. Our capital and liquidity are above our targets and
our net result in 2022 amounted to \u20ac84.3 million (2021:
\u20ac143.8 million).
In 2022, the impact on our credit portfolio of the uncertain
economic circumstances caused, among other factors, by the
war in Ukraine and the Covid pandemic was minor. Even
after incorporating a management overlay for these
uncertain economic circumstances, the net impact on our
credit portfolio has been relatively limited. This is reflected
in a decrease in expected credit loss (ECL). The management
overlay takes into account uncertainties in the economic
outlook/macroeconomic climate which are not (yet)
considered to be reflected in the model parameters. For
more information, see \"Risk management\", under 3.8, Loss
allowance for expected credit losses (including sensitivity
analyses we have performed).
To summarise, Van Lanschot Kempen is well able to cope
with the uncertain economic circumstances, thanks to its
solid capital and liquidity position, and solid financial
performance. Considering the above, we can affirm that
there are no indications that cast significant doubt over
Van\u00a0Lanschot Kempen's ability to continue as a going
concern.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGoingConcernExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNDgvZnJhZzpiMzljMDEwYjc1ZDk0Y2Q4OWQ0MDZjNTdkMzZhZDQxNS90ZXh0cmVnaW9uOmIzOWMwMTBiNzVkOTRjZDg5ZDQwNmM1N2QzNmFkNDE1XzUzMzI2MzE0MDExNDE5_174afce5-0df1-405e-8680-d2288401e4b7": {
"value": "
Functional and reporting currency
The consolidated financial statements are denominated in
euros, Van Lanschot Kempen's functional and reporting
currency. Unless stated otherwise, all amounts are
presented in thousands of euros. The totals may not always
match the sum of the individual values due to rounding.
Functional currency
Items in the statement of financial position pertaining to
each group company are stated in the currency of the
economic environment in which the entity operates (i.e. the
functional currency).
Group companies
The assets, liabilities, income and expenses of group
companies that use a functional currency other than the
reporting currency are translated as follows:
\u2013Assets and liabilities are translated using the closing
exchange rate at the reporting date;
\u2013Income and expenses are translated using the rate
prevailing on the transaction date;
\u2013Remaining exchange-related gains or losses are
recognised as a separate component of equity.
Upon consolidation, exchange-related gains or losses arising
from monetary items forming part of a net investment in
foreign subsidiaries are recognised in equity. Exchange-
related gains or losses on borrowings and other items
designated as hedging instruments for such investments are
also recognised in equity.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNDgvZnJhZzpiMzljMDEwYjc1ZDk0Y2Q4OWQ0MDZjNTdkMzZhZDQxNS90ZXh0cmVnaW9uOmIzOWMwMTBiNzVkOTRjZDg5ZDQwNmM1N2QzNmFkNDE1XzUxNjc3MDQ2NTc2NDE0_2a9def31-ed6c-4927-a422-d796a0c36f86": {
"value": "
Changes in accounting policies
The accounting policies adopted in the preparation of our
consolidated financial statements for the year ended
31\u00a0December 2022 remain unchanged, except for the
adoption of hedge accounting for micro fair value hedges
based on IFRS 9, new standards and interpretations
effective from 1 January 2022 and the adoption of the
amendments to IAS 1 on the disclosure of accounting
policies.
Changes in published IFRS standards and
interpretations
The IFRS standards listed below became effective from
1\u00a0January 2022 and have been applied to our financial
statements for 2022. Unless stated otherwise, application of
these standards had no material impact on Van Lanschot
Kempen\u2019s equity or result. Application of the amended
standards generally entails amendment or expansion of
notes.
Amendments to IFRS 3 \u2013 Reference to the Conceptual
Framework
The amendments are intended to update a reference to the
Conceptual Framework without significantly changing the
requirements of IFRS 3. The amendments add an exception
to the recognition principle of IFRS 3 that requires entities to
apply the criteria in IAS 37 or IFRIC 21, respectively, instead
of the Conceptual Framework, to determine whether a
present obligation exists at the acquisition date. At the same
time, the amendments add a new paragraph to IFRS 3 to
clarify that contingent assets do not qualify for recognition
at the acquisition date. The amendments must be applied
prospectively.
Property, Plant and Equipment: Proceeds before Intended
Use \u2013 Amendments to IAS 16
The amendments prohibit entities from deducting from the
cost of an item of property, plant and equipment any
proceeds from selling items produced while bringing that
asset to the location and condition necessary for it to be
capable of operating in the manner intended by
management. Instead, an entity recognises the proceeds
from selling such items, and the costs of producing those
items, in profit or loss.
Onerous Contracts \u2013 Costs of Fulfilling a Contract \u2013
Amendments to IAS 37
The amendments specify which costs an entity needs to
include when assessing whether a contract is onerous or
loss-making. The amendments apply a \u201cdirectly related cost
approach\u201d. The costs that relate directly to a contract to
provide goods or services include both incremental costs
and an allocation of costs directly related to contract
activities. General and administrative costs do not relate
directly to a contract and are excluded unless they are
explicitly chargeable to the counterparty under the contract.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNDgvZnJhZzpiMzljMDEwYjc1ZDk0Y2Q4OWQ0MDZjNTdkMzZhZDQxNS90ZXh0cmVnaW9uOmIzOWMwMTBiNzVkOTRjZDg5ZDQwNmM1N2QzNmFkNDE1XzUzMzI2MzE0MDExNDE4_de28600f-4625-467d-a941-dde951d269ae": {
"value": "
Significant accounting judgements and
estimates
We have identified those accounting policies which involve
the most complex or subjective decisions or assessments. In
the process of applying these accounting policies, we use
estimates, assumptions and judgements which can have a
significant impact on the amounts recognised in the financial
statements. These estimates and assumptions are based on
the most recent information available and include the impact
of the uncertain economic circumstances caused by
developments around the war in Ukraine among other
factors. The actual amounts may differ in the future. Where
applicable, the impact of the uncertain economic
circumstances on assumptions used are explained further in
the consolidated financial statements. The most significant
estimates and assumptions relate to the determination of
significant influence, fair value of financial instruments,
acquisitions, impairments of financial assets, carrying value
of goodwill and intangible assets.
Determination of significant influence
We have applied critical judgement to determine significant
influence in companies in which we hold minority interests
smaller than 20%. Our influence on the financial and
operating policy decisions at some minority interests is more
in line with that in an associate, e.g. veto rights in decisions
on the issuance of new shares and decisions on amendments
to the Articles of Association. For that reason, we classify
these as minority interests and apply equity accounting
instead of IFRS 9 fair value accounting. For further
information, see the disclosure on Investments in associates
using the equity method.
Determination of fair value
The determination of the fair value of financial instruments,
in so far as available and provided there is an active market,
is based on quoted prices in active markets at the reporting
date. For financial assets, the bid price is used; for financial
liabilities, the offer price.
The fair value of financial instruments not traded in an active
market is determined on the basis of cash flow, option and
other valuation models. These models are based on the
market circumstances prevailing at the reporting date.
Estimates mainly relate to future cash flows and discount
rates. For the fair value level classification and more details,
see \u201cRisk management\u201d, under 14, Fair value.
Acquisitions
In the case of acquisitions, it is necessary to determine the
fair value of the acquired assets (including any intangible
assets and goodwill acquired), as well as of liabilities and
obligations not recognised in the statement of financial
position. Estimates are used for this, particularly for those
items not traded on an active market. Management
consideration is also needed to determine the moment of the
change of control and thus the moment of consolidation of
an acquired entity.
Impairments of financial assets
We recognise a loss allowance for expected credit losses
(ECL) on financial assets measured at amortised cost or fair
value through other comprehensive income, as well as for
financial guarantees and loan commitments. When there has
been no significant deterioration in credit risk since initial
recognition, ECL is recognised based on a 12-month
expected credit loss (Stage 1). When a significant increase in
credit risk has occurred, ECL is recognised based on a
lifetime expected credit loss (Stage 2). For impaired loans
(Stage 3), a lifetime ECL is recognised. The impairments of
financial assets are determined as a critical estimate. For
more information on deterioration in credit risk, see \u201cRisk
management\u201d, under 3.8, Loss allowance for expected credit
loss.
Impairments of goodwill and other intangible assets
To measure the recoverable amounts, we calculate the value
in use for each cash-generating unit (CGU) or group of CGUs.
This calculation reflects an estimate of future cash flows,
base-case scenario analysis and discount rates. Future cash
flow estimates are based on our strategic plans and different
types of investigation into possible trends. Events and
factors that could have a significant impact on these
estimates include market expectations, effects of mergers
and acquisitions, competitive conditions, client behaviour
and changes in client relationships, cost structure, trends in
interest rates and risks, and other circumstances specific to
the industry and sector. In addition, an annual test is carried
out for indications of impairment of other intangible assets
with a finite useful life. For more information on the discount
rates used, see Note\u00a010, Goodwill and other intangible
assets.
Other accounting estimates
Impairments of non-financial assets
The recoverable amount of a non-financial asset is the higher
of the fair value of the asset less costs to sell and its value in
use. This fair value less costs to sell is the price that would be
received on the sale of an asset or paid on the transfer of a
liability in an orderly transaction between market
participants at the valuation date. To determine whether
assets are impaired, the individual assets are allocated to the
lowest level at which cash flows can be identified (cash-
generating units). Non-financial assets that have been
subject to impairment, other than goodwill paid, are
reviewed annually to determine whether the impairment can
be reversed. Non-financial assets, other than goodwill paid,
are tested for impairment annually by assessing whether
there are any indications that these assets are impaired.
Deferred tax assets
Deferred tax assets are recognised only if it is probable that
taxable profits will be realised in the near future against
which these temporary differences can be offset. Estimates
are used when determining future taxable profits, since
these are inherently subject to uncertainty.
Actuarial assumptions of provisions
Pension liabilities are determined using actuarial
calculations. These calculations use assumptions regarding
elements such as the discount rate, future trends in salaries
and returns on investments. These assumptions are subject
to estimation uncertainty. See Note 17, Provisions.
Other provisions
Other provisions are determined on the basis of the most
recent estimates of the expected costs. The timing of the
cash outflow related to these provisions is by nature
uncertain, given the unpredictability of the outcome and
time required to conclude these claims. In determining these
provisions, where applicable, we take into consideration the
opinion of legal experts",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNDgvZnJhZzpiMzljMDEwYjc1ZDk0Y2Q4OWQ0MDZjNTdkMzZhZDQxNS90ZXh0cmVnaW9uOmIzOWMwMTBiNzVkOTRjZDg5ZDQwNmM1N2QzNmFkNDE1XzUzMzI2MzE0MDExNDIz_758d24c7-5e3b-47c4-bb58-505d9936afd6": {
"value": "
Determination of fair value
The determination of the fair value of financial instruments,
in so far as available and provided there is an active market,
is based on quoted prices in active markets at the reporting
date. For financial assets, the bid price is used; for financial
liabilities, the offer price.
The fair value of financial instruments not traded in an active
market is determined on the basis of cash flow, option and
other valuation models. These models are based on the
market circumstances prevailing at the reporting date.
Estimates mainly relate to future cash flows and discount
rates. For the fair value level classification and more details,
see \u201cRisk management\u201d, under 14, Fair value.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNDgvZnJhZzpiMzljMDEwYjc1ZDk0Y2Q4OWQ0MDZjNTdkMzZhZDQxNS90ZXh0cmVnaW9uOmIzOWMwMTBiNzVkOTRjZDg5ZDQwNmM1N2QzNmFkNDE1XzUzMzI2MzE0MDExNDIx_eef92b51-1aa6-4ef0-a67a-5d846d9ea2f0": {
"value": "
Impairments of financial assets
We recognise a loss allowance for expected credit losses
(ECL) on financial assets measured at amortised cost or fair
value through other comprehensive income, as well as for
financial guarantees and loan commitments. When there has
been no significant deterioration in credit risk since initial
recognition, ECL is recognised based on a 12-month
expected credit loss (Stage 1). When a significant increase in
credit risk has occurred, ECL is recognised based on a
lifetime expected credit loss (Stage 2). For impaired loans
(Stage 3), a lifetime ECL is recognised. The impairments of
financial assets are determined as a critical estimate. For
more information on deterioration in credit risk, see \u201cRisk
management\u201d, under 3.8, Loss allowance for expected credit
loss.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNDgvZnJhZzpiMzljMDEwYjc1ZDk0Y2Q4OWQ0MDZjNTdkMzZhZDQxNS90ZXh0cmVnaW9uOmIzOWMwMTBiNzVkOTRjZDg5ZDQwNmM1N2QzNmFkNDE1XzUzMzI2MzE0MDExNDIy_05961c2a-8074-43a5-a3e7-c93ca21582ad": {
"value": "
Impairments of non-financial assets
The recoverable amount of a non-financial asset is the higher
of the fair value of the asset less costs to sell and its value in
use. This fair value less costs to sell is the price that would be
received on the sale of an asset or paid on the transfer of a
liability in an orderly transaction between market
participants at the valuation date. To determine whether
assets are impaired, the individual assets are allocated to the
lowest level at which cash flows can be identified (cash-
generating units). Non-financial assets that have been
subject to impairment, other than goodwill paid, are
reviewed annually to determine whether the impairment can
be reversed. Non-financial assets, other than goodwill paid,
are tested for impairment annually by assessing whether
there are any indications that these assets are impaired.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTEvZnJhZzo2ZGFkMTA3NGJiOWQ0MjZkYjdmYjAyNTJmMDBlNzg4Yy90ZXh0cmVnaW9uOjZkYWQxMDc0YmI5ZDQyNmRiN2ZiMDI1MmYwMGU3ODhjXzUxNjc3MDQ2NTExOTE2_3654015e-d9e7-4348-b1cf-593384ae4bb8": {
"value": "
Basis of consolidation
Subsidiaries
The consolidated financial statements of Van Lanschot
Kempen comprise the financial statements of Van Lanschot
Kempen and its subsidiaries. These have been prepared at
31 December 2022 using accounting policies consistent with
those used in the previous year, and their financial year is
concurrent with the calendar year.
Subsidiaries (including the consolidated structured entities)
are associates in which Van Lanschot Kempen exercises
decisive control. Van Lanschot Kempen has decisive control
over an entity when it has power over that entity and is
exposed to or has rights to variable income from its
involvement in the entity and is able to use its power over
the entity to influence the entity\u2019s income. The assessment
of control is based on the actual relationship between
Van\u00a0Lanschot Kempen and the entity. Factors taken into
account include existing and potential voting rights. A right is
a material right if its holder is able to exercise that right in
practice.
Van Lanschot Kempen has power over an entity if its existing
and potential voting rights amount to more than 50%. If
these rights amount to less than 50%, Van Lanschot Kempen
determines whether it has power over the entity pursuant to
contractual agreements. In making this assessment, a
distinction is made between substantive and protective
rights. Substantive rights are rights which enable the
decision-making power of an enterprise to be influenced
directly and which give Van Lanschot Kempen decisive
control over an entity. Examples include the right to appoint
and dismiss members of the Management Board, and to set
the level of their remuneration. Protective rights are rights
which protect the interests of an entity in another entity, but
which do not directly confer decision-making powers.
Protective rights do not give Van Lanschot Kempen decisive
control over an entity. When acquiring non-controlling
interests, Van Lanschot Kempen in principle includes only
protective rights in the contractual agreement. These are
rights of approval which enable Van Lanschot Kempen to
protect its minority position without acquiring decision-
making power. Examples of protective rights are rights of
approval in respect of the issue of shares and\u00a0 effecting
significant acquisitions.
Intra-group transactions are eliminated in the consolidation
process. Subsidiaries are consolidated from the date of
incorporation or acquisition, being the date on which
Van\u00a0Lanschot Kempen acquires control, and are
consolidated until the date that such control ceases.
We consolidate interests in investment funds if we have
power over the investment fund and are exposed to or have
rights to variable income stemming from our involvement
and are able to use our power over the investment fund to
influence the variable income. The assessment of control is
based on the actual relationship between Van Lanschot
Kempen and the investment fund. Van Lanschot Kempen
takes into account its interest for its own account and its
own role, or that of one of its group companies, as fund
manager.
In the case of subsidiaries not fully controlled by
Van\u00a0Lanschot Kempen, the non-controlling interest in equity
is presented separately in the consolidated statement of
financial position as a component of total equity. The profit
or loss for the reporting period that can be attributed to the
non-controlling interest is disclosed separately.
Acquisitions
Acquisitions are recognised using the acquisition method.
Accordingly, the cost of an acquisition is allocated to the fair
value of the acquired assets (inclusive of any intangible
assets not previously recognised in the statement of
financial position), liabilities and obligations not recognised
in the statement of financial position.
Goodwill, being the difference between the cost of the
acquisition (including assumed debts) and our interest in the
fair value of acquired assets, liabilities and obligations not
recognised in the statement of financial position at the
acquisition date, is capitalised as an intangible asset. If this
difference is negative (negative goodwill), it is taken directly
to the statement of income. Goodwill is not amortised. For
more information on its valuation, see Note 10, Goodwill and
other intangible assets.
A non-controlling interest in the company acquired is
recognised at the fair value prevailing on the acquisition date
or at the proportionate share in the identifiable assets and
liabilities of the company acquired. Results of companies
acquired are disclosed in the statement of income from the
date at which control is obtained.
Adjustments to the fair value of acquired assets and
liabilities at the acquisition date which are identified within
12 months of the acquisition may lead to adjustment of
goodwill. Adjustments identified after expiry of one year are
disclosed in the statement of income.
On disposal of group companies, the difference between the
sale proceeds and the acquisition cost (including goodwill) is
included in the statement of income together with any
unrealised gain or loss.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTEvZnJhZzo2ZGFkMTA3NGJiOWQ0MjZkYjdmYjAyNTJmMDBlNzg4Yy90ZXh0cmVnaW9uOjZkYWQxMDc0YmI5ZDQyNmRiN2ZiMDI1MmYwMGU3ODhjXzUxNjc3MDQ2NTExOTE4_97a8b251-f513-4eeb-9b3b-37a0850fcf81": {
"value": "
Subsidiaries
The consolidated financial statements of Van Lanschot
Kempen comprise the financial statements of Van Lanschot
Kempen and its subsidiaries. These have been prepared at
31 December 2022 using accounting policies consistent with
those used in the previous year, and their financial year is
concurrent with the calendar year.
Subsidiaries (including the consolidated structured entities)
are associates in which Van Lanschot Kempen exercises
decisive control. Van Lanschot Kempen has decisive control
over an entity when it has power over that entity and is
exposed to or has rights to variable income from its
involvement in the entity and is able to use its power over
the entity to influence the entity\u2019s income. The assessment
of control is based on the actual relationship between
Van\u00a0Lanschot Kempen and the entity. Factors taken into
account include existing and potential voting rights. A right is
a material right if its holder is able to exercise that right in
practice.
Van Lanschot Kempen has power over an entity if its existing
and potential voting rights amount to more than 50%. If
these rights amount to less than 50%, Van Lanschot Kempen
determines whether it has power over the entity pursuant to
contractual agreements. In making this assessment, a
distinction is made between substantive and protective
rights. Substantive rights are rights which enable the
decision-making power of an enterprise to be influenced
directly and which give Van Lanschot Kempen decisive
control over an entity. Examples include the right to appoint
and dismiss members of the Management Board, and to set
the level of their remuneration. Protective rights are rights
which protect the interests of an entity in another entity, but
which do not directly confer decision-making powers.
Protective rights do not give Van Lanschot Kempen decisive
control over an entity. When acquiring non-controlling
interests, Van Lanschot Kempen in principle includes only
protective rights in the contractual agreement. These are
rights of approval which enable Van Lanschot Kempen to
protect its minority position without acquiring decision-
making power. Examples of protective rights are rights of
approval in respect of the issue of shares and\u00a0 effecting
significant acquisitions.
Intra-group transactions are eliminated in the consolidation
process. Subsidiaries are consolidated from the date of
incorporation or acquisition, being the date on which
Van\u00a0Lanschot Kempen acquires control, and are
consolidated until the date that such control ceases.
We consolidate interests in investment funds if we have
power over the investment fund and are exposed to or have
rights to variable income stemming from our involvement
and are able to use our power over the investment fund to
influence the variable income. The assessment of control is
based on the actual relationship between Van Lanschot
Kempen and the investment fund. Van Lanschot Kempen
takes into account its interest for its own account and its
own role, or that of one of its group companies, as fund
manager.
In the case of subsidiaries not fully controlled by
Van\u00a0Lanschot Kempen, the non-controlling interest in equity
is presented separately in the consolidated statement of
financial position as a component of total equity. The profit
or loss for the reporting period that can be attributed to the
non-controlling interest is disclosed separately.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTEvZnJhZzo2ZGFkMTA3NGJiOWQ0MjZkYjdmYjAyNTJmMDBlNzg4Yy90ZXh0cmVnaW9uOjZkYWQxMDc0YmI5ZDQyNmRiN2ZiMDI1MmYwMGU3ODhjXzUxNjc3MDQ2NTExOTIw_71771464-ded4-4d96-ad30-afc5f20f3bfb": {
"value": "
Acquisitions
Acquisitions are recognised using the acquisition method.
Accordingly, the cost of an acquisition is allocated to the fair
value of the acquired assets (inclusive of any intangible
assets not previously recognised in the statement of
financial position), liabilities and obligations not recognised
in the statement of financial position.
Goodwill, being the difference between the cost of the
acquisition (including assumed debts) and our interest in the
fair value of acquired assets, liabilities and obligations not
recognised in the statement of financial position at the
acquisition date, is capitalised as an intangible asset. If this
difference is negative (negative goodwill), it is taken directly
to the statement of income. Goodwill is not amortised. For
more information on its valuation, see Note 10, Goodwill and
other intangible assets.
A non-controlling interest in the company acquired is
recognised at the fair value prevailing on the acquisition date
or at the proportionate share in the identifiable assets and
liabilities of the company acquired. Results of companies
acquired are disclosed in the statement of income from the
date at which control is obtained.
Adjustments to the fair value of acquired assets and
liabilities at the acquisition date which are identified within
12 months of the acquisition may lead to adjustment of
goodwill. Adjustments identified after expiry of one year are
disclosed in the statement of income.
On disposal of group companies, the difference between the
sale proceeds and the acquisition cost (including goodwill) is
included in the statement of income together with any
unrealised gain or loss.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTEvZnJhZzo2ZGFkMTA3NGJiOWQ0MjZkYjdmYjAyNTJmMDBlNzg4Yy90ZXh0cmVnaW9uOjZkYWQxMDc0YmI5ZDQyNmRiN2ZiMDI1MmYwMGU3ODhjXzUxNjc3MDQ2NTEyMDEw_51e64e4f-b5cf-4a18-b729-bd30d08e1c99": {
"value": "
Goodwill, being the difference between the cost of the
acquisition (including assumed debts) and our interest in the
fair value of acquired assets, liabilities and obligations not
recognised in the statement of financial position at the
acquisition date, is capitalised as an intangible asset. If this
difference is negative (negative goodwill), it is taken directly
to the statement of income. Goodwill is not amortised. For
more information on its valuation, see Note 10, Goodwill and
other intangible assets.
Goodwill and other intangible assets
Goodwill represents the difference between the fair value of
the acquired assets (including intangible assets) and
liabilities, and the purchase price paid (excluding acquisition
costs). Goodwill paid is included in the financial statements
at cost less any accumulated impairment losses. Goodwill
paid is tested for impairment annually or whenever events or
changes in circumstances indicate that the carrying value
may be impaired. An impairment is calculated based on the
difference between the carrying value and the recoverable
amount of the CGU to which the goodwill relates. A CGU\u2019s
recoverable amount is the higher of its fair value less costs to
sell and its value in use.
Owing to the absence of a market for separate CGUs, we are
unable to calculate a reliable fair value less costs for which
each CGU or group of CGUs may be sold. The recoverable
amount is therefore deemed to be equal to the value in use.
The value in use is determined by discounting the future
equity cash flows generated by each CGU or group of CGUs
to their net present value using a cost of equity for each CGU
or group of CGUs. If the recoverable amount of a CGU is
lower than its carrying amount, goodwill is impaired. The
impairment is first applied in full to the goodwill and then pro
rata to the individual assets.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTEvZnJhZzo2ZGFkMTA3NGJiOWQ0MjZkYjdmYjAyNTJmMDBlNzg4Yy90ZXh0cmVnaW9uOjZkYWQxMDc0YmI5ZDQyNmRiN2ZiMDI1MmYwMGU3ODhjXzUxNjc3MDQ2NTExOTE5_f45cec12-23bb-443c-a37b-39aa80e14672": {
"value": "
On disposal of group companies, the difference between the
sale proceeds and the acquisition cost (including goodwill) is
included in the statement of income together with any
unrealised gain or loss.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTQvZnJhZzo1ZmU1ZDYzZDg1YWI0ODZiOGU2MTJjN2I5MTU3NTM3Zi90ZXh0cmVnaW9uOjVmZTVkNjNkODVhYjQ4NmI4ZTYxMmM3YjkxNTc1MzdmXzUzMzI2MzE0MDQwNDIw_22af2eb8-b221-4bb4-aa04-07d4f73d72c0": {
"value": "
Transactions and line items
On initial recognition, transactions in foreign currencies are
translated into the functional currency at the exchange rates
prevailing on the transaction date. Translation differences
arising on the settlement of such transactions or on the
translation of monetary assets and liabilities denominated in
foreign currencies are recognised in the statement of
income, except where they are recognised in equity as
qualifying cash flow hedges or qualifying net investment
hedges in foreign subsidiaries.
In general, translation differences in the statement of
income are included in the result on financial transactions.
Translation differences on non-monetary items measured at
fair value through profit or loss are reported as part of the
fair value gain or loss. Non-monetary items are translated
into the reporting currency at the same time as the
determination of their fair value. By translation on the
reporting date, currency translation differences on non-
monetary items measured at fair value through equity are
included in the revaluation reserve in equity.
Non-monetary items not measured at fair value are
translated at the exchange rate prevailing on the original
transaction date.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTQvZnJhZzo1ZmU1ZDYzZDg1YWI0ODZiOGU2MTJjN2I5MTU3NTM3Zi90ZXh0cmVnaW9uOjVmZTVkNjNkODVhYjQ4NmI4ZTYxMmM3YjkxNTc1MzdmXzUxNjc3MDQ2NjA2OTY0_a3813ee7-875c-455e-8807-223c915110b2": {
"value": "
Derecognition of financial assets and liabilities in the
statement of financial position
Financial assets are derecognised when:
\u2013Our rights to the cash flows from the asset expire;
\u2013We have retained the right to receive the cash flows
from an asset, but have an obligation to pay these in full
to a third party under a special agreement;
\u2013We have transferred our rights to the cash flows from
the asset and have transferred substantially all the risks
and rewards;
\u2013We have not transferred substantially all the risks and
rewards but have transferred control over the asset.
If we have transferred our rights to the cash flows from an
asset, but have not transferred substantially all the risks and
rewards of the asset and have not transferred control, the
asset is recognised as long as we have continued
involvement in the asset.
Financial assets at fair value through profit or loss
Assets that do not meet the criteria for amortised cost or fair
value through other comprehensive income (FVOCI) are
measured at fair value through profit or loss (FVPL).
Additionally, any instrument for which the contractual cash
flow characteristics are not solely payments of principal and
interest (SPPI) are measured at FVPL. No restrictions are set
for sales within the fair value through profit or loss portfolio.
Interest earned on these assets is recognised as interest
income under Other interest income. All other realised and
unrealised gains and losses on remeasuring debt instruments
at fair value are recognised under Result on financial
transactions. All realised and unrealised gains and losses on
remeasuring equity instruments at fair value are recognised
under Income from securities and associates.
Financial assets at fair value through profit or loss include
financial assets from trading activities. These are
transactions for our own account whereby the aim is to
actively sell these instruments in the short term. Financial
assets from trading activities consist of the trading portfolio
of both equity instruments and debt instruments. The
financial assets from trading activities are recognised at fair
value with effect from the trade date and value adjustments
are taken to the statement of income under the line item
Result on financial transactions.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTQvZnJhZzo1ZmU1ZDYzZDg1YWI0ODZiOGU2MTJjN2I5MTU3NTM3Zi90ZXh0cmVnaW9uOjVmZTVkNjNkODVhYjQ4NmI4ZTYxMmM3YjkxNTc1MzdmXzUzODc2MDY5ODYxNDkw_66be1a5e-d552-4f6a-85ea-7aa02415e556": {
"value": "A financial liability is derecognised as soon as the obligation under the liability is discharged, cancelled or expired
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss
comprise financial instruments which management believes
should be recognised at fair value through profit or loss
based on one of the following reasons:
\u2013Designation eliminates or significantly reduces
inconsistencies in measurement and recognition which
would otherwise arise as a result of liabilities being
valued or income and expenses being recognised under
different accounting policies; or
\u2013The contract in which the financial instrument is included
contains one or more embedded derivatives and the
entire contract is recognised at fair value through profit
or loss. This is only permitted if the embedded derivative
has significant influence on the contractually agreed cash
flows.
The valuation takes account of our own credit risk. Own
credit risk is recognised in equity under the line item Other
reserves. See also Note 21, Equity. The remaining amount of
change in the fair value is recognised in Result on financial
transactions.
Financial liabilities at fair value through profit or loss include
financial liabilities from trading activities. These are
transactions for own account whereby the aim is to
repurchase these instruments in the short term. These
instruments are stated at fair value, with movements in
value recognised in the statement of income under Result on
financial transactions. This line item comprises short
positions on the trading portfolio in both equity instruments
and debt instruments. Recognition is from the date on which
the contract is concluded.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTQvZnJhZzo1ZmU1ZDYzZDg1YWI0ODZiOGU2MTJjN2I5MTU3NTM3Zi90ZXh0cmVnaW9uOjVmZTVkNjNkODVhYjQ4NmI4ZTYxMmM3YjkxNTc1MzdmXzUzMzI2MzE0MDQwNDIz_3b4bc352-17be-410b-ad0c-0842ad53ccd4": {
"value": "
Derivatives
A derivative is initially recognised at fair value on the
effective date of the contract. After initial recognition, the
derivative is subsequently remeasured at fair value and
changes in value are taken to the statement of income under
Result on financial transactions. Fair values are based on
stock exchange prices, cash flow models, or option and other
valuation models.
Hedge accounting
We use derivatives, such as interest rate swaps, to hedge our
exposure to risks. The carrying amount of assets and
liabilities which are hedged through fair value hedging and
which would otherwise be recognised at cost is adjusted for
changes in the fair value that can be attributed to the hedged
risks. Any gains or losses arising from changes in the fair
value of derivatives not relating to the hedged risks are
taken directly to the statement of income.
At the inception of a hedge transaction, we formally
designate and document the hedge relationship and the
financial risk management objective when entering into the
hedge transaction. The documentation includes
identification of the hedging instrument, the hedged item or
transaction, the nature of the risk being hedged and how we
will assess the hedging instrument\u2019s effectiveness in
offsetting the exposure to risks.
Hedges that qualify for hedge accounting are recognised as
follows:
Fair value hedges
Fair value hedges are hedges of the exposure to changes in
the fair value of an asset or liability arising as a result of
interest rate changes. Changes in the value of the hedging
instrument are taken to the statement of income.
Any change in the fair value of the hedged item is also
recognised in the statement of income, in so far as the
hedging instrument has been effective in the preceding
period.
A hedge relationship ends if the hedging instrument is sold,
expires or is exercised, or if the hedging transaction no
longer meets the criteria for hedge accounting, with the
remaining value adjustment of the hedged item amortised
through profit or loss until the end of its term.
We apply micro fair value hedge accounting and macro fair
value hedge accounting.
Micro fair value hedges
From 1 January 2022 onwards, we have applied hedge
accounting for micro fair value hedges based on IFRS 9. A
fair value hedge is classified as a micro fair value hedge when
the hedged item (or group of items) is a distinctively
identifiable asset or liability hedged by one or a few hedging
instruments. Debt securities at fair value through other
comprehensive income and issued debt securities are
hedged for interest rate risk in a micro fair value hedge.
Effectiveness is assessed and documented on a monthly
basis in order to determine that the hedge has been highly
effective throughout the financial reporting periods for
which it was intended. If necessary, adjustments are made to
the hedge relationship.
Macro fair value hedges
We apply macro fair value hedges for fixed rate mortgages.
A portfolio of mortgages is identified comprising
homogeneous loans based on their contractual interest
rates, maturity and other risk characteristics. Mortgages
within the identified portfolio are allocated into repricing
term buckets based on expected repricing dates rather than
contractual repricing dates. The hedging instruments are
designated appropriately to those repricing term buckets.
Such hedges are considered to be effective if we may expect,
both upon inception and during the term of the hedge, that
changes in the fair value or cash flows of the hedged item will
be almost fully offset by changes in the fair value or cash
flows of the hedging instrument, in so far as they relate to
the hedged risk, and the actual outcome is within a range of
80-125%. Effectiveness is assessed and documented on a
monthly basis in order to determine that the hedge has been
highly effective throughout the financial reporting periods
for which it was intended. We apply the EU carve-out on
portfolio fair value hedges.
Cash flow hedges
Cash flow hedges are hedges of the exposure to fluctuations
in the cash flow of an asset, liability or future transaction
arising as a result of interest rate changes and/or inflation.
The portion of the gain or loss on the hedging instrument
that has been determined to be an effective hedge is
recognised directly in equity until the hedged item affects
the statement of income, while the ineffective portion is
recognised in the statement of income.
If the hedging instrument expires or is sold, or if it can no
longer be designated as a hedge, accumulated gains and
losses remain in equity until the expected future transaction
is taken to the statement of income. If the expected future
transaction is no longer likely to take place, the accumulated
result is transferred directly from equity to the statement of
income.
Embedded derivatives
Financial assets with embedded derivatives are considered
in their entirety when determining whether their cash flows
are solely payment of principal and interest.
If the hybrid contract contains a host that is not an asset, the
embedded derivatives are separated from the host contract
and treated as separate derivatives when:
\u2013The economic characteristics are not closely related to
those of the host contract;
\u2013A separate instrument with the same terms would meet
the definition of a derivative;
\u2013The hybrid contract is not measured at fair value through
profit or loss.
Day 1 profit
Discrepancies between the transaction price and the fair
value may arise if valuation techniques are applied at the
time of the transaction. Such a discrepancy is referred to as a
Day 1 profit. Any resulting profit or loss is recognised
directly in the statement of income if the valuation method is
based on observable inputs in an active market. In the event
of unobservable inputs, the gain or loss is amortised over the
term of the transaction.
Derivatives
Derivatives are carried at fair value. The positive and
negative values of derivatives are shown separately on the
face of the statement of financial position on the assets side
and the liabilities side, respectively. The values of derivatives
with a positive and negative value, concluded with the same
counterparty, are only netted if the cash flows are settled on
a net basis and this is permitted under law. Changes in the
value of derivatives are taken directly to the line item Result
on financial transactions. If the hedge is completely effective,
the net impact on the statement of income is nil. The
difference, in so far as this remains within the ranges set,
reflects ineffectiveness and is taken to the statement of
income.
Derivatives include:
\u2013The fair value of derivatives held for trading
Derivatives held for trading include transactions for own
account whereby the aim is to actively sell them in the
short term. Client option positions whereby offsetting
market transactions are conducted for all option
positions held by our clients on a one-on-one basis are
also included in this item;
\u2013Economic hedges
Economic hedges are derivatives used to manage risks
without applying hedge accounting;
\u2013Structured product derivatives
Structured product derivatives are instruments to hedge
structured products sold to clients, without application
of hedge accounting;
\u2013Derivatives with application of hedge accounting
These are derivatives used as hedging instruments in the
application of hedge accounting.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTQvZnJhZzo1ZmU1ZDYzZDg1YWI0ODZiOGU2MTJjN2I5MTU3NTM3Zi90ZXh0cmVnaW9uOjVmZTVkNjNkODVhYjQ4NmI4ZTYxMmM3YjkxNTc1MzdmXzUzMzI2MzE0MDQwNDIz_d0d22996-be38-4e46-86c7-b09fbfe1f857": {
"value": "
Derivatives
A derivative is initially recognised at fair value on the
effective date of the contract. After initial recognition, the
derivative is subsequently remeasured at fair value and
changes in value are taken to the statement of income under
Result on financial transactions. Fair values are based on
stock exchange prices, cash flow models, or option and other
valuation models.
Hedge accounting
We use derivatives, such as interest rate swaps, to hedge our
exposure to risks. The carrying amount of assets and
liabilities which are hedged through fair value hedging and
which would otherwise be recognised at cost is adjusted for
changes in the fair value that can be attributed to the hedged
risks. Any gains or losses arising from changes in the fair
value of derivatives not relating to the hedged risks are
taken directly to the statement of income.
At the inception of a hedge transaction, we formally
designate and document the hedge relationship and the
financial risk management objective when entering into the
hedge transaction. The documentation includes
identification of the hedging instrument, the hedged item or
transaction, the nature of the risk being hedged and how we
will assess the hedging instrument\u2019s effectiveness in
offsetting the exposure to risks.
Hedges that qualify for hedge accounting are recognised as
follows:
Fair value hedges
Fair value hedges are hedges of the exposure to changes in
the fair value of an asset or liability arising as a result of
interest rate changes. Changes in the value of the hedging
instrument are taken to the statement of income.
Any change in the fair value of the hedged item is also
recognised in the statement of income, in so far as the
hedging instrument has been effective in the preceding
period.
A hedge relationship ends if the hedging instrument is sold,
expires or is exercised, or if the hedging transaction no
longer meets the criteria for hedge accounting, with the
remaining value adjustment of the hedged item amortised
through profit or loss until the end of its term.
We apply micro fair value hedge accounting and macro fair
value hedge accounting.
Micro fair value hedges
From 1 January 2022 onwards, we have applied hedge
accounting for micro fair value hedges based on IFRS 9. A
fair value hedge is classified as a micro fair value hedge when
the hedged item (or group of items) is a distinctively
identifiable asset or liability hedged by one or a few hedging
instruments. Debt securities at fair value through other
comprehensive income and issued debt securities are
hedged for interest rate risk in a micro fair value hedge.
