Van Lanschot rolled out medium-term notes worth €424m under its structured note programme during 2014, the bank reported during the presentation of its annual report. The notes have terms of between one and 10 years. In addition, the positive result of the structured products desk accounted for €6m, according to the bank.

In 2013, Van Lanschot issued €79m of EMTNs under its structured note programme, while in 2012 it placed a total of €70m.

The structured products sold within the Van Lanschot network are designed and structured by merchant bankers Kempen, a 100% subsidiary of the Dutch private bank. An important growth engine of Kempen Securities is delivering customer solutions to private banking in the shape of structured investments, said Laurent Guntenaar (pictured) of the structured investment team at Kempen. “The major advantage of structured products is that we can provide tailor-made solutions and are able to offer a customer for example a product with a capital guarantee on maturity,” said Guntenaar.

Kempen’s structured products are created using the debt of Van Lanschot but also other issuers such as BNP Paribas and UBS, said Guntenaar. “This ensures that clients can spread the credit risk in their portfolio,” he said, adding that structured products offer an additional source of funding for Van Lanschot.

Last year, the Dutch private bank issued structured notes in its domestic market, the Netherlands, as well as in Belgium and Ireland, according to SRP data. In the Netherlands, the bank launched 14 structured products, including six capital-protected Index Garantie Notes (IGN), while in neighbouring Belgium one structured note linked to the Ethical Europe Equity Index was issued. In Ireland, Van Lanschot launched nine structured notes in collaboration with Wealth Options, a wholesale distributor of financial products, during 2014.

Van Lanschot reported a total net profit of €108.7m for 2014, with client assets rising by 7.5%, to €57.4bn (2013: €53.4bn). Fee and commission income amounted to €240m, of which 97% was generated by the core activities of Van Lanschot: private banking (41%), asset management (34%) and merchant banking (22%).

Click here to view the Van Lanschot financial report for 2014.

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