Annual report For family businesses and liberal professions.

Transcription

1 Annual report 2015 For family businesses and liberal professions

2 Content Preface 3 Basic figures 4 Annual report 5 20 Report by the Board of Directors 6 Bank J.Van Breda & Cº 9 ABK bank 11 Van Breda Car Finance 12 Risk management 13 Governance 14 Human resources policy 17 Digitization 17 Efficient operations 18 Premises 18 Well equipped for the future 19 Organisation chart Consolidated financial statements You are welcome at our bank 33 ANNUAL REPORT

3 Preface Bank J.Van Breda & Cº is different Bank J.Van Breda & C is not a bank for everyone. On the contrary, our main asset is our indepth specialisation. Bank J.Van Breda & C serves entrepreneurs and the liberal professions exclusively. ABK bank in turn positions itself as a premium bank for affluent individuals. Van Breda Car Finance is the credit partner for customers of large independent car dealers. We stand out ever more clearly because of three crucial strengths. We are: 1. Specialized Because we do nothing else besides dealing with people like you, we are thoroughly familiar with your needs. This means that we can make the difference at crucial points in your career. 2. Personal As our client, you have a permanent account manager. Our small scale means that he or she can also guarantee you a really personal approach. Our staff are trained to listen first and only then to give advice. 3. Proactive We constantly keep our clients longterm interests in mind. In 2015 this approach was once again highly successful: Thanks to the steady influx of new investments, client assets under management have risen by EUR 1.1 billion to EUR 11.1 billion (+11%). The credit portfolio has also grown by 8% to EUR 3.9 billion. Our client satisfaction remains historically high. During the banking crisis, Bank J. Van Breda & C played its role of safe haven. With a net profit of EUR 40.5 million (+14%), the bank has in 2015 once again proven that it can combine sustainability with profitability throughout the economic cycles.this is possible only thanks to a unique team of enthusiastic employees. Their motivation is stimulated by the appreciation of passionate and interesting clients. In the coming years as well, we will continue to focus our efforts on our clientoriented approach. To this end, we are working further on building a model with the right mix of personal contact and digital support. Only by offering you added value, through innovation and by further refining our approach can we continue to fulfil our company mission. Dirk Wouters Chairman of the Executive Committee Bank J.Van Breda & Cº ANNUAL REPORT

4 Basic figures At a glance Bank J.Van Breda & Cº consolidated Staff Results Profit from the reporting period attributable to shareholders Balance sheet data Total invested by clients 7,496 8,010 9,018 10,018 11,134 Client deposits 3,453 3,424 3,683 3,815 3,969 Offbalancesheet products 4,016 4,586 5,344 6,203 7,165 Lending to clients 3,044 3,306 3,455 3,639 3,932 Equity (group share) Ratios Efficiency ratio (costincome) 61% 58% 59% 60% 56% Return on average equity (ROE) 1 7% 7% 8% 8% Return on assets (ROA) % 0.72% 0.79% 0.86% Impairments on loans 0.06% 0.08% 0.04% 0.01% 0.01% Solvency ratio (equity to assets) 2 9.9% 10.7% 10.2% 9.5% 9.5% Core capital ratio (core tier 1) % 14.2% 13.7% 14.9% 14.5% Risk weighted solvency ratio (RAR) % 16.4% 15.6% 16.8% 15.9% Net Promoter Score 3 n.b All data as at 31.12; financial information in million EUR 1. Excluding ABK bank the net profit in 2011 amounted to EUR 21.4 million. The exceptional nonrecurring impact on results (badwill) from the acquisition of ABK bank means that the percentage returns for 2011 provide a distorted picture of underlying profitability. 2. As from 2014 calculated according to Basel III standards. 3. The Net Promoter Score is based on the answers to a crucial question: If you were asked for your opinion, how likely is it that you recommend Bank J.Van Breda & C to a friend or colleague?. There are 5 possible answers. The calculation is made according to the methodology described by Fred Reichheld. This is the result of the following calculation: % Very likely % I don t know % Likely % Very unlikely. The percentage who answered Likely is not included, so that the NPS gives a pointed result that can even be quite negative for companies with a bad reputation. ANNUAL REPORT