Effectiveness is assessed and documented on a monthly
basis in order to determine that the hedge has been highly
effective throughout the financial reporting periods for
which it was intended. If necessary, adjustments are made to
the hedge relationship.
Macro fair value hedges
We apply macro fair value hedges for fixed rate mortgages.
A portfolio of mortgages is identified comprising
homogeneous loans based on their contractual interest
rates, maturity and other risk characteristics. Mortgages
within the identified portfolio are allocated into repricing
term buckets based on expected repricing dates rather than
contractual repricing dates. The hedging instruments are
designated appropriately to those repricing term buckets.
Such hedges are considered to be effective if we may expect,
both upon inception and during the term of the hedge, that
changes in the fair value or cash flows of the hedged item will
be almost fully offset by changes in the fair value or cash
flows of the hedging instrument, in so far as they relate to
the hedged risk, and the actual outcome is within a range of
80-125%. Effectiveness is assessed and documented on a
monthly basis in order to determine that the hedge has been
highly effective throughout the financial reporting periods
for which it was intended. We apply the EU carve-out on
portfolio fair value hedges.
Cash flow hedges
Cash flow hedges are hedges of the exposure to fluctuations
in the cash flow of an asset, liability or future transaction
arising as a result of interest rate changes and/or inflation.
The portion of the gain or loss on the hedging instrument
that has been determined to be an effective hedge is
recognised directly in equity until the hedged item affects
the statement of income, while the ineffective portion is
recognised in the statement of income.
If the hedging instrument expires or is sold, or if it can no
longer be designated as a hedge, accumulated gains and
losses remain in equity until the expected future transaction
is taken to the statement of income. If the expected future
transaction is no longer likely to take place, the accumulated
result is transferred directly from equity to the statement of
income.
Embedded derivatives
Financial assets with embedded derivatives are considered
in their entirety when determining whether their cash flows
are solely payment of principal and interest.
If the hybrid contract contains a host that is not an asset, the
embedded derivatives are separated from the host contract
and treated as separate derivatives when:
\u2013The economic characteristics are not closely related to
those of the host contract;
\u2013A separate instrument with the same terms would meet
the definition of a derivative;
\u2013The hybrid contract is not measured at fair value through
profit or loss.
Day 1 profit
Discrepancies between the transaction price and the fair
value may arise if valuation techniques are applied at the
time of the transaction. Such a discrepancy is referred to as a
Day 1 profit. Any resulting profit or loss is recognised
directly in the statement of income if the valuation method is
based on observable inputs in an active market. In the event
of unobservable inputs, the gain or loss is amortised over the
term of the transaction.
Derivatives
Derivatives are carried at fair value. The positive and
negative values of derivatives are shown separately on the
face of the statement of financial position on the assets side
and the liabilities side, respectively. The values of derivatives
with a positive and negative value, concluded with the same
counterparty, are only netted if the cash flows are settled on
a net basis and this is permitted under law. Changes in the
value of derivatives are taken directly to the line item Result
on financial transactions. If the hedge is completely effective,
the net impact on the statement of income is nil. The
difference, in so far as this remains within the ranges set,
reflects ineffectiveness and is taken to the statement of
income.
Derivatives include:
\u2013The fair value of derivatives held for trading
Derivatives held for trading include transactions for own
account whereby the aim is to actively sell them in the
short term. Client option positions whereby offsetting
market transactions are conducted for all option
positions held by our clients on a one-on-one basis are
also included in this item;
\u2013Economic hedges
Economic hedges are derivatives used to manage risks
without applying hedge accounting;
\u2013Structured product derivatives
Structured product derivatives are instruments to hedge
structured products sold to clients, without application
of hedge accounting;
\u2013Derivatives with application of hedge accounting
These are derivatives used as hedging instruments in the
application of hedge accounting.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTQvZnJhZzo1ZmU1ZDYzZDg1YWI0ODZiOGU2MTJjN2I5MTU3NTM3Zi90ZXh0cmVnaW9uOjVmZTVkNjNkODVhYjQ4NmI4ZTYxMmM3YjkxNTc1MzdmXzUzMzI2MzE0MDQwNDE4_3d2253ee-2666-41ff-9a01-d44c4df58272": {
"value": "
Hedge accounting
We use derivatives, such as interest rate swaps, to hedge our
exposure to risks. The carrying amount of assets and
liabilities which are hedged through fair value hedging and
which would otherwise be recognised at cost is adjusted for
changes in the fair value that can be attributed to the hedged
risks. Any gains or losses arising from changes in the fair
value of derivatives not relating to the hedged risks are
taken directly to the statement of income.
At the inception of a hedge transaction, we formally
designate and document the hedge relationship and the
financial risk management objective when entering into the
hedge transaction. The documentation includes
identification of the hedging instrument, the hedged item or
transaction, the nature of the risk being hedged and how we
will assess the hedging instrument\u2019s effectiveness in
offsetting the exposure to risks.
Hedges that qualify for hedge accounting are recognised as
follows:
Fair value hedges
Fair value hedges are hedges of the exposure to changes in
the fair value of an asset or liability arising as a result of
interest rate changes. Changes in the value of the hedging
instrument are taken to the statement of income.
Any change in the fair value of the hedged item is also
recognised in the statement of income, in so far as the
hedging instrument has been effective in the preceding
period.
A hedge relationship ends if the hedging instrument is sold,
expires or is exercised, or if the hedging transaction no
longer meets the criteria for hedge accounting, with the
remaining value adjustment of the hedged item amortised
through profit or loss until the end of its term.
We apply micro fair value hedge accounting and macro fair
value hedge accounting.
Micro fair value hedges
From 1 January 2022 onwards, we have applied hedge
accounting for micro fair value hedges based on IFRS 9. A
fair value hedge is classified as a micro fair value hedge when
the hedged item (or group of items) is a distinctively
identifiable asset or liability hedged by one or a few hedging
instruments. Debt securities at fair value through other
comprehensive income and issued debt securities are
hedged for interest rate risk in a micro fair value hedge.
Effectiveness is assessed and documented on a monthly
basis in order to determine that the hedge has been highly
effective throughout the financial reporting periods for
which it was intended. If necessary, adjustments are made to
the hedge relationship.
Macro fair value hedges
We apply macro fair value hedges for fixed rate mortgages.
A portfolio of mortgages is identified comprising
homogeneous loans based on their contractual interest
rates, maturity and other risk characteristics. Mortgages
within the identified portfolio are allocated into repricing
term buckets based on expected repricing dates rather than
contractual repricing dates. The hedging instruments are
designated appropriately to those repricing term buckets.
Such hedges are considered to be effective if we may expect,
both upon inception and during the term of the hedge, that
changes in the fair value or cash flows of the hedged item will
be almost fully offset by changes in the fair value or cash
flows of the hedging instrument, in so far as they relate to
the hedged risk, and the actual outcome is within a range of
80-125%. Effectiveness is assessed and documented on a
monthly basis in order to determine that the hedge has been
highly effective throughout the financial reporting periods
for which it was intended. We apply the EU carve-out on
portfolio fair value hedges.
Cash flow hedges
Cash flow hedges are hedges of the exposure to fluctuations
in the cash flow of an asset, liability or future transaction
arising as a result of interest rate changes and/or inflation.
The portion of the gain or loss on the hedging instrument
that has been determined to be an effective hedge is
recognised directly in equity until the hedged item affects
the statement of income, while the ineffective portion is
recognised in the statement of income.
If the hedging instrument expires or is sold, or if it can no
longer be designated as a hedge, accumulated gains and
losses remain in equity until the expected future transaction
is taken to the statement of income. If the expected future
transaction is no longer likely to take place, the accumulated
result is transferred directly from equity to the statement of
income.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTQvZnJhZzo1ZmU1ZDYzZDg1YWI0ODZiOGU2MTJjN2I5MTU3NTM3Zi90ZXh0cmVnaW9uOjVmZTVkNjNkODVhYjQ4NmI4ZTYxMmM3YjkxNTc1MzdmXzUzMzI2MzE0MDQwNDI2_45f0cfd6-2ec3-4c5d-9029-b3fcb8b5b829": {
"value": "
Day 1 profit
Discrepancies between the transaction price and the fair
value may arise if valuation techniques are applied at the
time of the transaction. Such a discrepancy is referred to as a
Day 1 profit. Any resulting profit or loss is recognised
directly in the statement of income if the valuation method is
based on observable inputs in an active market. In the event
of unobservable inputs, the gain or loss is amortised over the
term of the transaction.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognisingDifferenceBetweenFairValueAtInitialRecognitionAndAmountDeterminedUsingValuationTechniqueExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTQvZnJhZzo1ZmU1ZDYzZDg1YWI0ODZiOGU2MTJjN2I5MTU3NTM3Zi90ZXh0cmVnaW9uOjVmZTVkNjNkODVhYjQ4NmI4ZTYxMmM3YjkxNTc1MzdmXzUzODc2MDY5ODYxNDg2_47a55368-ef8e-4d81-814d-3747df042e76": {
"value": "
Netting of financial assets and liabilities
Financial assets and liabilities are netted and presented in
the consolidated financial statements at the net amount
when we have a legally enforceable right to offset the
recognised amounts and there is an intention to settle on a
net basis, or to realise the asset and settle the liability
simultaneously. See 3.7, Risk management.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForOffsettingOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTQvZnJhZzo1ZmU1ZDYzZDg1YWI0ODZiOGU2MTJjN2I5MTU3NTM3Zi90ZXh0cmVnaW9uOjVmZTVkNjNkODVhYjQ4NmI4ZTYxMmM3YjkxNTc1MzdmXzUzODc2MDY5ODYxNDk3_d93e53ac-6bbc-4986-a062-699df01697cd": {
"value": "
Cash and cash equivalents and balances at central banks
Cash and cash equivalents and balances at central banks
comprise, at nominal value, cash in hand and deposits with a
term of less than three months, investments readily
convertible into a known amount of cash with an
insignificant risk of value changes, balances at central banks
and balances withdrawable on demand at other banks in
respect of which the risk of value changes is insignificant.
The amount due from De Nederlandsche Bank (DNB) arising
from the minimum reserve requirement is also included in
this item.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTQvZnJhZzo1ZmU1ZDYzZDg1YWI0ODZiOGU2MTJjN2I5MTU3NTM3Zi90ZXh0cmVnaW9uOjVmZTVkNjNkODVhYjQ4NmI4ZTYxMmM3YjkxNTc1MzdmXzUxNjc3MDQ2NTg0NTY2_1650ecc2-b6a1-4671-9ea0-8fcee4b2da1e": {
"value": "
Financial assets at fair value through profit or loss
Assets that do not meet the criteria for amortised cost or fair
value through other comprehensive income (FVOCI) are
measured at fair value through profit or loss (FVPL).
Additionally, any instrument for which the contractual cash
flow characteristics are not solely payments of principal and
interest (SPPI) are measured at FVPL. No restrictions are set
for sales within the fair value through profit or loss portfolio.
Interest earned on these assets is recognised as interest
income under Other interest income. All other realised and
unrealised gains and losses on remeasuring debt instruments
at fair value are recognised under Result on financial
transactions. All realised and unrealised gains and losses on
remeasuring equity instruments at fair value are recognised
under Income from securities and associates.
Financial assets at fair value through profit or loss include
financial assets from trading activities. These are
transactions for our own account whereby the aim is to
actively sell these instruments in the short term. Financial
assets from trading activities consist of the trading portfolio
of both equity instruments and debt instruments. The
financial assets from trading activities are recognised at fair
value with effect from the trade date and value adjustments
are taken to the statement of income under the line item
Result on financial transactions.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTQvZnJhZzo1ZmU1ZDYzZDg1YWI0ODZiOGU2MTJjN2I5MTU3NTM3Zi90ZXh0cmVnaW9uOjVmZTVkNjNkODVhYjQ4NmI4ZTYxMmM3YjkxNTc1MzdmXzUzMzI2MzE0MDQwNDI5_d89d3c16-31b5-43b6-89e0-002eb0a429e5": {
"value": "
Loans and advances to the public and private sectors
Loans and advances to the public and private sectors are
initially recognised at fair value plus transaction costs
directly attributable to the acquisition of the financial asset,
and are subsequently amortised using the effective interest
rate method less any allowance for impairment. The loss
allowance for expected credit losses is recognised in the
statement of income.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForLoansAndReceivablesExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTQvZnJhZzo1ZmU1ZDYzZDg1YWI0ODZiOGU2MTJjN2I5MTU3NTM3Zi90ZXh0cmVnaW9uOjVmZTVkNjNkODVhYjQ4NmI4ZTYxMmM3YjkxNTc1MzdmXzUxNjc3MDQ2NTg0NTY3_51cb2708-87ce-4434-932c-27666d6f3439": {
"value": "
Investments in associates using the equity method
These investments have been designated by management as
transactions held indefinitely, and as a result of the acquired
control can be classified as investments in associates using
the equity method. These are investments in entities where
we have significant influence but not control. If there is a
change in the equity of the associate, we recognise our share
in this change and include it in Other comprehensive income.
This also applies to results of associates recognised in our
statement of income.
In the first year of investment, investments classified as
investments in associates using the equity method are
recognised at cost, and where applicable are adjusted for any
changes in the value of the associate\u2019s individual receivables
and payables occurring after the acquisition, measured using
the policies applied by Van Lanschot Kempen.
The recoverable amount of the investments in associates
using the equity method is determined each quarter. The
valuation methods applied to assess the carrying value are
the capitalisation method (peer group analysis), the
discounted cash flow method and the disclosed net asset
value method. An impairment is recognised if the
recoverable amount is lower than the carrying amount.
The capitalisation method determines the value of a
business by multiplying the operating profit (EBIT) and the
operating profit before depreciation and amortisation
(EBITDA) by a multiplier factor derived from similar listed
companies (the peer group), if applicable also taking account
of a discount for poor liquidity and minority shareholding.
EBIT and EBITDA are adjusted for one-off items where
applicable.
The discounted cash flow method calculates the enterprise
value by discounting the forecast operational cash flows at a
discount rate for the planning period and a final value based
on the extrapolation of the operating profit.
The discount rate is determined on the basis of the discount
rate of listed companies with a high degree of similarity and
on the specific characteristics of the company. If applicable,
the discounted cash flow method takes account of a discount
for poor liquidity and minority shareholdings.
The company\u2019s net debt is then deducted from the value
resulting from the capitalisation method and/or discounted
cash flow method and multiplied by the share in the capital
structure in order to derive the shareholder value from the
enterprise value.
The disclosed net asset value method determines the value
of a company based on the statement of financial position.
If our share in the associate\u2019s losses is equal to or exceeds
our interest in the associate, no further losses are recognised
unless we have assumed obligations or made payments for
these associates.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTQvZnJhZzo1ZmU1ZDYzZDg1YWI0ODZiOGU2MTJjN2I5MTU3NTM3Zi90ZXh0cmVnaW9uOjVmZTVkNjNkODVhYjQ4NmI4ZTYxMmM3YjkxNTc1MzdmXzUxNjc3MDQ2NTg0NTY0_d2b35909-dc9a-4e0d-848f-fc2d3c4fb237": {
"value": "
Property and equipment
Property and equipment comprise buildings in own use,
right-of-use assets, operation system software and
information technology, communication and safety
equipment, alterations and furniture and fixtures. Property
and equipment are initially carried at cost and subsequently
measured at historical cost less accumulated depreciation
and accumulated impairments. The carrying value includes
the costs for replacement of part of the existing property as
soon as these costs are incurred, but excludes day-to-day
servicing costs. Depreciation is calculated on a straight-line
basis over the useful life of the asset.
Lease contracts which we entered into as a lessee are
classified as right-of-use assets. Right-of-use assets are
presented as part of Property and equipment in the
statement of financial position and are measured at cost,
comprising the following:
\u2013The amount of the initial measurement of the lease
liability;
\u2013Any lease payments made at or before the
commencement date less any lease incentives received;
\u2013Any initial direct costs;
\u2013Restoration costs.
Depreciation is applied using the same method as for wholly-
owned tangible assets.
The recoverable amount of individual property items within
the different CGUs or group of CGUs is determined every
year, irrespective of whether there is any indication of
impairment, and more often if market conditions so dictate.
The recoverable amount is the higher of the fair value less
costs to sell or the value in use. The fair value less costs to
sell is determined by an independent surveyor. If the fair
value less costs to sell is below the carrying amount, the
value in use is determined. This value is calculated using the
value-in-use method. If the value in use is also below the
carrying amount, an impairment is recognised for the
difference between the carrying amount and the higher of
the fair value less costs to sell and the value in use.
| |
Estimated useful life of property and equipment (years) |
| |
| |
Operating system software and IT | |
| |
| |
| |
| |
partnership (FGR) during their full tenure as a partner. Partners receive a
share-based discount of 18.5% and are subject to a lock-up
period of five years.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTQvZnJhZzo1ZmU1ZDYzZDg1YWI0ODZiOGU2MTJjN2I5MTU3NTM3Zi90ZXh0cmVnaW9uOjVmZTVkNjNkODVhYjQ4NmI4ZTYxMmM3YjkxNTc1MzdmXzUxNjc3MDQ2NTg3Nzc5_d6d799c5-008e-4842-9bb4-f638ecb09229": {
"value": "
Share-based payments
Employees may be eligible to receive remuneration in the
form of share-based payments. The cost of equity-settled
transactions with employees is measured by reference to the
fair value at the date on which the equity instruments are
granted. The fair value is determined based on the share
price on the grant date, taking into account the discounted
value of expected dividends over the vesting period. The
cost of equity-settled transactions is recognised, together
with a corresponding increase in equity, in the period in
which the employee\u2019s performance criteria are fulfilled,
ending on the date on which the employee becomes fully
entitled to the award (the vesting date).
Partnership investment incentive
The purpose of the partnership investment incentive is to
enhance the return perspective of the contributions with
respect to which it is awarded. If awarded, a partnership
investment incentive will apply with respect to the
contributions made in the relevant contribution round for
five financial years and will be calculated at the end of each
of those five financial years in accordance with the
partnership investment incentive formula.
The partnership investment incentive will be paid to the
partners in two components: 70% in Van Lanschot Kempen
shares and 30% in cash.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTQvZnJhZzo1ZmU1ZDYzZDg1YWI0ODZiOGU2MTJjN2I5MTU3NTM3Zi90ZXh0cmVnaW9uOjVmZTVkNjNkODVhYjQ4NmI4ZTYxMmM3YjkxNTc1MzdmXzU0OTc1NTgxNDcyMzIz_cf1541ec-4f18-4bd8-976b-73b06f0b83d8": {
"value": "
Depreciation and amortisation
Depreciation and amortisation costs are determined on the
basis of estimated useful life and charged to the statement of
income.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTQvZnJhZzo1ZmU1ZDYzZDg1YWI0ODZiOGU2MTJjN2I5MTU3NTM3Zi90ZXh0cmVnaW9uOjVmZTVkNjNkODVhYjQ4NmI4ZTYxMmM3YjkxNTc1MzdmXzUxNjc3MDQ2NTg3Nzg0_79366538-578c-4fad-b949-9eede753ca39": {
"value": "
Impairments
This item comprises the balance of the required impairments
and reversals of such impairments, including those on
financial instruments, on investments in associates using the
equity method, on goodwill and intangible assets, and on
property and equipment.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTQvZnJhZzo1ZmU1ZDYzZDg1YWI0ODZiOGU2MTJjN2I5MTU3NTM3Zi90ZXh0cmVnaW9uOjVmZTVkNjNkODVhYjQ4NmI4ZTYxMmM3YjkxNTc1MzdmXzUxNjc3MDQ2NTg3Nzgx_5d6e63de-788d-4053-a14e-c24bb2b3bbee": {
"value": "
Income tax
Tax on operating profit is recognised in the statement of
income in accordance with applicable tax law in the
jurisdictions in which we operate. Tax effects of any losses
incurred in certain jurisdictions are recognised as assets
when it is probable that sufficient future profits will be
available in the relevant jurisdiction against which these
losses can be offset.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTQvZnJhZzo1ZmU1ZDYzZDg1YWI0ODZiOGU2MTJjN2I5MTU3NTM3Zi90ZXh0cmVnaW9uOjVmZTVkNjNkODVhYjQ4NmI4ZTYxMmM3YjkxNTc1MzdmXzUxNjc3MDQ2NTg3Nzgy_6f800bdb-1fd4-40c3-a4ee-b04bb1b27dd6": {
"value": "
Earnings per ordinary share
Earnings per ordinary share are calculated by dividing the
profit for the year available to ordinary shareholders by the
weighted average number of ordinary shares outstanding
during the period. Diluted earnings per ordinary share are
calculated by dividing the profit available to ordinary
shareholders by the weighted average number of ordinary
shares outstanding during the period, adjusted for possible
dilution as a result of, for example, outstanding option rights.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTQvZnJhZzo1ZmU1ZDYzZDg1YWI0ODZiOGU2MTJjN2I5MTU3NTM3Zi90ZXh0cmVnaW9uOjVmZTVkNjNkODVhYjQ4NmI4ZTYxMmM3YjkxNTc1MzdmXzUxNjc3MDQ2NTg3Nzgz_1e0d9620-21eb-4d29-aaf8-8a1218342e04": {
"value": "
Statement of cash flows
The statement of cash flows is prepared using the indirect
method. It distinguishes between cash flows from operating,
investing and financing activities. Cash flows from operating
activities include net changes in loans and advances,
deposits from/with banks, and public and private sector
liabilities. Investing activities include acquisition,
redemption and sales of debt instruments, equity
investments, associates using the equity method, property
and equipment, and goodwill and other intangible assets.
Financing activities include issues and repayments of share
plans, debt instruments and issued debt securities. Cash and
cash equivalents comprise, at face value, all cash in hand,
balances at central banks and balances withdrawable on
demand at other banks. Investing and financing transactions
that do not require the use of cash or cash equivalents are
excluded from the statement of cash flows.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForCashFlowsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTQvZnJhZzo1ZmU1ZDYzZDg1YWI0ODZiOGU2MTJjN2I5MTU3NTM3Zi90ZXh0cmVnaW9uOjVmZTVkNjNkODVhYjQ4NmI4ZTYxMmM3YjkxNTc1MzdmXzUxNjc3MDQ2NTg3Nzgw_3cac7fe1-05d0-4781-8cee-927f8c8c3f83": {
"value": "
Segment information
The different operating segments form the basis for our
primary segmentation. An operating segment is a business
unit that can earn revenues and incur expenses and whose
operating results are regularly reviewed by management or
the chief operating decision maker and for which discrete
financial information is available. Additional information is
reported geographically based on where the business
activities are located. Intra-segment transactions are
conducted on commercial terms and market conditions (at
arm\u2019s length).
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTcvZnJhZzo1ODgxYTA0MDJlOTQ0ZWJjOTA3YWI0YjNkNTFmNDNlNy90ZXh0cmVnaW9uOjU4ODFhMDQwMmU5NDRlYmM5MDdhYjRiM2Q1MWY0M2U3XzUzODc2MDcwMDE0NjA4_e93e1edd-396c-46b3-9f10-a32a5bf50b7d": {
"value": "
Risk management
1.Risk, capital management and compliance
Our front-office functions are essential in delivering services
to our clients. Risk management supports the front office,
clients and other stakeholders in ensuring that the risks taken
by Van Lanschot Kempen are controlled and comply with our
risk appetite and legal requirements. This section describes
our risk appetite, the organisational and governance
arrangements that are in place regarding risk management,
and the three lines of defence principle. After describing
these general arrangements, the section continues with
credit risk, market risk, operational risk, settlement risk,
credit valuation adjustment (CVA) risk, strategic risk, interest
rate risk, liquidity risk, securitisation risk, climate change risk,
financial reporting risk and assets at fair value. An overview
of compliance risks is also provided.
1.1 Risk appetite
Solid capital and liquidity ratios are essential prerequisites for
a successful proposition to our clients and the financial
stability of Van Lanschot Kempen in general. This is reflected
in our risk appetite statement. We aim to have a simple and
transparent balance sheet.
We have a robust risk appetite framework in place. Every
year, the Management Board assesses and updates the risk
appetite statement, which translates our risk appetite into
strategic limits. The risk appetite statement is then submitted
to the Supervisory Board for review and approval. Quarterly
risk appetite reports serve as important discussion
documents for the continuous review of our risk profile.
1.2 Organisation of risk, capital management and
compliance
The purpose of our risk management framework is to identify
and analyse risks at an early stage, as well as to mitigate and
monitor those risks. Adequate internal control procedures
and reporting systems, including the application of standards
and limits, are key elements of our risk management
framework.
The organisation of our risk management framework is based
on the three lines of defence principle. Day-to-day
responsibility for risk control lies with the front office and/or
operational departments (the first line of defence), including
internal control activities and Finance, Reporting & Control.
Compliance and Risk Management form the second line of
defence for financial and non-financial risks. These
departments are responsible for initiating risk policies and
the supervision of risk controls within Van Lanschot Kempen.
Internal Audit forms the third line of defence and is
responsible for performing independent audits on the risk
management framework and activities of the first and second
line. The department reports to the Chair of the Management
Board. This set-up creates a clear, balanced and appropriate
division of tasks, powers and responsibilities, and ensures
independent and effective operation of the risk management
function.
Risk Management and Asset & Liability Management (ALM)
stand at the core of capital management. We actively manage
our capital base to cover risks inherent to our business and
meet the capital adequacy requirements of De
Nederlandsche Bank (DNB). The adequacy of our capital is
monitored by using the rules and ratios established by the
Basel Committee on Banking Supervision as transposed into
EU law through the Capital Requirements Regulation (CRR).
This legal framework also forms the basis for supervision by
DNB through the Capital Requirements Directive (CRD) and
the Financial Supervision Act (Wft). Over the reporting
period, we fully complied with all externally imposed capital
requirements. Both external and internal capital adequacy
targets are taken into account, and the central focus is on
safeguarding our financial solidity and stability. Each year, a
capital and funding plan is prepared for capital management
purposes.
| | | | |
Table 1.2 Risk, capital management and compliance framework |
| Supervisory Board \u2013Risk and Compliance Committee \u2013Audit Committee |
Risk and capital management \u00a7 1.2.2 | Management Board \u2013Group Risk Committee \u2013Credit Risk Committee \u2013Market Risk Committee \u2013Asset & Liability Committee \u2013Sustainability Board \u2013Compliance & Operational Risk Committee \u2013Credit Committee \u2013Product Approval & Review Committee |
Implementation and review \u00a7 1.2.3 | Risk Management and Asset & Liability Management | Finance, Reporting & Control | | |
| Client Management & Origination | Investment Strategies & Solutions | | Credit Risk and Credit Restructuring & Recovery |
capital and funding plan, which is based on a number of risk,
capital management and compliance policies.
The primary objective of our capital management is to ensure
that we comply with external and internal capital
requirements in order to support our businesses and to
create value for our stakeholders. We manage our capital
structure by taking into account changes in economic
conditions and the risk characteristics of our activities. To
maintain and/or manage our capital structure, we may adjust
the amount of dividend payments to shareholders, return
capital to shareholders or issue capital securities. These
adjustments are under constant review by the Management
Board. Lastly, requests or demands by our supervisors DNB
and/or ECB can also influence capital management.
The Management Board also bears responsibility for ensuring
the proper operation of the processes that safeguard the
group\u2019s liquidity and capital position. In addition, it is required
to provide information to the Supervisory Board, which in
turn assesses the risk appetite of the group. To ensure the
various risk types are managed properly, the Management
Board has set up the following risk and compliance
committees:
Group Risk Committee
The Group Risk Committee, which includes all members of
the Management Board and the heads of Risk Management
and Compliance, discusses group-wide risk management
themes. Chaired by the CRO, this committee brings together,
discusses and monitors the various risk types on an
integrated level. The committee is involved in setting the
annual risk appetite statement and discusses the risk appetite
report and emerging trends in the risk profile. Other areas
covered include recovery and resolution planning.
Credit Risk Committee
The Credit Risk Committee sets and adjusts the group\u2019s
overall credit risk policy and translates this into acceptance
and portfolio management policies. In executing its tasks, the
committee bears in mind our strategic objectives and the
guiding principles informing the risk appetite statement.
The CRO chairs this committee; other members represent\u00a0
Risk Management, Private Clients, and Credit Risk and Credit
Restructuring & Recovery.
Market Risk Committee
This committee focuses on all market risks within
Van\u00a0Lanschot Kempen and is chaired by the CRO. Market risk
is the risk of loss as a result of changes in market variables,
including interest rates (excluding interest rate risk in the
banking book), exchange rates and equity prices. It also
considers variables not directly observable in the market,
such as volatility and correlations, which also influence the
value of certain financial instruments. Market risks at
Investment Banking Clients arise from securities trading to
facilitate our clients (mainly equities and equity derivatives).
Van Lanschot Kempen is exposed to a certain amount of
market risk (mainly foreign exchange and structured
products activities) through its treasury activities. Our
foreign exchange risk is limited, as the majority of
transactions and positions in the statement of financial
position are denominated in euros. Van Lanschot Kempen is
also exposed to market risk as a result of management book
investments.
Asset & Liability Committee
The Asset & Liability Committee (ALCO) is responsible for
managing risks that result from mismatches between assets
and liabilities (interest rate and liquidity risks), as well as the
capital position of the bank. ALCO\u2019s main tasks are:
\u2013Overseeing the asset and liability management process;
\u2013Setting policies on interest rate risk in the banking book1,
liquidity and funding risk, funds transfer pricing and
capitalisation;1
\u2013Monitoring the development of the balance sheet and
balance-sheet projections.
ALCO convenes once a month and is chaired by the CFO.\u00a0
ALCO\u2019s members also comprise:
\u2013The Chair of the Management Board;
\u2013The CRO;
\u2013The Management Board member responsible for Client
Management & Origination;
\u2013ALM, Treasury, Risk Management and Finance, Reporting
& Control directors.
Compliance & Operational Risk Committee
The Compliance & Operational Risk Committee is responsible
for the implementation and execution of our compliance and
operational risk management policies. The committee
assesses compliance and operational risks, and ensures
remedial actions are taken where required. The committee
also challenges and approves the annual plans of the Non-
Financial Risk Management and Compliance departments. It
is chaired by the CRO. Among other matters, the root causes
of major operational risk incidents are discussed in this
committee.
Risk Management takes the lead in the committees described
above, with the exception of the Compliance & Operational
Risk Committee, where both Compliance and Risk
Management are in charge, and ALCO, where Asset &
Liability Management is in charge. We also have a number of
committees that form part of the first line of defence and that
cover specific risk-related topics, such as the Credit
Committee and Client Management & Origination's Product
Approval & Review\u00a0 Committee.
1 The banking book comprises all assets not held for trading under the regulatory definition.1.2.3 Implementation and review of risk, capital
management and compliance policies
Implementation and monitoring of our risk and capital
policies is carried out by Risk Management, ALM and Finance,
Reporting & Control. In addition, Compliance carries out the
implementation, monitoring and/or review of compliance
policies.
Risk Management is responsible for:
\u2013Second-line monitoring and management of all risks
relating to the statement of financial position at group
level, including modelling, measuring, managing and
reporting on our credit, market, interest rate, liquidity and
strategic risks;
\u2013Business continuity management;
\u2013Information security;
\u2013The risk appetite process;
\u2013Preparing, developing and maintaining policy documents;
\u2013Issuing daily market risk reports;
\u2013Proactively and reactively providing advice on managing
risks;
\u2013Raising risk awareness among staff in order to improve
their ability to strike a sound balance between risk and
return.
Risk Management and ALM are responsible for:
\u2013Preparing ICAAP and ILAAP documentation as well as the
recovery plan.
Finance, Reporting & Control is responsible for the financial
accounting and business control function. Through its various
reports, Finance, Reporting & Control fulfils an important role
in challenging the businesses. These reports include monthly
management reports and cost control reports, and are used
to monitor the progress of business plans.
Compliance has both an advisory and a monitoring role with
respect to compliance with applicable laws, rules, regulations,
internal policies and procedures, and industry standards
relevant for Van Lanschot Kempen. As compliance risks are
part of Van Lanschot Kempen's overall risk governance,
Compliance as an independent function is involved in and
supports the management of compliance risks by identifying,
assessing, monitoring and reporting on such risks.
Compliance risks include risks such as personal data integrity,
financial crime, business conduct and client protection risks.
Internal Audit periodically reviews the design and
effectiveness of the risk organisation and the execution of
our risk, capital management and compliance policies in
accordance with their annual audit plan. The applicable
policies form the starting point for the independent review by
Internal Audit. Processes, infrastructure, organisation and
systems are audited based on these policies in order to
determine whether the organisation adequately executes its
risk, capital management and compliance policies.
1.2.4 Execution of risk, capital management and compliance
policies
CMO and Investment Strategies & Solutions (ISS) prepare
their own business plans. On the basis of these plans, current
and future risks are assessed, including expected capital and
liquidity requirements. These assessments serve as input for
the various risk committees.
1.3 Capital requirements
The standards set by the Basel Committee on Banking
Supervision, and translated into law (CRR and CRD, Wft),
apply to all Dutch banks. The Basel framework consists of
three pillars:
\u2013Pillar 1 stipulates capital requirements for credit, market
and operational risk.
\u2013Pillar 2 requires banks to have internal processes for risk
management and to calculate the capital requirements
needed to address all risks that are not included in Pillar 1.
The Supervisory Review and Evaluation Process (SREP) is
also part of Pillar 2.
\u2013Pillar 3 sets out requirements for disclosure of
information about the institution\u2019s risk profile to external
stakeholders.
Our website provides Pillar 3 disclosures (unaudited) and a
detailed breakdown of our portfolio of loans to companies
and institutions (unaudited). Meanwhile our remuneration
policy is explained both in a remuneration section and a Pillar
3 disclosure (unaudited), both also on our website.
1.4Individual risks
The following sections detail the individual risk types to
which we are exposed. They therefore cover a combination of
Pillar 1 and Pillar 2 capital requirements. The risk types
covered are:
\u2013Strategic risk (Section 2);
\u2013Credit risk (Section 3);
\u2013Market risk (Section 4);
\u2013Operational risk (Section 5);
\u2013Settlement risk (Section 6);
\u2013CVA risk (Section 7);
\u2013Interest rate risk (Section 8);
\u2013Liquidity risk (Section 9);
\u2013Securitisation risk (Section 10);
\u2013Climate change and sustainability risks (Section 11);
\u2013Compliance risk (Section 12);
\u2013Financial reporting risk (Section 13).
2.Strategic risk
Strategic risk can be defined as the threat to our results or
equity arising from a failure to respond (adequately) to
changes in external factors or from incorrect strategic
decisions. External factors include the actions of competitors,
clients, potential market entrants and public authorities.
Strategic risk is not inherently undesirable, since there can
also be an upside to taking these risks. We take a forward-
looking approach to strategic risk, keep a close eye on
external developments and set our strategic priorities
accordingly. Our strategy puts a strong focus on advanced
data analytics among other areas. Existing risk management
practices and measures are assessed regularly to ensure that
possible new risks that may arise from changes in strategic
direction or in the business environment are addressed
adequately.
3.Credit risk
Credit risk is defined as the risk that a counterparty or client
is no longer able to fulfil its obligations. Our credit risk
policies focus on the counterparty risks associated with
lending to private clients and SMEs. Strict selection criteria
for new clients and active credit management for existing
clients are applied to safeguard the quality of the loan
portfolio. Our lending activities are required to be in line with
stated objectives, and individual assessments are used to
ascertain this.
As well as from lending activities, credit risk also arises from:
\u2013Investment activities;
\u2013International payment transactions and cash
management;
\u2013FX and hedging activities;
\u2013Settlement risk.
Our investment activities relate to the management of our
liquidity buffer and equity investments. For the liquidity
buffer, a limit framework is in place to manage and monitor
associated credit risks.
Counterparty credit risk with respect to financial institutions
arises from international payment transactions, cash
management, FX and hedging activities. Some of these
activities also involve settlement risk. For derivatives
transactions, counterparty credit risk is mitigated by daily
margining.
We apply a strict policy when determining and monitoring
country and counterparty (financial institutions) limits. The
country limits serve as a cross limit for financial institutions,
meaning that the counterparty risks in respect of financial
institutions in one country are limited by the relevant country
limit, as the country limit is usually lower than the aggregate
of the individual counterparty limits.
3.1Loans and advances
3.1.1 Credit acceptance
Our loan approval policy focuses on maintaining a high-
quality loan portfolio. The authority to approve loans and
loan reviews is delegated to a limited number of teams,
mainly our Credit Approval team.
The authority to approve large loans rests with the Credit
Committee, which comprises representatives of the relevant
divisions as well as members of the Management Board.
The mid- and back-office for nearly all residential mortgage
loans is carried out by a third party. A service level agreement
(SLA) is in place to ensure adequate control of the operational
risks, including the outsourcing risk.
The acceptance process is not outsourced, with the exception
of our white label loans \u2013 residential mortgages offered by a
third party. The acceptance and management of credit risks
has been outsourced to this third party, within our strict
guidelines and in accordance with prevailing legal
requirements.
These activities are closely monitored using detailed data
from the mortgage portfolio. This makes it possible, for
example, to recognise any arrears. We also review random
samples of mortgage loans. An SLA is in place to ensure
adequate control of the operational risks, including the
outsourcing risk.
Limits on financial institutions and countries are determined
using a number of hard criteria such as the external rating,
BIS ratios, capital ratios, country of origin and gross domestic
product (for countries). Limits can also be adjusted and
withdrawn on a daily basis.
New loan requests are assessed to determine if they are in
line with our strategy and we adopt a conservative approach
to granting them.
The credit risk concentration mainly lies within our Private
Clients segment in the Netherlands, as our office network in
the Netherlands is bigger than in the other countries in which
we are active in extending credit.
