'S-HERTOGENBOSCH, Netherlands, Oct. 12, 2005 (PRIMEZONE) --
-- Van Lanschot expects 2005 earnings per share to increase by
at least 13%
-- Computer systems undergoing radical modernisation
When announcing the half-year figures, Van Lanschot assumed growth in earnings per share in 2005 of at least 10%. Since then, information on the Bank's results for the third quarter has shown that this expectation can be revised upwards. The Bank is now forecasting that, barring unforeseen circumstances, earnings per share should grow by a minimum of 13% this year.
"In particular, the ongoing positive trend in interest and commission income makes us confident that 2005 will be yet another good year for the Bank," according to Floris Deckers, Chairman of the Board of Managing Directors of Van Lanschot NV. "The Bank will continue to pull out all the stops to maintain this strong growth in the future. Growth is essential to guarantee the high level of service that clients expect from us. We have therefore decided to invest extensively in professional systems that will help to ensure this growth. The rapid integration of CenE Bankiers has further strengthened our confidence that we can carry out such large and complex projects successfully."
Van Lanschot Bankiers will be investing extensively over the next few years in upgrading its computer systems in order to further improve the services it provides to clients. The capital expenditure on modernising the back-office system is estimated at some Euro 32 million. The front-office, advisory, management information and internet systems will also be upgraded, which is expected to cost around Euro 29 million. Implementation of all the systems should result in 95 fewer FTEs, with most of the reductions being realised in 2008 and the initial part of 2009. The impact of the balance of the expenditures and savings on the Bank's operating profit before taxation is likely to be about Euro 4 million in 2006, about Euro 10 million in 2007 and about Euro 11 million in 2008, after which the impact will become virtually nil. The entire programme should take around 4 years to complete. For more information, please refer to the enclosure.
's-Hertogenbosch, 12 October 2005
Analysts' call: 13 October 2005, 9 a.m. CET, tel. +31 (0)20 531 58 70
Enclosure: Van Lanschot upgrades computer systems
Van Lanschot Bankiers will invest extensively over the next few years in upgrading its computer systems. The purpose of these investments is to facilitate future growth and maintain the current high standard of client satisfaction.
Back-office, mid-office and front-office systems will all be modernised
The Bank has reached broad agreement with Eri Bancaire on the delivery of a new back-office system. The selected system, Olympic, has already proven its worth at non-Dutch banks comparable in size to Van Lanschot.
In order to realise the growth targets, there is a particular need for sales-support systems that can increase cross-sales to existing clients and help in the acquisition of new clients. For this reason, the front-office system will also be upgraded. In this case, the Bank has opted for the CRM programme from Siebel. In recent years, this programme has demonstrated that it is one of the best CRM systems available. Van Lanschot will also be inplementing a new system to support advisory services to its clients.
A new management information system will ensure that the Bank has greater insight into its client segments. This will also enhance compliance with the legal and regulatory requirements applying to the Bank's internal control structure. The system will also assist with satisfying the information requirements of Basel II.
Finally, the next few years will also see investments in a new internet application, which will enable Van Lanschot to address its clients' needs for on-line banking more effectively.
Well-thought-out implementation
To make sure the entire programme is properly managed, a well-thought-out implementation plan has been prepared. The programme is divided into separate projects. As each one forms a self-contained unit, the risks will be manageable. This approach helps to ensure that the realisation of the benefits does not entirely depend on the final phase of the programme.
Client service standard to rise further
The financial impact of the programme depends on the non-recurring implementation costs and the aggregate of ongoing costs and savings. The capital expenditure on the total programme will be spread over the next four years. We expect that the investments in our front-office systems will contribute substantially to raising the standard of client services further and hence to increasing the Bank's income even more.
The press release can be downloaded from the following link:
http://hugin.info/133415/R/1015268/158751.pdf
F. van Lanschot Bankiers NV is the oldest independent bank in the Netherlands, with a history dating back to 1737. The Bank focuses on three target groups: high net-worth individuals, midsize businesses (including family businesses) and institutional investors. Van Lanschot stands for high-quality services founded on integrated advice, personal service and customised solutions. Van Lanschot NV is listed on the Euronext Amsterdam Stock Market.
Press contacts Van Lanschot: Frank L. Bouman, spokesperson Telephone: +31 (0)73 548 36 76; mobile: +31 (0) 6 549 146 87 E-mail: F.Bouman@vanlanschot.com; fax: +31 (0)73 548 33 49 Investor Relations Van Lanschot: Arno J.J. Barens, Corporate Communications Director Telephone: +31 (0)73 548 30 96; fax: +31 (0)73 548 33 49