5 Annual report Back to overview ANNUAL REPORT

6 Report of the Board of Directors to the Annual General Meeting Net profit of EUR 40.5 million (+14%) thanks to the rise in assets under management by EUR 1.1 billion 2015 was an excellent year for Bank J.Van Breda & C. For the third year in a row, Bank J.Van Breda & C has posted record profits. Consolidated net profit rose by 14% over 2014, to EUR 40.5 million. The cost income ratio fell to 56% as compared to 60% in 2014, as a result of increasing volume growth, limited margin drop and further improvements in efficiency. This profit is the result of strong sales figures in each of the three activities: financial guidance for entrepreneurs and the liberal professions (Bank J.Van Breda & C ) premium banking for individual clients (ABK bank) financing & leasing of cars via vendors (Van Breda Car Finance). Assets under management grew by EUR 1.1 billion, confirming the trust our clients place in our bank. This is reflected in an outstanding Net Promoter Score (NPS) of 60% with clients whom we advise in the accumulation, management and protection of their assets. The investment trajectory of the last few years continued unchanged. The latest phase of the migration to a modern and completely integrated IT platform was handed over, placing us in an excellent position to take full advantage of the opportunities offered by digitization. Finally, there was further investment in new offices and sales capacity. The bank s equity rose to EUR 502 million, thus realizing a return on equity (ROE) of 8.3%. Net profit rose to above EUR 40 million Consolidated net profit rose by 14% to EUR 40.5 billion. This set a fresh record based on strong underlying sales figures and the growth of recent years continued Net profit after tax (Bank J.Van Breda & C consolidated, in million EUR) * Net profit for 2011 excluding the profit resulting from the acquisition of ABK bank for a sum of EUR million. ANNUAL REPORT

7 Assets under management rose by more than EUR 1 billion Total assets under management rose by EUR 1.1 billion, or 11%, to more than EUR 11.1 billion. ABK bank once again joined the upward trend after an intensive transition period, confirming that the strategy of targeting affluent clients is working. The total credit portfolio rose by 8% to EUR 3.9 billion. Satisfied staff, satisfied clients An important driver of growth in assets under management is the high level of client satisfaction. Thanks to continuous efforts and our culture of offering a personalized approach, we are building a strong relationship of trust with our clients. 9 out of 10 clients say they would certainly or probably recommend the bank. This makes Bank J. Van Breda & C a leader in the banking sector. In addition to a high level of client satisfaction, Bank J. Van Breda & C also enjoys a high level of employee satisfaction: 94% of our staff find the bank a very good organization to work for. Various new initiatives were launched, with considerable involvement on the part of the employees, in order to further boost the cohesion and wellbeing of each person. We once again took part in the Great Place to Work survey, the results of which are expected for the first part of Banking revenues increase, mainly thanks to the growth in offbalance sheet investments The consolidated banking revenues rose by 12% to EUR 134 million. Profits earned, dividend income and the returns on hedging instruments represented only 1% of the total banking revenues, which is thus almost entirely salesdriven. The increase in interest income (+2%) was lower than the growth in deposits (+4%) and loans (+8%) as a result of a flat interest rate curve and a conservative investment policy in our own portfolio. At the same time, the interest income was given a boost by higher than usual earnings from the refinancing of loans. The growth in income from fees (+18%) was driven by a strong increase in the offbalance sheet investments (+16%), with a slight increase in the margin and a rise in fees on deposits and loans (+13%). Efficiency translates into a falling cost income ratio Costs rose by 4% over 2014, to EUR 74.4 million. This rise can be attributed partly to the increased bank levy, amounting to EUR 4.9 million (+49%), and partly to futureoriented investments in sales effectiveness and IT. Thanks to high operational efficiency and high sales effectiveness, our consolidated cost income ratio fell to 56%, as compared to 60% in Bank J.Van Breda & C is thus one of the best performing Belgian banks. The cost income ratio was 56%, placing Bank J.Van Breda & C among the best performing Belgian banks. ANNUAL REPORT

8 Prudence has resulted in exceptionally low writedowns on loans The writedowns on loans came to 0.01% of the average loan portfolio, or EUR 0.3 million. The bank s prudent policy has not, however, put a brake on our loan production, and the loan portfolio grew by 8%. Strong liquidity and solvency In our prudent approach, we always ensure there is a sufficiently strong liquidity position. The Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) came to 197% and 128% respectively, well above the required minimum of 100%. The loan portfolio was fully financed by client deposits, so that the bank is not dependent on external financing in the international markets. Equity (group share) increased from EUR 475 million to EUR 502 million. The growth in equity made it possible to continue the rhythm of our sales growth without having to sacrifice our sound leverage, the most important form of protection of depositholders. The leverage ratio, expressed as the ratio of equity to assets, amounted to 9.5%, several times the 3% that the supervisor plans to implement at the earliest in 2018 under Basel III. Equity (group share) increased from EUR 475 million to EUR 502 million. ANNUAL REPORT

9 Bank J.Van Breda & C Only for entrepreneurs and liberal professions Bank J.Van Breda & C is a specialist advisory bank which exclusively targets entrepreneurs and the liberal professions. We assist them in systematically building up, managing and protecting their assets. Our clients can count on us for personal and proactive advice at both the professional and private levels, throughout their lives. Loan portfolio grew by 10% Despite an uncertain economic context, the volume of loans grew by EUR 304 million (+10%) to a volume of EUR 3.5 billion. The growth in volume came from both mortgages and business loans to entrepreneurs and the liberal professions. Assets under management rose by EUR 1.11 billion In 2015, the strong growth in sales continued apace. Thanks to a total increase of EUR 1.11 billion (+11%), the total assets under management for entrepreneurs and the liberal professions was EUR 10.8 billion. Client deposits grew by EUR 167 million (+5%), despite a context of low interest rates, to a total volume of EUR 3.7 billion. Given our financial guidance strategy, Bank J.Van Breda & C has a significant volume of longterm deposits. As a result of the low interest rates, however, over the past year we saw greater growth in shortterm deposits. The offbalance sheet investments grew by EUR 944 million (+15%) to EUR 7.1 billion. Of that amount, EUR 4.2 billion was entrusted to Delen Private Bank for asset management. Bank J.Van Breda & C manages EUR 10.8 billion in assets for entrepreneurs and members of the liberal professions. ANNUAL REPORT