3.1.2 Credit management \u2013 policy and processes
To achieve and attain a high-quality loan portfolio, strict
credit management is required. Credit management is carried
out at both individual loan and portfolio level. At the
individual loan level, explicit attention is devoted to the
management of unauthorised overdrafts and accounts past
due. Loans with an elevated risk profile are subjected to a risk
check. In addition, a portion of the portfolio is regularly
reviewed and the credit risk of individual clients is scrutinised
as part of this review. The frequency of reviews varies
according to the individual borrower\u2019s risk profile, but they
take place at least annually. In addition to financial analyses,
reviews take account of future developments in a client\u2019s
situation (partly in the light of relevant macroeconomic
trends).
A deterioration in a client\u2019s risk profile may lead to closer
supervision, an adjusted rating, corrective measures (such as
requiring additional collateral or increasing the frequency of
financial reporting), involvement of the Credit Risk and Credit
Restructuring & Recovery department or a combination of
these measures. It may also lead to a stage transfer under
IFRS 9\u00a0 \u2013 see Section 3.8.
At portfolio level, credit risks are monitored on a monthly
basis. In addition, several early warning indicators are used to
draw up a watch list, which is discussed bi-monthly. A detailed
credit risk report and any relevant developments or expected
developments are discussed in the Credit Risk Committee on
a quarterly basis. Any negative trend identified in the risk
profile of a particular client segment, sector or loan type, can
lead to the adjustment of the relevant lending policy. Trends
in sectors where there is a concentration risk are monitored
particularly closely.
If the review, risk check, payment arrears or external signals
point to an increased risk of discontinuity, the Credit Risk and
Credit Restructuring & Recovery department is involved in
the credit management process. An estimate is made of the
probability of continuity. Depending on the seriousness and
magnitude of the problem, either monitoring or intensive
supervision is applied. If there are objective indicators of
impairment the Credit Risk and Credit Restructuring &
Recovery department draws up an impairment proposal. The
Impairment Committee determines the impairment for the
whole credit portfolio on a quarterly basis.
Active management of past due loans enables potential
problem loans to be identified at an early stage. If an
individual assessment identifies an increased risk, the Credit
Risk, Credit Restructuring & Recovery department will
supervise the client. Increased credit risk occurs in situations
including the following:
\u2013If clients fail to meet their payment obligations;
\u2013If clients report difficulties in meeting future payments,
e.g. because of a divorce, unemployment etc.;
\u2013In the event of a default (see Section 3.1.3);
\u2013For business clients, in the event of a significant decrease
in turnover, breach of one or more covenants, a debt
service coverage ratio < 1, etc.
The primary goal of the Credit Risk and Credit Restructuring
& Recovery department is to migrate clients back to accounts
with regular status (i.e. not under the supervision of Credit
Risk and Credit Restructuring & Recovery) by reducing their
credit risk. The aim is to do this in accordance with the loan
agreements made with these clients, but forbearance
measures are applied if necessary. For more information on
forborne exposures, see Section 3.2.
3.1.3 Credit risk measurement
We have developed internal models for measuring and
monitoring credit risk for the majority of the loan portfolio.
Some of these internal models are also used to determine the
required capital that has to be set aside for absorbing
unexpected credit losses. For this reason, the models, the use
of these models and the model governance have to adhere to
strict requirements set out in the CRR.
The CRR distinguishes three approaches for determining the
required capital for credit risk: the standardised approach
(SA), the foundation internal ratings-based (F-IRB) approach,
and the advanced internal ratings-based (A-IRB) approach.
We use SA and A-IRB for our loan portfolios.
The standardised approach prescribes a set of rules for
determining the required capital based on various
characteristics such as client type, loan type, collateral type,
and external rating. Under A-IRB, banks are allowed to use
own estimates for PD, EAD and LGD. The PD is defined as the
likelihood that a client will default within one year, the EAD is
defined as the bank\u2019s expected exposure at the time a client
defaults, and the LGD is the expected loss percentage in the
event that a client defaults. As a result, A-IRB is more risk-
sensitive than SA.
We have approval from DNB to determine and report the
required regulatory capital for our residential mortgage
exposures portfolio using the A-IRB approach. For these
models, we have a model governance framework in place. As
part of this, the performance of the models is periodically
monitored, and these models are also periodically validated
against independent models.
The PD model is mostly based on behavioural aspects of the
client and the LGD models on the underlying collateral. For
the capital calculations a so-called downturn LGD is applied,
i.e. the expected loss at default during an economic downturn.
Estimation of the EAD is based on the limit and credit
utilisation.
The SA method has been used for capital calculations in all
our other retail and non-retail portfolios.
IRB equity portfolio
The IRB equity portfolio includes our positions in equities in
the investment portfolio, subordinated receivables, non-
controlling interests and shareholdings which appear on
Van\u00a0Lanschot Kempen's company statement of financial
position. We use the simple risk-weighted method to
calculate the risk-weighted assets for positions in shares.
In this method, a specific risk weighting (190%, 290% or
370%) is assigned to each position, based on a number of
characteristics. A risk weighting of 250% is applied for
significant investments in financial institutions that are not
deducted from equity because they fall below the regulatory
threshold. Positions taken in shares and subordinated loans
of wholly owned subsidiaries are excluded from IRB. These
are reported using the SA method.
Other loans and advances
The risk-weighted assets of other portfolios, such as the debt
securities in our investment portfolio managed by the
Treasury department (i.e. excluding retail, non-retail and
equity), are calculated on the basis of the SA method.
Definition of default and credit-impaired assets
Our definition of default is informed by EBA guidelines. Most
notably, the materiality threshold complies with the uniform
European standard. A financial asset is credit-impaired when
one or more events have occurred that have a detrimental
impact on the estimated future cash flows:
\u2013A breach of contract such as a more than 90 days past due
event with a materiality of more than \u20ac100 and more than
1% of total credit obligation (retail exposures) or more
than \u20ac500 and more than 1% of total credit obligation for
non-retail exposures;
\u2013Significant financial difficulty of the issuer or the
borrower and an inability to meet future payments;
\u2013Concession(s) granted to the borrower that the lender
would not otherwise consider, relating to the borrower\u2019s
financial difficulties (forbearance);
\u2013A growing likelihood that the borrower will enter
bankruptcy or other financial restructuring;
\u2013The disappearance of an active market for that financial
asset because of financial market difficulties;
\u2013The purchase or origination of a financial asset at a deep
discount that reflects the incurred credit loss.
It may not always be possible to identify a single discrete
event; instead the combined effect of several events may
have caused financial assets to become impaired. All impaired
assets are also classified as defaulted by Van\u00a0Lanschot
Kempen under CRR rules. Van Lanschot Kempen has
implemented one definition that serves for all its different
purposes.
3.2Forborne exposures
A loan is considered forborne if the borrower is unable to
meet their contractual obligations towards the bank and the
bank decides to make a concession to the client by modifying
the terms and conditions of the loan agreement. The
objective of this modification is to enable the borrower to
meet the renewed obligations, and it would not have been
offered if those circumstances had not arisen. Forbearance
actions may include one or more of the following measures:
\u2013Amendment of the original terms and conditions of the
loan agreement that the client cannot meet due to
financial difficulties, with a view to restoring the client\u2019s
payment capacity;
\u2013Full or partial refinancing of a forborne exposure.
The purpose of the measures taken in forbearance situations
is to maximise the chance of restoring the borrower\u2019s
payment capacity and to minimise the risk of losses due to
having to write off all or part of the loan. Measures must offer
the client an appropriate and sustainable solution, enabling
them to comply with the original obligations arising from the
credit agreement in due course.
Applying forbearance measures is exclusively reserved for
the Credit Risk and Credit Restructuring & Recovery
department, which pursues a policy based on general
principles and translates this to the specific situation of the
individual client. Given the nature of these loans, the Credit
Risk and Credit Restructuring & Recovery department carries
out intensive credit management. Before any new
arrangements are agreed, a detailed analysis is made of the
client, their financial situation and the likelihood of income
recovery. The outcome of this analysis may have
consequences for the client\u2019s review frequency and the size
of any loan loss provision to be made. If the client qualifies for
appropriate forbearance measures, a proposal will be drawn
up and submitted to the competent assessor(s) for approval.
If a forbearance measure is granted, the client is classified as
a non-performing exposure.
In practice, forbearance measures do not always have the
desired effect \u2013 i.e. the recovery of the client\u2019s payment
capacity or an end to the process of declining payment
capacity. This may, for example, be the result of a further
deterioration in the client\u2019s financial circumstances or the
failure of those circumstances to improve as expected. Such
cases are reanalysed and a strategy is redefined. However,
the principle is explicitly maintained that the forbearance
measure must be appropriate, sustainable and effective. Any
new arrangements agreed with the borrower must also meet
these strict criteria.
A forbearance situation ends when the non-performing
status has no longer been applied to the loan for a probation
period of two years. The non-performing status must last a
minimum of one year starting from the last forbearance
measure. Moreover, the client must have made significant
and regular payments of interest and/or principal during at
least half of the probation period. During the two-year
probation period, no payments by the borrower may be in
arrears for more than 30 days. If this condition is not met, the
probation period will start again from the date the client is no
longer in arrears for more than 30 days.
The recording and monitoring of loans which are subject to
forbearance is carried out by the Credit Risk and Credit
Restructuring & Recovery department. Each quarter, and
where appropriate more frequently for specific loans, an
individual assessment is carried out of forborne exposures
which are in default, in relation to any provision made. In
addition to this quarterly assessment (as part of the
provisioning process), these loans are subject to extensive
credit risk management, the intensity and frequency of which
will as far as possible match the specific circumstances of the
loan.
Tables 3.2.A through 3.2.C show the total volume of forborne
exposures. We apply several types of forbearance measures
(see Table 3.2.A).
Following the decision to apply such a measure, a loan
remains under the supervision of the Credit Risk and Credit
Restructuring & Recovery department until the forbearance
situation has ended.
| | |
Table 3.2.A Types of forborne exposure (\u20ac1,000) | | |
| | |
Capitalisation of arrears/interest | | |
| | |
| | |
| | |
Deferred payment of financing costs | | |
| | |
Reduction in interest rate | | |
| | | | | | |
Table 3.2.C Forborne exposures by collateral at 31/12/2021 (\u20ac1,000) |
| | | | | | Secondary collateral and unsecured loans |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Write-off policy
We write off loans as soon as there is sufficient certainty
about the loss after the sale of collateral and after exploring
other redress opportunities.
3.3 Breakdown of the loan portfolio
We adopt a cautious approach to granting unsecured loans.
Our loan book mainly consists of loans to Private Clients such
as loans secured by residential real estate, a number of
commercial real estate loans and Lombard loans. The
remainder of the loan portfolio comprises consumer loans
and customised financing for private banking clients.
Mortgage loans also include Kempen Dutch Inflation Fund, a
fund that invests in leasehold contracts primarily in
connection with Dutch residential real estate to create an
investment in long-term inflation-linked cash flows.
| | | | |
Table 3.3 Breakdown of loan portfolio by entity excluding impairments (\u20ac1,000) | | |
| | | |
| | | | |
| | | | |
Van Lanschot Kempen Investment Management | | | | |
| | | | |
3.4Collateral
In general, collateral can be used for all current and future
amounts owed by a debtor. In addition to residential
mortgage collateral and guarantees provided by governments
and credit institutions, commercial real estate, financial
collateral, receivables, stocks and inventories may serve as
collateral.
Tables 3.4.A and 3.4.B provide insight into the underlying
collateral of the loan portfolio.
| | | | | | | |
Table 3.4.A Loans and advances to the public and private sectors by collateral at 31/12/2022 (\u20ac1,000) |
| | | | | | Total collateralised loans | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Securities-backed loans and settlement receivables | | | | | | | |
| | | | | | | |
Table 3.4.B Loans and advances to the public and private sectors by collateral at 31/12/2021 (\u20ac1,000) |
| | | | | | Total\u00a0 collateralised loans | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Securities-backed loans and settlement receivables | | | | | | | |
Tables 3.4.A and 3.4.B have been drawn up on the basis of the
definitions contained in the Basel regulations. The balance
outstanding is the carrying amount excluding value
adjustments for fair value hedge accounting.2 The collateral
value is the lower of the balance outstanding of the related
loan or the value of the collateral itself.
The category Other mainly comprises loans for which
collateral has been pledged in the form of operating assets,
inventories and receivables, as well as collateral which for
technical reasons is not directly linked to a specific loan. The
total amount of unsecured loans is small.
The loan-to-value (LTV) of our mortgage loans is based on
indexed foreclosure values, in line with generally accepted
standards for LTV determination. The average LTV at year-
end 2022 was 63% (2021: 62%).
3.5 Concentration within the loan portfolio
About 83% (2021: 85%) of our loan portfolio consists of loans
to private clients. For the credit risk in this portfolio, see
Section\u00a03.8, Loss allowance for expected credit loss. We aim
for a diversified loan portfolio, reflecting our risk appetite.
We have set limits for concentrations in individual sectors.
3.5.1 Individual loan concentrations
The ten largest loans to individual clients other than financial
institutions totalled \u20ac227 million at year-end 2022, compared
with a total loan portfolio of \u20ac8.1 billion (2021: \u20ac183 million;
total loan portfolio \u20ac7.7 billion). In this calculation, Lombard
loans secured by non-single stock are excluded.3
3.5.2Geographical concentrations
In line with our strategy, the majority of lending takes place in
the Netherlands and Belgium. The geographical breakdown is
based on client locations.
| | |
Table 3.5.2 Loans and advances to the public and private sectors by geographical area (\u20ac1,000) | | |
| | |
| | |
| | |
| | |
| | | | | |
Table 3.7.B Netting of financial assets and liabilities 31/12/2021 (\u20ac1,000) |
| | Gross in the statement of financial position | Net in the statement of financial position | Related amounts not netted in the statement of financial position | |
| | | | | |
Derivatives (liabilities) | | | | | |
3.8.Loss allowance for expected credit loss
Under the IFRS 9 standard, we recognise a loss allowance for
ECL on financial assets measured at amortised cost or fair
value through other comprehensive income, as well as for
financial guarantees and loan commitments. When there is no
significant deterioration in credit risk since initial recognition,
ECL is recognised based on a 12-month expected credit loss
(Stage 1). When a significant increase in credit risk has
occurred, ECL is recognised based on a lifetime ECL (Stage 2).
For impaired loans (Stage 3), a lifetime ECL is recognised.
3.8.1.Expected loss measurement
We measure expected credit losses by using a sophisticated
approach and an alternative approach. For the sophisticated
approach we use models to calculate the ECL, governed by a
model governance framework. Under this framework, the
performance of the models is periodically monitored, and
these models are also periodically validated. The IFRS 9
models were externally validated in 2021 and are also subject
to quarterly performance monitoring. If models are
performing outside the agreed threshold, recalibration or
ultimately redevelopment will follow. In recent years, several
recalibrations have been carried out; no redevelopment has
yet been necessary.
In both approaches, ECL reflects an unbiased probability-
weighted amount that is determined by evaluating a range of
possible outcomes, the time value of money, and reasonable
and verifiable information that is available without undue
cost or effort at the reporting date about past events, current
conditions and forecasts of future economic conditions. Both
approaches calculate a 12-month and a lifetime ECL for the
exposures of all three stages.
After the risk stage determination in the stage calculation,
the relevant ECL is assigned:
\u201312-month ECL for Stage 1;
\u2013Lifetime ECL for Stage 2 and Stage 3.
The key elements of the ECL calculation are the probability of
default (PD), exposure at default (EAD), cure rate (CR), and
loss given non-cure (LGN). LGN is an estimate of the loss
arising in the event of a default without cure occurring at a
given time. It is based on the difference between the
contractual cash flows due and those that the lender would
expect to receive, including from the realisation of any
collateral.
In addition to these four key elements, we incorporate
forward-looking information for the sophisticated approach.
We identify macroeconomic variables and consider three
macroeconomic scenarios in calculating ECL:
\u2013A base-case scenario;
\u2013An upside scenario;
\u2013A downside scenario.
These scenarios are associated with different PDs, EADs and
LGNs. In the process of building the PD, cure rate and LGN
models for IFRS, we included several macroeconomic risk
drivers in the long list of risk drivers. Those determined as
best-performing during modelling were selected to be part of
the model. The macroeconomic scenarios are generated
based on inputs from CPB Netherlands' Bureau for Economic
Policy Analysis, DNB, ECB and Van Lanschot Kempen\u2019s
economic experts. The reported ECL (12-month or lifetime,
depending on the stage) is a weighted average of ECLs per
macroeconomic scenario. The table below shows the
macroeconomic variables used for the sophisticated
approach. However, we believe our models do not fully
incorporate the unique current economic environment. To
address the uncertain economic environment, we have
applied a management overlay (see Section 3.8.7).
| |
| |
| \u2013Gross domestic product (GDP) \u2013Volume of exports (EXP) |
| \u2013Total investments (TI) \u2013Private consumption (PC) \u2013Residential real estate price (RREP) \u2013Government consumption (GC) |
| \u2013Gross domestic product (GDP) \u2013Residential real estate price (RREP) |
3.8.3.Financial instruments following the sophisticated
approach
For the majority of financial instruments included in the line
item Loans and advances to the public and private sectors,
including mortgage loans, loans, current accounts,
subordinated loans and financial guarantees and loan
commitments, we apply a sophisticated approach to calculate
expected credit loss (ECL). This approach uses an umbrella
model that combines the following sub-models:
\u2013Various models that provide the expected flow of
exposures to the default state;
\u2013A PD calibration model giving the flow from performing to
default;
\u2013A full prepayment model and amortisation model giving
the outflow from the portfolio of an entire exposure due
to prepayment or contract expiration;
\u2013A migration model providing flows from performing rating
classes to other performing rating classes;
\u2013A cure rate model giving the flow from default to
performing classes and the non-cure state;
\u2013Various product-level models that give the expected
exposure at the moment a client goes into default;
\u2013An amortisation model showing the contractual payments
during the lifetime of a product and the part of the
exposure flowing out of the portfolio due to partial
prepayments;
\u2013An EAD model giving the exposure as a function of the
limit or outstanding amount just before default;
\u2013A product-level model evaluating the part of EAD that
may be lost \u2013 the loss given loss (LGL) model;
\u2013A discount factor to discount the loss from the moment of
default to the moment of reporting.
3.8.4.Financial instruments following the alternative
approach
We apply an alternative approach for cash and cash
equivalents, due from banks, debt instruments at amortised
cost, debt instruments at fair value through other
comprehensive income, and loans and security-backed loans
issued by the Belgian branch and F. van Lanschot Bankiers
(Schweiz) AG. The alternative approach comprises an
investments model and a foreign loan model.
3.8.5.Investments model
The investments model is applied to calculate the ECL for
cash and cash equivalents, due from banks, debt instruments
at amortised cost, and debt instruments at fair value through
other comprehensive income. These financial instruments all
have a low risk profile. All such exposures are assigned to
Stage 1 as long as their external rating is investment grade.
We use a simplified model to calculate 12-month ECL, using
publicly available data for PD and LGD based on external
ratings. If financial assets are downgraded below investment
grade, these assets will be sold.
3.8.6.Foreign loans model
For the loans and securities-backed loans issued by the
Belgian branch and F. van Lanschot Bankiers (Schweiz) AG,
we have developed a foreign loans model. These two
portfolios fall outside the scope of the A-IRB models and no
requirements on historical data have been set. The foreign
loans model calculates ECL as the sum of future exposure
discounted at the effective interest rate at recognition for
non-revolving products and the current effective interest
rate for revolving products.
3.8.7.Management overlay
At the start of the Covid pandemic, it was unclear what the
effects were going to be on our portfolio's credit risk. It was\u00a0
decided to introduce a management overlay to take into
account the expected\u00a0 effects of the pandemic on the
creditworthiness of borrowers belonging to specific sectors
most hit by the pandemic, i.e. clients in leisure and hospitality,
and clients active in commercial real estate (excluding
residential real estate). The overlay consisted of two
adjustments applied to a selection of borrowers. The first
adjustment was a downgrade in the PD bucket (reflecting the
increased PD) of these sectors. The second adjustment was to
transfer specific clients from Stage 1 to Stage 2.
As a result of the war in Ukraine that started in February
2022, we decided to introduce an add-on to the level of
provisioning as of the first quarter of 2022 due to the direct
and indirect impacts of this crisis on the economy. The
overlay consisted of three adjustments applied to a selection
of borrowers: a downgrade in PD bucket and subsequent
shift to Stage 2 of clients in specific sectors (construction,
manufacturing, transportation and farming) and a shift in the
probability-weighted scenarios that are part of the IFRS 9
framework.
However, three years after the outbreak of the pandemic that
has affected some sectors more heavily, the economy and the
financial sector have absorbed most of its consequences.
Meanwhile, the war in Ukraine has had a major impact on
energy and commodity prices and has driven up inflation. We
have therefore decided that it is appropriate to move from
sector-specific overlays to a more general overlay which
applies to all loan portfolios and exposures included in the
scope of our sophisticated approach IFRS 9 framework. We
have focused on PD-specific adjustments, since we believe a
more general overlay will materialise mostly in the
probability of client default. The approach consists of three
adjustments. First, probability-weighted scenarios have been
adjusted from 25%-50%-25% for adverse, neutral and
positive scenarios to 40%-50%-10%. Second, one of the PD
model risk drivers, the amount of arrears, has changed from\u00a0
12-month moving average to point-in-time to reflect recent
arrears behaviour. And thirdly, it is reasonable to assume that
discretionary income could be impacted and result in
increased arrears. Also, borrowers subject to an interest rate
reset could face significantly higher financing costs. Based on
expert judgement, we shocked the PD to reflect this risk.
The total management overlay applied for individual clients
and economic sectors resulted in a provision of \u20ac5.2 million
(2021: \u20ac1.6 million).
Even after incorporating this management overlay, the net
impact on our credit portfolio was relatively limited. This is
reflected in the relatively small increase in ECL.
3.8.8.Loss allowances
The table below shows the ECL loss allowances and the
corresponding book values, categorised by balance sheet line
item and ECL by stage, as at 31\u00a0December 2021 and
31\u00a0December 2022.
| | | | |
Table 3.8.A\u00a0 Loss allowance for expected credit loss (\u20ac1,000) | | |
| Carrying value (excluding impairments) | | Carrying value (excluding impairments) | |
| | | | |
Cash and cash equivalents and balances at central banks | | | | |
| | | | |
Financial assets at fair value through other comprehensive income | | | | |
Loans and advances to the public and private sectors | | | | |
Other financial assets at amortised cost | | | | |
Financial guarantees and loan commitments | | | | |
The table below shows total loss allowances recognised by
IFRS 9 stage. The total change in Stage 3 amounted to a
decrease of \u20ac15.5 million (2021: \u20ac9.7 million); of this amount,
\u20ac2.0 million (2021: \u20ac3.9 million) is related to write-offs and
\u20ac13.5 million (2021: \u20ac5.8 million) to releases of loss
allowances at Stage 3.
| | | | | |
Table 3.8.B Loss allowance recognised by IFRS 9 stage (\u20ac1,000) | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | |
Table 3.8.G Changes in loss allowance for expected credit losses of Loans and advances to the public and private sectors (\u20ac1,000) | | | | |
| | | | |
Additions or releases without transfer | | | | |
| | | | |
| | | | |
| | | | |
New financial assets originated or purchased | | | | |
Total balance excluding write-offs | | | | |
| | | | |
| | | | |
| | | | |
Table 3.8.H Changes in impairments of Other financial assets at amortised cost (\u20ac1,000) | | | | |
| | | | |
Additions or releases without transfer | | | | |
New financial assets originated or purchased | | | | |
Total balance excluding write-offs | | | | |
| | | | |
| | | | |
Table 3.8.K Changes in impairments of Financial guarantees and loan commitments (\u20ac1,000) | | | | |
| | | | |
Additions or releases without transfer | | | | |
| | | | |
| | | | |
| | | | |
New financial assets originated or purchased | | | | |
Total balance excluding write-offs | | | | |
| | | | |
All financial instruments included in the line items Cash and
cash equivalents, Due from banks, and Debt instruments at
amortised cost are classified in Stage 1, and no transfers have
taken place.
3.8.9.Credit quality
Van Lanschot Kempen allocates each exposure to a credit risk
grade based on a variety of data that are determined to be
predictive of the risk of default. Credit risk grades are defined
using qualitative (applying experienced credit judgement) and
quantitative factors that are indicative of risk of default.
These factors vary depending on the nature of the exposure
and the type of borrower.
We use internally developed rating pools for the line items
Loans and advances to the public and private sectors and
Financial guarantees and loan commitments.
| |
| |
| Non-credit-impaired financial assets that are not placed under the supervision of the Credit Risk and Credit Restructuring & Recovery department, internal rating pool 1 |
| Non-credit-impaired financial assets that are not placed under the supervision of the Credit Risk and Credit Restructuring & Recovery department, internal rating pools 2 to 4 |
| Non-credit-impaired financial assets that are placed under the supervision of the Credit Risk, Credit Restructuring & Recovery department, internal rating pools 1 to 4 |
| Credit-impaired financial assets |
| | | | |
Table 3.8.M Credit quality of Loans and advances to the public and private sectors 31/12/2021 (\u20ac1,000) | | | | |
| | | | |
Investment grade (AAA to BBB-) | | | | |
Standard monitoring (BB+ to B-) | | | | |
Special monitoring (CCC to C) | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Table 3.8.N Credit quality of Financial guarantees and loan commitments 31/12/2022 (\u20ac1,000) | | | | |
| | | | |
Investment grade (AAA to BBB-) | | | | |
Standard monitoring (BB+ to B-) | | | | |
Special monitoring (CCC to C) | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Table 3.8.O Credit quality of Financial guarantees and loan commitments 31/12/2021 (\u20ac1,000) | | | | |
| | | | |
Investment grade (AAA to BBB-) | | | | |
Standard monitoring (BB+ to B-) | | | | |
Special monitoring (CCC to C) | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
3.8.10.Macroeconomic variables
We incorporate forward-looking information for the
sophisticated approach. We use macroeconomic variables
and consider three macroeconomic scenarios in calculating
ECL: a base-case scenario, an upside scenario, and a downside
scenario. The weightings of the scenarios were 25% for both
the positive and negative scenarios and 50% for the base-
case scenario as at 31\u00a0December 2021.
In 2022, we adjusted the weightings to 10% for the
positive scenario, 40% for the negative scenario and 50%
for the base-case scenario, given growing uncertainty about
the economic recovery due to the war in Ukraine and
subsequent higher inflation. The table below shows the
macroeconomic variables used for the sophisticated
approach as at 31\u00a0December 2021 and 31\u00a0December 2022.
| | | | | | |
Table 3.8.P Macroeconomic variables | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Residential real estate price | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
For the portfolios that fall under the scope of IFRS 9, we
perform a scenario analysis to calculate the sensitivity of the
ECL to macroeconomic variables. The main economic drivers
of the ECL are gross domestic product (GDP), volume of
exports (EXP), total investments (TI), private consumption
(PC), residential real estate price (RREP) and government
consumption (GC). In the table below, ECLs are shown per
stage and per scenario.
| | | | | |
Table 3.8.Q\u00a0Sensitivity analysis as at 31\u00a0December 2022 (\u20ac1,000) | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
3.9 Collateral credit-impaired financial instruments
In general, collateral can be used for all current and future
amounts owed by a debtor. In addition to residential
mortgage collateral and guarantees provided by governments
and credit institutions, commercial real estate, financial
collateral, receivables, stocks and inventories may serve as
collateral. The majority of collateral is not directly linked to a
specific financing arrangement.
For credit-impaired financial instruments, the Credit Risk and
Credit Restructuring & Recovery department determines the
liquidation or recovery value of the available collateral, based
on the most recent valuation reports and applying the
applicable haircuts.
The table below shows the collateral for financial instruments
considered credit-impaired.
| | | | |
Table 3.8.R\u00a0Collateral for credit-impaired instruments as at 31\u00a0December 2022 (\u20ac1,000) | | | | |
Loans and advances to public and private sectors | | | | |
Financial guarantees and loan commitments | | | | |
No impairment is recognised for credit-impaired financial
instruments if the collateral is sufficient to cover the
outstanding obligation. The total carrying amount of credit-
impaired financial instruments for which there is no
impairment recognised is \u20ac41.1 million (2021: \u20ac50.4 million).
4.Market risk
Market risk is the risk of loss as a result of changes in market
variables, including interest rates, exchange rates and share
prices. Other variables not directly observable in the market,
such as volatility, long-term dividend expectations and
correlations, can also influence the value of financial
instruments. The market risk to which we are exposed can be
divided into three components. The market risk to which
Van\u00a0Lanschot Kempen Treasury (part of the Other activities
operating segment) is exposed in respect of its necessary
market maintenance, its structured products activities and
services to clients; secondly, market risk stemming from
trading activities in institutional securities, which is
concentrated at the Investment Banking Clients operating
segment. Lastly, exposure to market risks is also generated by
investments in Van Lanschot Kempen\u2019s management book of\u00a0
\u20ac118.8 million (2021: \u20ac198.4 million). These investments
provide seed capital for newly launched Van Lanschot
Kempen funds and allow us to co-invest with our clients.
4.1 Trading activities in securities
Our trading activities in securities mainly comprise equities
and equity derivatives. Equities are concentrated at the
Investment Banking Clients operating segment (equity
brokerage) while equity derivatives are concentrated at
Van\u00a0Lanschot Kempen Treasury (structured products
activities). A governance structure has been created to
facilitate effective risk management. The risks are managed
using value at risk (VaR) limits as well as gross and net limits.
Daily stress tests provide information about changes in
portfolio values in extreme market conditions and
complement the VaR calculation. The VaR for the trading
portfolios is computed daily, based on a one-day time horizon
with a 97.5% confidence level on one year of historical data.
The continued validity of the assumptions underlying the VaR
computation is regularly tested using back-testing. Other
risks relating to derivatives, which are mainly embedded in
our structured notes, are expressed in \u201cthe Greeks\u201d (e.g.
Delta, Vega, Rho) and are separately monitored on a daily
basis or more frequently if necessary.
Separate limits are in place for all risk drivers. VaR and other
relevant risk parameters are reported to senior management
(including two Management Board members) on a daily basis.
The embedded derivatives sold to our clients are hedged by
Van Lanschot Kempen. Most of the complex market risks
(exotic risks) are hedged on a back-to-back basis. The non-
exotic risks and limited exotic risks due to secondary market
trading are hedged via the macro-hedging strategy. This
means that the complex derivatives sold to clients are broken
down into individual risk drivers (i.e. delta exposure on
S&P500 or Euro Stoxx 50). The total macro exposure per risk
driver is calculated and this is hedged by using relatively
simple (mostly listed) options. All risk drivers have individual
limits and we monitor them daily and/or intra-day, although
some basis risks remain.
| | | | |
Table 4.1 Trading activities VaR (\u20ac1,000) | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
4.2 Market risk due to foreign exchange positions
To a limited degree, treasury activities (mainly foreign
exchange exposure, comprising client transactions and own
positions) result in positions exposed to market risks. The
Treasury department is part of the Other activities operating
segment. The majority of transactions and positions
in the statement of financial position are denominated in
euros. Exchange rate risk is managed within the required
limits and an authorisation structure applies. Foreign
exchange positions are shown in Table 4.2.B and include all
cash, forward and option positions of the entities in scope of
consolidation.
| | |
Table 4.2.A Exchange rate risk of treasury trading activities (total gross nominal foreign exchange position translated to (\u20ac1,000)) | | |
| | |
| | |
| | |
| | |
Weighting and requirements
We use the standardised approach for all types of market
risk. The market risk of interest rate derivatives is included
under Interest rate-related instruments; the market risk of
share-related derivatives is included under Share-related
instruments; and the market risk of currency derivatives is
included under Currency-related instruments.
5.Operational risk
Operational risks are potential losses that result from
inadequate or failed internal processes, systems, inadequate
or incorrect human actions, external events and fraud. Within
Van Lanschot Kempen, operational losses are classified using
operational loss event types as set out in the Basel
framework.
We have created a range of instruments for identifying,
evaluating, monitoring and managing operational risks to
support the bank\u2019s management in their roles as risk owners.
\u2013Operational risk appetite: This appetite defines the level
of \u2013 quantitative and qualitative \u2013 operational risk we are
willing to accept. Exceeding this appetite requires the
attention of the Management Board and will lead to
additional mitigation measures as necessary.
\u2013Risk identification and assessment via risk and control
self-assessments and scenario analysis:
\u2013Risk and control self-assessment is a tool that allows
line managers to systematically identify and assess
risks so that steps can be taken to manage any risks
outside the risk appetite. Risk and control self-
assessments are carried out, at tactical (department)
level, on the most important value chains of the
organisation and on our most important programmes
and projects. These assessments are re-performed
periodically in order to reassess and update the
existing operational risk level.
\u2013Scenario analyses are used to assess low frequency
but high-impact risks. The results of these analyses
are used to provide insight into the adequacy of the
Pillar 1 capital requirement vis-\u00e0-vis the operational
risk profile.
\u2013Risk response: Management is responsible for deciding
how to treat risk, and whether to mitigate, accept or
transfer (insure) it:
\u2013Action tracking:\u00a0 Action tracking is used to track
progress made in the delivery of actions to mitigate
identified risks, arising from risk and control self-
assessments, failing controls, analysis of incidents or
complaints, findings by Internal Audit and external
regulators, and other relevant events.
\u2013Control effectiveness monitoring: To ensure that the
most important risks (key risks) are mitigated
sufficiently, key controls have been defined; these are
assessed on a regular basis to determine their
effectiveness.
\u2013Risk insurance: To protect the organisation against
major operational risk-related losses, we have taken
out insurance policies that cover claims and losses
resulting from the services offered. Broadly speaking,
these policies are a combination of fraud and
professional liability insurance, directors\u2019 liability
insurance and various other liability and accident
insurance policies.
\u2013Risk acceptance: If a risk is assessed to be outside of
the risk appetite and it is not possible or economically
viable to lower the risk, the risk can be accepted at
Management Board level.
\u2013Risk monitoring:
\u2013Incident management: Risks that materialise through
an incident are registered in our incidents database
via the incident management process. For severe
incidents, root cause analyses are carried out. The
incidents database allows the systematic recording
and analysis of losses resulting from operational risks.
It contains information about losses incurred as a
result of operational risks in prior years and the
current year and forms the foundation of
Van\u00a0Lanschot Kempen's operational risk management
measurement system. A total of 88 incidents (2021:
99 incidents) entailing a loss of more than \u20ac1,000
were logged in the database in 2022, resulting in a
total loss of \u20ac1.2 million (2021: \u20ac1.2 million).
\u2013Risk measurement: This is based on key risk
indicators (early warnings), which highlight trends
and/or provide prospective information about
operational risks.
\u2013Risk meetings:\u00a0 Periodic meetings with risk owners
are held to monitor the development of the risk profile
in relation to the risk appetite.
Information risk
Information risk assesses and monitors the protection of
client and corporate information. Both automated and
manual information processing are carried out. Taking the
right measures on the basis of targeted risk analyses of
business and IT processes ensures that both our client data
and our corporate data are adequately protected and access
to this data is ensured.
Fraud risk
The main mitigants for fraud risk are strong processes with
checks and balances (i.e. the four eyes principle) and access
control. Incidents such as internal fraud cases are dealt with
in accordance with the incident management procedure,
which requires a root cause analysis to be conducted, and
adequate follow-up to prevent reoccurrence. In 2022, no
internal fraud event was identified nor any attempt to
commit internal fraud. No investigation of any person
regarding internal fraud therefore needed to be conducted.
Business continuity management
Business continuity analyses are carried out as part of our
business continuity management process in order to gain
insight into critical processes and the resources needed to
ensure continuity of service and address potential threats.
Embedding business continuity management in the
organisation is essential to give the bank sufficient resilience
against the impact of an incident or disaster. Business
continuity thus has universal scope within the bank; it
comprises policies, standards and procedures aimed at
safeguarding critical processes or enabling a restart within a
specified timeframe in the event of a disaster. The objective is
to keep any financial, reputational and/or other material
damage to a minimum, both for us and for our clients.
Procedures are tested on a regular basis, with tests of
fallback procedures and crisis governance carried out every
year. Furthermore, crisis management teams and crisis
support teams are trained regularly in crisis management
techniques and practice using case studies.
Personal data integrity and privacy
The privacy of our clients is important to us; we therefore
handle their personal data responsibly and with care. It\u2019s
important for every Van Lanschot Kempen employee to
understand that discretion and adhering to the core
principles of our privacy statement are of the utmost
importance. To manage the risks related to personal data
integrity, and to manage Van Lanschot Kempen's operations
within GDPR laws and regulations, a personal data integrity
framework has been set up.\u00a0
The Data Protection Officer manages this framework to
support the organisation in its obligations; not only to foster
awareness, but also to establish the necessary policies, advise
on data privacy-related matters, monitor compliance with
data privacy laws and report on a regular basis to the Privacy
Committee, and to the Management and Supervisory Boards.
6.Settlement risk
We are required to hold capital for financial transactions that
are not settled within five days of the agreed deadline, if the
difference between the agreed settlement price and the price
at the reporting date could lead to a loss. Settlement risk is
monitored and managed on a daily basis.
At year-end 2022, financial transactions totalling
\u20ac11.0\u00a0million (2021: \u20ac14.5 million) had to be reported in the
context of settlement risk.
7.CVA risk
Under the CRR, account must also be taken of the risk-
weighted assets in relation to CVA, which must be adequate
to cover the risk of a deterioration in the creditworthiness of
the counterparty in a derivatives transaction (bilateral or
centrally cleared). This CVA capital adequacy requirement is
additional to requirements applying to the risk-weighted
assets in relation to the \u201cregular\u201d default risk of a
counterparty. We use the standardised method to calculate
the capital requirement for CVA.