10 The volume of loans to entrepreneurs and the liberal professions continued to grow, to an amount of EUR 3.5 billion (+10%) Total invested by entrepreneurs and members of the liberal professions Bank J.Van Breda & C (in EUR billion) Volume of loans to entrepreneurs and members of the liberal professions Bank J.Van Breda & C (in EUR billion) ANNUAL REPORT

11 ABK bank Premium banking for affluent individuals ABK bank has since 2011 been a subsidiary of Bank J. Van Breda & C. Since the acquisition, ABK bank has repositioned itself as a premium bank for individuals. ABK assists clients in building up, managing and protecting their assets with a view to the longterm. In this way ABK bank remains loyal to the tradition of simple and transparent products, within a culture of exercising care and providing a personal approach. Confirmation of the strategy as the basis for further growth The transition to premium banking for affluent individual clients is complete. ABK bank performed strongly in both sales and operational terms. The number of new relationships grew further, as did the average assets under management. The external profile of the bank was strengthened by the signing of a sponsoring contract with the Belgian Bullets, the successful Belgian women s bobsled team, to last up to and including the Olympic Winter Games in A decision was made to open a branch in Ghent planned for the first half of This is a first step by ABK bank outside the province of Antwerp and a confirmation of its national ambitions. Assets under management return to growth The successful completion of the transition was confirmed by the growth in assets under management. The fall in deposits was more than compensated by a growth in offbalance sheet products. At the end of 2015, our clients had EUR 348 million in assets under management. This is a modest rise of 2%, but marks the end of a period in which outflow of clients outside the target group was greater than the inflow of new relationships or from the deepening of existing ones. The growth came from both asset management and the funds of Bank Delen, and from investment insurance products from Baloise. The credit portfolio fell by EUR 20.6 million to EUR 144 million. This fall is due almost entirely to the fall in credits in the business segment, which is no longer a strategic focus since the takeover. Efficiency maintained Despite all the investments and the development of our sales capacity, the cost increase has remained under 3%. ANNUAL REPORT

12 Van Breda Car Finance Fast, friendly, flexible As a division of ABK bank, Van Breda Car Finance is active throughout Belgium in the vehicle financing and vehicle leasing sectors. Van Breda Car Finance aims to be the optimal credit partner for the customers of large, independent car dealers. The entire organisation is focused on providing rapid credit solutions for private vehicles through the company s own website. With its core values of fast, friendly & flexible, Van Breda Car Finance supports local car dealers through the entire sales process: from the offer stage through the application processing and drawing up of loan contracts to verifying that the payment has been made. This way we can facilitate our partners sales process by enabling them to extend credit services to their clients. Portfolio grows in a competitive environment The portfolio grew by EUR 9.6 million (+3%) to EUR 297 million. This is thanks to the renewed increase in the number of applications. With comparable acceptance and realization levels, this has led to a 17% increase in production volume. The operational costs fell by more than 5%, while the commissions paid increased slightly. Fee income rose by 9%. Taken together, this has meant that Van Breda Car Finance once again posted solid results in Van Breda Car Finance once again posted solid results in ANNUAL REPORT

13 Risk management: ongoing monitoring and control Corporate risks are inherent in a bank s daytoday activities. When compared with others in the sector, Bank J.Van Breda & C and its subsidiaries have always remained simple and transparent institutions. Moreover, they have always exercised great caution with respect to assuming risks. They perform ongoing risk monitoring and control. Historically, Bank J.Van Breda & C has provided ample proof of its capacity to manage risks. The Risk Committee supervises the risks and risk positions of the bank and its subsidiaries on a structured basis. To this end the Risk Committee gathers information from the various departments and activities. For a discussion of the various risks, please see the explanations under section 4. Risk Management in the consolidated financial statements. ANNUAL REPORT

14 Corporate governance Bank J.Van Breda & C strives for responsibility and transparency. Dirk Wouters, Marc Wijnants, Peter Devlies and Vic Pourbaix Executive Committee Board of Directors The Executive Committee draws up the strategy and translates it into practical policy lines. It is responsible for daytoday management and for working out an organisational structure with clear areas of competence and lines of reporting. The members assess the bank s performance on the basis of timely, frequent and accurate management information. Thus they provide insight into the activities and results of the operational managers and make it possible to take prompt, effective action where necessary. Composition as at 01/01/2016: Dirk Wouters (chairman), Peter Devlies (responsible for ALM, reporting, Van Breda Advisory, ABK bank and Van Breda Car Finance), Vic Pourbaix (responsible for client relations and facilities) and Marc Wijnants (responsible for IT and operations). The Board of Directors ratifies the strategy pursued by the Executive Committee and periodically assesses the main policy lines. The members are responsible for monitoring and promoting high ethical norms and standards of integrity. They understand the risks associated with banking and establish acceptable levels by defining clear tolerance levels and risk limits. Composition as at 01/01/2016: Jan Suykens (chairman), Luc Bertrand, Piet Dejonghe, Jacques Delen, Paul De Winter, Willy Lenaers, Peter Devlies, Vic Pourbaix, Marc Wijnants and Dirk Wouters (directors). ANNUAL REPORT

15 Remuneration Committee Audit Committee The Remuneration Committee agrees financial compensation together with the directors and determines the amount of their salary. Composition as at 01/01/2016: Luc Bertrand, Willy Lenaers and Jan Suykens Risk Committee The Risk Committee supervises the risks and risk positions of the bank and its subsidiaries on a structured basis. Composition as at 01/01/2016: Jan Suykens, Luc Bertrand and Willy Lenaers Each member of the Risk Committee has the necessary knowledge, expertise, experience and skills to understand and assess the institution s strategy and risk tolerance. The Risk Committee is not a decisionmaking body. It is a forum for reflection and for testing riskrelated matters, such as those risks that are difficult to quantify, against the risk policy approved by the bank s Board of Directors. The Risk Committee does have the competence to make recommendations regarding the priorities and/ or procedures to be used in operational processes or projects, wherever it deems it necessary to do so from the perspective of risk management. We opt for a simple structure with a clear division of labour between executive and supervisory managers. The Audit Committee is responsible for monitoring the financial reporting process, compliance with administrative, legal and tax rules, and the development of internal auditing procedures. For this purpose, the committee members are in direct contact with both the external and the internal auditors. Composition as at 01/01/2016: Luc Bertrand, Willy Lenaers and Jan Suykens Each member of the Audit Committee has the necessary expertise in the field of accounting and audit. Luc Bertrand graduated in 1974 as a commercial engineer from the Catholic University of Leuven (KULeuven). He worked at Bankers Trust C in New York, Amsterdam and London until 1986 (Vice President Northern Europe Area Manager). In 1985 he became a director and in 1987 administrative and financial manager of Ackermans & van Haaren. Since 1996 he has been chairman of the Executive Committee of Ackermans & van Haaren. He is also chairman of Finaxis. He has served as director with Indosuez Bank and General Bank, and today holds various directorships both within and outside the Ackermans & van Haaren group. He has also been appointed independent director at ING Belgium. Jan Suykens holds a Master s degree in applied economics and earned an MBA from Columbia University, New York. He began his career at the Corporate & Investment Banking department of Fortis Bank. Since 1990 he has been a member of the Executive Committee of Ackermans & van Haaren. He holds various directorships within the Ackermans & van Haaren group. Willy Lenaers holds a Master s degree in Law (Ghent University, 1976) and a graduate degree in Fiscal Sciences (Brussels, 1980). Between 1977 and 1999 he held various posts and directorships at the Kredietbank Groep. ANNUAL REPORT

16 Specific functions Internal audit is an independent, objective assessment function that focuses on examining and assessing the proper working of the operational departments and the branch network. The unit evaluates the effectiveness and efficiency of internal control and offers advice on improving performance. Contact information for Internal audit: The client satisfaction advisor (formerly ombudswoman) is a neutral and independent mediator who endeavours to work out a solution to any disputes with clients that are not satisfactorily resolved by a department or a branch within a reasonable period. cliententevredenheid@bankvanbreda.be Tel Risk management is an independent function whose purpose is to further embed internal risk management in the culture and everyday practices of our bank. Its main roles are offering advice and monitoring and reporting on operational activities. These core tasks relate to all risks to which our bank may be exposed. Credit risk, operational risk, interest rate and liquidity risks are closely monitored by the Risk Management cell. Risk measurement and reporting ensure that the operational departments are well equipped to keep their risks suitably under control. Head of Risk Management: Ann.DeWit@bankvanbreda.be Compliance is an independent function that oversees and promotes compliance with the rules relating to banking integrity. The integrity policy concerns principally the following areas: antimoney laundering measures, tax avoidance policy, transactions in financial instruments, insider trading, market manipulation, privacy legislation, confidentiality obligation, codes of ethics and so on. Head of Compliance: Frieda.Seghers@bankvanbreda.be ANNUAL REPORT