8.Interest rate risk
Interest rate risk in the banking book (IRRBB) is the exposure
to adverse market interest rate movements, arising from
banking book activities. Adverse interest rate movements
may impact a bank\u2019s current and/or future earnings, capital
and market value. Responsibility for IRRBB management has
been delegated by the Management Board to ALCO. Interest
rate risks in non-banking book items are managed as part of
market risk.
Our main source of interest rate risk is the maturity mismatch
between assets and liabilities. In general, assets have longer
interest rate maturities than liabilities, contractually as well
as behaviourally. We model client behaviour with respect to
the prepayment patterns of mortgages and loans and the
interest rate risk profiles of savings and current accounts.
Client behaviour risk is another important source of interest
rate risk, as actually observed client behaviour may deviate
from assumptions. Differences between assumed and
actually observed client behaviour could have a material
adverse impact on future results.
We pursue a prudent interest rate risk policy that aims to
mitigate the effect of prospective interest rate movements
which could affect future net interest income, while balancing
the costs of hedging activities on current earnings.
We manage interest rate risk from both a long- and a short-
term perspective. The short-term interest rate risk is
addressed mainly from a net interest income perspective
(delta net interest income, or \u0394NII). This involves an analysis
of the interest income under a number of market interest rate
scenarios, relative to the baseline scenario in which interest
rates are expected to develop based on forward rates.
In 2022, all \u0394NII scenarios remained within risk appetite
limits. By year-end 2022, the most adverse scenario was a
scenario in which short term interest rates come down again.\u00a0
The \u0394NII for this scenario was -4.5%\u00a0 at the end of 2022 (end
of 2021: -6.4%, in a scenario in which interest rates would
flatten). Table 8.A shows the interest rate risk metrics.
| | |
Table 8.A Interest rate risk metrics | | |
Delta net interest income (\u0394NII) | | |
Delta economic value of equity (\u0394EVE) | | |
We address long-term interest rate risk by means of the
economic value approach, which looks at how movements in
interest rates impact the value of the bank\u2019s assets and
liabilities. The rule-of-thumb metric for economic value
analysis is duration of equity, which indicates the net impact
of parallel interest rate changes on economic value, assuming
a linear relationship between these parameters.
Although we use duration of equity as a rule-of-thumb for
economic value sensitivity, we also calculate economic value
changes under various scenarios. In doing so, all interest rate
cash flows are replotted and revalued at shocked interest
rate curves and we use coupon rates that are stripped from
margins. In 2022, all delta economic value of equity (\u0394EVE)
scenarios remained within risk appetite limits. By year-end
2022, the most adverse scenario was an instant upwards
shock of 200 basis points. The \u0394EVE for this scenario was
-8.4% at the end of 2022 (end of 2021: -7.4%).
We aim to neutralise the impact of differences in accounting
classifications on interest rate steering. Hence, we mostly
hedge the interest rate risk in fair value items in the banking
book on a back-to-back basis, by means of interest rate
swaps. By doing so, we make sure that Result on financial
transactions \u2013 to the extent that it arises from banking book
items \u2013 is only impacted by market changes in credit spreads
over the swap curve and that there is no net impact from
changes in the swap curve itself. For this reason, the \u0394NII
scenarios we use to assess our interest rate risk profile do not
affect the Result on financial transactions. We use hedge
accounting to offset changes in the market value of
derivatives that are used for hedging portfolios classified at
amortised cost.
9.Liquidity risk
The main objective of our liquidity risk management is to
ensure that we are able to maintain or generate sufficient
cash resources to meet our payment obligations in full as they
come due, on acceptable terms. One of the key elements of
our approach towards liquidity risk management is to
maintain stakeholder confidence in the bank\u2019s solidity at all
times.
The main source of liquidity risk that we are exposed to
relates to the share of client deposits in our funding base.
Although client deposits have proven to be relatively price-
inelastic and sticky over time, the withdrawable nature of
such deposits poses potential outflow risks, especially for
those deposits not covered by the deposit guarantee scheme
(DGS).
The roll-over risk with respect to maturing capital market
funding is less substantial for us, since our client deposit base
comfortably funds our entire loan book. To still obtain a
certain degree of diversification in our funding mix, we have\u00a0
covered bond programmes in place.
To manage liquidity risks, we use a forward-looking liquidity
risk management framework that enables the comprehensive
measurement, evaluation and calibration of indicators related
to liquidity risk. The framework consists of the risk appetite
statement, the liquidity buffer, monitoring and reporting,
forecasting, funding planning and contingency planning.
Limits for liquidity risk are revised on an annual basis as part
of the risk appetite limit structure. Limits set include, but are
not limited to, levels of the liquidity coverage ratio, the net
stable funding ratio and stress test survival periods, which are
reported on a monthly basis to ALCO. The liquidity buffer is
the main defensive element against liquidity risk, and the
quality and size of the buffer are monitored frequently, along
with inflows and outflows in the client deposit base.
Finally, each year we outline our capital and funding planning
for a three-year horizon, both under regular circumstances in
the capital and funding plan, and under potential future stress
or emergency situations in the liquidity contingency plan,
complemented by the recovery plan.
Part of our liquidity and funding planning is scenario analysis,
of which stress testing is a key element. By means of stress
testing, we assess our resilience to a variety of adverse
liquidity events \u2013 Van Lanschot Kempen-specific events,
system-wide events, and a combination of these two.
9.1.Contractual maturity
Tables 9.1.A and 9.1.B show the assets and liabilities based on
their remaining contractual terms to maturity at the
reporting date, without taking behavioural aspects into
account. These amounts correspond with the amounts
included in the consolidated statement of financial position.
Items with no maturity, such as equity instruments, assets
and liabilities classified as held for sale, and provisions are
presented separately.
Derivative liabilities are included on a net basis if cash flows
are settled net. For other derivative liabilities the contractual
gross cash flow payable is included.
As savings and current accounts do not have fixed terms, the
balances of non-maturity instruments are presented within
the withdrawable on demand category.
Due from banks and amounts due to banks include collateral
delivered and received related to derivative transactions.
Allocation of this collateral over the maturity buckets is
conducted in accordance with the maturity classification of
the derivative contracts.
| | | | | | | | |
Table 9.1.A Contractual maturity of assets and liabilities at 31/12/2022 (\u20ac1,000) |
| | | | | | | | |
| | | | | | | | |
Cash and cash equivalents and balances at central banks | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Financial assets at fair value through profit or loss | | | | | | | | |
Financial assets at fair value through other comprehensive income | | | | | | | | |
Loans and advances to the public and private sectors | | | | | | | | |
Other financial assets at amortised cost | | | | | | | | |
Investments in associates using the equity method | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Total assets excluding derivatives | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Public and private sector liabilities | | | | | | | | |
| | | | | | | | |
Financial liabilities at fair value through profit or loss | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Total equity and liabilities | | | | | | | | |
Total equity and liabilities excluding derivatives | | | | | | | | |
| | | | | | | | |
1 Includes Property and equipment, Goodwill and other intangible assets, Current tax assets, Deferred tax assets and Other assets as presented in the consolidated
\u00a0 statement of financial position.
2 Includes Provision, Current tax liabilities, Deferred tax liabilities and Other liabilities as presented in the consolidated statement of financial position.
| | | | | | | | |
Table 9.1.B Contractual maturity of assets and liabilities at 31/12/2021 (\u20ac1,000) |
| | | | | | | | |
| | | | | | | | |
Cash and cash equivalents and balances at central banks | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Financial assets at fair value through profit or loss | | | | | | | | |
Financial assets at fair value through other comprehensive income | | | | | | | | |
Loans and advances to the public and private sectors | | | | | | | | |
Other financial assets at amortised cost | | | | | | | | |
Investments in associates using the equity method | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Total assets excluding derivatives | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Public and private sector liabilities | | | | | | | | |
| | | | | | | | |
Financial liabilities at fair value through profit or loss | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Total equity and liabilities | | | | | | | | |
Total equity and liabilities excluding derivatives | | | | | | | | |
| | | | | | | | |
The assets comprise many long-term mortgage loans while
the liabilities are made up of many short-term deposits. This
results in a gap between the Withdrawable on demand and
More than five years columns. Potential liquidity risks are
addressed by means of monthly stress tests \u2013 discussed
monthly in ALCO \u2013 that test the bank\u2019s resilience to a variety
of adverse liquidity events and take behavioural aspects into
account.
For each transaction we have guaranteed, the maximum
guaranteed amount is included in the relevant term bucket
under which the bank first has the right to terminate the
transaction. For each obligation arising from an irrevocable
commitment, the committed amount is classified in the
relevant term bucket under which we first have the right to
withdraw the commitment.
1 Includes Property and equipment, Goodwill and other intangible assets, Current tax assets, Deferred tax assets and Other assets as presented in the consolidated
\u00a0 statement of financial position.
2 Includes Provision, Current tax liabilities, Deferred tax liabilities and Other liabilities as presented in the consolidated statement of financial position.
9.2Contractual maturities of undiscounted cash flow of
financial liabilities
Tables 9.2.A and 9.2.B show liabilities by maturity based on
contractual, undiscounted cash flows and including related
future cash flows, such as interest payments. Repayments
which are subject to notice are treated as if notice were to be
given immediately. However, we expect that many clients will
not request repayment at the earliest possible date, and the
tables below do not reflect the expected cash flows as
indicated by our deposit retention history.
| | | | | | |
Table 9.2.A Contractual maturities of undiscounted cash flow of liabilities at 31/12/2022 (\u20ac1,000) |
| | | | | | |
| | | | | | |
Public and private sector liabilities | | | | | | |
| | | | | | |
Financial liabilities at fair value through profit or loss | | | | | | |
| | | | | | |
| | | | | | |
Total undiscounted liabilities | | | | | | |
| | | | | | |
Table 9.2.B Contractual maturities of undiscounted cash flow of liabilities at 31/12/2021 (\u20ac1,000) |
| | | | | | |
| | | | | | |
Public and private sector liabilities | | | | | | |
| | | | | | |
Financial liabilities at fair value through profit or loss | | | | | | |
| | | | | | |
| | | | | | |
Total undiscounted liabilities | | | | | | |
10.Securitisation risk
We treat securitisation as an asset class in our investment
portfolio. We are not party to any synthetic securitisations
and have no trading position in securitisation transactions.
Funding
We do not structure securitisations for other entities and
have no outstanding securitisation transactions in which we
act as a sponsor, seller and/or servicer.
Investments
Part of our liquidity investment portfolio is invested in RMBS.
We invest only in the most senior and AAA tranches of RMBS
transactions. If they comply with the simple, transparent and
standardised (STS) requirements, these securitisations
qualify as high-quality liquid assets. All tranches are ECB
eligible, meaning that they have at least two ratings from an
external credit assessment institution (ECAI).
As the investments are part of the liquidity buffer, they can be
used as collateral, in repo transactions, or sold if necessary.
The RMBS portfolio represents a small share of the total
investment portfolio.\u00a0
Risk exposures within the investment portfolio
The credit risks of the investments are not hedged. Our
investment portfolio as a whole is monitored by the Treasury
department and the Credit Risk Approval team on a daily
basis. The portfolio is monitored on nominal limits as well as
on credit risk limits.
Management
Interest rate risk is limited, as RMBS are typically floating-
rate notes. Interest rate risk is monitored at balance sheet
level and includes the investment portfolio. We use the SEC-
ERBA methodology to calculate the total risk exposure of
RMBS investments.
11.Climate change and sustainability risks
Sustainability risks relate to environmental, social and
governance (ESG) themes. As these are relatively new types
of risk, we are still developing policies, frameworks, and are
collecting data to manage them. At this point in time, the most
measurable ESG risks are climate-related, which are
discussed in more detail in the remainder of this section.
Climate change risk reflects the physical and/or transitional
impacts of a change in the climate on Van Lanschot Kempen's
financial position and/or reputation. Based on the factors as
discussed below, we conclude that no impairments as a result
of\u00a0 sustainability risks are necessary. Our approach to
managing climate-related risks includes aligning our
organisation with the ECB's expectations as set out in its
guidance on climate-related and environmental risks. The risk
to our activities posed by climate change is periodically
assessed.
Climate change risks are addressed and managed via the
sustainability risk policy. This policy assures risks are
assessed from a integrated/holistic perspective, taking all risk
drivers and activities into account. Sustainability risks have
an effect on our on- and off-balance sheet activities.
| | | |
Table 11 Balance sheet based on sustainability criteria\u00a0 (\u20ac million) | | |
| | | |
| Sovereign and semi-sovereign exposure | | |
| | | |
| Private Clients mortgages | | |
| | | |
| Derivatives and due from banks | | |
| Goodwill and other intangible assets | | |
| | | |
| | | |
On-balance sheet activities
1.We believe that the sustainability risks of our
central bank exposures are limited. Our main exposure is via
DNB. DNB has exposure to national commercial banks via
their investments in relatively safe assets and is backed by a
sovereign entity. The risks run by DNB and the Eurosystem at
large are mitigated by the fact that the Eurosystem can
correct unacceptable risks by changing supervisory rules.
Moreover, DNB, as a monetary authority, is able to accept
temporarily negative equity positions, so even large losses
arising from a sustainability risk event can be absorbed.
2.Our sovereign and semi-sovereign debt holdings are
mainly in the European Union, Canada and Belgium. This debt
has a minimum rating of BBB, with 92% of these government
and government-guaranteed bonds and SSAs having ratings
of AA- and higher, making them capable of withstanding
major costs as a result of physical or transitional risks. Also,
by signing the Paris Climate Agreement, these countries have
committed to build resilience against the consequences of
climate change \u2013 e.g. rising sea levels \u2013 thereby reducing local
physical climate risks.
3.Our covered bonds and RMBS holdings are all rated
AAA. The majority of the financial assets backed by
mortgages are located in the Netherlands, France and
Canada. Currently, no loan level data is available to calculate
the specific ESG risks on these positions. For our RMBS
instruments \u2013 where we have direct exposure to the
underlying pool of mortgages \u2013 some general analytics can be
done. The geographical distribution of the mortgage pools
does not materially differ from the total issuers mortgage
pool, thereby reducing the physical risks. Moreover, there is a
substantial credit enhancement present in the RMBS
transactions, which ranges from 5.95% to 28.76%, and the
average LTVs range from 45.4% to 74.4%. The RMBS
instruments in the lower range of the credit enhancement
also are in the lower range of LTVs. Covered bonds give
additional protection through dual recourse, as the
underlying mortgage pool will only be resorted to if the
issuing bank defaults. What's more, the mortgage pool is
continuously monitored and if needed adapted, to meet the
criteria of the asset cover test. Physical concentration is also
taken into account. In our opinion the mortgage-backed
financial assets we have invested in are thus capable of
withstanding costs arising from physical or transitional risks.
4.Private Clients mortgages represent our most
concentrated\u00a0 position in terms of (potential) sustainability
risks. Given the geographical characteristics of the
Netherlands, we are mainly exposed to physical risks related
to fluvial and pluvial flooding. Using highly detailed data on
flooding risk in the Netherlands (probability of flood and, if a
flood event takes place, the distribution of potential water
levels) and specific characteristics of the collateral (house/
apartment), we quantify the potential impact on collateral
valuations. Based on internally defined flooding scenarios we
determine our exposure to flooding risk. The limited average
LTV increase as result of flood damage, given the low
probability of such an event, means that actual projected
losses are expected to be manageable, In addition, our
residential mortgage portfolio is prone to transitional risks
which could impact the value of the collateral in future due to
rising energy prices and/or renovation costs to meet future
legislation on energy efficiency/emissions. Using the
characteristics of the collateral (building year, size, current
energy label, etc.) we determined the renovation costs
needed to improve the energy efficiency of the collateral.
Next, the cost of renovation is deducted from the current
market value of the collateral to derive a stressed market
value as a result of transition risk (we assume non-renovated
collateral will be worth less in the future). Given the limited
renovation costs, our low average LTV and the on average
significant assets of our clients, the transition risks are limited
and non-material. In addition, the IFRS provision for
defaulted mortgages (IFRS 9, Stage 3) is determined per
individual credit file by the Credit Risk and Credit
Restructuring & Recovery department. If there are significant
climate risks relating to defaulted loans, those risks are taken
into consideration when the IFRS 9 provision is determined.
5.Other loans comprise loans to health care specialists
and to business professionals such as main audit and law firm
partners. These business professionals have limited direct
exposure to climate and environmental risks. We also have
loans to family businesses and entrepreneurs, with only very
limited exposure to sectors which are directly exposed to
sustainability risks (energy, travel, agriculture). Based on the
limited exposures and non-impacted sectors, the
sustainability risks are limited and non-material. If loans are
in default the IFRS provision for Stage 3 is determined per
individual credit file by the Credit Risk and Credit
Restructuring & Recovery department. If there are significant
climate risks relating to our Stage 3 loans, those risks are
taken into consideration when the IFRS 9 provision is
determined.
6.Derivatives and due from banks comprise mostly
positions with financial institutions. We annually assess\u00a0
financial institutions with which Van\u00a0Lanschot Kempen has a
banking relationship, testing whether they have at least
committed to over 50% of nine well-known international
sustainability initiatives. If they have not, we will engage them
on this issue. Out of our current 44 financial institution
counterparties, all currently comply and there was no need to
engage with any financial institutions in our portfolio in 2022.
The fact that all have committed to sustainability initiatives
and are all regulated by established regulators that also pay
attention to sustainability risks mitigates any sustainability
risks; hence there were no impairments.
7.Goodwill comprises goodwill attributable to the
acquisition of entities such as Van Lanschot Kempen
Investment Management and Mercier Vanderlinden. These
parts of the company are integrated in our sustainability
policy, thus managing the various sustainability risks.
8.Other items comprise various relatively small items,
with no large concentrations. For example, we have
\u20ac118.9\u00a0million exposure on our own management book,
which we invest in accordance with the Van Lanschot
Kempen ESG policy. For the positions in our management
book we quantify our climate-related risks based on the
Sustainable Finance Disclosure Regulation (SFDR) article
classification. As most of the positions are Article 8, we assess
our climate-related risks as limited. At the same time, we
assess sustainability risks via three defined stress scenarios.
Losses resulting from this stress test are limited and well
within our current trading limits. As a result of our client
facilitation trades at securities trading, we have temporary
positions in equities. Within our trading books we assess
transition risks via four stress scenarios as defined by our
regulator DNB. Based on these outcomes we conclude that
our transition risk exposure is limited and well within our
current trading limits.
Off-balance sheet activities
In our investment management process, the physical and
transitional impacts of climate change are taken into account
when investments are made or external asset managers are
selected. On both a quantitative and qualitative basis, Risk
Management measures and analyses the sustainability risks
to our investment management activities. All major assets
under management (AuM) decisions are made by the
Sustainability Investment Council.
Other
For our own organisation, climate-related risks are defined as
the risk of flooding, earthquakes, drought and other natural
hazards that could put the regular execution of our
operations at risk. This risk is included in our business
continuity stress-testing methodology as one of several
scenarios that could lead to a prolonged disruption of facility
usage.
In addition to climate change-related risks, Risk Management
is in the process of setting up systems and tooling for
assessment of broadly defined sustainability risks, such as
biodiversity, human rights, and diversity and inclusion. The
adverse impact of\u00a0 these sustainability risks is measured by
principal adverse impact (PAI) indicators. Sustainability risks
could very well lead to a combination of financial,
reputational and legal problems in the long term if not
addressed proactively. Risk Management closely monitors
developments in these areas, as we recognise the increased
awareness and importance of these.
12.Compliance risk
When operating in financial markets, it is crucially important
that we conduct our business activities in accordance with
the expectations of our clients, shareholders, employees and
supervisory authorities, but also that we follow high ethical
standards, in alignment with our values and risk appetite, and
within the boundaries of applicable laws, rules, regulations,
internal policies and procedures and industry standards
relevant to Van Lanschot Kempen. This increases the long-
term sustainability of our business activities and helps us to
fulfil our purpose.
We maintain a permanent, independent and effective
compliance function to identify, assess, monitor and report on
compliance risk, i.e. the risk of failure by Van Lanschot
Kempen to comply with regulations as applicable to
Van\u00a0Lanschot Kempen and/or of undertaking or failing to
undertake those activities prohibited or mandated under
applicable regulations. Additionally, we have put in place
policies and procedures, systems and controls necessary to
manage compliance risk.
The Compliance department is headed by the Chief
Compliance Officer, who reports directly to the Chief Risk
Officer of the Management Board. The Compliance
department fulfils its responsibilities by providing advice and
assistance to Van\u00a0Lanschot Kempen committees and staff,
and by continuously monitoring adherence to regulations
within Van\u00a0Lanschot Kempen\u2018s day-to-day operations.
For compliance risk, 2022 again brought changes that impact
our regulatory landscape. Implementing and adapting to new
sustainability rules and regulations remained one of the focus
areas.
We are proactively responding to these regulatory
developments through dedicated implementation working
groups in which Van Lanschot Kempen's Compliance
department takes part, as well as through other control
functions within the company. Special efforts have been
made on the implementation of various sustainability-related
rules and regulations. As a result, we have been working
extensively to adapt policies, procedures and controls to the
new regulatory requirements as well as to the demands and
expectations of clients and investors.
In addition to these regulatory developments, we have
devoted, and continue to devote, substantial resources to the
strengthening of our compliance framework and our
Compliance department across the organisation, including
subsidiaries and branches.
The Compliance department has continued to enhance the
compliance framework through dedicated efforts to
strengthen our policies and procedures across business lines
as well as through the compliance risk management
programme and the use of data-driven monitoring to enhance
our compliance reporting. We have also continued to develop
and deliver a dedicated compliance training and awareness
programme for staff. The Compliance department was
expanded and enhanced in 2022 by the hiring of additional
compliance experts and a new Chief Compliance Officer.
Further optimising Compliance is integral to our strategic
direction.
13.Financial reporting risk
The Management Board is responsible for designing and
implementing an adequate system of internal control for our
financial reporting. The system is designed to provide
reasonable assurance as to the reliability of financial
reporting and that the financial statements are prepared in
accordance with generally accepted accounting principles
and applicable legislation and regulations.
We have the following tools in place to manage financial
reporting risks:
\u2013Periodic management reports and KPI dashboards,
accompanied by analysis of financial and non-financial
figures and trends;
\u2013A risk and control framework describing processes and
procedures, and setting out primary controls such as
authorisations and segregation of duties;
\u2013The findings from the review of the operational
effectiveness of the internal control system by Internal
Audit, which are discussed with the Management Board,
the Audit Committee and the Supervisory Board;
\u2013The Van Lanschot Kempen Accounting Manual, which
sets out the principles we pursue with respect to financial
accounting;
\u2013Assessment and approval of the annual report by the
Management Board and discussion of this by the Audit
Committee and by the Supervisory Board.
The management teams of the relevant divisions have
provided the Management Board with in-control statements
on the extent of internal control, based on the results of
testing procedures for the risk and control framework, the
risks reported on a quarterly basis, the follow-up of these
risks, and the incidents reported. Risk Management and
Compliance have evaluated these statements and verified
that the business is in control.
14.Fair value
14.1Financial assets at fair value through profit or loss
A portion of the financial instruments are measured at fair
value in the statement of financial position. Tables 14.1.A and
14.1.B provide a breakdown of these instruments into three
levels. The fair value is based either on quoted prices in active
markets, inputs other than quoted prices that are observable
in the market, or inputs based on data not observable in the
market.
We have developed a policy on the criteria for allocating
financial instruments recognised in the statement of financial
position at fair value to each of the three levels. A review is
carried out at the end of each reporting period to determine
whether any changes have taken place in the hierarchy
between the levels.
Level 1: Quoted prices in active markets
The fair value of financial instruments traded in an active
market is based on the price at the reporting date (market
price). The bid price is applied for financial assets and the
offer price for financial liabilities. Since these instruments are
traded in an active market, their prices adequately reflect
current and frequent market transactions between unrelated
parties.
Level 2: Inputs observable in the markets
The fair value of financial instruments not traded in an active
market (e.g. over-the-counter financial derivatives) is
established using cash flow and option valuation models.
Using estimates, we make assumptions based on the market
conditions (observable data) at the reporting date.
The estimated present value of future cash flows is used to
determine the fair value of the other financial instruments.
The fair value of interest rate swaps is calculated as the
present value of estimated future cash flows. The discount
rate is the same as the market interest rate at the reporting
date for a similar instrument subject to the same conditions,
taking into account collateral furnished under credit support
annexes (CSAs).
The fair value of forward currency contracts is calculated by
reference to forward exchange rates at the reporting date.
Estimates and judgements made are based on past
experience as well as other factors, including expectations
with respect to future events that could reasonably occur
given current circumstances. Estimates and judgements are
assessed on an ongoing basis.
Level 3: Significance of unobservable market data
The financial instruments in this category are assessed on an
individual basis. Their valuation is based on the best estimate
of management by reference to the most recent prices, prices
of similar instruments and, to a not insignificant extent,
information not observable in the market. Unobservable
inputs may include volatility, correlation, seasonality and
credit spreads. A valuation technique is used in which at least
one input that has a significant effect on the instrument\u2019s
valuation is not based on observable market data. Valuation
techniques used include:
\u2013The net asset value method;
\u2013Discounted cash flow projections based on reliable
estimates of future cash flows;
\u2013The option model.
A significant effect on the instrument\u2019s valuation is
considered to be present when the unobservable input
accounts for at least 10% of the total instrument\u2019s fair value
and exceeds a threshold of \u20ac50,000. The effect of fair value
adjustments on the instrument\u2019s valuation is included in the
assessment.
| | | | |
Table 14.1.A Financial instruments at fair value at 31/12/2022 (\u20ac1,000) | | | | |
| | | | |
| | | | |
Financial assets at fair value through profit or loss | | | | |
Financial assets at fair value through other comprehensive income | | | | |
| | | | |
| | | | |
| | | | |
Financial liabilities at fair value through profit or loss | | | | |
| | | | |
| | | | | | | |
Table 14.1.D Breakdown of changes in financial assets less liabilities classified as Level 3 in 2021 (\u20ac1,000) |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial assets at fair value through profit or loss | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial liabilities at fair value through profit or loss | | | | | | | |
| | | | | | | |
Total assets less liabilities | | | | | | | |
| | | | | | |
Table 14.1.E Fair value changes recognised in profit or loss of financial instruments classified as Level 3 (\u20ac1,000) | | |
| | | | | | |
| | | | | | |
Income from securities and associates | | | | | | |
Result on financial transactions | | | | | | |
| | | | | | |
| | | | | | |
capital and funding plan, which is based on a number of risk,
capital management and compliance policies.
The primary objective of our capital management is to ensure
that we comply with external and internal capital
requirements in order to support our businesses and to
create value for our stakeholders. We manage our capital
structure by taking into account changes in economic
conditions and the risk characteristics of our activities. To
maintain and/or manage our capital structure, we may adjust
the amount of dividend payments to shareholders, return
capital to shareholders or issue capital securities. These
adjustments are under constant review by the Management
Board. Lastly, requests or demands by our supervisors DNB
and/or ECB can also influence capital management.
The Management Board also bears responsibility for ensuring
the proper operation of the processes that safeguard the
group\u2019s liquidity and capital position. In addition, it is required
to provide information to the Supervisory Board, which in
turn assesses the risk appetite of the group. To ensure the
various risk types are managed properly, the Management
Board has set up the following risk and compliance
committees:
Group Risk Committee
The Group Risk Committee, which includes all members of
the Management Board and the heads of Risk Management
and Compliance, discusses group-wide risk management
themes. Chaired by the CRO, this committee brings together,
discusses and monitors the various risk types on an
integrated level. The committee is involved in setting the
annual risk appetite statement and discusses the risk appetite
report and emerging trends in the risk profile. Other areas
covered include recovery and resolution planning.
Credit Risk Committee
The Credit Risk Committee sets and adjusts the group\u2019s
overall credit risk policy and translates this into acceptance
and portfolio management policies. In executing its tasks, the
committee bears in mind our strategic objectives and the
guiding principles informing the risk appetite statement.
The CRO chairs this committee; other members represent\u00a0
Risk Management, Private Clients, and Credit Risk and Credit
Restructuring & Recovery.
Market Risk Committee
This committee focuses on all market risks within
Van\u00a0Lanschot Kempen and is chaired by the CRO. Market risk
is the risk of loss as a result of changes in market variables,
including interest rates (excluding interest rate risk in the
banking book), exchange rates and equity prices. It also
considers variables not directly observable in the market,
such as volatility and correlations, which also influence the
value of certain financial instruments. Market risks at
Investment Banking Clients arise from securities trading to
facilitate our clients (mainly equities and equity derivatives).
Van Lanschot Kempen is exposed to a certain amount of
market risk (mainly foreign exchange and structured
products activities) through its treasury activities. Our
foreign exchange risk is limited, as the majority of
transactions and positions in the statement of financial
position are denominated in euros. Van Lanschot Kempen is
also exposed to market risk as a result of management book
investments.
Asset & Liability Committee
The Asset & Liability Committee (ALCO) is responsible for
managing risks that result from mismatches between assets
and liabilities (interest rate and liquidity risks), as well as the
capital position of the bank. ALCO\u2019s main tasks are:
\u2013Overseeing the asset and liability management process;
\u2013Setting policies on interest rate risk in the banking book1,
liquidity and funding risk, funds transfer pricing and
capitalisation;1
\u2013Monitoring the development of the balance sheet and
balance-sheet projections.
ALCO convenes once a month and is chaired by the CFO.\u00a0
ALCO\u2019s members also comprise:
\u2013The Chair of the Management Board;
\u2013The CRO;
\u2013The Management Board member responsible for Client
Management & Origination;
\u2013ALM, Treasury, Risk Management and Finance, Reporting
& Control directors.
Compliance & Operational Risk Committee
The Compliance & Operational Risk Committee is responsible
for the implementation and execution of our compliance and
operational risk management policies. The committee
assesses compliance and operational risks, and ensures
remedial actions are taken where required. The committee
also challenges and approves the annual plans of the Non-
Financial Risk Management and Compliance departments. It
is chaired by the CRO. Among other matters, the root causes
of major operational risk incidents are discussed in this
committee.
Risk Management takes the lead in the committees described
above, with the exception of the Compliance & Operational
Risk Committee, where both Compliance and Risk
Management are in charge, and ALCO, where Asset &
Liability Management is in charge. We also have a number of
committees that form part of the first line of defence and that
cover specific risk-related topics, such as the Credit
Committee and Client Management & Origination's Product
Approval & Review\u00a0 Committee.
1 The banking book comprises all assets not held for trading under the regulatory definition.1.2.3 Implementation and review of risk, capital
management and compliance policies
Implementation and monitoring of our risk and capital
policies is carried out by Risk Management, ALM and Finance,
Reporting & Control. In addition, Compliance carries out the
implementation, monitoring and/or review of compliance
policies.
Risk Management is responsible for:
\u2013Second-line monitoring and management of all risks
relating to the statement of financial position at group
level, including modelling, measuring, managing and
reporting on our credit, market, interest rate, liquidity and
strategic risks;
\u2013Business continuity management;
\u2013Information security;
\u2013The risk appetite process;
\u2013Preparing, developing and maintaining policy documents;
\u2013Issuing daily market risk reports;
\u2013Proactively and reactively providing advice on managing
risks;
\u2013Raising risk awareness among staff in order to improve
their ability to strike a sound balance between risk and
return.
Risk Management and ALM are responsible for:
\u2013Preparing ICAAP and ILAAP documentation as well as the
recovery plan.
Finance, Reporting & Control is responsible for the financial
accounting and business control function. Through its various
reports, Finance, Reporting & Control fulfils an important role
in challenging the businesses. These reports include monthly
management reports and cost control reports, and are used
to monitor the progress of business plans.
Compliance has both an advisory and a monitoring role with
respect to compliance with applicable laws, rules, regulations,
internal policies and procedures, and industry standards
relevant for Van Lanschot Kempen. As compliance risks are
part of Van Lanschot Kempen's overall risk governance,
Compliance as an independent function is involved in and
supports the management of compliance risks by identifying,
assessing, monitoring and reporting on such risks.
Compliance risks include risks such as personal data integrity,
financial crime, business conduct and client protection risks.
Internal Audit periodically reviews the design and
effectiveness of the risk organisation and the execution of
our risk, capital management and compliance policies in
accordance with their annual audit plan. The applicable
policies form the starting point for the independent review by
Internal Audit. Processes, infrastructure, organisation and
systems are audited based on these policies in order to
determine whether the organisation adequately executes its
risk, capital management and compliance policies.
1.2.4 Execution of risk, capital management and compliance
policies
CMO and Investment Strategies & Solutions (ISS) prepare
their own business plans. On the basis of these plans, current
and future risks are assessed, including expected capital and
liquidity requirements. These assessments serve as input for
the various risk committees.
1.3 Capital requirements
The standards set by the Basel Committee on Banking
Supervision, and translated into law (CRR and CRD, Wft),
apply to all Dutch banks. The Basel framework consists of
three pillars:
\u2013Pillar 1 stipulates capital requirements for credit, market
and operational risk.
\u2013Pillar 2 requires banks to have internal processes for risk
management and to calculate the capital requirements
needed to address all risks that are not included in Pillar 1.
The Supervisory Review and Evaluation Process (SREP) is
also part of Pillar 2.
\u2013Pillar 3 sets out requirements for disclosure of
information about the institution\u2019s risk profile to external
stakeholders.
Our website provides Pillar 3 disclosures (unaudited) and a
detailed breakdown of our portfolio of loans to companies
and institutions (unaudited). Meanwhile our remuneration
policy is explained both in a remuneration section and a Pillar
3 disclosure (unaudited), both also on our website.
1.4Individual risks
The following sections detail the individual risk types to
which we are exposed. They therefore cover a combination of
Pillar 1 and Pillar 2 capital requirements. The risk types
covered are:
\u2013Strategic risk (Section 2);
\u2013Credit risk (Section 3);
\u2013Market risk (Section 4);
\u2013Operational risk (Section 5);
\u2013Settlement risk (Section 6);
\u2013CVA risk (Section 7);
\u2013Interest rate risk (Section 8);
\u2013Liquidity risk (Section 9);
\u2013Securitisation risk (Section 10);
\u2013Climate change and sustainability risks (Section 11);
\u2013Compliance risk (Section 12);
\u2013Financial reporting risk (Section 13).
",
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"concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTcvZnJhZzo1ODgxYTA0MDJlOTQ0ZWJjOTA3YWI0YjNkNTFmNDNlNy90ZXh0cmVnaW9uOjU4ODFhMDQwMmU5NDRlYmM5MDdhYjRiM2Q1MWY0M2U3XzUzODc2MDcwMDE0NjA3_e9fb9639-44c8-49fd-a9c1-b46310bb05a6": {
"value": "Credit risk
Credit risk is defined as the risk that a counterparty or client
is no longer able to fulfil its obligations. Our credit risk
policies focus on the counterparty risks associated with
lending to private clients and SMEs. Strict selection criteria
for new clients and active credit management for existing
clients are applied to safeguard the quality of the loan
portfolio. Our lending activities are required to be in line with
stated objectives, and individual assessments are used to
ascertain this.
As well as from lending activities, credit risk also arises from:
\u2013Investment activities;
\u2013International payment transactions and cash
management;
\u2013FX and hedging activities;
\u2013Settlement risk.
Our investment activities relate to the management of our
liquidity buffer and equity investments. For the liquidity
buffer, a limit framework is in place to manage and monitor
associated credit risks.
Counterparty credit risk with respect to financial institutions
arises from international payment transactions, cash
management, FX and hedging activities. Some of these
activities also involve settlement risk. For derivatives
transactions, counterparty credit risk is mitigated by daily
margining.
We apply a strict policy when determining and monitoring
country and counterparty (financial institutions) limits. The
country limits serve as a cross limit for financial institutions,
meaning that the counterparty risks in respect of financial
institutions in one country are limited by the relevant country
limit, as the country limit is usually lower than the aggregate
of the individual counterparty limits.
3.1Loans and advances
3.1.1 Credit acceptance
Our loan approval policy focuses on maintaining a high-
quality loan portfolio. The authority to approve loans and
loan reviews is delegated to a limited number of teams,
mainly our Credit Approval team.
The authority to approve large loans rests with the Credit
Committee, which comprises representatives of the relevant
divisions as well as members of the Management Board.
The mid- and back-office for nearly all residential mortgage
loans is carried out by a third party. A service level agreement
(SLA) is in place to ensure adequate control of the operational
risks, including the outsourcing risk.
The acceptance process is not outsourced, with the exception
of our white label loans \u2013 residential mortgages offered by a
third party. The acceptance and management of credit risks
has been outsourced to this third party, within our strict
guidelines and in accordance with prevailing legal
requirements.
These activities are closely monitored using detailed data
from the mortgage portfolio. This makes it possible, for
example, to recognise any arrears. We also review random
samples of mortgage loans. An SLA is in place to ensure
adequate control of the operational risks, including the
outsourcing risk.
Limits on financial institutions and countries are determined
using a number of hard criteria such as the external rating,
BIS ratios, capital ratios, country of origin and gross domestic
product (for countries). Limits can also be adjusted and
withdrawn on a daily basis.
New loan requests are assessed to determine if they are in
line with our strategy and we adopt a conservative approach
to granting them.
The credit risk concentration mainly lies within our Private
Clients segment in the Netherlands, as our office network in
the Netherlands is bigger than in the other countries in which
we are active in extending credit.
3.1.2 Credit management \u2013 policy and processes
To achieve and attain a high-quality loan portfolio, strict
credit management is required. Credit management is carried
out at both individual loan and portfolio level. At the
individual loan level, explicit attention is devoted to the
management of unauthorised overdrafts and accounts past
due. Loans with an elevated risk profile are subjected to a risk
check. In addition, a portion of the portfolio is regularly
reviewed and the credit risk of individual clients is scrutinised
as part of this review. The frequency of reviews varies
according to the individual borrower\u2019s risk profile, but they
take place at least annually. In addition to financial analyses,
reviews take account of future developments in a client\u2019s
situation (partly in the light of relevant macroeconomic
trends).