17 Targeted human resources policy Opportunity for digitization Our personal approach is a significant distinguishing feature of Bank J.Van Breda & C, ABK bank and Van Breda Car Finance. For this reason, much attention was paid to our employees satisfaction, who are committed to upholding the values of honesty, enthusiasm and a sense of responsibility. In 2015, various initiatives were launched under the existing slogan That s the way we are. The aim is to further strengthen our distinctive culture of cooperation and a customeroriented approach. The Leadership academy was further expanded as a platform for both formal training and informal exchanges of views on various aspects of leadership. The Sales academy carried on developing the sales and technical skills of the sales staff. In 2015, the final phase of the EOS project was delivered: the migration to a modern and integrated IT platform that is developed inhouse. For clients, an entirely new VanBredaOnline was launched and a payment app for smartphones was introduced. Meanwhile, all account managers have been equipped with an ipad on which all applications are available to support a smooth conversation with clients and handle all administrative procedures digitally, both at the branch and on the client s premises. All these initiatives place us in a strong starting position to successfully implement the potential of digitization within our financial guidance strategy. ANNUAL REPORT

18 Efficient operations Futureoriented premises Providing a clientoriented offer is possible only with the necessary operational support. In the past year, the back offices of Bank J.Van Breda & C and ABK bank were merged. Various administrative tasks were further simplified and automated. This increases efficiency and frees up time for personal service to clients and to offering solutions to their problems. Another aspect of digitization involves continuing to devote attention to high value and accessible branches where we welcome clients in pleasant surroundings. Since 2011, 17 branches have moved to new or completely renovated premises. Our head office, the former freight terminal at Antwerp South, is very often used for events organized for our target groups. ANNUAL REPORT

19 Well equipped for the future Bank J.Van Breda & C posted outstanding financial results in The net profit rose to EUR 40.5 million and equity (group share) grew to EUR 502 million. The liquidity and solvency ratios remain at a very solid level. A flat rate curve, the low interest rates, highly prudent economic growth in the eurozone and lower growth in China, low inflation, volatile oil prices and geopolitical tensions have created an uncertain climate in which it is difficult to make profit forecasts. Pressures on margins, the fall in income from refinancing, an increase in bank levies and the necessary investments in the future exert pressure on profits. But Bank J.Van Breda & C remains well equipped for the future in each of its 3 areas of activity: Our high level of client satisfaction ensures loyal clients and enthusiastic ambassadors who bring in new clients. Our sales capacity and our positioning should make it possible to further increase the assets under management. The impact of such growth on operating income will partly depend on the changes in interest rate margins and in the competitive environment. We continue to invest in our future, both as regards sales capacity and efficiency. Digitization will continue to play a crucial role in this regard. With a modern, integrated IT platform, we have a strong starting position. We continue to be costconscious and strive for a high level of efficiency. Our own investment portfolio is managed conservatively. This puts pressure on yields but reduces the volatility of the returns. In recent years, writedowns on the loan portfolio were limited. Our conservative policy should continue in the future to contribute to limiting credit losses. The competition in the car financing and leasing market will likely continue and trends in car sales are uncertain. Van Breda Car Finance has a good reputation, however, and solid ties to its partners in order to maintain its market position. In the past few years, the bank has proven its ability to achieve fine results even in difficult or uncertain circumstances. The bank s goodwill, reputation, positioning, ongoing investments and sound financial structure all serve as a solid basis for healthy financially growth over the long term. The Board of Directors wishes to thank the entire staff for their efforts and results achieved in Jan Suykens Chairman of the Board of Directors Bank J.Van Breda & C Bank J. Van Breda & Cº is optimally equipped to deal with a financial and economic environment that could remain extremely challenging for a long time. Dirk Wouters Chairman of the Executive Committee Bank J.Van Breda & C ANNUAL REPORT

20 Organisation chart Back to overview ANNUAL REPORT

21 Bank J.Van Breda & C strives for sustainable growth Ackermans & van Haaren 78.75% Promofi 21.25% Finaxis 100% 100% Bank J.Van Breda & Cº Delen Private Bank 99.9% ABK bank Van Breda Car Finance Finaxis Bank J.Van Breda & C is a specialised bank that focuses on family businesses and the liberal professions, covering both professional and private needs throughout their lifetime. The bank was founded in Lier by Jos Van Breda in 1930 and has maintained its individuality ever since. It is making every effort to retain its independence in the future. Since 1998, the bank s shares have been established in the Finaxis holding company, along with those of Delen Private Bank, one of the largest independent asset managers in Belgium. Thanks to close cooperation, Bank J.Van Breda & C also offers its clients the professional services of this renowned bank. Ackermans & van Haaren, the reference shareholder, now owns 78.75% of the shares in Finaxis. Promofi holds 21.25% of the capital. ANNUAL REPORT

22 Ackermans & van Haaren Ackermans & van Haaren is a diversified group active in 5 key sectors: Marine Engineering & Infrastructure (DEME, one of the largest dredging companies in the world CFE and A.A. Van Laere, two contractors with headquarters in Belgium) Private Banking (Delen Private Bank, one of the largest independent private asset managers in Belgium, and asset manager JM Finn in the UK Bank J. Van Breda & C, niche bank for entrepreneurs and liberal professions in Belgium) The AvH group represented in 2015, through its share in the participations, a revenue of EUR 5.3 billion and employed 22,077 people. The group concentrates on a limited number of strategic participations with significant potential for growth. AvH is quoted on the BEL20 index, the Private Equity NXT index of Euronext Brussels and the European DJ Stoxx 600. Info: Real Estate & Senior Care (Leasinvest Real Estate, a listed realestate investment trust Extensa, an important land and real estate developer focused on Belgium and Luxembourg) Energy & Resources (Sipef, an agroindustrial group in tropical agriculture) Development Capital (Sofinim and GIB) ANNUAL REPORT

23 Delen Group The Delen group, originally a stockbroker established in 1936, is now active via Delen Private Bank as an asset manager. In its offices in Antwerp, Brussels, Ghent, Hasselt, Liège, Rumbeke (Roeselare) and branches in Luxembourg and Geneva, the bank has 308 employees (641 employees incl. JM Finn and Oyens & van Eeghen). With assets under management of more than EUR 25 billion, Delen Private Bank is one of the largest asset management houses in Belgium. In 2011, Delen Investments entered the British market with the acquisition of a majority stake (74%) in JM Finn & C Ltd, a leading London investment manager. Since being incorporated in the Ackermans & van Haaren Group in 1992, it has achieved strong growth year by year. Since 1998 Delen Private Bank has worked closely with Bank J.Van Breda & C to provide service to their respective customers. At 31 December 2015, JM Finn had assets under management or administration of EUR 10.8 billion. With the takeover of Oyens & van Eeghen (100%), Delen Private Bank has strengthened its position in the Benelux and thereby created a leading wealth management group active in the Benelux and the United Kingdom with assets under management totalling about 36 billion euros. Info: Staff Results Net profit after taxes 57,171 62,617 76,033 80,825 Profit growth 5% 10% 21% 6% 92,417 14% Balance sheet data Total invested by customers 22,570,394 25,855,182 29,535,684 32,866,141 Equity (group share) 364, , , ,390 36,884, ,554 Ratios Costincome ratio 44.2% 55.2% 54.8% 55.0% Return on equity 16.1% 16.1% 17.3% 16.5% 54.9% 16.8% All data as at 31.12, with monetary amounts in thousand euro. ANNUAL REPORT

24 Consolidated financial statements Back to overview ANNUAL REPORT

25 The following pages contain the profit and loss account, the consolidated statement of comprehensive income, the balance sheet, the statement of changes in equity and the cash flow statement of Bank J.Van Breda & C. In a separate online appendix, we collect the full consolidated financial statements of Bank J. Van Breda & C as deposited with the National Bank of Belgium, together with a description of our IFRSbased accounting principles, the notes to the financial statements, the unqualified audit opinion of the recognised auditors and the external mandates of the members of the Board of Directors. This document can be found at Profit and loss account 26 Comprehensive income 27 Assets 28 Equity and liabilities 29 Changes in equity 30 Cash flow statement 31 ANNUAL REPORT

26 Consolidated profit and loss account I. Financial and operating income 1. Interest income, of which Interest received Interest paid 2. Dividends received 3. Fees and commissions, of which Fees and commissions received Fees and commissions paid 4. Realised profit (loss) on financial assets available for sale 5. Profit (loss) on financial instruments in the trading portfolio 6. Profit (loss) on cashflow hedging, of which Profit (loss) transferred from equity on hedging instruments Ineffective portion of changes in fair value of hedging instruments 7. Profit (loss) on fair value hedges 8. Gains and losses from foreign exchange trading 9. Realised profit (loss) on other assets 10. Other operating income and costs Other operating income Other operating costs Banking profit II. Administrative costs 1. Payroll costs 2. General and administrative costs III. Depreciation and amortisation 1. Tangible fixed assets (land, building and equipment) 2. Intangible assets 82, ,547 48,461 1,169 32,020 39,701 7, , ,949 1, ,377 40,491 24,606 2,715 2,511 84, ,100 38, ,663 46,783 2, ,393 2,258 2, ,872 41,420 26,698 2,862 2,730 IV. Provisions Banking costs 71,222 74,387 V. Impairment losses 1. On financial assets available for sale 2. On loans and receivables (incl. financial leasing) 3. On goodwill , VI. Share in the result of associated companies consolidated using the equity method VII. Writedown on loans excluded partners of ABK bank 5,758 1,566 Profit before tax 50,598 60,446 Taxes on profits 15,020 19,902 Profit for the period 35,578 40,544 Profit attributable to minority interests Profits attributable to shareholders of the company 35,494 40,479 (in thousand euro) ANNUAL REPORT