A deterioration in a client\u2019s risk profile may lead to closer
supervision, an adjusted rating, corrective measures (such as
requiring additional collateral or increasing the frequency of
financial reporting), involvement of the Credit Risk and Credit
Restructuring & Recovery department or a combination of
these measures. It may also lead to a stage transfer under
IFRS 9\u00a0 \u2013 see Section 3.8.
At portfolio level, credit risks are monitored on a monthly
basis. In addition, several early warning indicators are used to
draw up a watch list, which is discussed bi-monthly. A detailed
credit risk report and any relevant developments or expected
developments are discussed in the Credit Risk Committee on
a quarterly basis. Any negative trend identified in the risk
profile of a particular client segment, sector or loan type, can
lead to the adjustment of the relevant lending policy. Trends
in sectors where there is a concentration risk are monitored
particularly closely.
If the review, risk check, payment arrears or external signals
point to an increased risk of discontinuity, the Credit Risk and
Credit Restructuring & Recovery department is involved in
the credit management process. An estimate is made of the
probability of continuity. Depending on the seriousness and
magnitude of the problem, either monitoring or intensive
supervision is applied. If there are objective indicators of
impairment the Credit Risk and Credit Restructuring &
Recovery department draws up an impairment proposal. The
Impairment Committee determines the impairment for the
whole credit portfolio on a quarterly basis.
Active management of past due loans enables potential
problem loans to be identified at an early stage. If an
individual assessment identifies an increased risk, the Credit
Risk, Credit Restructuring & Recovery department will
supervise the client. Increased credit risk occurs in situations
including the following:
\u2013If clients fail to meet their payment obligations;
\u2013If clients report difficulties in meeting future payments,
e.g. because of a divorce, unemployment etc.;
\u2013In the event of a default (see Section 3.1.3);
\u2013For business clients, in the event of a significant decrease
in turnover, breach of one or more covenants, a debt
service coverage ratio < 1, etc.
The primary goal of the Credit Risk and Credit Restructuring
& Recovery department is to migrate clients back to accounts
with regular status (i.e. not under the supervision of Credit
Risk and Credit Restructuring & Recovery) by reducing their
credit risk. The aim is to do this in accordance with the loan
agreements made with these clients, but forbearance
measures are applied if necessary. For more information on
forborne exposures, see Section 3.2.
3.1.3 Credit risk measurement
We have developed internal models for measuring and
monitoring credit risk for the majority of the loan portfolio.
Some of these internal models are also used to determine the
required capital that has to be set aside for absorbing
unexpected credit losses. For this reason, the models, the use
of these models and the model governance have to adhere to
strict requirements set out in the CRR.
The CRR distinguishes three approaches for determining the
required capital for credit risk: the standardised approach
(SA), the foundation internal ratings-based (F-IRB) approach,
and the advanced internal ratings-based (A-IRB) approach.
We use SA and A-IRB for our loan portfolios.
The standardised approach prescribes a set of rules for
determining the required capital based on various
characteristics such as client type, loan type, collateral type,
and external rating. Under A-IRB, banks are allowed to use
own estimates for PD, EAD and LGD. The PD is defined as the
likelihood that a client will default within one year, the EAD is
defined as the bank\u2019s expected exposure at the time a client
defaults, and the LGD is the expected loss percentage in the
event that a client defaults. As a result, A-IRB is more risk-
sensitive than SA.
We have approval from DNB to determine and report the
required regulatory capital for our residential mortgage
exposures portfolio using the A-IRB approach. For these
models, we have a model governance framework in place. As
part of this, the performance of the models is periodically
monitored, and these models are also periodically validated
against independent models.
The PD model is mostly based on behavioural aspects of the
client and the LGD models on the underlying collateral. For
the capital calculations a so-called downturn LGD is applied,
i.e. the expected loss at default during an economic downturn.
Estimation of the EAD is based on the limit and credit
utilisation.
The SA method has been used for capital calculations in all
our other retail and non-retail portfolios.
IRB equity portfolio
The IRB equity portfolio includes our positions in equities in
the investment portfolio, subordinated receivables, non-
controlling interests and shareholdings which appear on
Van\u00a0Lanschot Kempen's company statement of financial
position. We use the simple risk-weighted method to
calculate the risk-weighted assets for positions in shares.
In this method, a specific risk weighting (190%, 290% or
370%) is assigned to each position, based on a number of
characteristics. A risk weighting of 250% is applied for
significant investments in financial institutions that are not
deducted from equity because they fall below the regulatory
threshold. Positions taken in shares and subordinated loans
of wholly owned subsidiaries are excluded from IRB. These
are reported using the SA method.
Other loans and advances
The risk-weighted assets of other portfolios, such as the debt
securities in our investment portfolio managed by the
Treasury department (i.e. excluding retail, non-retail and
equity), are calculated on the basis of the SA method.
Definition of default and credit-impaired assets
Our definition of default is informed by EBA guidelines. Most
notably, the materiality threshold complies with the uniform
European standard. A financial asset is credit-impaired when
one or more events have occurred that have a detrimental
impact on the estimated future cash flows:
\u2013A breach of contract such as a more than 90 days past due
event with a materiality of more than \u20ac100 and more than
1% of total credit obligation (retail exposures) or more
than \u20ac500 and more than 1% of total credit obligation for
non-retail exposures;
\u2013Significant financial difficulty of the issuer or the
borrower and an inability to meet future payments;
\u2013Concession(s) granted to the borrower that the lender
would not otherwise consider, relating to the borrower\u2019s
financial difficulties (forbearance);
\u2013A growing likelihood that the borrower will enter
bankruptcy or other financial restructuring;
\u2013The disappearance of an active market for that financial
asset because of financial market difficulties;
\u2013The purchase or origination of a financial asset at a deep
discount that reflects the incurred credit loss.
It may not always be possible to identify a single discrete
event; instead the combined effect of several events may
have caused financial assets to become impaired. All impaired
assets are also classified as defaulted by Van\u00a0Lanschot
Kempen under CRR rules. Van Lanschot Kempen has
implemented one definition that serves for all its different
purposes.
3.2Forborne exposures
A loan is considered forborne if the borrower is unable to
meet their contractual obligations towards the bank and the
bank decides to make a concession to the client by modifying
the terms and conditions of the loan agreement. The
objective of this modification is to enable the borrower to
meet the renewed obligations, and it would not have been
offered if those circumstances had not arisen. Forbearance
actions may include one or more of the following measures:
\u2013Amendment of the original terms and conditions of the
loan agreement that the client cannot meet due to
financial difficulties, with a view to restoring the client\u2019s
payment capacity;
\u2013Full or partial refinancing of a forborne exposure.
The purpose of the measures taken in forbearance situations
is to maximise the chance of restoring the borrower\u2019s
payment capacity and to minimise the risk of losses due to
having to write off all or part of the loan. Measures must offer
the client an appropriate and sustainable solution, enabling
them to comply with the original obligations arising from the
credit agreement in due course.
Applying forbearance measures is exclusively reserved for
the Credit Risk and Credit Restructuring & Recovery
department, which pursues a policy based on general
principles and translates this to the specific situation of the
individual client. Given the nature of these loans, the Credit
Risk and Credit Restructuring & Recovery department carries
out intensive credit management. Before any new
arrangements are agreed, a detailed analysis is made of the
client, their financial situation and the likelihood of income
recovery. The outcome of this analysis may have
consequences for the client\u2019s review frequency and the size
of any loan loss provision to be made. If the client qualifies for
appropriate forbearance measures, a proposal will be drawn
up and submitted to the competent assessor(s) for approval.
If a forbearance measure is granted, the client is classified as
a non-performing exposure.
In practice, forbearance measures do not always have the
desired effect \u2013 i.e. the recovery of the client\u2019s payment
capacity or an end to the process of declining payment
capacity. This may, for example, be the result of a further
deterioration in the client\u2019s financial circumstances or the
failure of those circumstances to improve as expected. Such
cases are reanalysed and a strategy is redefined. However,
the principle is explicitly maintained that the forbearance
measure must be appropriate, sustainable and effective. Any
new arrangements agreed with the borrower must also meet
these strict criteria.
A forbearance situation ends when the non-performing
status has no longer been applied to the loan for a probation
period of two years. The non-performing status must last a
minimum of one year starting from the last forbearance
measure. Moreover, the client must have made significant
and regular payments of interest and/or principal during at
least half of the probation period. During the two-year
probation period, no payments by the borrower may be in
arrears for more than 30 days. If this condition is not met, the
probation period will start again from the date the client is no
longer in arrears for more than 30 days.
The recording and monitoring of loans which are subject to
forbearance is carried out by the Credit Risk and Credit
Restructuring & Recovery department. Each quarter, and
where appropriate more frequently for specific loans, an
individual assessment is carried out of forborne exposures
which are in default, in relation to any provision made. In
addition to this quarterly assessment (as part of the
provisioning process), these loans are subject to extensive
credit risk management, the intensity and frequency of which
will as far as possible match the specific circumstances of the
loan.
Tables 3.2.A through 3.2.C show the total volume of forborne
exposures. We apply several types of forbearance measures
(see Table 3.2.A).
Following the decision to apply such a measure, a loan
remains under the supervision of the Credit Risk and Credit
Restructuring & Recovery department until the forbearance
situation has ended.
| | |
Table 3.2.A Types of forborne exposure (\u20ac1,000) | | |
| | |
Capitalisation of arrears/interest | | |
| | |
| | |
| | |
Deferred payment of financing costs | | |
| | |
Reduction in interest rate | | |
| | | | | | |
Table 3.2.C Forborne exposures by collateral at 31/12/2021 (\u20ac1,000) |
| | | | | | Secondary collateral and unsecured loans |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Write-off policy
We write off loans as soon as there is sufficient certainty
about the loss after the sale of collateral and after exploring
other redress opportunities.
3.3 Breakdown of the loan portfolio
We adopt a cautious approach to granting unsecured loans.
Our loan book mainly consists of loans to Private Clients such
as loans secured by residential real estate, a number of
commercial real estate loans and Lombard loans. The
remainder of the loan portfolio comprises consumer loans
and customised financing for private banking clients.
Mortgage loans also include Kempen Dutch Inflation Fund, a
fund that invests in leasehold contracts primarily in
connection with Dutch residential real estate to create an
investment in long-term inflation-linked cash flows.
| | | | |
Table 3.3 Breakdown of loan portfolio by entity excluding impairments (\u20ac1,000) | | |
| | | |
| | | | |
| | | | |
Van Lanschot Kempen Investment Management | | | | |
| | | | |
3.4Collateral
In general, collateral can be used for all current and future
amounts owed by a debtor. In addition to residential
mortgage collateral and guarantees provided by governments
and credit institutions, commercial real estate, financial
collateral, receivables, stocks and inventories may serve as
collateral.
Tables 3.4.A and 3.4.B provide insight into the underlying
collateral of the loan portfolio.
| | | | | | | |
Table 3.4.A Loans and advances to the public and private sectors by collateral at 31/12/2022 (\u20ac1,000) |
| | | | | | Total collateralised loans | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Securities-backed loans and settlement receivables | | | | | | | |
| | | | | | | |
Table 3.4.B Loans and advances to the public and private sectors by collateral at 31/12/2021 (\u20ac1,000) |
| | | | | | Total\u00a0 collateralised loans | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Securities-backed loans and settlement receivables | | | | | | | |
Tables 3.4.A and 3.4.B have been drawn up on the basis of the
definitions contained in the Basel regulations. The balance
outstanding is the carrying amount excluding value
adjustments for fair value hedge accounting.2 The collateral
value is the lower of the balance outstanding of the related
loan or the value of the collateral itself.
The category Other mainly comprises loans for which
collateral has been pledged in the form of operating assets,
inventories and receivables, as well as collateral which for
technical reasons is not directly linked to a specific loan. The
total amount of unsecured loans is small.
The loan-to-value (LTV) of our mortgage loans is based on
indexed foreclosure values, in line with generally accepted
standards for LTV determination. The average LTV at year-
end 2022 was 63% (2021: 62%).
3.5 Concentration within the loan portfolio
About 83% (2021: 85%) of our loan portfolio consists of loans
to private clients. For the credit risk in this portfolio, see
Section\u00a03.8, Loss allowance for expected credit loss. We aim
for a diversified loan portfolio, reflecting our risk appetite.
We have set limits for concentrations in individual sectors.
3.5.1 Individual loan concentrations
The ten largest loans to individual clients other than financial
institutions totalled \u20ac227 million at year-end 2022, compared
with a total loan portfolio of \u20ac8.1 billion (2021: \u20ac183 million;
total loan portfolio \u20ac7.7 billion). In this calculation, Lombard
loans secured by non-single stock are excluded.3
3.5.2Geographical concentrations
In line with our strategy, the majority of lending takes place in
the Netherlands and Belgium. The geographical breakdown is
based on client locations.
| | |
Table 3.5.2 Loans and advances to the public and private sectors by geographical area (\u20ac1,000) | | |
| | |
| | |
| | |
| | |
| | | | | |
Table 3.7.B Netting of financial assets and liabilities 31/12/2021 (\u20ac1,000) |
| | Gross in the statement of financial position | Net in the statement of financial position | Related amounts not netted in the statement of financial position | |
| | | | | |
Derivatives (liabilities) | | | | | |
3.8.Loss allowance for expected credit loss
Under the IFRS 9 standard, we recognise a loss allowance for
ECL on financial assets measured at amortised cost or fair
value through other comprehensive income, as well as for
financial guarantees and loan commitments. When there is no
significant deterioration in credit risk since initial recognition,
ECL is recognised based on a 12-month expected credit loss
(Stage 1). When a significant increase in credit risk has
occurred, ECL is recognised based on a lifetime ECL (Stage 2).
For impaired loans (Stage 3), a lifetime ECL is recognised.
3.8.1.Expected loss measurement
We measure expected credit losses by using a sophisticated
approach and an alternative approach. For the sophisticated
approach we use models to calculate the ECL, governed by a
model governance framework. Under this framework, the
performance of the models is periodically monitored, and
these models are also periodically validated. The IFRS 9
models were externally validated in 2021 and are also subject
to quarterly performance monitoring. If models are
performing outside the agreed threshold, recalibration or
ultimately redevelopment will follow. In recent years, several
recalibrations have been carried out; no redevelopment has
yet been necessary.
In both approaches, ECL reflects an unbiased probability-
weighted amount that is determined by evaluating a range of
possible outcomes, the time value of money, and reasonable
and verifiable information that is available without undue
cost or effort at the reporting date about past events, current
conditions and forecasts of future economic conditions. Both
approaches calculate a 12-month and a lifetime ECL for the
exposures of all three stages.
After the risk stage determination in the stage calculation,
the relevant ECL is assigned:
\u201312-month ECL for Stage 1;
\u2013Lifetime ECL for Stage 2 and Stage 3.
The key elements of the ECL calculation are the probability of
default (PD), exposure at default (EAD), cure rate (CR), and
loss given non-cure (LGN). LGN is an estimate of the loss
arising in the event of a default without cure occurring at a
given time. It is based on the difference between the
contractual cash flows due and those that the lender would
expect to receive, including from the realisation of any
collateral.
In addition to these four key elements, we incorporate
forward-looking information for the sophisticated approach.
We identify macroeconomic variables and consider three
macroeconomic scenarios in calculating ECL:
\u2013A base-case scenario;
\u2013An upside scenario;
\u2013A downside scenario.
These scenarios are associated with different PDs, EADs and
LGNs. In the process of building the PD, cure rate and LGN
models for IFRS, we included several macroeconomic risk
drivers in the long list of risk drivers. Those determined as
best-performing during modelling were selected to be part of
the model. The macroeconomic scenarios are generated
based on inputs from CPB Netherlands' Bureau for Economic
Policy Analysis, DNB, ECB and Van Lanschot Kempen\u2019s
economic experts. The reported ECL (12-month or lifetime,
depending on the stage) is a weighted average of ECLs per
macroeconomic scenario. The table below shows the
macroeconomic variables used for the sophisticated
approach. However, we believe our models do not fully
incorporate the unique current economic environment. To
address the uncertain economic environment, we have
applied a management overlay (see Section 3.8.7).
| |
| |
| \u2013Gross domestic product (GDP) \u2013Volume of exports (EXP) |
| \u2013Total investments (TI) \u2013Private consumption (PC) \u2013Residential real estate price (RREP) \u2013Government consumption (GC) |
| \u2013Gross domestic product (GDP) \u2013Residential real estate price (RREP) |
3.8.3.Financial instruments following the sophisticated
approach
For the majority of financial instruments included in the line
item Loans and advances to the public and private sectors,
including mortgage loans, loans, current accounts,
subordinated loans and financial guarantees and loan
commitments, we apply a sophisticated approach to calculate
expected credit loss (ECL). This approach uses an umbrella
model that combines the following sub-models:
\u2013Various models that provide the expected flow of
exposures to the default state;
\u2013A PD calibration model giving the flow from performing to
default;
\u2013A full prepayment model and amortisation model giving
the outflow from the portfolio of an entire exposure due
to prepayment or contract expiration;
\u2013A migration model providing flows from performing rating
classes to other performing rating classes;
\u2013A cure rate model giving the flow from default to
performing classes and the non-cure state;
\u2013Various product-level models that give the expected
exposure at the moment a client goes into default;
\u2013An amortisation model showing the contractual payments
during the lifetime of a product and the part of the
exposure flowing out of the portfolio due to partial
prepayments;
\u2013An EAD model giving the exposure as a function of the
limit or outstanding amount just before default;
\u2013A product-level model evaluating the part of EAD that
may be lost \u2013 the loss given loss (LGL) model;
\u2013A discount factor to discount the loss from the moment of
default to the moment of reporting.
3.8.4.Financial instruments following the alternative
approach
We apply an alternative approach for cash and cash
equivalents, due from banks, debt instruments at amortised
cost, debt instruments at fair value through other
comprehensive income, and loans and security-backed loans
issued by the Belgian branch and F. van Lanschot Bankiers
(Schweiz) AG. The alternative approach comprises an
investments model and a foreign loan model.
3.8.5.Investments model
The investments model is applied to calculate the ECL for
cash and cash equivalents, due from banks, debt instruments
at amortised cost, and debt instruments at fair value through
other comprehensive income. These financial instruments all
have a low risk profile. All such exposures are assigned to
Stage 1 as long as their external rating is investment grade.
We use a simplified model to calculate 12-month ECL, using
publicly available data for PD and LGD based on external
ratings. If financial assets are downgraded below investment
grade, these assets will be sold.
3.8.6.Foreign loans model
For the loans and securities-backed loans issued by the
Belgian branch and F. van Lanschot Bankiers (Schweiz) AG,
we have developed a foreign loans model. These two
portfolios fall outside the scope of the A-IRB models and no
requirements on historical data have been set. The foreign
loans model calculates ECL as the sum of future exposure
discounted at the effective interest rate at recognition for
non-revolving products and the current effective interest
rate for revolving products.
3.8.7.Management overlay
At the start of the Covid pandemic, it was unclear what the
effects were going to be on our portfolio's credit risk. It was\u00a0
decided to introduce a management overlay to take into
account the expected\u00a0 effects of the pandemic on the
creditworthiness of borrowers belonging to specific sectors
most hit by the pandemic, i.e. clients in leisure and hospitality,
and clients active in commercial real estate (excluding
residential real estate). The overlay consisted of two
adjustments applied to a selection of borrowers. The first
adjustment was a downgrade in the PD bucket (reflecting the
increased PD) of these sectors. The second adjustment was to
transfer specific clients from Stage 1 to Stage 2.
As a result of the war in Ukraine that started in February
2022, we decided to introduce an add-on to the level of
provisioning as of the first quarter of 2022 due to the direct
and indirect impacts of this crisis on the economy. The
overlay consisted of three adjustments applied to a selection
of borrowers: a downgrade in PD bucket and subsequent
shift to Stage 2 of clients in specific sectors (construction,
manufacturing, transportation and farming) and a shift in the
probability-weighted scenarios that are part of the IFRS 9
framework.
However, three years after the outbreak of the pandemic that
has affected some sectors more heavily, the economy and the
financial sector have absorbed most of its consequences.
Meanwhile, the war in Ukraine has had a major impact on
energy and commodity prices and has driven up inflation. We
have therefore decided that it is appropriate to move from
sector-specific overlays to a more general overlay which
applies to all loan portfolios and exposures included in the
scope of our sophisticated approach IFRS 9 framework. We
have focused on PD-specific adjustments, since we believe a
more general overlay will materialise mostly in the
probability of client default. The approach consists of three
adjustments. First, probability-weighted scenarios have been
adjusted from 25%-50%-25% for adverse, neutral and
positive scenarios to 40%-50%-10%. Second, one of the PD
model risk drivers, the amount of arrears, has changed from\u00a0
12-month moving average to point-in-time to reflect recent
arrears behaviour. And thirdly, it is reasonable to assume that
discretionary income could be impacted and result in
increased arrears. Also, borrowers subject to an interest rate
reset could face significantly higher financing costs. Based on
expert judgement, we shocked the PD to reflect this risk.
The total management overlay applied for individual clients
and economic sectors resulted in a provision of \u20ac5.2 million
(2021: \u20ac1.6 million).
Even after incorporating this management overlay, the net
impact on our credit portfolio was relatively limited. This is
reflected in the relatively small increase in ECL.
3.8.8.Loss allowances
The table below shows the ECL loss allowances and the
corresponding book values, categorised by balance sheet line
item and ECL by stage, as at 31\u00a0December 2021 and
31\u00a0December 2022.
| | | | |
Table 3.8.A\u00a0 Loss allowance for expected credit loss (\u20ac1,000) | | |
| Carrying value (excluding impairments) | | Carrying value (excluding impairments) | |
| | | | |
Cash and cash equivalents and balances at central banks | | | | |
| | | | |
Financial assets at fair value through other comprehensive income | | | | |
Loans and advances to the public and private sectors | | | | |
Other financial assets at amortised cost | | | | |
Financial guarantees and loan commitments | | | | |
The table below shows total loss allowances recognised by
IFRS 9 stage. The total change in Stage 3 amounted to a
decrease of \u20ac15.5 million (2021: \u20ac9.7 million); of this amount,
\u20ac2.0 million (2021: \u20ac3.9 million) is related to write-offs and
\u20ac13.5 million (2021: \u20ac5.8 million) to releases of loss
allowances at Stage 3.
| | | | | |
Table 3.8.B Loss allowance recognised by IFRS 9 stage (\u20ac1,000) | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | |
Table 3.8.G Changes in loss allowance for expected credit losses of Loans and advances to the public and private sectors (\u20ac1,000) | | | | |
| | | | |
Additions or releases without transfer | | | | |
| | | | |
| | | | |
| | | | |
New financial assets originated or purchased | | | | |
Total balance excluding write-offs | | | | |
| | | | |
| | | | |
| | | | |
Table 3.8.H Changes in impairments of Other financial assets at amortised cost (\u20ac1,000) | | | | |
| | | | |
Additions or releases without transfer | | | | |
New financial assets originated or purchased | | | | |
Total balance excluding write-offs | | | | |
| | | | |
| | | | |
Table 3.8.K Changes in impairments of Financial guarantees and loan commitments (\u20ac1,000) | | | | |
| | | | |
Additions or releases without transfer | | | | |
| | | | |
| | | | |
| | | | |
New financial assets originated or purchased | | | | |
Total balance excluding write-offs | | | | |
| | | | |
All financial instruments included in the line items Cash and
cash equivalents, Due from banks, and Debt instruments at
amortised cost are classified in Stage 1, and no transfers have
taken place.
3.8.9.Credit quality
Van Lanschot Kempen allocates each exposure to a credit risk
grade based on a variety of data that are determined to be
predictive of the risk of default. Credit risk grades are defined
using qualitative (applying experienced credit judgement) and
quantitative factors that are indicative of risk of default.
These factors vary depending on the nature of the exposure
and the type of borrower.
We use internally developed rating pools for the line items
Loans and advances to the public and private sectors and
Financial guarantees and loan commitments.
| |
| |
| Non-credit-impaired financial assets that are not placed under the supervision of the Credit Risk and Credit Restructuring & Recovery department, internal rating pool 1 |
| Non-credit-impaired financial assets that are not placed under the supervision of the Credit Risk and Credit Restructuring & Recovery department, internal rating pools 2 to 4 |
| Non-credit-impaired financial assets that are placed under the supervision of the Credit Risk, Credit Restructuring & Recovery department, internal rating pools 1 to 4 |
| Credit-impaired financial assets |
| | | | |
Table 3.8.M Credit quality of Loans and advances to the public and private sectors 31/12/2021 (\u20ac1,000) | | | | |
| | | | |
Investment grade (AAA to BBB-) | | | | |
Standard monitoring (BB+ to B-) | | | | |
Special monitoring (CCC to C) | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Table 3.8.N Credit quality of Financial guarantees and loan commitments 31/12/2022 (\u20ac1,000) | | | | |
| | | | |
Investment grade (AAA to BBB-) | | | | |
Standard monitoring (BB+ to B-) | | | | |
Special monitoring (CCC to C) | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Table 3.8.O Credit quality of Financial guarantees and loan commitments 31/12/2021 (\u20ac1,000) | | | | |
| | | | |
Investment grade (AAA to BBB-) | | | | |
Standard monitoring (BB+ to B-) | | | | |
Special monitoring (CCC to C) | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
3.8.10.Macroeconomic variables
We incorporate forward-looking information for the
sophisticated approach. We use macroeconomic variables
and consider three macroeconomic scenarios in calculating
ECL: a base-case scenario, an upside scenario, and a downside
scenario. The weightings of the scenarios were 25% for both
the positive and negative scenarios and 50% for the base-
case scenario as at 31\u00a0December 2021.
In 2022, we adjusted the weightings to 10% for the
positive scenario, 40% for the negative scenario and 50%
for the base-case scenario, given growing uncertainty about
the economic recovery due to the war in Ukraine and
subsequent higher inflation. The table below shows the
macroeconomic variables used for the sophisticated
approach as at 31\u00a0December 2021 and 31\u00a0December 2022.
| | | | | | |
Table 3.8.P Macroeconomic variables | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Residential real estate price | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
For the portfolios that fall under the scope of IFRS 9, we
perform a scenario analysis to calculate the sensitivity of the
ECL to macroeconomic variables. The main economic drivers
of the ECL are gross domestic product (GDP), volume of
exports (EXP), total investments (TI), private consumption
(PC), residential real estate price (RREP) and government
consumption (GC). In the table below, ECLs are shown per
stage and per scenario.
| | | | | |
Table 3.8.Q\u00a0Sensitivity analysis as at 31\u00a0December 2022 (\u20ac1,000) | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
3.9 Collateral credit-impaired financial instruments
In general, collateral can be used for all current and future
amounts owed by a debtor. In addition to residential
mortgage collateral and guarantees provided by governments
and credit institutions, commercial real estate, financial
collateral, receivables, stocks and inventories may serve as
collateral. The majority of collateral is not directly linked to a
specific financing arrangement.
For credit-impaired financial instruments, the Credit Risk and
Credit Restructuring & Recovery department determines the
liquidation or recovery value of the available collateral, based
on the most recent valuation reports and applying the
applicable haircuts.
The table below shows the collateral for financial instruments
considered credit-impaired.
| | | | |
Table 3.8.R\u00a0Collateral for credit-impaired instruments as at 31\u00a0December 2022 (\u20ac1,000) | | | | |
Loans and advances to public and private sectors | | | | |
Financial guarantees and loan commitments | | | | |
No impairment is recognised for credit-impaired financial
instruments if the collateral is sufficient to cover the
outstanding obligation. The total carrying amount of credit-
impaired financial instruments for which there is no
impairment recognised is \u20ac41.1 million (2021: \u20ac50.4 million).",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCreditRiskExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTcvZnJhZzo1ODgxYTA0MDJlOTQ0ZWJjOTA3YWI0YjNkNTFmNDNlNy90ZXh0cmVnaW9uOjU4ODFhMDQwMmU5NDRlYmM5MDdhYjRiM2Q1MWY0M2U3XzUxNjc3MDQ2NzU5MDEy_f67caeb4-934a-4a6f-afe4-28aebe90bb30": {
"value": "Collateral
In general, collateral can be used for all current and future
amounts owed by a debtor. In addition to residential
mortgage collateral and guarantees provided by governments
and credit institutions, commercial real estate, financial
collateral, receivables, stocks and inventories may serve as
collateral.
Tables 3.4.A and 3.4.B provide insight into the underlying
collateral of the loan portfolio.
| | | | | | | |
Table 3.4.A Loans and advances to the public and private sectors by collateral at 31/12/2022 (\u20ac1,000) |
| | | | | | Total collateralised loans | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Securities-backed loans and settlement receivables | | | | | | | |
| | | | | | | |
Table 3.4.B Loans and advances to the public and private sectors by collateral at 31/12/2021 (\u20ac1,000) |
| | | | | | Total\u00a0 collateralised loans | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Securities-backed loans and settlement receivables | | | | | | | |
Tables 3.4.A and 3.4.B have been drawn up on the basis of the
definitions contained in the Basel regulations. The balance
outstanding is the carrying amount excluding value
adjustments for fair value hedge accounting.2 The collateral
value is the lower of the balance outstanding of the related
loan or the value of the collateral itself.
The category Other mainly comprises loans for which
collateral has been pledged in the form of operating assets,
inventories and receivables, as well as collateral which for
technical reasons is not directly linked to a specific loan. The
total amount of unsecured loans is small.
The loan-to-value (LTV) of our mortgage loans is based on
indexed foreclosure values, in line with generally accepted
standards for LTV determination. The average LTV at year-
end 2022 was 63% (2021: 62%).",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCollateralExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTcvZnJhZzo1ODgxYTA0MDJlOTQ0ZWJjOTA3YWI0YjNkNTFmNDNlNy90ZXh0cmVnaW9uOjU4ODFhMDQwMmU5NDRlYmM5MDdhYjRiM2Q1MWY0M2U3XzUxNjc3MDQ2NzU5MDEx_cd754392-31f8-46ec-af89-4a800c87b70b": {
"value": "Loss allowance for expected credit loss
Under the IFRS 9 standard, we recognise a loss allowance for
ECL on financial assets measured at amortised cost or fair
value through other comprehensive income, as well as for
financial guarantees and loan commitments. When there is no
significant deterioration in credit risk since initial recognition,
ECL is recognised based on a 12-month expected credit loss
(Stage 1). When a significant increase in credit risk has
occurred, ECL is recognised based on a lifetime ECL (Stage 2).
For impaired loans (Stage 3), a lifetime ECL is recognised.
3.8.1.Expected loss measurement
We measure expected credit losses by using a sophisticated
approach and an alternative approach. For the sophisticated
approach we use models to calculate the ECL, governed by a
model governance framework. Under this framework, the
performance of the models is periodically monitored, and
these models are also periodically validated. The IFRS 9
models were externally validated in 2021 and are also subject
to quarterly performance monitoring. If models are
performing outside the agreed threshold, recalibration or
ultimately redevelopment will follow. In recent years, several
recalibrations have been carried out; no redevelopment has
yet been necessary.
In both approaches, ECL reflects an unbiased probability-
weighted amount that is determined by evaluating a range of
possible outcomes, the time value of money, and reasonable
and verifiable information that is available without undue
cost or effort at the reporting date about past events, current
conditions and forecasts of future economic conditions. Both
approaches calculate a 12-month and a lifetime ECL for the
exposures of all three stages.
After the risk stage determination in the stage calculation,
the relevant ECL is assigned:
\u201312-month ECL for Stage 1;
\u2013Lifetime ECL for Stage 2 and Stage 3.
The key elements of the ECL calculation are the probability of
default (PD), exposure at default (EAD), cure rate (CR), and
loss given non-cure (LGN). LGN is an estimate of the loss
arising in the event of a default without cure occurring at a
given time. It is based on the difference between the
contractual cash flows due and those that the lender would
expect to receive, including from the realisation of any
collateral.
In addition to these four key elements, we incorporate
forward-looking information for the sophisticated approach.
We identify macroeconomic variables and consider three
macroeconomic scenarios in calculating ECL:
\u2013A base-case scenario;
\u2013An upside scenario;
\u2013A downside scenario.
These scenarios are associated with different PDs, EADs and
LGNs. In the process of building the PD, cure rate and LGN
models for IFRS, we included several macroeconomic risk
drivers in the long list of risk drivers. Those determined as
best-performing during modelling were selected to be part of
the model. The macroeconomic scenarios are generated
based on inputs from CPB Netherlands' Bureau for Economic
Policy Analysis, DNB, ECB and Van Lanschot Kempen\u2019s
economic experts. The reported ECL (12-month or lifetime,
depending on the stage) is a weighted average of ECLs per
macroeconomic scenario. The table below shows the
macroeconomic variables used for the sophisticated
approach. However, we believe our models do not fully
incorporate the unique current economic environment. To
address the uncertain economic environment, we have
applied a management overlay (see Section 3.8.7).
| |
| |
| \u2013Gross domestic product (GDP) \u2013Volume of exports (EXP) |
| \u2013Total investments (TI) \u2013Private consumption (PC) \u2013Residential real estate price (RREP) \u2013Government consumption (GC) |
| \u2013Gross domestic product (GDP) \u2013Residential real estate price (RREP) |
3.8.3.Financial instruments following the sophisticated
approach
For the majority of financial instruments included in the line
item Loans and advances to the public and private sectors,
including mortgage loans, loans, current accounts,
subordinated loans and financial guarantees and loan
commitments, we apply a sophisticated approach to calculate
expected credit loss (ECL). This approach uses an umbrella
model that combines the following sub-models:
\u2013Various models that provide the expected flow of
exposures to the default state;
\u2013A PD calibration model giving the flow from performing to
default;
\u2013A full prepayment model and amortisation model giving
the outflow from the portfolio of an entire exposure due
to prepayment or contract expiration;
\u2013A migration model providing flows from performing rating
classes to other performing rating classes;
\u2013A cure rate model giving the flow from default to
performing classes and the non-cure state;
\u2013Various product-level models that give the expected
exposure at the moment a client goes into default;
\u2013An amortisation model showing the contractual payments
during the lifetime of a product and the part of the
exposure flowing out of the portfolio due to partial
prepayments;
\u2013An EAD model giving the exposure as a function of the
limit or outstanding amount just before default;
\u2013A product-level model evaluating the part of EAD that
may be lost \u2013 the loss given loss (LGL) model;
\u2013A discount factor to discount the loss from the moment of
default to the moment of reporting.
3.8.4.Financial instruments following the alternative
approach
We apply an alternative approach for cash and cash
equivalents, due from banks, debt instruments at amortised
cost, debt instruments at fair value through other
comprehensive income, and loans and security-backed loans
issued by the Belgian branch and F. van Lanschot Bankiers
(Schweiz) AG. The alternative approach comprises an
investments model and a foreign loan model.
3.8.5.Investments model
The investments model is applied to calculate the ECL for
cash and cash equivalents, due from banks, debt instruments
at amortised cost, and debt instruments at fair value through
other comprehensive income. These financial instruments all
have a low risk profile. All such exposures are assigned to
Stage 1 as long as their external rating is investment grade.
We use a simplified model to calculate 12-month ECL, using
publicly available data for PD and LGD based on external
ratings. If financial assets are downgraded below investment
grade, these assets will be sold.
3.8.6.Foreign loans model
For the loans and securities-backed loans issued by the
Belgian branch and F. van Lanschot Bankiers (Schweiz) AG,
we have developed a foreign loans model. These two
portfolios fall outside the scope of the A-IRB models and no
requirements on historical data have been set. The foreign
loans model calculates ECL as the sum of future exposure
discounted at the effective interest rate at recognition for
non-revolving products and the current effective interest
rate for revolving products.
3.8.7.Management overlay
At the start of the Covid pandemic, it was unclear what the
effects were going to be on our portfolio's credit risk. It was\u00a0
decided to introduce a management overlay to take into
account the expected\u00a0 effects of the pandemic on the
creditworthiness of borrowers belonging to specific sectors
most hit by the pandemic, i.e. clients in leisure and hospitality,
and clients active in commercial real estate (excluding
residential real estate). The overlay consisted of two
adjustments applied to a selection of borrowers. The first
adjustment was a downgrade in the PD bucket (reflecting the
increased PD) of these sectors. The second adjustment was to
transfer specific clients from Stage 1 to Stage 2.
As a result of the war in Ukraine that started in February
2022, we decided to introduce an add-on to the level of
provisioning as of the first quarter of 2022 due to the direct
and indirect impacts of this crisis on the economy. The
overlay consisted of three adjustments applied to a selection
of borrowers: a downgrade in PD bucket and subsequent
shift to Stage 2 of clients in specific sectors (construction,
manufacturing, transportation and farming) and a shift in the
probability-weighted scenarios that are part of the IFRS 9
framework.
However, three years after the outbreak of the pandemic that
has affected some sectors more heavily, the economy and the
financial sector have absorbed most of its consequences.
Meanwhile, the war in Ukraine has had a major impact on
energy and commodity prices and has driven up inflation. We
have therefore decided that it is appropriate to move from
sector-specific overlays to a more general overlay which
applies to all loan portfolios and exposures included in the
scope of our sophisticated approach IFRS 9 framework. We
have focused on PD-specific adjustments, since we believe a
more general overlay will materialise mostly in the
probability of client default. The approach consists of three
adjustments. First, probability-weighted scenarios have been
adjusted from 25%-50%-25% for adverse, neutral and
positive scenarios to 40%-50%-10%. Second, one of the PD
model risk drivers, the amount of arrears, has changed from\u00a0
12-month moving average to point-in-time to reflect recent
arrears behaviour. And thirdly, it is reasonable to assume that
discretionary income could be impacted and result in
increased arrears. Also, borrowers subject to an interest rate
reset could face significantly higher financing costs. Based on
expert judgement, we shocked the PD to reflect this risk.
The total management overlay applied for individual clients
and economic sectors resulted in a provision of \u20ac5.2 million
(2021: \u20ac1.6 million).