27 Consolidated statement of comprehensive income Profit for the period Other comprehensive income that can later be transferred to the income statement Assets available for sale Changes in fair value Transfers to the income statement (divestments) Transfers to the income statement (impairment losses) Tax Other comprehensive income on assets available for sale, after tax Cash flow hedges Effective portion of changes in fair value Transfers to the income statement (shutdowns) Tax Other comprehensive income on cash flow hedges, after tax Other comprehensive income that will never be transferred to the income statement Defined benefit plans Actuarial gains and losses Tax Actuarial gains and losses on defined benefit plans, after tax Total other comprehensive income for the period, net of income tax Total comprehensive income for the period Comprehensive income for the period attributable to minority interests Total comprehensive income for the period attributable to equity holders of the bank 35,578 1, , ,873 37, ,367 40,544 3, ,328 2, ,602 38, ,877 (in thousand euro) ANNUAL REPORT

28 Consolidated balance sheet: assets I. Cash and cash balances with central banks 100,063 36,628 II. Loans and advances to banks 64,722 85,220 III. Financial assets 1. Financial assets held for trading 2. Financial assets available for sale 3. Loans and receivables (including finance leases) 4. Fair value hedging: changes in the fair value of the hedged portfolio 5. Derivatives used for hedging IV. Tangible assets 1. Property, plant and equipment V. Goodwill and other intangible assets 1, ,966 3,639,208 9, ,907 8, ,896 3,932,237 8,096 1,179 38,424 7,081 VI. Investments in associates, subsidiaries and joint ventures using the equity method 1,007 1,017 VII. Tax assets 1. Current tax assets 2. Deferred tax assets 11,092 6,499 VIII. Other assets 5,752 5,795 Total assets 4,487,430 4,717,833 (in thousand euro) ANNUAL REPORT

29 Consolidated balance sheet: equity and liabilities I. Financial liabilities 1. Financial liabilities held for trading 2. Financial liabilities measured at amortised cost 2.1. Deposits from credit institutions 2.2. Deposits from other than credit institutions 2.3. Debt certificates 2.4. Subordinated liabilities 3. Derivatives used for hedging 1,920 12,432 3,735, ,661 79,513 12, ,007 3,902, ,182 66,545 10,800 II. Provisions 2,838 3,515 III. Tax liabilities 1. Current tax liabilities 2. Deferred tax liabilities 2, IV. Other liabilities 25,301 23,138 Total liabilities 4,012,306 4,216,075 V. Issued capital 17,500 17,500 VI. Consolidated reserves 450, ,720 VII. Revaluation reserves 7,327 5,414 VIII. Minority interests Total equity 475, ,758 Total equity and liabilities 4,487,430 4,717,833 (in thousand euro) ANNUAL REPORT

30 Consolidated statement of changes in equity Consolidated reserves Revaluation reserves Opening balance, 1 January 2014 Payment of dividend last financial year Profit of the financial year Changes in revaluation reserves Share based payment: (contribution of mother company) Other (mainly change in scope of consolidation intrest%) Closing balance, 31 December 2014 Opening balance, 1 January 2015 Payment of dividend last financial year Profit of the financial year Changes in revaluation reserves Share based payment: (contribution of mother company) Other (mainly change in scope of consolidation intrest%) Closing balance, 31 December 2015 Share capital & share premium Consolidated reserves Defined benefit plans acturial gains and losses Financial Sharebased payments Subtotal assets available for sale Cash flow hedges Subtotal Total equity attributable to equity holders of the bank Minority interest Total equity 17, , , ,881 6,996 1,469 5, , ,274 12,682 12,682 12, ,771 35,494 35,494 35, , , ,796 1,873 1,873 2,364 2,364 2,364 2, (804) , , , ,154 8,435 1,107 7, , ,125 17, , , ,154 8,435 1,107 7, , ,125 14,235 14,235 14, ,317 40,479 40,479 40, , , ,913 1,602 1,602 2,010 2,010 2,010 2,010 1, , , , , ,720 6, , , ,758 (in thousand euro) The capital of Bank J.Van Breda & C is represented by 650,000 ordinary shares with no par value (same as 2015). All shares are issued and fully paidup. ANNUAL REPORT