Even after incorporating this management overlay, the net
impact on our credit portfolio was relatively limited. This is
reflected in the relatively small increase in ECL.
3.8.8.Loss allowances
The table below shows the ECL loss allowances and the
corresponding book values, categorised by balance sheet line
item and ECL by stage, as at 31\u00a0December 2021 and
31\u00a0December 2022.
| | | | |
Table 3.8.A\u00a0 Loss allowance for expected credit loss (\u20ac1,000) | | |
| Carrying value (excluding impairments) | | Carrying value (excluding impairments) | |
| | | | |
Cash and cash equivalents and balances at central banks | | | | |
| | | | |
Financial assets at fair value through other comprehensive income | | | | |
Loans and advances to the public and private sectors | | | | |
Other financial assets at amortised cost | | | | |
Financial guarantees and loan commitments | | | | |
The table below shows total loss allowances recognised by
IFRS 9 stage. The total change in Stage 3 amounted to a
decrease of \u20ac15.5 million (2021: \u20ac9.7 million); of this amount,
\u20ac2.0 million (2021: \u20ac3.9 million) is related to write-offs and
\u20ac13.5 million (2021: \u20ac5.8 million) to releases of loss
allowances at Stage 3.
| | | | | |
Table 3.8.B Loss allowance recognised by IFRS 9 stage (\u20ac1,000) | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | |
Table 3.8.G Changes in loss allowance for expected credit losses of Loans and advances to the public and private sectors (\u20ac1,000) | | | | |
| | | | |
Additions or releases without transfer | | | | |
| | | | |
| | | | |
| | | | |
New financial assets originated or purchased | | | | |
Total balance excluding write-offs | | | | |
| | | | |
| | | | |
| | | | |
Table 3.8.H Changes in impairments of Other financial assets at amortised cost (\u20ac1,000) | | | | |
| | | | |
Additions or releases without transfer | | | | |
New financial assets originated or purchased | | | | |
Total balance excluding write-offs | | | | |
| | | | |
| | | | |
Table 3.8.K Changes in impairments of Financial guarantees and loan commitments (\u20ac1,000) | | | | |
| | | | |
Additions or releases without transfer | | | | |
| | | | |
| | | | |
| | | | |
New financial assets originated or purchased | | | | |
Total balance excluding write-offs | | | | |
| | | | |
All financial instruments included in the line items Cash and
cash equivalents, Due from banks, and Debt instruments at
amortised cost are classified in Stage 1, and no transfers have
taken place.
3.8.9.Credit quality
Van Lanschot Kempen allocates each exposure to a credit risk
grade based on a variety of data that are determined to be
predictive of the risk of default. Credit risk grades are defined
using qualitative (applying experienced credit judgement) and
quantitative factors that are indicative of risk of default.
These factors vary depending on the nature of the exposure
and the type of borrower.
We use internally developed rating pools for the line items
Loans and advances to the public and private sectors and
Financial guarantees and loan commitments.
| |
| |
| Non-credit-impaired financial assets that are not placed under the supervision of the Credit Risk and Credit Restructuring & Recovery department, internal rating pool 1 |
| Non-credit-impaired financial assets that are not placed under the supervision of the Credit Risk and Credit Restructuring & Recovery department, internal rating pools 2 to 4 |
| Non-credit-impaired financial assets that are placed under the supervision of the Credit Risk, Credit Restructuring & Recovery department, internal rating pools 1 to 4 |
| Credit-impaired financial assets |
| | | | |
Table 3.8.M Credit quality of Loans and advances to the public and private sectors 31/12/2021 (\u20ac1,000) | | | | |
| | | | |
Investment grade (AAA to BBB-) | | | | |
Standard monitoring (BB+ to B-) | | | | |
Special monitoring (CCC to C) | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Table 3.8.N Credit quality of Financial guarantees and loan commitments 31/12/2022 (\u20ac1,000) | | | | |
| | | | |
Investment grade (AAA to BBB-) | | | | |
Standard monitoring (BB+ to B-) | | | | |
Special monitoring (CCC to C) | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Table 3.8.O Credit quality of Financial guarantees and loan commitments 31/12/2021 (\u20ac1,000) | | | | |
| | | | |
Investment grade (AAA to BBB-) | | | | |
Standard monitoring (BB+ to B-) | | | | |
Special monitoring (CCC to C) | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
3.8.10.Macroeconomic variables
We incorporate forward-looking information for the
sophisticated approach. We use macroeconomic variables
and consider three macroeconomic scenarios in calculating
ECL: a base-case scenario, an upside scenario, and a downside
scenario. The weightings of the scenarios were 25% for both
the positive and negative scenarios and 50% for the base-
case scenario as at 31\u00a0December 2021.
In 2022, we adjusted the weightings to 10% for the
positive scenario, 40% for the negative scenario and 50%
for the base-case scenario, given growing uncertainty about
the economic recovery due to the war in Ukraine and
subsequent higher inflation. The table below shows the
macroeconomic variables used for the sophisticated
approach as at 31\u00a0December 2021 and 31\u00a0December 2022.
| | | | | | |
Table 3.8.P Macroeconomic variables | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Residential real estate price | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
For the portfolios that fall under the scope of IFRS 9, we
perform a scenario analysis to calculate the sensitivity of the
ECL to macroeconomic variables. The main economic drivers
of the ECL are gross domestic product (GDP), volume of
exports (EXP), total investments (TI), private consumption
(PC), residential real estate price (RREP) and government
consumption (GC). In the table below, ECLs are shown per
stage and per scenario.
| | | | | |
Table 3.8.Q\u00a0Sensitivity analysis as at 31\u00a0December 2022 (\u20ac1,000) | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
3.9 Collateral credit-impaired financial instruments
In general, collateral can be used for all current and future
amounts owed by a debtor. In addition to residential
mortgage collateral and guarantees provided by governments
and credit institutions, commercial real estate, financial
collateral, receivables, stocks and inventories may serve as
collateral. The majority of collateral is not directly linked to a
specific financing arrangement.
For credit-impaired financial instruments, the Credit Risk and
Credit Restructuring & Recovery department determines the
liquidation or recovery value of the available collateral, based
on the most recent valuation reports and applying the
applicable haircuts.
The table below shows the collateral for financial instruments
considered credit-impaired.
| | | | |
Table 3.8.R\u00a0Collateral for credit-impaired instruments as at 31\u00a0December 2022 (\u20ac1,000) | | | | |
Loans and advances to public and private sectors | | | | |
Financial guarantees and loan commitments | | | | |
No impairment is recognised for credit-impaired financial
instruments if the collateral is sufficient to cover the
outstanding obligation. The total carrying amount of credit-
impaired financial instruments for which there is no
impairment recognised is \u20ac41.1 million (2021: \u20ac50.4 million | | |
Loss allowance for expected credit losses (\u20ac1,000) | | |
| | |
| | |
| | |
| | |
4.2 Market risk due to foreign exchange positions
To a limited degree, treasury activities (mainly foreign
exchange exposure, comprising client transactions and own
positions) result in positions exposed to market risks. The
Treasury department is part of the Other activities operating
segment. The majority of transactions and positions
in the statement of financial position are denominated in
euros. Exchange rate risk is managed within the required
limits and an authorisation structure applies. Foreign
exchange positions are shown in Table 4.2.B and include all
cash, forward and option positions of the entities in scope of
consolidation.
| | |
Table 4.2.A Exchange rate risk of treasury trading activities (total gross nominal foreign exchange position translated to (\u20ac1,000)) | | |
| | |
| | |
| | |
| | |
Weighting and requirements
We use the standardised approach for all types of market
risk. The market risk of interest rate derivatives is included
under Interest rate-related instruments; the market risk of
share-related derivatives is included under Share-related
instruments; and the market risk of currency derivatives is
included under Currency-related instruments.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfMarketRiskExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTcvZnJhZzo1ODgxYTA0MDJlOTQ0ZWJjOTA3YWI0YjNkNTFmNDNlNy90ZXh0cmVnaW9uOjU4ODFhMDQwMmU5NDRlYmM5MDdhYjRiM2Q1MWY0M2U3XzUxNjc3MDQ2NzU5MDE4_c2337615-d0fc-4c66-aea0-5d5a4b594a76": {
"value": "Market risk due to foreign exchange positions
To a limited degree, treasury activities (mainly foreign
exchange exposure, comprising client transactions and own
positions) result in positions exposed to market risks. The
Treasury department is part of the Other activities operating
segment. The majority of transactions and positions
in the statement of financial position are denominated in
euros. Exchange rate risk is managed within the required
limits and an authorisation structure applies. Foreign
exchange positions are shown in Table 4.2.B and include all
cash, forward and option positions of the entities in scope of
consolidation.
| | |
Table 4.2.A Exchange rate risk of treasury trading activities (total gross nominal foreign exchange position translated to (\u20ac1,000)) | | |
| | |
| | |
| | |
| | |
1 Includes Property and equipment, Goodwill and other intangible assets, Current tax assets, Deferred tax assets and Other assets as presented in the consolidated
\u00a0 statement of financial position.
2 Includes Provision, Current tax liabilities, Deferred tax liabilities and Other liabilities as presented in the consolidated statement of financial position.
| | | | | | | | |
Table 9.1.B Contractual maturity of assets and liabilities at 31/12/2021 (\u20ac1,000) |
| | | | | | | | |
| | | | | | | | |
Cash and cash equivalents and balances at central banks | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Financial assets at fair value through profit or loss | | | | | | | | |
Financial assets at fair value through other comprehensive income | | | | | | | | |
Loans and advances to the public and private sectors | | | | | | | | |
Other financial assets at amortised cost | | | | | | | | |
Investments in associates using the equity method | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Total assets excluding derivatives | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Public and private sector liabilities | | | | | | | | |
| | | | | | | | |
Financial liabilities at fair value through profit or loss | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Total equity and liabilities | | | | | | | | |
Total equity and liabilities excluding derivatives | | | | | | | | |
| | | | | | | | |
The assets comprise many long-term mortgage loans while
the liabilities are made up of many short-term deposits. This
results in a gap between the Withdrawable on demand and
More than five years columns. Potential liquidity risks are
addressed by means of monthly stress tests \u2013 discussed
monthly in ALCO \u2013 that test the bank\u2019s resilience to a variety
of adverse liquidity events and take behavioural aspects into
account.
For each transaction we have guaranteed, the maximum
guaranteed amount is included in the relevant term bucket
under which the bank first has the right to terminate the
transaction. For each obligation arising from an irrevocable
commitment, the committed amount is classified in the
relevant term bucket under which we first have the right to
withdraw the commitment.
1 Includes Property and equipment, Goodwill and other intangible assets, Current tax assets, Deferred tax assets and Other assets as presented in the consolidated
\u00a0 statement of financial position.
2 Includes Provision, Current tax liabilities, Deferred tax liabilities and Other liabilities as presented in the consolidated statement of financial position.
9.2Contractual maturities of undiscounted cash flow of
financial liabilities
Tables 9.2.A and 9.2.B show liabilities by maturity based on
contractual, undiscounted cash flows and including related
future cash flows, such as interest payments. Repayments
which are subject to notice are treated as if notice were to be
given immediately. However, we expect that many clients will
not request repayment at the earliest possible date, and the
tables below do not reflect the expected cash flows as
indicated by our deposit retention history.
| | | | | | |
Table 9.2.A Contractual maturities of undiscounted cash flow of liabilities at 31/12/2022 (\u20ac1,000) |
| | | | | | |
| | | | | | |
Public and private sector liabilities | | | | | | |
| | | | | | |
Financial liabilities at fair value through profit or loss | | | | | | |
| | | | | | |
| | | | | | |
Total undiscounted liabilities | | | | | | |
| | | | | | |
Table 9.2.B Contractual maturities of undiscounted cash flow of liabilities at 31/12/2021 (\u20ac1,000) |
| | | | | | |
| | | | | | |
Public and private sector liabilities | | | | | | |
| | | | | | |
Financial liabilities at fair value through profit or loss | | | | | | |
| | | | | | |
| | | | | | |
Total undiscounted liabilities | | | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNTcvZnJhZzo1ODgxYTA0MDJlOTQ0ZWJjOTA3YWI0YjNkNTFmNDNlNy90ZXh0cmVnaW9uOjU4ODFhMDQwMmU5NDRlYmM5MDdhYjRiM2Q1MWY0M2U3XzUxNjc3MDQ2NzU5MDE5_8e28a971-4a17-46d8-9122-cf7f994300c4": {
"value": "Fair value
14.1Financial assets at fair value through profit or loss
A portion of the financial instruments are measured at fair
value in the statement of financial position. Tables 14.1.A and
14.1.B provide a breakdown of these instruments into three
levels. The fair value is based either on quoted prices in active
markets, inputs other than quoted prices that are observable
in the market, or inputs based on data not observable in the
market.
We have developed a policy on the criteria for allocating
financial instruments recognised in the statement of financial
position at fair value to each of the three levels. A review is
carried out at the end of each reporting period to determine
whether any changes have taken place in the hierarchy
between the levels.
Level 1: Quoted prices in active markets
The fair value of financial instruments traded in an active
market is based on the price at the reporting date (market
price). The bid price is applied for financial assets and the
offer price for financial liabilities. Since these instruments are
traded in an active market, their prices adequately reflect
current and frequent market transactions between unrelated
parties.
Level 2: Inputs observable in the markets
The fair value of financial instruments not traded in an active
market (e.g. over-the-counter financial derivatives) is
established using cash flow and option valuation models.
Using estimates, we make assumptions based on the market
conditions (observable data) at the reporting date.
The estimated present value of future cash flows is used to
determine the fair value of the other financial instruments.
The fair value of interest rate swaps is calculated as the
present value of estimated future cash flows. The discount
rate is the same as the market interest rate at the reporting
date for a similar instrument subject to the same conditions,
taking into account collateral furnished under credit support
annexes (CSAs).
The fair value of forward currency contracts is calculated by
reference to forward exchange rates at the reporting date.
Estimates and judgements made are based on past
experience as well as other factors, including expectations
with respect to future events that could reasonably occur
given current circumstances. Estimates and judgements are
assessed on an ongoing basis.
Level 3: Significance of unobservable market data
The financial instruments in this category are assessed on an
individual basis. Their valuation is based on the best estimate
of management by reference to the most recent prices, prices
of similar instruments and, to a not insignificant extent,
information not observable in the market. Unobservable
inputs may include volatility, correlation, seasonality and
credit spreads. A valuation technique is used in which at least
one input that has a significant effect on the instrument\u2019s
valuation is not based on observable market data. Valuation
techniques used include:
\u2013The net asset value method;
\u2013Discounted cash flow projections based on reliable
estimates of future cash flows;
\u2013The option model.
A significant effect on the instrument\u2019s valuation is
considered to be present when the unobservable input
accounts for at least 10% of the total instrument\u2019s fair value
and exceeds a threshold of \u20ac50,000. The effect of fair value
adjustments on the instrument\u2019s valuation is included in the
assessment.
| | | | |
Table 14.1.A Financial instruments at fair value at 31/12/2022 (\u20ac1,000) | | | | |
| | | | |
| | | | |
Financial assets at fair value through profit or loss | | | | |
Financial assets at fair value through other comprehensive income | | | | |
| | | | |
| | | | |
| | | | |
Financial liabilities at fair value through profit or loss | | | | |
| | | | |
| | | | | | | |
Table 14.1.D Breakdown of changes in financial assets less liabilities classified as Level 3 in 2021 (\u20ac1,000) |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial assets at fair value through profit or loss | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial liabilities at fair value through profit or loss | | | | | | | |
| | | | | | | |
Total assets less liabilities | | | | | | | |
| | | | | | |
Table 14.1.E Fair value changes recognised in profit or loss of financial instruments classified as Level 3 (\u20ac1,000) | | |
| | | | | | |
| | | | | | |
Income from securities and associates | | | | | | |
Result on financial transactions | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | | |
Table 14.1.D Breakdown of changes in financial assets less liabilities classified as Level 3 in 2021 (\u20ac1,000) |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial assets at fair value through profit or loss | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial liabilities at fair value through profit or loss | | | | | | | |
| | | | | | | |
Total assets less liabilities | | | | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfReclassificationOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjAvZnJhZzo3NDgyYjQ4YjAxMTE0MmFhOGY2ZmFkODdlNWY4NTJiYS90ZXh0cmVnaW9uOjc0ODJiNDhiMDExMTQyYWE4ZjZmYWQ4N2U1Zjg1MmJhXzUxNjc3MDQ2NjYxMjY3_24868cbd-db14-4747-9a6d-0cc1ee3dfe19": {
"value": "Cash and cash equivalents and balances at
central banks
| | |
Cash and cash equivalents and balances at central banks (\u20ac1,000) | | |
| | |
| | |
Balances at central banks | | |
Statutory reserve deposits at central banks | | |
| | |
| | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashAndBankBalancesAtCentralBanksExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjAvZnJhZzo3NDgyYjQ4YjAxMTE0MmFhOGY2ZmFkODdlNWY4NTJiYS90ZXh0cmVnaW9uOjc0ODJiNDhiMDExMTQyYWE4ZjZmYWQ4N2U1Zjg1MmJhXzUxNjc3MDQ2NjYxMjY3_72cb1dbc-50b7-45b8-9ec8-7cf4ea669073": {
"value": "Cash and cash equivalents and balances at
central banks
| | |
Cash and cash equivalents and balances at central banks (\u20ac1,000) | | |
| | |
| | |
Balances at central banks | | |
Statutory reserve deposits at central banks | | |
| | |
| | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjAvZnJhZzo3NDgyYjQ4YjAxMTE0MmFhOGY2ZmFkODdlNWY4NTJiYS90ZXh0cmVnaW9uOjc0ODJiNDhiMDExMTQyYWE4ZjZmYWQ4N2U1Zjg1MmJhXzUxNjc3MDQ2NzA3Mjcz_f1a1d965-be46-4d7f-b672-aaaeac97a2e5": {
"value": "
Statutory reserve deposits comprise balances at central
banks within the scope of the minimum reserves
requirement. We cannot use these balances in our day-to-
day operations. See \u201cSummary of significant accounting
policies\u201d for our other accounting policies on cash and cash
equivalents.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjAvZnJhZzo3NDgyYjQ4YjAxMTE0MmFhOGY2ZmFkODdlNWY4NTJiYS90ZXh0cmVnaW9uOjc0ODJiNDhiMDExMTQyYWE4ZjZmYWQ4N2U1Zjg1MmJhXzUxNjc3MDQ2NjYxMjY5_53d791c7-135e-4473-bf26-4c72a9b31f8a": {
"value": "Derivatives
| | | |
Derivatives (\u20ac1,000) a t 31 December 2022 | | | |
| | | |
Derivatives used for trading purposes | | | |
| | | |
| | | |
Total derivatives used for trading purposes | | | |
Derivatives used for hedge accounting purposes | | | |
Derivatives: fair value hedge accounting | | | |
Derivatives: portfolio fair value hedge accounting | | | |
Derivatives: cash flow hedge accounting | | | |
Total derivatives used for hedge accounting purposes | | | |
| | | |
| | | |
Structured product derivatives | | | |
| | | |
| | | |
Derivatives (\u20ac1,000) a t 31 December 2021 | | | |
| | | |
Derivatives used for trading purposes | | | |
| | | |
| | | |
Total derivatives used for trading purposes | | | |
Derivatives used for hedge accounting purposes | | | |
Derivatives: fair value hedge accounting | | | |
Derivatives: portfolio fair value hedge accounting | | | |
Derivatives: cash flow hedge accounting | | | |
Total derivatives used for hedge accounting purposes | | | |
| | | |
| | | |
Structured product derivatives | | | |
| | | |
We use derivatives for both trading and hedging purposes.
Note 3, Derivatives, shows both the positive and negative
market values of the derivatives, as well as their notional
values.
The following types of interest rate derivatives are used:
\u2013Interest rate swaps;
\u2013Interest rate options.
The following types of currency derivatives are used:
\u2013Currency options;
\u2013FX forwards.
The following types of equity derivatives are used:
\u2013Equity forwards;
\u2013Futures;
\u2013Long and short structured product options;
\u2013Equity swaps.
We use interest rate swaps as hedging instruments in our
hedge accounting.
| | | | |
Ineffectiveness of derivatives for hedge accounting purposes (\u20ac1,000) | | |
| | | | |
| | | | |
Fair value hedge accounting model | | | | |
Portfolio fair value hedge accounting model | | | | |
Cash flow hedge accounting model | | | | |
The total ineffectiveness of fair value hedges at year-end
2022 was \u20ac9.3 million (2021: \u20ac0.7 million), comprising
\u20ac358.3 million in positive value changes in hedging
instruments (2021: \u20ac61.7 million positive) and negative
changes in the value of the hedged items of \u20ac348.9\u00a0million
(2021: \u20ac61.0\u00a0million negative).
The ineffectiveness is caused by differences in discount base
(Euribor versus ESTR) and pay-out frequency between the
swap and the underlying asset. The large revaluation impact
is driven by the large interest rises in 2022, and the size of
our derivatives portfolio used to hedge the interest rate risk
of our mortgage portfolio.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjAvZnJhZzo3NDgyYjQ4YjAxMTE0MmFhOGY2ZmFkODdlNWY4NTJiYS90ZXh0cmVnaW9uOjc0ODJiNDhiMDExMTQyYWE4ZjZmYWQ4N2U1Zjg1MmJhXzUxNjc3MDQ2NjYxMjcw_f5b59b27-eff5-4d3c-a928-04794db1f9c8": {
"value": "Derivatives
| | | |
Derivatives (\u20ac1,000) a t 31 December 2022 | | | |
| | | |
Derivatives used for trading purposes | | | |
| | | |
| | | |
Total derivatives used for trading purposes | | | |
Derivatives used for hedge accounting purposes | | | |
Derivatives: fair value hedge accounting | | | |
Derivatives: portfolio fair value hedge accounting | | | |
Derivatives: cash flow hedge accounting | | | |
Total derivatives used for hedge accounting purposes | | | |
| | | |
| | | |
Structured product derivatives | | | |
| | | |
| | | |
Derivatives (\u20ac1,000) a t 31 December 2021 | | | |
| | | |
Derivatives used for trading purposes | | | |
| | | |
| | | |
Total derivatives used for trading purposes | | | |
Derivatives used for hedge accounting purposes | | | |
Derivatives: fair value hedge accounting | | | |
Derivatives: portfolio fair value hedge accounting | | | |
Derivatives: cash flow hedge accounting | | | |
Total derivatives used for hedge accounting purposes | | | |
| | | |
| | | |
Structured product derivatives | | | |
| | | |
We use derivatives for both trading and hedging purposes.
Note 3, Derivatives, shows both the positive and negative
market values of the derivatives, as well as their notional
values.
The following types of interest rate derivatives are used:
\u2013Interest rate swaps;
\u2013Interest rate options.
The following types of currency derivatives are used:
\u2013Currency options;
\u2013FX forwards.
The following types of equity derivatives are used:
\u2013Equity forwards;
\u2013Futures;
\u2013Long and short structured product options;
\u2013Equity swaps.
We use interest rate swaps as hedging instruments in our
hedge accounting.
| | | | |
Ineffectiveness of derivatives for hedge accounting purposes (\u20ac1,000) | | |
| | | | |
| | | | |
Fair value hedge accounting model | | | | |
Portfolio fair value hedge accounting model | | | | |
Cash flow hedge accounting model | | | | |
The total ineffectiveness of fair value hedges at year-end
2022 was \u20ac9.3 million (2021: \u20ac0.7 million), comprising
\u20ac358.3 million in positive value changes in hedging
instruments (2021: \u20ac61.7 million positive) and negative
changes in the value of the hedged items of \u20ac348.9\u00a0million
(2021: \u20ac61.0\u00a0million negative).
The ineffectiveness is caused by differences in discount base
(Euribor versus ESTR) and pay-out frequency between the
swap and the underlying asset. The large revaluation impact
is driven by the large interest rises in 2022, and the size of
our derivatives portfolio used to hedge the interest rate risk
of our mortgage portfolio.
4. Financial assets at fair value through profit
or loss
| | |
Financial assets at fair value through profit or loss (\u20ac1,000) | | |
| | |
| | |
Financial assets from trading activities (FVPL) | | |
Structured debt instruments | | |
Financial assets at fair value through profit or loss | | |
Government paper and government-guaranteed paper | | |
Sovereign, supranationals and agencies (SSA) bonds | | |
| | |
Puttable investment funds | | |
Company cumprefs (shareholdings) (FVPL mandatory) | | |
| | |
| | |
Financial assets from trading activities (FVPL) | | |
| | |
| | |
Financial assets at fair value through profit or loss | | |
Shares, unlisted (FVPL mandatory) | | |
| | |
5. Financial assets at fair value through
other comprehensive income
| | | | |
Financial assets at fair value through other comprehensive income (\u20ac1,000) | | |
| | | |
| | | | |
| | | | |
Government paper and government-guaranteed paper | | | | |
Sovereign, supranationals and agencies (SSA) bonds | | | | |
Banks and financial institutions, listed | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
The loss allowance for financial assets at fair value through
other comprehensive income is recognised in Other
comprehensive income and does not reduce the carrying
amount of the financial asset.
1 This table excludes the changes in Financial assets from trading activities (FVPL).6. Loans and advances to the public and
private sectors
| | |
Loans and advances to the public and private sectors (\u20ac1,000) | | |
| | |
| | |
| | |
| | |
Securities-backed loans and settlement claims | | |
Value adjustments fair value hedge accounting | | |
Loss allowance for expected credit losses | | |
| | | | |
Changes in gross carrying amount of Loans and advances to the public and private sectors (\u20ac1,000) | | | | |
| | | | |
Additions or releases without transfer | | | | |
| | | | |
| | | | |
| | | | |
New financial assets originated or purchased | | | | |
| | | | |
| | | | |
See \u201cRisk management\u201d, under 3, Credit risk for more
information about Loans and advances to the public and
private sectors.
7. Other financial assets at amortised cost
| | | | |
Other financial assets at amortised cost (\u20ac1,000) | | |
| | | |
| | | | |
| | | | |
Government paper and government-guaranteed paper | | | | |
Sovereign, supranationals and agencies (SSA) bonds | | | | |
Banks and financial institutions, listed | | | | |
| | | | |
| | | | |
| |
Changes in gross carrying amount of Other financial assets at amortised cost (\u20ac1,000) | |
| |
Additions or releases without transfer | |
New financial assets originated or purchased | |
| |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjAvZnJhZzo3NDgyYjQ4YjAxMTE0MmFhOGY2ZmFkODdlNWY4NTJiYS90ZXh0cmVnaW9uOjc0ODJiNDhiMDExMTQyYWE4ZjZmYWQ4N2U1Zjg1MmJhXzUxNjc3MDQ2NjYzMzQ4_e07eb020-741b-48f0-96d8-76bda0f6d00e": {
"value": "Derivatives
| | | |
Derivatives (\u20ac1,000) a t 31 December 2022 | | | |
| | | |
Derivatives used for trading purposes | | | |
| | | |
| | | |
Total derivatives used for trading purposes | | | |
Derivatives used for hedge accounting purposes | | | |
Derivatives: fair value hedge accounting | | | |
Derivatives: portfolio fair value hedge accounting | | | |
Derivatives: cash flow hedge accounting | | | |
Total derivatives used for hedge accounting purposes | | | |
| | | |
| | | |
Structured product derivatives | | | |
| | | |
| | | |
Derivatives (\u20ac1,000) a t 31 December 2021 | | | |
| | | |
Derivatives used for trading purposes | | | |
| | | |
| | | |
Total derivatives used for trading purposes | | | |
Derivatives used for hedge accounting purposes | | | |
Derivatives: fair value hedge accounting | | | |
Derivatives: portfolio fair value hedge accounting | | | |
Derivatives: cash flow hedge accounting | | | |
Total derivatives used for hedge accounting purposes | | | |
| | | |
| | | |
Structured product derivatives | | | |
| | | |
We use derivatives for both trading and hedging purposes.
Note 3, Derivatives, shows both the positive and negative
market values of the derivatives, as well as their notional
values.
The following types of interest rate derivatives are used:
\u2013Interest rate swaps;
\u2013Interest rate options.
The following types of currency derivatives are used:
\u2013Currency options;
\u2013FX forwards.
The following types of equity derivatives are used:
\u2013Equity forwards;
\u2013Futures;
\u2013Long and short structured product options;
\u2013Equity swaps.
We use interest rate swaps as hedging instruments in our
hedge accounting.
| | | | |
Ineffectiveness of derivatives for hedge accounting purposes (\u20ac1,000) | | |
| | | | |
| | | | |
Fair value hedge accounting model | | | | |
Portfolio fair value hedge accounting model | | | | |
Cash flow hedge accounting model | | | | |
The total ineffectiveness of fair value hedges at year-end
2022 was \u20ac9.3 million (2021: \u20ac0.7 million), comprising
\u20ac358.3 million in positive value changes in hedging
instruments (2021: \u20ac61.7 million positive) and negative
changes in the value of the hedged items of \u20ac348.9\u00a0million
(2021: \u20ac61.0\u00a0million negative).
The ineffectiveness is caused by differences in discount base
(Euribor versus ESTR) and pay-out frequency between the
swap and the underlying asset. The large revaluation impact
is driven by the large interest rises in 2022, and the size of
our derivatives portfolio used to hedge the interest rate risk
of our mortgage portfolio.
4. Financial assets at fair value through profit
or loss
| | |
Financial assets at fair value through profit or loss (\u20ac1,000) | | |
| | |
| | |
Financial assets from trading activities (FVPL) | | |
Structured debt instruments | | |
Financial assets at fair value through profit or loss | | |
Government paper and government-guaranteed paper | | |
Sovereign, supranationals and agencies (SSA) bonds | | |
| | |
Puttable investment funds | | |
Company cumprefs (shareholdings) (FVPL mandatory) | | |
| | |
| | |
Financial assets from trading activities (FVPL) | | |
| | |
| | |
Financial assets at fair value through profit or loss | | |
Shares, unlisted (FVPL mandatory) | | |
| | |
5. Financial assets at fair value through
other comprehensive income
| | | | |
Financial assets at fair value through other comprehensive income (\u20ac1,000) | | |
| | | |
| | | | |
| | | | |
Government paper and government-guaranteed paper | | | | |
Sovereign, supranationals and agencies (SSA) bonds | | | | |
Banks and financial institutions, listed | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
The loss allowance for financial assets at fair value through
other comprehensive income is recognised in Other
comprehensive income and does not reduce the carrying
amount of the financial asset.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjAvZnJhZzo3NDgyYjQ4YjAxMTE0MmFhOGY2ZmFkODdlNWY4NTJiYS90ZXh0cmVnaW9uOjc0ODJiNDhiMDExMTQyYWE4ZjZmYWQ4N2U1Zjg1MmJhXzUxNjc3MDQ2NzA3Mjc2_a21ea36b-56fc-4d5d-9ea6-6666c6042f2e": {
"value": "We use derivatives for both trading and hedging purposes.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsHeldForTradingExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjAvZnJhZzo3NDgyYjQ4YjAxMTE0MmFhOGY2ZmFkODdlNWY4NTJiYS90ZXh0cmVnaW9uOjc0ODJiNDhiMDExMTQyYWE4ZjZmYWQ4N2U1Zjg1MmJhXzUxNjc3MDQ2NzA3Mjc1_30e6e60b-88b3-447c-8769-8370c7517c0a": {
"value": "Financial assets at fair value through profit
or loss
| | |
Financial assets at fair value through profit or loss (\u20ac1,000) | | |
| | |
| | |
Financial assets from trading activities (FVPL) | | |
Structured debt instruments | | |
Financial assets at fair value through profit or loss | | |
Government paper and government-guaranteed paper | | |
Sovereign, supranationals and agencies (SSA) bonds | | |
| | |
Puttable investment funds | | |
Company cumprefs (shareholdings) (FVPL mandatory) | | |
| | |
| | |
Financial assets from trading activities (FVPL) | | |
| | |
| | |
Financial assets at fair value through profit or loss | | |
Shares, unlisted (FVPL mandatory) | | |
| | |
All financial liabilities at fair value through profit or loss,
except for Other financial liabilities at fair value through
profit or loss, are designated at fair value through profit or
loss on initial recognition because this significantly reduces
inconsistency in measurement or recognition.
We have issued debt instruments which are managed on the
basis of fair value. Management believes that valuation at
fair value through profit or loss applies, as this largely
eliminates or reduces inconsistencies in valuation and
disclosure, and performance is assessed on the basis of fair
value.
The cumulative change in the fair value of Financial liabilities
at fair value through profit or loss which can be allocated to
the changes in own credit risk amounted to a total negative
of \u20ac10.7 million (2021: positive \u20ac6.6 million). This is caused
by a rise in the credit spread, predominantly at the short end
of the curve, coupled with a\u00a0 longer average duration of the
portfolio (due to longer average expected maturities for
trigger notes). This is only partially offset by a decrease in
the notional amount.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsDesignatedAtFairValueThroughProfitOrLossExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjAvZnJhZzo3NDgyYjQ4YjAxMTE0MmFhOGY2ZmFkODdlNWY4NTJiYS90ZXh0cmVnaW9uOjc0ODJiNDhiMDExMTQyYWE4ZjZmYWQ4N2U1Zjg1MmJhXzUzMzI2MzE0MTAyOTM2_5a527c84-5a5b-4c4c-874c-cf08ed0b0c89": {
"value": "
| | |
Loans and advances to the public and private sectors (\u20ac1,000) | | |
| | |
| | |
| | |
| | |
Securities-backed loans and settlement claims | | |
Value adjustments fair value hedge accounting | | |
Loss allowance for expected credit losses | | |
| | | | |
Changes in gross carrying amount of Loans and advances to the public and private sectors (\u20ac1,000) | | | | |
| | | | |
Additions or releases without transfer | | | | |
| | | | |
| | | | |
| | | | |
New financial assets originated or purchased | | | | |
| | | | |
| | | | |
See \u201cRisk management\u201d, under 3, Credit risk for more
information about Loans and advances to the public and
private sectors.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLoansAndAdvancesToCustomersExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjAvZnJhZzo3NDgyYjQ4YjAxMTE0MmFhOGY2ZmFkODdlNWY4NTJiYS90ZXh0cmVnaW9uOjc0ODJiNDhiMDExMTQyYWE4ZjZmYWQ4N2U1Zjg1MmJhXzUxNjc3MDQ2NjkwMzY2_7eecc96b-56e5-479b-a3c3-fb40bcaf2c66": {
"value": "Investments in associates using the equity method
| | |
Changes in associates using the equity method (\u20ac1,000) | | |
| | |
Acquisitions and contributions | | |
| | |
| | |
| | |
| | |
| | |
| | |
All associates valued using the equity method are unlisted
investments.
Income from securities and associates
| | |
Income from securities and associates (\u20ac1,000) | | |
| | |
Income from associates using the equity method | | |
Realised result of associates using the equity method | | |
Realised and unrealised gains/losses on investments at fair value through profit or loss | | |
| | |
achieve their long-term growth potential.
| | Bolster Investments II Co\u00f6peratief UA | Bolster II is a long-term investor specialising in taking minority shareholdings of 20-50% in private companies and pursuing a flexible, long-term investment horizon, allowing its companies' portfolios to achieve their long-term growth potential. | | |
| Langosta participates in financing companies. | | |
| Movares provides engineering and consultancy services in the fields of mobility, infrastructure, spatial planning and transport systems. | | |
| OGD provides ICT services to medium-sized and large companies, public and semi-public and non-profit organisations. Its services include service management, outsourcing, software development and ICT training. | | |
| Ploeger Oxbo develops, manufactures and sells a wide range of specialist harvesting equipment to customers across the world. | | |
| Tecnotion designs, produces and sells linear motors across the world, to the semiconductor, electronics, LCD, automotive and robotics industries among other sectors. | | |
| | | | |
Aggregated financial information of associates for which Van Lanschot Kempen applies the equity method (\u20ac1,000) | | |
| | Attributable to Van Lanschot Kempen | | Attributable to Van Lanschot Kempen |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Other financial information | | | | |
| | | | |
Income from operational activities | | | | |
| | | | |
Unrecognised share of losses | | | | |
| | | | |
Loans granted to entities in which we exercise significant
influence but do not have decisive control are granted on
market terms and secured on collateral provided. No
impairments were applied to the receivables in either 2022
or 2021.
Van Lanschot Participaties
Investments using the equity method are managed by
Bolster Investment Partners. As part of its direct holdings,
Van\u00a0Lanschot Participaties issues subordinated loans and
cumulative preference shares, while it also invests in a
portfolio of equity funds. In addition, Van Lanschot
Participaties is the controlling shareholder of Allshare, which
is consolidated in the Van\u00a0Lanschot Kempen financial
statements.
The table below shows Van Lanschot Participaties\u2019 financial
impact on the consolidated statement of financial position
and statement of income. The table does not include
information about controlling interests.
| | | | | | |
Van Lanschot Participaties (\u20ac1,000) |
| | | | Income from securities and associates | | |
| Investment in associates using the equity method | | | | | |
| Financial assets at fair value through profit or loss | | | | | |
| Financial assets at fair value through profit or loss | | | | | |
| | | | | | |
Joint ventures in which Van Lanschot Kempen is a partner
We have no joint ventures.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjAvZnJhZzo3NDgyYjQ4YjAxMTE0MmFhOGY2ZmFkODdlNWY4NTJiYS90ZXh0cmVnaW9uOjc0ODJiNDhiMDExMTQyYWE4ZjZmYWQ4N2U1Zjg1MmJhXzUzMzI2MzE0MTAyOTM3_adf43830-cff7-4e07-a7db-718b282f1379": {
"value": "
| | |
Changes in associates using the equity method (\u20ac1,000) | | |
| | |
Acquisitions and contributions | | |
| | |
| | |
| | |
| | |
| | |
| | |
All associates valued using the equity method are unlisted
investments.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjAvZnJhZzo3NDgyYjQ4YjAxMTE0MmFhOGY2ZmFkODdlNWY4NTJiYS90ZXh0cmVnaW9uOjc0ODJiNDhiMDExMTQyYWE4ZjZmYWQ4N2U1Zjg1MmJhXzUzODc2MDY5OTE2ODMy_fbfb4c77-9133-496f-abe4-c9b866c4c09e": {
"value": "Property and equipment
| | |
Property and equipment (\u20ac1,000) | | |
| | |
| | |
Right-of-use \u2013 buildings | | |
Right-of-use \u2013 transport equipment | | |
IT, operating system software and communications equipment | | |
| | |
| | |
| | | | | | | |
Changes in property and equipment in 2021 (\u20ac1,000) | | Right-of-use \u2013 buildings | Right-of-use \u2013 transport equipment | IT, operating system software and communica- tions equipment | | | |
| | | | | | | |
Acquisition due to business combination | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Accumulated depreciation and impairments | | | | | | | |
Net carrying amount at 31 December | | | | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjAvZnJhZzo3NDgyYjQ4YjAxMTE0MmFhOGY2ZmFkODdlNWY4NTJiYS90ZXh0cmVnaW9uOjc0ODJiNDhiMDExMTQyYWE4ZjZmYWQ4N2U1Zjg1MmJhXzUxNjc3MDQ2NjYzMzQ5_4920bd63-ff3c-4f29-a490-d05813f78747": {
"value": "Goodwill and other intangible assets
| | |
Goodwill and other intangible assets (\u20ac1,000) | | |
| | |
| | |
| | |
The carrying amounts of goodwill arising from acquisitions in
earlier years and other intangible assets are presented in the
table above.
| | | | | |
Changes in goodwill and other intangible assets in 2022 (\u20ac1,000) | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Accumulated amortisation and impairments | | | | | |
Net carrying amount at 31 December | | | | | |
The impairment test performed in 2022 did not result in
goodwill impairments. The model uses one base-case
scenario. For the CGUs with allocated goodwill, a sensitivity
analysis was also carried out on the base-case scenario with
particular attention on changes in long-term growth, the
discount rate and the long-term EBIT margin. This analysis is
captured in the sensitivity table below and supports our
conclusion that no impairment is needed.
In addition, an annual test is carried out for indications of
impairment of other intangible assets with a finite useful life.
The acquired\u00a0 brand names are still active and no objective
indication for impairment was apparent at year-end 2022.
For the line item Client relationships, changes in the AuM
volume are assessed. The useful life tests carried out in 2022
provided no indication of a need for further examination.
Consequently, no impairment is recognised for other
intangible assets.
| | | | |
| Change required in each key assumption for headroom to equal zero, in percentage points | Headroom with terminal growth rate at 0% (\u20ac1,000) |
| | | |
| | | | |
Wholesale & Institutional Clients | | | | |
Investment Banking Clients | | | | |
| | | | | | |
Expected amortisation of intangible assets (\u20ac1,000) | | | | | | |
| | | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjAvZnJhZzo3NDgyYjQ4YjAxMTE0MmFhOGY2ZmFkODdlNWY4NTJiYS90ZXh0cmVnaW9uOjc0ODJiNDhiMDExMTQyYWE4ZjZmYWQ4N2U1Zjg1MmJhXzUxNjc3MDQ2NjYzMzQ5_546b4225-5023-4d7f-8957-5cc5486eb242": {
"value": "Goodwill and other intangible assets
| | |
Goodwill and other intangible assets (\u20ac1,000) | | |
| | |
| | |
| | |
The carrying amounts of goodwill arising from acquisitions in
earlier years and other intangible assets are presented in the
table above.
| | | | | |
Changes in goodwill and other intangible assets in 2022 (\u20ac1,000) | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Accumulated amortisation and impairments | | | | | |
Net carrying amount at 31 December | | | | | |
The impairment test performed in 2022 did not result in
goodwill impairments. The model uses one base-case
scenario. For the CGUs with allocated goodwill, a sensitivity
analysis was also carried out on the base-case scenario with
particular attention on changes in long-term growth, the
discount rate and the long-term EBIT margin. This analysis is
captured in the sensitivity table below and supports our
conclusion that no impairment is needed.
In addition, an annual test is carried out for indications of
impairment of other intangible assets with a finite useful life.
The acquired\u00a0 brand names are still active and no objective
indication for impairment was apparent at year-end 2022.
For the line item Client relationships, changes in the AuM
volume are assessed. The useful life tests carried out in 2022
provided no indication of a need for further examination.
Consequently, no impairment is recognised for other
intangible assets.
| | | | |
| Change required in each key assumption for headroom to equal zero, in percentage points | Headroom with terminal growth rate at 0% (\u20ac1,000) |
| | | |
| | | | |
Wholesale & Institutional Clients | | | | |
Investment Banking Clients | | | | |
| | | | | | |
Expected amortisation of intangible assets (\u20ac1,000) | | | | | | |
| | | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGoodwillExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjAvZnJhZzo3NDgyYjQ4YjAxMTE0MmFhOGY2ZmFkODdlNWY4NTJiYS90ZXh0cmVnaW9uOjc0ODJiNDhiMDExMTQyYWE4ZjZmYWQ4N2U1Zjg1MmJhXzUxNjc3MDQ2NjYzMzQ5_939616b8-9244-46d8-b671-c811e6832066": {
"value": "Goodwill and other intangible assets
| | |
Goodwill and other intangible assets (\u20ac1,000) | | |
| | |
| | |
| | |
The carrying amounts of goodwill arising from acquisitions in
earlier years and other intangible assets are presented in the
table above.
| | | | | |
Changes in goodwill and other intangible assets in 2022 (\u20ac1,000) | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Accumulated amortisation and impairments | | | | | |
Net carrying amount at 31 December | | | | | |
The impairment test performed in 2022 did not result in
goodwill impairments. The model uses one base-case
scenario. For the CGUs with allocated goodwill, a sensitivity
analysis was also carried out on the base-case scenario with
particular attention on changes in long-term growth, the
discount rate and the long-term EBIT margin. This analysis is
captured in the sensitivity table below and supports our
conclusion that no impairment is needed.
In addition, an annual test is carried out for indications of
impairment of other intangible assets with a finite useful life.
The acquired\u00a0 brand names are still active and no objective
indication for impairment was apparent at year-end 2022.
For the line item Client relationships, changes in the AuM
volume are assessed. The useful life tests carried out in 2022
provided no indication of a need for further examination.
Consequently, no impairment is recognised for other
intangible assets.
| | | | |
| Change required in each key assumption for headroom to equal zero, in percentage points | Headroom with terminal growth rate at 0% (\u20ac1,000) |
| | | |
| | | | |
Wholesale & Institutional Clients | | | | |
Investment Banking Clients | | | | |
| | | | | | |
Expected amortisation of intangible assets (\u20ac1,000) | | | | | | |
| | | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjAvZnJhZzo3NDgyYjQ4YjAxMTE0MmFhOGY2ZmFkODdlNWY4NTJiYS90ZXh0cmVnaW9uOjc0ODJiNDhiMDExMTQyYWE4ZjZmYWQ4N2U1Zjg1MmJhXzUxNjc3MDQ2NjYzMzUw_71b69df4-8686-42a1-9a3d-881ecba38511": {
"value": "Tax assets
| | | | | |
Changes in deferred taxes in 2022 (\u20ac1,000) | | Through statement of income | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Loss available for set-off | | | | | |
| | | | | |
| | | | | |
| | | | | |
Total deferred tax assets before offsetting | | | | | |
Offsetting deferred tax assets | | | | | |
Total deferred tax assets after offsetting | | | | | |
| | | | | |
Right-of-use assets \u2013 buildings | | | | | |
Right-of-use assets \u2013 transport equipment | | | | | |
| | | | | |
| | | | | |
| | | | | |
Total deferred tax liabilities before offsetting | | | | | |
Offsetting deferred tax liabilities | | | | | |
Total deferred tax liabilities after offsetting | | | | | |
| | | | | | |
Changes in deferred taxes in 2021 (\u20ac1,000) | | | Through statement of income | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Loss available for set-off | | | | | | |
| | | | | | |
| | | | | | |
Total deferred tax assets before offsetting | | | | | | |
Offsetting deferred tax assets | | | | | | |
Total deferred tax assets after offsetting | | | | | | |
| | | | | | |
Right-of-use assets \u2013 buildings | | | | | | |
Right-of-use assets \u2013 transport equipment | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Total deferred tax liabilities before offsetting | | | | | | |
Offsetting deferred tax liabilities | | | | | | |
Total deferred tax liabilities after offsetting | | | | | | |
A proportion of the deferred tax assets depends on future
taxable profits. Tax losses incurred can be offset against
taxable profits in future years. Based on the most recent
forecast, it is likely that sufficient future taxable profits will
be available to offset the existing tax losses.
The non-current portion of deferred tax assets that is
expected to be recovered or settled after more than
12\u00a0months amounted to \u20ac26.1 million (2021: \u20ac32.2 million).
See Note 32, Income tax, for more information.
| | |
Tax losses to be offset (\u20ac1,000) Financial year | | |
| | |
| | |
| | |
| | |
| | |
| | |
Unrecognised losses are losses for which it is not probable
that future taxable profit will be available against which the
unused tax losses can be utilised.
The increase in unrecognised losses is due to the 2022 loss
at VLK Investment Management (UK) Ltd.
Tax liabilities
| | |
Tax liabilities\u00a0 (\u20ac1,000)\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 | | |
| | |
| | |
| | |
For changes in deferred tax liabilities, see Note 11, Tax
assets. See Note 32, Income tax, for more informationIncome tax
| | |
| | |
Operating profit before tax | | |
| | |
Prevailing tax rate in the Netherlands | | |
| | |
| | |
Expected tax on the basis of the prevailing tax rate in the Netherlands | | |
Increase/decrease in tax payable due to: | | |
| | |
Tax-free income from securities and associates | | |
Taxed release of tax reserves | | |
| | |
| | |
Adjustments to taxes for prior financial years | | |
Impact of foreign tax rate differences | | |
Addition/(release) deferred tax assets | | |
| | |
| | |
| | |
For changes in deferred tax liabilities, see Note 11, Tax
assets. See Note 32, Income tax, for more information.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTaxReceivablesAndPayablesExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjAvZnJhZzo3NDgyYjQ4YjAxMTE0MmFhOGY2ZmFkODdlNWY4NTJiYS90ZXh0cmVnaW9uOjc0ODJiNDhiMDExMTQyYWE4ZjZmYWQ4N2U1Zjg1MmJhXzUxNjc3MDQ2NjYzMzUx_6dad5d80-9aa8-49a5-9dba-e73b50e5b0b7": {
"value": "Other assets
| | |
Other assets (\u20ac1,000) | | |
| | |
| | |
| | |
| | |
| | |
Issued debt securities comprise debt instruments with
interest rates that are either fixed or variable, in so far as not
subordinated. In 2022, a bond of \u20ac500 million was redeemed
and a new bond of \u20ac500 million was issued. Of these debt
securities, \u20ac481.3 million became payable on demand in
2022 (2021: \u20ac475.8 million).
Face value versus carrying amount
The value adjustment of debt securities as a result of hedge
accounting is recognised under the line item Issued debt
securities.
| | | | |
Face value versus carrying amount of issued debt securities at 31/12/2022 (\u20ac1,000) | | Value adjustments fair value hedge accounting | | |
| | | | |
| | | | |
| | | | |
Face value versus carrying amount of issued debt securities at 31/12/2021 (\u20ac1,000) | | Value adjustments fair value hedge accounting | | |
| | | | |
| | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDebtSecuritiesExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjAvZnJhZzo3NDgyYjQ4YjAxMTE0MmFhOGY2ZmFkODdlNWY4NTJiYS90ZXh0cmVnaW9uOjc0ODJiNDhiMDExMTQyYWE4ZjZmYWQ4N2U1Zjg1MmJhXzUzODc2MDY5OTE2ODMx_11f7a63d-aa1b-4538-a297-089942ad02be": {
"value": "Provisions
| | |
| | |
| | |
| | |
Provision for long-service benefits | | |
Provision for restructuring | | |
Provision for interest rate derivatives recovery framework | | |
Provision for financial guarantees and loan commitments | | |
| | |
replaced from 1 January 2020 by a single new plan. The new
scheme is an individual defined contribution scheme. The
former Van Lanschot scheme is classified as a collective
defined contribution scheme, and the change of scheme has
no impact from an accounting perspective. Because there is
still an obligation to pay guarantee costs and to provide
indexation on the accrued pension benefits, the remainder of
the provision (\u20ac27.9\u00a0million) stays on the balance sheet. As it
has no legally enforceable right to use the surplus in plan
assets for settling the obligations for indexation and
guarantee costs, Van Lanschot Kempen applies an asset
ceiling to the relevant assets in the pension scheme.
Defined benefit obligations are calculated using the
projected unit credit method.
| | | | |
Obligations/assets included in the statement of financial position by scheme at 31/12/2022 (1,000) | | | | |
Defined benefit obligations | | | | |
Fair value of plan assets | | | | |
| | | | |
| | | | |
| | | | |
Obligations/assets included in the statement of financial position by scheme at 31/12/2021 (\u20ac1,000) | | | | |
Defined benefit obligations | | | | |
Fair value of plan assets | | | | |
| | | | |
| | | | |
| | |
Changes in defined benefit obligations for pension scheme (\u20ac1,000) | | |
Defined benefit obligations at 1 January | | |
| | |
| | |
| | |
| | |
| | |
Remeasurements arising from changes in financial assumptions | | |
Remeasurements arising from changes in demographic assumptions | | |
| | |
Effect of foreign exchange rates | | |
Defined benefit obligations at 31 December | | |
At 31 December 2022, the weighted average duration of the
defined benefit obligation was 21.0 years (2021: 24.5\u00a0years).
| | |
Changes in defined benefit obligations for early retirement scheme (\u20ac1,000) | | |
Defined benefit obligations at 1 January | | |
| | |
Defined benefit obligations at 31 December | | |
| | |
Changes in defined benefit obligations for long-service benefits scheme (\u20ac1,000) | | |
Defined benefit obligations at 1 January | | |
| | |
| | |
| | |
| | |
| | |
Defined benefit obligations at 31 December | | |
| | |
Changes in fair value of pension plan assets (\u20ac1,000) | | |
| | |
Expected return on plan assets | | |
| | |
| | |
| | |
| | |
Effect of foreign exchange rates | | |
Fair value at 31 December | | |
Actual return on plan assets | | |
| | |
Current service costs of pension scheme included in statement of income (\u20ac1,000) | | |
| | |
| | |
Expected return on plan assets | | |
| | |
| | |
Current service costs of long-service benefits scheme included in statement of income (\u20ac1,000) | | |
| | |
| | |
| | |
| | |
funded through contracts with insurance companies.
Consequently, the asset value in the measurement of the
pension liability is based on these insurance contracts.
At each reporting date, an asset/liability matching study is
carried out by the pension fund\u2019s asset manager, in which the
consequences of the strategic investment policies are
analysed. The strategic investment policies pursued by the
pension fund are bound by the maximum investment risk.
The maximum investment risk is linked to a strategic asset
mix comprising 73% of fixed income and 27% of equity
income investments, with a duration match of 75%. A
bandwidth of 5% is in place. The other investment category
consists of funds managed by an external pension fund
manager.The most significant actuarial assumptions made at
the reporting date are as follows:
| | |
| | |
Actuarial interest rate pension | | |
Actuarial interest rate employee discounts | | |
Actuarial interest rate long-service benefits | | |
Expected return on investments | | |
| | |
| | |
| | |
published by the Dutch Association of Actuaries
(Prognosetafel AG2020);
\u2013Belgian branch: the mortality table as published by the
Institute of Actuaries in Belgium (MR/FR) with an age
correction of -3 years.
\u2013F. van Lanschot Bankiers (Schweiz) AG: the mortality
table as published by BVG (BVG 2020 GT).
For Kempen's former pension plans, a rise of ten basis points
in the actuarial interest rate will lead to a decrease of 1.9% in
the pension obligations and will have no effect on the
current service costs in the statement of income, as no
future contributions will be made due to the change in
pension scheme.
For the Belgian branch, a reduction of 25 basis points in the
actuarial interest rate will lead to an increase of 1.8% in the
pension obligations and a rise of 25 basis points in the
actuarial interest rate will lead to a decrease of 1.7% in the
pension obligations.
For F. van Lanschot Bankiers (Schweiz) AG a reduction of
50\u00a0basis points in the actuarial interest rate will lead to an
increase of 8.1% in the pension obligations and a rise of
50\u00a0basis points in the actuarial interest rate will lead to a
decrease of 7.1% in the pension obligations.
| | | | | |
History of changes in pension scheme gains and losses (\u20ac1,000) | | | | | |
Defined benefit obligations | | | | | |
Fair value of plan assets | | | | | |
| | | | | |
Actuarial gains/losses on obligations | | | | | |
Actuarial gains/losses on investments | | | | | |
| | | |
Expected contributions for 2023 (\u20ac1,000) | | | Long-service benefits scheme |
| | | |
Expected employer's contributions | | | |
Expected employees' contributions | | | |
| | |
Provision for restructuring (\u20ac1,000) | | |
| | |
| | |
| | |
| | |
| | |
Provision for financial guarantees and loan commitments (\u20ac1,000) | | |
| | |
| | |
| | |
| | |
Other provisions include provisions made for various legal
claims and defined benefit obligations for employee discount
schemes.
An amount of \u20ac1.6 million (2021: \u20ac2.7 million) has an
expected maturity of one year or longer.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfProvisionsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjAvZnJhZzo3NDgyYjQ4YjAxMTE0MmFhOGY2ZmFkODdlNWY4NTJiYS90ZXh0cmVnaW9uOjc0ODJiNDhiMDExMTQyYWE4ZjZmYWQ4N2U1Zjg1MmJhXzUxNjc3MDQ2NjkwMzY1_6ba222ef-c76b-4ecd-b319-c7836c60f051": {
"value": "Other liabilities
| | |
Other liabilities (\u20ac1,000) | | |
| | |
| | |
Other accruals and deferred income | | |
| | |
| | |
Interest expense on leases amounted to \u20ac0.4 million at year-
end 2022 (2021: \u20ac0.6 million) and is recognised in the profit
or loss under line item Other interest expense in Note\u00a023,
Net interest income.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjAvZnJhZzo3NDgyYjQ4YjAxMTE0MmFhOGY2ZmFkODdlNWY4NTJiYS90ZXh0cmVnaW9uOjc0ODJiNDhiMDExMTQyYWE4ZjZmYWQ4N2U1Zjg1MmJhXzUzODc2MDY5OTE2ODI5_19750a90-ec43-4af7-8854-c8dca6c6f7ed": {
"value": "Other liabilities
| | |
Other liabilities (\u20ac1,000) | | |
| | |
| | |
Other accruals and deferred income | | |
| | |
| | |
Interest expense on leases amounted to \u20ac0.4 million at year-
end 2022 (2021: \u20ac0.6 million) and is recognised in the profit
or loss under line item Other interest expense in Note\u00a023,
Net interest income.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjAvZnJhZzo3NDgyYjQ4YjAxMTE0MmFhOGY2ZmFkODdlNWY4NTJiYS90ZXh0cmVnaW9uOjc0ODJiNDhiMDExMTQyYWE4ZjZmYWQ4N2U1Zjg1MmJhXzUzODc2MDY5OTE2ODI5_927ba08e-c3d3-4783-ae94-e21521985c9a": {
"value": "Other liabilities
| | |
Other liabilities (\u20ac1,000) | | |
| | |
| | |
Other accruals and deferred income | | |
| | |
| | |
Interest expense on leases amounted to \u20ac0.4 million at year-
end 2022 (2021: \u20ac0.6 million) and is recognised in the profit
or loss under line item Other interest expense in Note\u00a023,
Net interest income.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjAvZnJhZzo3NDgyYjQ4YjAxMTE0MmFhOGY2ZmFkODdlNWY4NTJiYS90ZXh0cmVnaW9uOjc0ODJiNDhiMDExMTQyYWE4ZjZmYWQ4N2U1Zjg1MmJhXzUzODc2MDY5OTE2ODI4_2158f031-145f-4682-80ec-3842f8c1f2f5": {
"value": "Subordinated loans
| | |
Subordinated loans (\u20ac1,000) | | |
| | |
Certificates of indebtedness | | |
| | |
Value adjustments fair value hedge accounting | | |
| | | | |
| | |
| | Nominal value (\u20ac1,000) | | |
| | | | |
| | | | |
| | | | |
The proposed dividend for 2022 has been set at \u20ac1.75 per
ordinary share (2021: \u20ac2.00 per ordinary share). At the AGM
to be held on 25\u00a0May 2023, shareholders will be invited to
approve the distribution of the dividend.
2 The 2021 amounts are after the amendments of the Articles of Association. | | | | | | | | |
Changes in reserves in 2021 (\u20ac1,000) | Revaluation reserve financial assets at fair value through other comprehensive income | Actuarial results on defined benefit schemes | Currency translation reserve | | | | | |
| | | | | | | | |
Net changes in fair value | | | | | | | | |
Value change own credit risk | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | |
| | |
| | Nominal value (\u20ac1,000) | | |
| | | | |
| | | | |
| | | | |
The proposed dividend for 2022 has been set at \u20ac1.75 per
ordinary share (2021: \u20ac2.00 per ordinary share). At the AGM
to be held on 25\u00a0May 2023, shareholders will be invited to
approve the distribution of the dividend.
2 The 2021 amounts are after the amendments of the Articles of Association. | | | | | | | | |
Changes in reserves in 2021 (\u20ac1,000) | Revaluation reserve financial assets at fair value through other comprehensive income | Actuarial results on defined benefit schemes | Currency translation reserve | | | | | |
| | | | | | | | |
Net changes in fair value | | | | | | | | |
Value change own credit risk | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | |
Contractual maturity of contingent items at 31/12/2021 (\u20ac1,000) |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Other irrevocable commitments | | | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjAvZnJhZzo3NDgyYjQ4YjAxMTE0MmFhOGY2ZmFkODdlNWY4NTJiYS90ZXh0cmVnaW9uOjc0ODJiNDhiMDExMTQyYWE4ZjZmYWQ4N2U1Zjg1MmJhXzUxNjc3MDQ2NjkwODQ5_210144ca-299a-4aa2-96c5-eea51dc3a982": {
"value": "Contingent liabilities and irrevocable
commitments
| | |
Contingent liabilities and irrevocable commitments (\u20ac1,000) | | |
| | |
| | |
| | |
Other irrevocable commitments | | |
| | | | | | |
Contractual maturity of contingent items at 31/12/2021 (\u20ac1,000) |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Other irrevocable commitments | | | | | | |
Commitments
IT and other contracts
Van Lanschot Kempen has entered into several IT contracts,
e.g. for hiring services and capacity, and for licensing and
maintenance of our systems. Our future contractual
payment commitments for IT contracts amount to
\u20ac30.8\u00a0million (2021: \u20ac39.4\u00a0million) and exclusively consist of
intangible asset expenditures.
Early termination of these contracts could result in
additional costs. Potential exit fees are linked to the
remaining term of the contracts.
| | |
Future payments for IT and other contracts (\u20ac1,000) | | |
| | |
| | |
| | |
| | |
| | | | | | |
Contractual maturity of contingent items at 31/12/2021 (\u20ac1,000) |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Other irrevocable commitments | | | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xMTMwL2ZyYWc6ZDU4MzQ5MDg2MmQzNDUxMGIwYTA2OTUwMWMzZjI0ODYvdGV4dHJlZ2lvbjpkNTgzNDkwODYyZDM0NTEwYjBhMDY5NTAxYzNmMjQ4Nl81Mzg3NjA2OTgwMjIzMw_17fd2687-b9c2-4e55-bd7d-8c92909c6caf": {
"value": "Net interest income
| | |
Net interest income (\u20ac1,000) | | |
| | |
Interest income on cash equivalents | | |
Interest income on balances at central banks | | |
Interest income on public and private sectors | | |
Interest income on financial assets at fair value through other comprehensive income | | |
Interest income on other financial assets at amortised cost | | |
Interest income calculated using the effective interest method | | |
| | |
Interest income on financial assets at fair value through profit or loss | | |
Interest income on derivatives | | |
| | |
| | |
In 2022, net interest income was \u20ac3.2 million higher than in
2021.
The interest income on balances at central banks consists of
the interest received on overnight deposits at DNB as well as
the negative interest paid on the TLTRO III loan recognised
under Due to banks. The loan was repaid in December 2022.
The interest result on loans subject to impairment was
\u20ac1.0\u00a0million (2021: \u20ac1.8\u00a0million).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xMTMwL2ZyYWc6ZDU4MzQ5MDg2MmQzNDUxMGIwYTA2OTUwMWMzZjI0ODYvdGV4dHJlZ2lvbjpkNTgzNDkwODYyZDM0NTEwYjBhMDY5NTAxYzNmMjQ4Nl81MzMyNjMxMzk5NzYxMg_f53f093e-0f95-4022-a376-ac771a5c9537": {
"value": "
| | |
Net interest income (\u20ac1,000) | | |
| | |
Interest income on cash equivalents | | |
Interest income on balances at central banks | | |
Interest income on public and private sectors | | |
Interest income on financial assets at fair value through other comprehensive income | | |
Interest income on other financial assets at amortised cost | | |
Interest income calculated using the effective interest method | | |
| | |
Interest income on financial assets at fair value through profit or loss | | |
Interest income on derivatives | | |
| | |
| | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xMTMwL2ZyYWc6ZDU4MzQ5MDg2MmQzNDUxMGIwYTA2OTUwMWMzZjI0ODYvdGV4dHJlZ2lvbjpkNTgzNDkwODYyZDM0NTEwYjBhMDY5NTAxYzNmMjQ4Nl81MzMyNjMxMzk5NzYxMA_3ddd558b-f465-42f5-b79b-4959a69be079": {
"value": "
| | |
Interest expense (\u20ac1,000) | | |
| | |
Interest expense on balances at central banks | | |
Interest expense on public and private sectors | | |
Interest expense on issued debt securities | | |
Interest expense on subordinated loans | | |
Interest expense on financial assets at fair value through other comprehensive income | | |
Interest expense calculated using the effective interest method | | |
| | |
Interest expense on financial assets at fair value through profit or loss | | |
Interest expense on derivatives | | |
| | |
| | |
| | |
| | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xMTMwL2ZyYWc6ZDU4MzQ5MDg2MmQzNDUxMGIwYTA2OTUwMWMzZjI0ODYvdGV4dHJlZ2lvbjpkNTgzNDkwODYyZDM0NTEwYjBhMDY5NTAxYzNmMjQ4Nl81Mzg3NjA2OTgwMjIzMg_84b03433-d19b-4063-b0b6-46f365d2ff8a": {
"value": "Income from securities and associates
| | |
Income from securities and associates (\u20ac1,000) | | |
| | |
Income from associates using the equity method | | |
Realised result of associates using the equity method | | |
Realised and unrealised gains/losses on investments at fair value through profit or loss | | |
| | |
Van Lanschot Kempen provides no financial or other support
to the covered bond entities, and has no intention of
providing such support.
Non-consolidated structured entities
Asset-backed securities are classified as financial assets at
fair value through other comprehensive income. These
investments are structured entities. We do not consolidate
these because Van Lanschot Kempen is not substantially
exposed to all of the risk of the structured entity. The table
below shows Van Lanschot Kempen\u2019s investments in non-
consolidated structured entities and the total income from
these investments. The Investments column shows the
carrying value as recognised in the consolidated statement
of financial position.
Van Lanschot Kempen has no other interests in non-
consolidated structured entities such as commitments,
guarantees, provisions, derivatives or other obligations. The
maximum exposure to non-consolidated structured entities
is equal to the acquisition cost and amounted to
\u20ac285.7\u00a0million at 31\u00a0December 2022 (2021: \u20ac368.1\u00a0million).
Van Lanschot Kempen is not required to provide financial or
other support to non-consolidated structured entities, and
has no intention of providing such support.
| | | | |
Non-consolidated structured entities 2022 (\u20ac1,000) |
| | | | |
| | | | |
| | | | |
| | | | |
Non-consolidated structured entities 2021 (\u20ac1,000) |
| | | | |
| | | | |
| | | | |
Non-controlling interests
The consolidated statement of financial position and
statement of income include a number of non-controlling
interests; a list of non-controlling interests in Van Lanschot
Kempen subsidiaries is provided below.
| | |
Non-controlling interests (\u20ac1,000) | | |
| | |
Consolidated investment funds | | |
Van Lanschot Kempen\u2019s minority interests are recognised
under non-controlling interests as part of equity.
| | | | | | |
Changes in non-controlling interests (\u20ac1,000) | | |
| | Undistributed profit attributable to non-controlling interests | | | Undistributed profit attributable to non-controlling interests | |
| | | | | | |
| | | | | | |
| | | | | | |
Result for the reporting period | | | | | | |
| | | | | | |
| | | | | | |
Associates
Investments in associates using the equity method
As part of our investment policy, we invest in medium-sized
companies in the Netherlands, only holding minority
interests of between 20% and 49%. These investments are
classified as investments in associates using the equity
method.
The table below shows the largest investments in associates
based on the carrying amount.
In 2022, no investments were sold.
| | | |
| | | |
Bolster Investments Co\u00f6peratief UA | Bolster is a long-term investor specialising in taking minority shareholdings of 20-50% in private companies and pursuing a flexible, long-term investment horizon, allowing its companies' portfolios to achieve their long-term growth potential. | | |
Bolster Investments II Co\u00f6peratief UA | Bolster II is a long-term investor specialising in taking minority shareholdings of 20-50% in private companies and pursuing a flexible, long-term investment horizon, allowing its companies' portfolios to achieve their long-term growth potential. | | |
| Langosta participates in financing companies. | | |
| Movares provides engineering and consultancy services in the fields of mobility, infrastructure, spatial planning and transport systems. | | |
| OGD provides ICT services to medium-sized and large companies, public and semi-public and non-profit organisations. Its services include service management, outsourcing, software development and ICT training. | | |
| Ploeger Oxbo develops, manufactures and sells a wide range of specialist harvesting equipment to customers across the world. | | |
| Tecnotion designs, produces and sells linear motors across the world, to the semiconductor, electronics, LCD, automotive and robotics industries among other sectors. | | |
| | | | |
Aggregated financial information of associates for which Van Lanschot Kempen applies the equity method (\u20ac1,000) | | |
| | Attributable to Van Lanschot Kempen | | Attributable to Van Lanschot Kempen |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Other financial information | | | | |
| | | | |
Income from operational activities | | | | |
| | | | |
Unrecognised share of losses | | | | |
| | | | |
Loans granted to entities in which we exercise significant
influence but do not have decisive control are granted on
market terms and secured on collateral provided. No
impairments were applied to the receivables in either 2022
or 2021.
Van Lanschot Participaties
Investments using the equity method are managed by
Bolster Investment Partners. As part of its direct holdings,
Van\u00a0Lanschot Participaties issues subordinated loans and
cumulative preference shares, while it also invests in a
portfolio of equity funds. In addition, Van Lanschot
Participaties is the controlling shareholder of Allshare, which
is consolidated in the Van\u00a0Lanschot Kempen financial
statements.
The table below shows Van Lanschot Participaties\u2019 financial
impact on the consolidated statement of financial position
and statement of income. The table does not include
information about controlling interests.
| | | | | | |
Van Lanschot Participaties (\u20ac1,000) |
| | | | Income from securities and associates | | |
| Investment in associates using the equity method | | | | | |
| Financial assets at fair value through profit or loss | | | | | |
| Financial assets at fair value through profit or loss | | | | | |
| | | | | | |
Joint ventures in which Van Lanschot Kempen is a partner
We have no joint ventures.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestsInOtherEntitiesExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xMTMwL2ZyYWc6ZDU4MzQ5MDg2MmQzNDUxMGIwYTA2OTUwMWMzZjI0ODYvdGV4dHJlZ2lvbjpkNTgzNDkwODYyZDM0NTEwYjBhMDY5NTAxYzNmMjQ4Nl81Mzg3NjA2OTgwMjIzMQ_46d451d9-703d-4c4e-a419-860ab4b9175b": {
"value": "Net commission income
| | |
Net commission income (\u20ac1,000) | | |
| | |
| | |
| | |
Cash transactions and funds transfer commissions | | |
Corporate Finance and Equity Capital Markets commissions | | |
| | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFeeAndCommissionIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xMTMwL2ZyYWc6ZDU4MzQ5MDg2MmQzNDUxMGIwYTA2OTUwMWMzZjI0ODYvdGV4dHJlZ2lvbjpkNTgzNDkwODYyZDM0NTEwYjBhMDY5NTAxYzNmMjQ4Nl81Mzg3NjA2OTgwMjIzMA_81e09453-0856-4b68-9e3f-32fef06d70bd": {
"value": "Result on financial transactions
| | |
Result on financial transactions (\u20ac1,000) | | |
| | |
Gains/losses on securities trading | | |
Gains/losses on currency trading | | |
Gains/losses on derivatives under hedge accounting | | |
Realised gains/losses on financial assets at fair value through other comprehensive income | | |
Gains/losses on economic hedges/hedge accounting not applied | | |
Gains/losses on financial assets and liabilities at fair value through profit or loss | | |
Other income comprises net sales and cost of sales from
non-strategic investments arising from debt conversion. In
certain cases, where a company has not been able to repay a
corporate loan granted by Van Lanschot Kempen, the loan
has been converted into a shareholding, thus giving the
company time to recover.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCostOfSalesExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xMTMwL2ZyYWc6ZDU4MzQ5MDg2MmQzNDUxMGIwYTA2OTUwMWMzZjI0ODYvdGV4dHJlZ2lvbjpkNTgzNDkwODYyZDM0NTEwYjBhMDY5NTAxYzNmMjQ4Nl81Mzg3NjA2OTgwMjIyOQ_9046d2e7-221d-477f-b975-8baf6cdb0228": {
"value": "Other income
| | |
Other income (\u20ac1,000) | | |
| | |
| | |
| | |
Other income comprises net sales and cost of sales from
non-strategic investments arising from debt conversion. In
certain cases, where a company has not been able to repay a
corporate loan granted by Van Lanschot Kempen, the loan
has been converted into a shareholding, thus giving the
company time to recover.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xMTMwL2ZyYWc6ZDU4MzQ5MDg2MmQzNDUxMGIwYTA2OTUwMWMzZjI0ODYvdGV4dHJlZ2lvbjpkNTgzNDkwODYyZDM0NTEwYjBhMDY5NTAxYzNmMjQ4Nl81Mzg3NjA2OTgwMjIyOA_018e5e65-b355-4915-8a32-96c714dac4fd": {
"value": "Staff costs
| | |
Staff costs (\u20ac1,000) | | |
| | |
| | |
Pension costs for defined contribution schemes | | |
Pension costs for defined benefit schemes | | |
Other social security costs | | |
Share-based payments for variable remuneration | | |
| | |
The fair value is determined based on the volume-weighted
day price for depositary receipts for Class A ordinary shares
on the second trading day after release of Van Lanschot
Kempen\u2019s annual figures. The fair value is equal to the share
price less the discounted value of expected dividends during
the vesting period. Depositary receipts granted in 2022 had
a weighted average fair value of \u20ac16.89 (2021: \u20ac16.41).
In 2022, 14,003 conditional depositary receipts for shares
were granted under the LTP to a number of senior managers
other than members of the Management Board
(2021:\u00a08,096).
Long-term share plan
The long-term share plan allows us to award variable
remuneration to certain key employees, including identified
staff. It offers a special type of variable remuneration in
which the total variable pay takes the form of depositary
receipts for Class A Van Lanschot Kempen shares. For the
LTP, 60% of the Van Lanschot Kempen shares are awarded
immediately and unconditionally, while 40% are awarded
conditionally over a period of three years for LTP plans
before 2022. For LTP plans from 2022 onwards, 40% are
awarded conditionally over a period of four years.
Conditional depositary receipts for shares will vest if:
(i)Van Lanschot Kempen\u2019s financial position allows this in
the year of vesting;
(ii)Risks have been reviewed and no material, unforeseen
risks have occurred; and
(iii)The individual has not left the company in the three- or
four-year period.
Conditional variable remuneration can be revised down if so
prompted by risks and performances identified later (malus).
Employees do not receive any dividends during the vesting
period. If an employee ceases to be employed by
Van\u00a0Lanschot Kempen within this period, their rights will be
forfeited, except in limited circumstances judged on an
individual basis.
A proportion (around 50%) of the conditionally awarded
depositary receipts is used to pay income tax.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xMTMwL2ZyYWc6ZDU4MzQ5MDg2MmQzNDUxMGIwYTA2OTUwMWMzZjI0ODYvdGV4dHJlZ2lvbjpkNTgzNDkwODYyZDM0NTEwYjBhMDY5NTAxYzNmMjQ4Nl81Mzg3NjA2OTgwMjIyOA_544f02b9-efd4-46f2-a3a9-e6ead26ab522": {
"value": "Staff costs
| | |
Staff costs (\u20ac1,000) | | |
| | |
| | |
Pension costs for defined contribution schemes | | |
Pension costs for defined benefit schemes | | |
Other social security costs | | |
Share-based payments for variable remuneration | | |
| | |
The fair value is determined based on the volume-weighted
day price for depositary receipts for Class A ordinary shares
on the second trading day after release of Van Lanschot
Kempen\u2019s annual figures. The fair value is equal to the share
price less the discounted value of expected dividends during
the vesting period. Depositary receipts granted in 2022 had
a weighted average fair value of \u20ac16.89 (2021: \u20ac16.41).
In 2022, 14,003 conditional depositary receipts for shares
were granted under the LTP to a number of senior managers
other than members of the Management Board
(2021:\u00a08,096).
Long-term share plan
The long-term share plan allows us to award variable
remuneration to certain key employees, including identified
staff. It offers a special type of variable remuneration in
which the total variable pay takes the form of depositary
receipts for Class A Van Lanschot Kempen shares. For the
LTP, 60% of the Van Lanschot Kempen shares are awarded
immediately and unconditionally, while 40% are awarded
conditionally over a period of three years for LTP plans
before 2022. For LTP plans from 2022 onwards, 40% are
awarded conditionally over a period of four years.