31 Consolidated cash flow statement OPERATING ACTIVITIES Net profit (loss) for the period Adjustments to reconcile net profit or loss to net cash provided by operating activities Current and deferred tax expenses recognised in income statement Minority interests Share in the result of associated companies consolidated using the equity method Dividend receipts from associated companies consolidated using the equity method Investing and financing Depreciation / amortisation Gains and losses on sale of tangible assets Writedown on loans excluded partners of ABK bank Operating Impairments (Increase) decrease in provisions Gains and losses on cash flow hedges Gains and losses on fair value hedges Gains and losses on financial assets and liabilities held for trading Gains and losses on available for sale assets Share based payment Other adjustments Cash flow from operating profits before changes in operating assets and liabilities (Increase) decrease in operating assets (excl. cash & cash equivalents) (Increase) decrease in balances with central banks (Increase) decrease in loans and advances to banks (Increase) decrease in loans and receivables (Increase) decrease in available for sale assets (Increase) decrease in financial assets held for trading (Increase) decrease in accrued income from financial assets (Increase) decrease in other assets Increase (decrease) in operating liabilities (exl. cash & cash equivalents) Increase (decrease) in deposits from credit institutions Increase (decrease) in deposits from other than credit institutions Increase (decrease) in debt certificates Increase (decrease) in subordinated liabilities (excl. accrued interest) Increase (decrease) in financial liabilities held for trading Increase (decrease) in accrued expenses on financial instruments Increase (decrease) in other liabilities Cash flow from operating activities Income tax (paid) refunded Net cash flow from operating activities 35,494 15, , ,758 3, ,021 2, , , , ,412 27,363 1,523 1,122 54,264 95, ,947 10,646 1, ,256 35,395 13,055 48,450 40,479 19, , , ,684 2, , ,367 26,718 4, , , ,679 22, ,713 27, , ,648 16,998 49,646 (in thousand euro) ANNUAL REPORT

32 Consolidated cash flow statement INVESTING ACTIVITIES (Cash payments to acquire tangible assets) Cash receipts from the sale of tangible assets (Cash payments to acquire intangible assets) (Cash payments for the investment in subsidiaries, net of cash acquired) (Other cash payments relating to investing activities) (Other receipts relating to investing activities) Net cash flow from investing activities 7, , ,482 3, ,462 FINANCING ACTIVITIES (Dividends paid) Cash proceeds from the issuance of subordinated liabilities (Repayment of subordinated liabilities) (Other payments relating to financing activities) (Other receipts relating to financing activities) Net cash flow from financing activities Increase of cash and cash equivalents through business combinations Net increase in cash and cash equivalents Cash and cash equivalents at beginning of the period* 12,771 6, ,003 76, ,906 14,317 11, ,235 80, ,971 Cash and cash equivalents at the end of the period * 116,971 (*) Cash and cash equivalents are defined as: cash, credit balances with central banks, postal cheque and giro services and amounts receivable from credit institutions (call money and current accounts), less overdrafts with central banks and deposits to credit institutions (call money and current accounts). 36,627 Reconciliation of Cash and balances with central banks (balance sheet) and Cash and cash equivalents (cash flow statement) Cash and cash balances with central banks (assets) Accrued income from cash and cash balances with central banks Balances with central banks (monetary reserve) + Loans and advances to banks (call money and current accounts) Deposits from central banks (liabilities) Deposits from credit institutions (call money and current accounts) Cash and cash equivalents 100,063 2,651 22,604 3, ,971 36,628 29,370 39,097 9,728 36,627 (in thousand euro) ANNUAL REPORT

33 You are welcome at our bank Back to overview ANNUAL REPORT

34 Branches Bank J.Van Breda & C and ABK bank You can find the full list of our offices and contact persons at and Feel free to make an appointment! Bank J.Van Breda & C ABK bank Registered office, Ledeganckkaai 7, 2000 Antwerp, Belgium ANNUAL REPORT

35 Registered office Bank J.Van Breda & C nv Ledeganckkaai 7, 2000 Antwerp, Belgium For information: call +32 (0) VAT BE RPR Antwerp FSMA A IBAN BE BIC JVBABE 22 Grote Markt Groenplaats ABK bank cvba Ledeganckkaai 7, 2000 Antwerp, Belgium For information: call +32 (0) E17 GHENT BRUGES OSTEND SCHELDT De Gerlachekaai Waalsekaai Vlaamsekaai Nationalestraat Royal Museum of Fine Arts VAT BE RPR Antwerp FSMA A IBAN BE BIC ABERBE22 Ledeganckkaai Registered office Bank J.Van Breda & C Palace of Justice Amerikalei Van Breda Car Finance A division of ABK bank Ledeganckkaai 7, 2000 Antwerp, Belgium Contact Hedwige Schmidt: Tel. +32 (0) info@vanbredacarfinance.com D Herbouvillekaai EXIT 5a Generaal Armstrongweg EXIT 5a Kolonel Silvertopstraat A12 BOOM BRUSSELS SINGEL RING E19 BREDA BRUSSELS E313 HASSELT E34 TURNHOUT RPR Antwerp FSMA A ANNUAL REPORT

36 Bank J.Van Breda & C is a specialist advisory bank which exclusively targets entrepreneurs and the liberal professions. We help you systematically build up and protect your assets. Our clients can count on personal, proactive support from us, for both their private and professional assets, throughout their lives. The former AntwerpZuid freight depot has been completely restored and is now the headquarters of Bank J.Van Breda & C. +32 (0) Bank J.Van Breda & C Ledeganckkaai Antwerp Editor: Luk.Lammens@bankvanbreda.be Ledeganckkaai 7, 2000 Antwerpen For family businesses and liberal professions