Conditional depositary receipts for shares will vest if:
(i)Van Lanschot Kempen\u2019s financial position allows this in
the year of vesting;
(ii)Risks have been reviewed and no material, unforeseen
risks have occurred; and
(iii)The individual has not left the company in the three- or
four-year period.
Conditional variable remuneration can be revised down if so
prompted by risks and performances identified later (malus).
Employees do not receive any dividends during the vesting
period. If an employee ceases to be employed by
Van\u00a0Lanschot Kempen within this period, their rights will be
forfeited, except in limited circumstances judged on an
individual basis.
A proportion (around 50%) of the conditionally awarded
depositary receipts is used to pay income tax.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xMTMwL2ZyYWc6ZDU4MzQ5MDg2MmQzNDUxMGIwYTA2OTUwMWMzZjI0ODYvdGV4dHJlZ2lvbjpkNTgzNDkwODYyZDM0NTEwYjBhMDY5NTAxYzNmMjQ4Nl81MTY3NzA0NjU2MzQ2Mg_cd85d5d6-5d85-4253-ab05-dcc605b8c228": {
"value": "
The number of staff at year-end 2022 was 1,967
(2021:\u00a01,828). The average number of staff in full-time
equivalents was 1,765 (2021: 1,696), as shown below:
| | |
Average number of staff (FTEs) during the year | | |
| | |
| | |
| | |
| | |
| | | | |
| | |
Information providers' fees | | |
External service provider charges | | |
| | |
To calculate earnings per ordinary share, the number of
ordinary shares consists solely of the weighted average
number of shares in issue, ignoring any treasury shares held
by the company.
Diluted earnings per ordinary share
| | |
Diluted earnings per ordinary share | | |
Net result for calculation of diluted earnings per share (\u20ac1,000) | | |
Weighted average number of ordinary shares in issue | | |
| | |
Weighted average number of ordinary shares in issue, fully diluted | | |
Diluted earnings per ordinary share (\u20ac) | | |
Diluted earnings per ordinary share are calculated the same
way as earnings per share, but taking into account the
number of shares that could potentially cause dilution.
Diluted earnings per ordinary share reflect the weighted
average number of ordinary shares that would be in issue
upon conversion into ordinary shares of all potential shares.
Potential shares include shares to be issued related to the
agreement made in December 2022 to accelerate the
transfer of the remaining shares held with the 30% minority
shareholders of Mercier Vanderlinden.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xMTMwL2ZyYWc6ZDU4MzQ5MDg2MmQzNDUxMGIwYTA2OTUwMWMzZjI0ODYvdGFibGU6ZDFlMDM1Mzg2ZWI4NDZhYTg3NWZjZTJhNjlmYzRkMDcvdGFibGVyYW5nZTpkMWUwMzUzODZlYjg0NmFhODc1ZmNlMmE2OWZjNGQwN180LTEtMS0xLTE2MTg1OA_9e37b838-1815-4319-8892-a540c4c78b71": {
"value": "77405000",
"decimals": -3,
"dimensions": {
"concept": "ifrs-full:ProfitLossAttributableToOwnersOfParent",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xMTMwL2ZyYWc6ZDU4MzQ5MDg2MmQzNDUxMGIwYTA2OTUwMWMzZjI0ODYvdGFibGU6ZDFlMDM1Mzg2ZWI4NDZhYTg3NWZjZTJhNjlmYzRkMDcvdGFibGVyYW5nZTpkMWUwMzUzODZlYjg0NmFhODc1ZmNlMmE2OWZjNGQwN182LTEtMS0xLTE2MTg1OA_bf18f8f2-06b7-4c8a-984c-da8b4c2c1dcf": {
"value": "1.90",
"decimals": 2,
"dimensions": {
"concept": "ifrs-full:BasicEarningsLossPerShare",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR/xbrli:shares"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xMTMwL2ZyYWc6ZDU4MzQ5MDg2MmQzNDUxMGIwYTA2OTUwMWMzZjI0ODYvdGFibGU6ZDFlMDM1Mzg2ZWI4NDZhYTg3NWZjZTJhNjlmYzRkMDcvdGFibGVyYW5nZTpkMWUwMzUzODZlYjg0NmFhODc1ZmNlMmE2OWZjNGQwN183LTEtMS0xLTE2MTg1OA_21560393-f697-48a1-bb04-8923228de2b6": {
"value": "1.75",
"decimals": 2,
"dimensions": {
"concept": "ifrs-full:DividendsPaidOrdinarySharesPerShare",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR/xbrli:shares"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xMTMwL2ZyYWc6ZDU4MzQ5MDg2MmQzNDUxMGIwYTA2OTUwMWMzZjI0ODYvdGFibGU6MTA5N2YyZjliMmQ4NGJlNGJiNzY2MmRiN2RmZDgxZjAvdGFibGVyYW5nZToxMDk3ZjJmOWIyZDg0YmU0YmI3NjYyZGI3ZGZkODFmMF81LTEtMS0xLTE2MTg1OA_fb876556-8b0d-422d-b7d1-bc244dd6afb5": {
"value": "1.82",
"decimals": 2,
"dimensions": {
"concept": "ifrs-full:DilutedEarningsLossPerShare",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR/xbrli:shares"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjYvZnJhZzpjZDdjNDVmYWUzMjQ0YWNiOTNhZmMzYmVjY2VlYTA4Ny90ZXh0cmVnaW9uOmNkN2M0NWZhZTMyNDRhY2I5M2FmYzNiZWNjZWVhMDg3XzUxNjc3MDQ2NTA4OTI4_1d64300d-dc0c-4835-833b-f191e4061c13": {
"value": "
Related parties
In the normal course of business, we enter into various
related party transactions. Parties are considered related if
one party exercises control or has significant influence over
the other party regarding financial or operating decisions.
Parties related to us include our key management personnel,
our subsidiaries, affiliates and parties with significant
influence in Van Lanschot Kempen. These transactions are
conducted at arm's length.
The Management Board comprises our key management
personnel and is responsible for implementing our strategy
and managing our activities (see \"Management Board
members\").
| | |
Management Board remuneration (\u20ac1,000) | | |
Fixed salary, amount in cash | | |
Fixed salary, amount in shares | | |
| | |
Fixed payment for pension and disability insurance costs | | |
| | |
| | |
| | |
| | | | |
Parties with significant influence in Van Lanschot Kempen in 2021 (\u20ac1,000) |
| | | | |
Stichting Administratiekantoor van gewone aandelen A Van\u00a0Lanschot Kempen | | | | |
| | | | |
| | | | |
Janus Henderson Group plc | | | | |
| | |
Depositary receipt holders | | |
| | |
| | |
Janus Henderson Group plc | | |
| | |
| | |
Van Lanschot Kempen provides no financial or other support
to the covered bond entities, and has no intention of
providing such support.
Non-consolidated structured entities
Asset-backed securities are classified as financial assets at
fair value through other comprehensive income. These
investments are structured entities. We do not consolidate
these because Van Lanschot Kempen is not substantially
exposed to all of the risk of the structured entity. The table
below shows Van Lanschot Kempen\u2019s investments in non-
consolidated structured entities and the total income from
these investments. The Investments column shows the
carrying value as recognised in the consolidated statement
of financial position.
Van Lanschot Kempen has no other interests in non-
consolidated structured entities such as commitments,
guarantees, provisions, derivatives or other obligations. The
maximum exposure to non-consolidated structured entities
is equal to the acquisition cost and amounted to
\u20ac285.7\u00a0million at 31\u00a0December 2022 (2021: \u20ac368.1\u00a0million).
Van Lanschot Kempen is not required to provide financial or
other support to non-consolidated structured entities, and
has no intention of providing such support.
| | | | |
Non-consolidated structured entities 2022 (\u20ac1,000) |
| | | | |
| | | | |
| | | | |
| | | | |
Non-consolidated structured entities 2021 (\u20ac1,000) |
| | | | |
| | | | |
| | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjkvZnJhZzo1MTFjYWZhYzljNTE0N2ViOTJhMDhjOTRmNzJlZGNjOC90ZXh0cmVnaW9uOjUxMWNhZmFjOWM1MTQ3ZWI5MmEwOGM5NGY3MmVkY2M4XzUzODc2MDY5NzY5Mzc2_6cc0feee-03cc-49e2-9d1b-c3bfdb1dd41e": {
"value": "
Non-controlling interests
The consolidated statement of financial position and
statement of income include a number of non-controlling
interests; a list of non-controlling interests in Van Lanschot
Kempen subsidiaries is provided below.
| | |
Non-controlling interests (\u20ac1,000) | | |
| | |
Consolidated investment funds | | |
Van Lanschot Kempen\u2019s minority interests are recognised
under non-controlling interests as part of equity.
| | | | | | |
Changes in non-controlling interests (\u20ac1,000) | | |
| | Undistributed profit attributable to non-controlling interests | | | Undistributed profit attributable to non-controlling interests | |
| | | | | | |
| | | | | | |
| | | | | | |
Result for the reporting period | | | | | | |
| | | | | | |
| | | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNoncontrollingInterestsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNjkvZnJhZzo1MTFjYWZhYzljNTE0N2ViOTJhMDhjOTRmNzJlZGNjOC90ZXh0cmVnaW9uOjUxMWNhZmFjOWM1MTQ3ZWI5MmEwOGM5NGY3MmVkY2M4XzU5OTIzMzgzNzIxNzA4_ac4dab07-0dac-4592-ba68-00b14b66f0e6": {
"value": "Joint ventures in which Van Lanschot Kempen is a partnerWe have no joint ventures",
"dimensions": {
"concept": "ifrs-full:DisclosureOfJointVenturesExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNzUvZnJhZzo5MDk3OWI0MmEzNWQ0ZjQyYWFlMmIyM2JmNTcxNmM1YS90ZXh0cmVnaW9uOjkwOTc5YjQyYTM1ZDRmNDJhYWUyYjIzYmY1NzE2YzVhXzUxNjc3MDQ2NTA5Mzky_ad006ba1-4a18-4387-942d-2d26920cbb3f": {
"value": "
Segment information
As a specialist wealth manager, we serve the entire spectrum
of client groups, ranging from private clients to institutional
investors and corporates. Key to our strategy is the ability to
adapt quickly to changing client needs and market
circumstances.
Private Clients
Private Clients offers private clients and entrepreneurs a
broad range of products in the private banking market, while
also focusing on business professionals and executives,
healthcare professionals, family businesses, foundations and
associations. The activities of Evi van Lanschot, Van
Lanschot Kempen\u2019s online investment coach, are integrated
in this segment and specifically target mass affluent
individuals and millennials.
Wholesale & Institutional Clients
Wholesale & Institutional Clients focuses on a range of
investment strategies and offers fiduciary services to Dutch
and international clients such as banks, wealth managers,
family offices, pension funds and insurers.
Investment Banking Clients
Investment Banking Clients offers specialist services
including equities research and trading, mergers &
acquisitions services, capital market transactions and debt
advisory services to corporate and institutional investors.
Other
These comprise activities in the fields of interest rate,
market and liquidity risk management, structured products
activities, and staff departments, as well as the activities of
Van\u00a0Lanschot Participaties/Bolster and consolidated
investments.
| | | | | |
Operating segments in 2022\u00a0 (\u20ac million) | | Wholesale & Institutional Clients | Investment Banking Clients | | |
| | | | | |
| | | | | |
Income from securities and associates | | | | | |
| | | | | |
Result on financial transactions | | | | | |
| | | | | |
Total income from operating activities | | | | | |
| | | | | |
Other administrative expenses | | | | | |
| | | | | |
Depreciation and amortisation | | | | | |
| | | | | |
| | | | | |
Operating result before tax | | | | | |
| | | | | |
Operating segments in 2021\u00a0 (\u20ac million) | | Wholesale & Institutional Clients | Investment Banking Clients | | |
| | | | | |
| | | | | |
Income from securities and associates | | | | | |
| | | | | |
Result on financial transactions | | | | | |
| | | | | |
Total income from operating activities | | | | | |
| | | | | |
Other administrative expenses | | | | | |
| | | | | |
Depreciation and amortisation | | | | | |
| | | | | |
| | | | | |
Operating result before tax | | | | | |
The tables below give additional information on the
geographical spread of income from operations.
| | | | |
Geographical segments in 2022 (\u20ac million) | | | | |
| | | | |
Total income from operating activities | | | | |
Of which income from other segments | | | | |
| | | | |
Statement of financial position | | | | |
| | | | |
Investments in associates using the equity method | | | | |
Total non-current assets1 | | | | |
| | | | |
Geographical segments in 2021 (\u20ac million) | | | | |
| | | | |
Total income from operating activities | | | | |
Of which income from other segments | | | | |
| | | | |
Statement of financial position | | | | |
| | | | |
Investments in associates using the equity method | | | | |
Total non-current assets1 | | | | |
| | | | | | | |
Country-by-country reporting on a consolidated basis at 31 December 2022 |
| | | Average number of staff (FTEs) | Total income from operating activities (\u20ac million) | Operating result before tax (\u20ac million) | Income tax (\u20ac million) | Government subsidies (\u20ac million) |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| F. van Lanschot Bankiers (Schweiz) AG | | | | | | |
| VLK Investment Management (UK) Ltd (formerly: KCM UK Ltd) | | | | | | |
| VLK (USA) Inc. (formerly: Kempen & Co USA Inc.) | Securities trading and research distribution | | | | | |
| VLK Investment Management NV branch (formerly: Kempen Capital Management NV branch) | | | | | | |
| VLK NV cross- border activity | | | | | | |
| | | | | | | |
Country-by-country reporting on a consolidated basis at 31 December 2021 |
| | | Average number of staff (FTEs) | Total income from operating activities (\u20ac million) | Operating result before tax (\u20ac million) | Income tax (\u20ac million) | Government subsidies (\u20ac million) |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| F. van Lanschot Bankiers (Schweiz) AG | | | | | | |
| | | | | | | |
| | Securities trading and research distribution | | | | | |
| Kempen Capital Management NV branch | | | | | | |
| VLK NV cross- border activity | | | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xNzgvZnJhZzpjZDVlNTIxMTkyZGE0OWFmYjNjNjI3OTYwN2VhNmU5Yi90ZXh0cmVnaW9uOmNkNWU1MjExOTJkYTQ5YWZiM2M2Mjc5NjA3ZWE2ZTliXzUxNjc3MDQ2NTA1Nzkw_11fc3530-d291-45be-93f4-1b7990520879": {
"value": "
Profit appropriation
If the annual general meeting of shareholders approves the
dividend proposal as included in these financial statements,
the appropriation of net result will be as follows:
| | |
Profit appropriation (\u20ac1,000) | | |
| | |
| | |
Dividend on Class A ordinary shares | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDividendsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xODEvZnJhZzo3MjM5Y2M0MTczMTA0YjRhYWYxNjY1YzgxYTU1YWMzYi90ZXh0cmVnaW9uOjcyMzljYzQxNzMxMDRiNGFhZjE2NjVjODFhNTVhYzNiXzUxNjc3MDQ2NTA4Nzk4_88c59c53-9261-450e-b9c6-6ffe70c74506": {
"value": "
Remuneration of the Management and Supervisory
Boards
For further details of remuneration received in 2022, see
\u201cRemuneration report\u201d on page 87. | | | | | | | | | |
Total remuneration of the individual members of the Management Board (\u20ac1,000)1 |
| | Fixed salary amount in cash | Fixed salary amount in shares2 | | | Pension and disability insurance | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
\u00a0 \u00a0 extraordinary item in 2021 relates to a sign-on payment in cash of \u20ac250,000, a sign-on payment in shares of \u20ac100,000 and deferred compensation of \u20ac95,000 for
\u00a0 \u00a0 lapsed rights to variable remuneration at Maarten Edixhoven's previous employer.
5\u00a0 Jeroen Kroes was appointed CFO on 1 September 2022.
6\u00a0 Wendy Winkelhuijzen was appointed CRO on 1 September 2022.
7\u00a0 Remuneration reported as of 1 January 2021; Erik van Houwelingen was appointed as a member of the Management Board on 27 May 2021.
8\u00a0 Constant Korthout stepped down as a member of the Management Board on 1 September 2022 and is entitled to a (one year gross salary) severance payment of
\u00a0 \u20ac787,000. He received remuneration under the same conditions for the remainder of 2022.
9\u00a0 Karl Guha resigned as Chairman of the Management Board on 1 October 2021. He received remuneration under the same conditions for the remainder of 2021.
| | | | | |
Number of depositary receipts for shares held by Management Board members in 2022 |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Constant Korthout (until 1 September 2022) | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | |
Loans to Management Board members at 31 December 2022 (\u20ac1,000) |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Loans to Management Board members at 31 December 2021 (\u20ac1,000) |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
No advances or guarantees have been granted to members
of the Management Board. No impairments or write-offs
have occurred on loans granted to Management Board
members.
| | |
Remuneration of the Supervisory Board (\u20ac1,000) | | |
| | |
| | |
| | |
| | |
| | |
| | |
Brigitte Boone (from 22 September 2021) | | |
Jeanine Helthuis (until 27 May 2021) | | |
| | |
No loans or advances had been granted to members of the
Supervisory Board at 31\u00a0December 2022 and 31\u00a0December
2021.
The company and its subsidiaries only grant personal loans,
guarantees etc. to Supervisory Board members as part of
normal operations and in keeping with conditions laid down
in financial services regulations. Any such loans or
guarantees are subject to the approval of the Supervisory
Board. Loans are not forgiven.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xODQvZnJhZzo4MThjYmVlMTMxNDc0NTQ5YWI3NTZjNzYwNzQxOWU4YS90ZXh0cmVnaW9uOjgxOGNiZWUxMzE0NzQ1NDlhYjc1NmM3NjA3NDE5ZThhXzUxNjc3MDQ2NTA1OTk0_51cea878-ae27-4cf0-abe9-787227da1def": {
"value": "
Events after the reporting period
On 2 February 2023, we announced a strategic partnership
with Robeco and the acquisition of Robeco's online
investment platform \u2013 which will be joined with Evi van
Lanschot. At year-end 2022, both platforms combined had
\u20ac6.0 billion in AuM held for around 150,000 clients.
The transaction will have a negative impact on Van Lanschot
Kempen\u2019s CET 1 ratio of approximately 0.4 percentage
points. A two-year integration path is anticipated, and is
expected to involve one-off costs of between \u20ac8 million and
\u20ac11 million. The combined platform is expected to break even
by 2025 and to start making a positive contribution to Van
Lanschot Kempen\u2019s net profit thereafter. The transaction is
expected to be completed in June 2023, subject to any
regulatory approvals that may be required.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjYwYTVkZDUyZjdlZjQ2MWY5MWI4NDdlNjliMzQ5ZWFkL3NlYzo2MGE1ZGQ1MmY3ZWY0NjFmOTFiODQ3ZTY5YjM0OWVhZF8xOTkvZnJhZzpkZTg4ZTdhZDZlNjU0NWVlYjU4NDgyZGYxMTFhZjFhZC90ZXh0cmVnaW9uOmRlODhlN2FkNmU2NTQ1ZWViNTg0ODJkZjExMWFmMWFkXzUxNjc3MDQ2NTU3NTM2_fa623501-1150-4c5b-a2ca-f0883bef50cc": {
"value": "
Notes to the company statement of financial position
At 31 December
1. Cash and cash equivalents and balances
at central banks
| | |
Cash and cash equivalents and balances at central banks (\u20ac1,000) | | |
| | |
Balances at central banks | | |
Statutory reserve deposits at central banks | | |
| | |
| | |
| | |
Changes in government paper eligible for central bank refinancing (\u20ac1,000) | | |
| | |
| | |
| | |
| | |
Amortisation of premiums/discounts on debt instruments | | |
| | |
Value changes to profit and loss | | |
| | |
The nominal value of government paper eligible for central
bank refinancing amounted to \u20ac0.3 billion in 2022 (2021:
\u20ac0.5 billion), while cumulative revaluation amounted to
-\u20ac11.2\u00a0million (2021: -\u20ac0.2 million). Accumulated
amortisation and impairments were nil (2021: nil). In 2022,
\u20ac163.8 million of government paper eligible for central bank
refinancing will be repayable on demand (2021:
\u20ac254.7 million). In 2022 and 2021, we held no government
paper eligible for central bank refinancing with an original
maturity of less than two years.
The carrying amount of government paper serving as
collateral to financial institutions amounted to \u20ac113 million
(2021: \u20ac121\u00a0million) and to nil for group companies (2021:
nil). We do not have free access to these debt instruments.
3. Due from banks
| | |
Due from banks (\u20ac1,000) | | |
| | |
| | |
| | |
| | |
The line item Other receivables comprises deposits to the
value of \u20ac46.4 million (2021: \u20ac16.0 million) serving as
collateral for obligations arising from derivatives
transactions.
Due from banks includes \u20ac110.6 million from group
companies (2021: \u20ac143.7 million).
4. Loans and advances to the public and
private sectors
| | |
Loans and advances to the public and private sectors (\u20ac1,000) | | |
| | |
| | |
| | |
| | |
Securities-backed loans and settlement receivables | | |
Value adjustment fair value hedge accounting | | |
Loss allowance for expected credit losses | | |
| | |
Changes in debt instruments (\u20ac1,000) | | |
| | |
| | |
| | |
| | |
Amortisation of premiums/discounts on debt instruments | | |
| | |
Value changes to statement of income | | |
| | |
| | |
The cumulative revaluation amounted to -\u20ac114.6 million in
2022 (2021: \u20ac3.7 million). Accumulated amortisation and
impairment was nil (2021: nil). The nominal value of these
debt instruments amounted to \u20ac2.7 billion in 2022 (2021:
\u20ac1.9 billion). Debt instruments from group companies were
nil (2021: nil).
In 2022, debt instruments serving as collateral to DNB
amounted to nil (2021: \u20ac425\u00a0million). The carrying amount
of debt instruments serving as collateral to financial
institutions amounted to \u20ac74 million (2021: \u20ac125 million)
and to nil for group companies (2021: nil). These debt
instruments are not freely available to us.
6. Equity instruments
| | | | |
Equity instruments (\u20ac1,000) | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | |
Changes in equity instruments (\u20ac1,000) | | |
| | |
| | |
| | |
Value changes to statement of income | | |
| | |
| | |
We purchased 13% of these shares (2021: 7.0%), with the
intention to hold them for an indefinite period.
7. Investments in group companies
| | |
Investments in group companies (\u20ac1,000) | | |
| | |
Subsidiaries \u2013 credit institutions | | |
| | |
Investments in group companies are measured in
accordance with the net asset value method, with the share
in the profit of these interests recognised under Other
income from securities and associates in the company
statement of income.
| | |
Changes in investments in group companies (\u20ac1,000) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Accumulated impairments stood at nil (2021: nil).
| | |
| | |
F. van Lanschot Bankiers (Schweiz) AG | | |
Van Lanschot Kempen Investment Management NV (before 22 December 2022: Kempen Capital Management NV) | | |
Van Lanschot Kempen Bewaarder NV (before 31 December 2022: Kempen Bewaarder NV) | | |
Van Lanschot Kempen AM NL BV (before 31 December 2022: Kempen AM NL BV) | | |
Van Lanschot Kempen (USA) Inc. (before 22 November 2022: Kempen & Co USA Inc.) | | |
Van Lanschot Participaties BV | | |
Beheermaatschappij \"Orthenstraat\" BV | | |
Kempen Dutch Inflation Fund I NV | | |
| | |
| | |
| | |
| | |
| | |
Mercier Vanderlinden Asset Management NV (70% stake with 100% consolidated interest) | | |
Investments in associates are measured in accordance with
the net asset value method, with the share in the profit of
these interests recognised under Income from securities and
associates using the net asset value method in the company
statement of income.
| | |
Changes in investments in associates (\u20ac1,000) | | |
| | |
| | |
| | |
| | |
| | |
Accumulated impairments stood at nil (2021: nil).
| | |
| | |
Bolster Investments Co\u00f6peratief UA | | |
Bolster Investment II Co\u00f6peratief UA | | |
Bolster Investments Co\u00f6peratief UA and Bolster
Investments II Co\u00f6peratief UA are unlisted investments.
9. Goodwill and other intangible assets
| | |
Goodwill and other intangible assets (\u20ac1,000) | | |
| | |
| | |
| | |
| | |
| | | | |
Changes in goodwill and other intangible assets in 2021 (\u20ac1,000) | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Accumulated amortisation and impairments | | | | |
Net carrying amount at 31 December | | | | |
10. Property and equipment
| | |
Property and equipment (\u20ac1,000) | | |
| | |
| | |
Right-of-use \u2013 buildings | | |
Right-of-use \u2013 transport equipment | | |
Other property and equipment | | |
| | |
| | | | | | |
Changes in property and equipment in 2021 (\u20ac1,000) | | Right-of-use \u2013 buildings | Right-of-use \u2013 transport equipment | Other property and equipment | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Accumulated depreciation and impairments | | | | | | |
Net carrying amount at 31 December | | | | | | |
The line item Buildings is related to real estate in own use.
We have entered into lease contracts for buildings \u2013
including service fees and rent for any parking spaces \u2013 as
well as car lease and computer lease contracts. These
contracts are recognised as right-of-use assets.
Other property and equipment comprises information
technology, furniture and fixtures, and communications and
safety equipment.
For more information about property and equipment, see
the consolidated financial statements \u201cSummary of
significant accounting principles\u201d.
11. Other assets and accrued assets
Other assets relate to current tax assets
(2022:\u00a0-\u20ac0.1\u00a0million; 2021: \u20ac0.0 million), deferred tax assets
(2022: \u20ac12.6 million; 2021: \u20ac6.2 million) and amounts
receivable, such as debtors, suspense accounts and
intercompany assets.
Accrued assets relate to interest receivables, commission
receivables and transitory items.
All current receivables fall due in less than one year. The fair
value of the receivables approximates the carrying amount
due to their short-term nature and the fact that provisions
for bad debt are recognised, where necessary.
12. Derivatives
| | | |
Derivatives (\u20ac1,000) | | | |
| | | |
| | | |
Derivatives used for trading purposes | | | |
Derivatives used for hedge accounting purposes | | | |
| | | |
| | | |
| | | |
| | | |
Derivatives used for trading purposes | | | |
Derivatives used for hedge accounting purposes | | | |
| | | |
We use derivatives for both trading and hedging purposes.
This note shows both the positive and negative market
values of the derivatives, as well as their notional values.
The following types of derivatives are used: interest rate,
currency and equity derivatives, as well as forward
contracts.
13. Due to banks
| | |
Due to banks (\u20ac1,000) | | |
| | |
Liabilities withdrawable on demand | | |
| | |
Due to banks includes \u20ac560.5 million from group companies
(2021: \u20ac555.4 million).
14. Public and private sector liabilities
| | |
Public and private sector liabilities (\u20ac1,000) | | |
| | |
| | |
Savings withdrawable on demand | | |
Savings not withdrawable on demand | | |
| | |
| | |
Other public and private sector liabilities | | |
Other public and private sector liabilities withdrawable on demand | | |
Other public and private sector liabilities not withdrawable on demand | | |
Total other public and private sector liabilities | | |
| | |
Changes in issued debt securities (\u20ac1,000) | | |
| | |
| | |
| | |
| | |
Amortisation of premiums/discounts on debt instruments | | |
| | |
| | |
This item consists of debt instruments with rates of interest
that are either fixed or variable, in so far as not
subordinated. In 2022, a bond of \u20ac500 million was redeemed
and a new bond of \u20ac500 million was issued. In 2023,
\u20ac509\u00a0million of these debt securities will mature (2022:
\u20ac583.4\u00a0million). The discount on issued debt securities
amounted to \u20ac3.7 million (2021: \u20ac3.5\u00a0million) and is included
in the item\u2019s carrying value.
16. Other liabilities and accrued liabilities
Other liabilities relate to lease liabilities, tax liabilities and
amounts payable such as creditors, accruals and
intercompany liabilities.
Lease liabilities stood at \u20ac39.0 million (2021: \u20ac46.4 million).
Payments not included in the lease liability measurement
amounted to \u20ac0.7 million (2021: -\u20ac0.1 million).
Accrued liabilities relate to interest payable and other
accruals.
All current liabilities fall due in less than one year. The fair
value of the current liabilities approximates the book value
due to their short-term nature.
Van Lanschot Kempen NV forms a corporate income tax
group with BV Beleggingsmaatschappij De Gevulde Trom,
Beheermaatschappij \u201cOrthenstraat\u201d BV, Foton BV, ,
Langosta BV, Van Lanschot Participaties BV, Efima
Hypotheken BV, Van Lanschot Kempen Investment
Management NV, Van Lanschot Kempen AM NL BV,
Kempen Dutch Inflation Fund I NV, Quion 17 BV, Sapphire
Investments BV, LansOG Beheer BV, Hof Hoorneman NV
and Hof Hoorneman Fund Management NV. Under the
standard conditions, the members of the tax group are
jointly and severally liable for any taxes payable by the
corporate income tax group.
17. Provisions
The pension provision is a long-term obligation on behalf of
employees in our entities and branches. We operate both
defined benefit and defined contribution schemes. For more
information about these schemes, see Note 17, Provisions, in
the consolidated financial statements.
Other provisions comprise provisions taken for
restructuring, the jubilee benefits scheme, the interest rate
derivatives recovery framework, employee discounts,
financial guarantees and loan commitments, and all other
provisions. These provisions are 56% long-term (2021: 49%)
and 44% short-term (2021: 51%). For more information
about other provisions, see Note 17, Provisions, in the
consolidated financial statements.
18. Subordinated loans
| | |
Subordinated loans (\u20ac1,000) | | |
| | |
Inflation-linked subordinated bond 08/33 | | |
Inflation-linked subordinated bond 08/38 | | |
Inflation-linked subordinated bond 08/43 | | |
2.000% subordinated bond 03/32 | | |
| | |
Subordinated loans provide solvency capital for Van\u00a0Lanschot
Kempen. Holders of our subordinated loans have a position in
our capital structure between senior claims and share capital.
This implies that, in the event of liquidation or bankruptcy, a
holder of a subordinated bond will only be repaid after all
senior claims have been settled.
Depending on the instrument\u2019s terms and conditions, early
repayment (at its nominal amount) may take place at the
optional redemption date and all subsequent interest
payment dates.
Interest expenses on subordinated loans amounted to
\u20ac16.5\u00a0million (2021: \u20ac10.8 million).
19. Total equity
| | | | |
Total equity (\u20ac1,000) | | |
| | | | |
Equity attributable to shareholder | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Actuarial results on defined benefit pension scheme | | | | |
| | | | |
| | | | |
| | | | |
Freely available reserves | | | | |
| | | | |
Undistributed profit attributable to shareholder | | | | |
Total equity attributable to shareholder | | | | |
| | | | |
Equity attributable to AT1 capital securities | | | | |
| | | | |
Undistributed profit attributable to AT1 capital securities | | | | |
Total equity attributable to AT1 capital securities | | | | |
The reserves required by law comprise a reserve in the
amount of the share in the positive income from associates of
\u20ac41.2 million (2021: \u20ac33.0 million), a reserve for currency
translation differences on associates and subsidiaries of \u20ac1.0
million (2021: \u20ac0.8 million) and a reserve required under the
Articles of Association from subsidiaries of \u20ac2.6 million
(2021: \u20ac2.4\u00a0million).
Tax effects on changes in the revaluation reserves amounted
to \u20ac7.5 million negative in 2022 (2021: \u20ac0.4 million negative).
Liability capital comprises equity and subordinated loans,
which are accounted for under non-current liabilities. At
year-end 2022, this liability capital amounted to \u20ac1,453
million (2021: \u20ac1,479 million).
| | | | |
Distributable items (\u20ac1,000) | | |
Other reserves incl. retained earnings | | | | |
| | | | |
Actuarial results on defined benefit pension scheme | | | | |
| | | | |
| | | | |
| | | | |
Freely available reserves | | | | |
| | | | |
Total distributable items | | | | |
20. Contingent liabilities and irrevocable
commitments
| | |
Contingent liabilities and irrevocable commitments (\u20ac1,000) | | |
| | |
| | |
| | |
Other irrevocable commitments | | |
| | | | | | |
Contractual maturity of assets and liabilities at 31/12/2021 (\u20ac1,000) |
| | | \u2265 3 months < 1 years | | | |
| | | | | | |
| | | | | | |
Loans and advances to the public and private sectors | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Public and private sector liabilities | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Financial instruments measured at fair value
The tables below show financial instruments designated at
fair value through profit or loss. For a review of valuation
models and techniques and for information about these
instruments, see \"Risk management\", Section 14, Fair value.
| | | | |
Financial instruments at fair value at 31/12/2022 (\u20ac1,000) | |
| Fair value determination using listed market prices | Fair value determination using observable market inputs | Fair value determination using non- observable market inputs | |
| | | | |
Government paper eligible for central bank refinancing | | | | |
| | | | |
| | | | |
Derivatives (receivables) | | | | |
| | | | |
| | | | |
| | | | |
Derivatives (liabilities) | | | | |
| | | | |
| | | | |
Financial instruments at fair value at 31/12/2021 (\u20ac1,000) | |
| Fair value determination using listed market prices | Fair value determination using observable market inputs | Fair value determination using non- observable market inputs | |
| | | | |
Government paper eligible for central bank refinancing | | | | |
| | | | |
| | | | |
Derivatives (receivables) | | | | |
| | | | |
| | | | |
| | | | |
Derivatives (liabilities) | | | | |
| | | | |
The table below shows value changes recognised in profit or
loss and in the revaluation reserve of financial instruments
designated at fair value.
| | | | | | |
Value changes of financial instruments designated at fair value (\u20ac1,000) |
| | |
| Value changes recognised in profit or loss | Value changes to revaluation reserve | | Value changes recognised in profit or loss | Value changes to revaluation reserve | |
Government paper eligible for central bank refinancing | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Financial instruments at amortised cost
The table below shows the nominal and fair values of
financial instruments at amortised cost, with the exception
of financial instruments where the nominal value is a
reasonable approximation of the fair value. This includes
positions arising from group companies. The fair value of
financial instruments at amortised cost is taken as the
amount for which the instrument could be exchanged in a
commercial transaction between willing parties, other than
in a forced or liquidation sale. If there is an active market, we
use the market value to determine the fair value. For
financial instruments for which no market prices are
available, the fair values shown in the table are estimated on
the basis of the present value or other estimation or
valuation methods.
| | | | | | |
Financial instruments at amortised cost (\u20ac1,000) |
| | | | |
| | | | | | |
| | | | | | |
Government paper eligible for central bank refinancing | | | | | | |
| | | | | | Discounted cash flows using applicable money market rates |
Loans and advances to the public and private sectors | | | | | Unobservable market inputs | Discounted cash flows using current market fees for comparable loans and taking into account the creditworthiness of the counterparty |
| | | | | | |
\u2013 Other debt instruments at amortised cost | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | Discounted cash flows using applicable money market rates for liabilities |
Public and private sector liabilities | | | | | Unobservable market inputs | Discounted cash flows using applicable money market rates for liabilities with a comparable term to maturity, taking account of own credit risk |
| | | | | | Quoted prices in active markets |
| | | | | Unobservable market inputs | Discounted cash flows using applicable money market rates for liabilities with a comparable term to maturity, taking account of own credit risk |
| | | | | | |
Commitments not recognised in the statement of financial
position
Van Lanschot Kempen has entered into several IT contracts,
e.g. for hiring services and capacity, and for licensing and
maintenance of our systems. Our future contractual
payment commitments for IT contracts amount to
\u20ac30.8\u00a0million (2021:\u00a0 \u20ac39.4 million), of which \u20ac13.1 million
(2021:\u00a0 \u20ac14.6 million) within one year and \u20ac17.7 million
(2021:\u00a0 \u20ac24.8 million) between one and five years.
Van Lanschot Kempen has issued 403 statements pursuant
to Article 403, Book 2, of the Dutch Civil Code for the
following entities:
\u2013Efima Hypotheken BV;
\u2013Beheermaatschappij \"Orthenstraat\" BV;
\u2013Van Lanschot Participaties BV.
Notes to the company statement of income
22. Net interest income
| | |
Net interest income (\u20ac1,000) | | |
| | |
Interest income on cash equivalents | | |
Interest income on balances at central banks | | |
Interest income on public and private sectors | | |
Interest income on derivatives | | |
| | |
Events after the reporting period
On 2 February 2023, we announced a strategic partnership
with Robeco and the acquisition of Robeco's online
investment platform \u2013 which will be joined with Evi van
Lanschot. At year-end 2022, both platforms combined had
\u20ac6.0 billion in AuM held for around 150,000 clients.
The transaction will have a negative impact on Van Lanschot
Kempen\u2019s CET 1 ratio of approximately 0.4 percentage
points. A two-year integration path is anticipated, and is
expected to involve one-off costs of between \u20ac8 million and
\u20ac11 million. The combined platform is expected to break even
by 2025 and to start making a positive contribution to
Van\u00a0Lanschot Kempen\u2019s net profit thereafter. The transaction
is expected to be completed in June 2023, subject to any
regulatory approvals that may be required.
's-Hertogenbosch, 22 February 2023
Supervisory Board
\u2013Frans Blom, Chair
\u2013Manfred Schepers, Vice-Chair
\u2013Karin Bergstein
\u2013Brigitte Boone
\u2013Bernadette Langius
\u2013Maarten Muller
\u2013Lex van Overmeire
Management Board
\u2013Maarten Edixhoven, Chair
\u2013Jeroen Kroes
\u2013Wendy Winkelhuijzen
\u2013Arjan Huisman
\u2013Richard Bruens
\u2013Erik van Houwelingen",
"dimensions": {
"concept": "ifrs-full:DisclosureOfConsolidatedAndSeparateFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:724500D8WOYCL1BUCB80",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
}
}
}