Annual Report (ESEF) • Mar 5, 2025
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Both Private Clients Switzerland and Evi are reported under Private Clients Netherlands. In this annual report, when discussing comparative figures from 2023, these have been adjusted accordingly. Unrounded figures Amounts in this annual report may not add up due to being rounded up or down. The total amounts may therefore deviate from the sum of the parts. Percentage changes are based on the unrounded figures. Changes to comparative figures Some amounts may differ from previously published reports; in these cases, explanations are given in the footnotes. Contents 4 Message from the Chair Van Lanschot Kempen at a glance 7 2024 key figures 9 Growing further together A year in review 17 The world around us in 2024 20 Van Lanschot Kempen in 2024 24 Sustainability statement 99 Financial performance 114 Risk and capital management 129 Van Lanschot Kempen shares 133 Report of the Supervisory Board 143 Remuneration report 152 Corporate governance 158 Our Management and Supervisory Boards 163 Reconciliation of IFRS and management reporting Consolidated financial statements 165 Consolidated statement of financial position 166 Consolidated statement of income 167 Consolidated statement of comprehensive income 168 Consolidated statement of changes in equity 169 Consolidated statement of cash flows 171 Notes to the consolidated financial statements Company financial statements 257 Company statement of financial position 258 Company statement of income 260 Notes to the company financial statements Other information 278 Independent auditor’s report 296 Limited assurance report of the independent auditor on the sustainability statement 302 Articles of Association on profit appropriation 303 Stichting Administratiekantoor van gewone aandelen A Van Lanschot Kempen 305 Stichting Preferente aandelen C Van Lanschot Kempen 306 Glossary 313 Ten-year figures Message from the Chair 4 Message from the Chair Dear reader, We are proud of what we achieved together in 2024; a year in which we continued building momentum as a trusted adviser to entrepreneurs, families and institutional clients while navigating a challenging external environment. In line with our core value of being personal, we remained close to our clients, who entrusted us with more of their wealth, and we welcomed many new clients, resulting in significant growth. We cherish this trust and strive to protect it through our services and personal relationships. Close to our clients It was impressive to see how we increased commercial momentum while reducing complexity in our organisation. All four of our business segments contributed to our bottom line in 2024 and client satisfaction increased further, underlined by our high Net Promoter Scores. In private banking, we combine expertise in wealth management with advisory and institutional asset management solutions to offer a broad range of services, including private markets and philanthropy solutions. We increased our market share, with strong inflows from new and existing clients, in the Netherlands, Belgium and Switzerland. In the asset management space, we successfully rebuilt our small caps team, resulting in significant inflows. We also made steps in private equity and private debt with an expanded and improved offering, though we see the need to further improve our private markets solutions for our clients. Our investment bank advised on a number of high- profile transactions and returned to profitability; however our focus there remains on improving commercial momentum. At the same time, we made great strides in our disciplined acquisition strategy. Following meticulous preparations in 2023, we launched Mercier Van Lanschot in Belgium at the start of the year. Its clear and unique proposition made it a challenger in the market, with great appeal to clients and prospects. We also acquired and integrated Accuro in Belgium, adding both clients and staff to our platform. In the Netherlands, we made good progress on the integration of Robeco’s online investment platform into Evi. We expect the integration to be completed in 2025. As part of our purpose to preserve and create wealth for our clients and for society in a sustainable way, we take a long- term view. As entrepreneurs look to sell their businesses or transfer wealth to their children, what will their future needs look like? How can we maintain our strong relationships from generation to generation? We also look to diversify our client base to reflect the many facets of our society, for example by targeting next-generation clients and start- and scale-up entrepreneurs, offering financing solutions and network potential. This requires us to continuously look at our offering and our employee base. Guiding and guarding in uncertain times There was a duality to 2024, where a turbulent geopolitical environment saw elections in many countries as well as several major conflicts. At the same time, global markets performed well against the backdrop of decreasing interest rates, and we saw overall wealth increasing. We are proud to be able to not only guide our clients through this pivotal transition but also provide re-investment and liquidity opportunities. Meanwhile, we continue to recognise the urgency of climate change and our role in mitigating its effects. This report outlines the steps we are taking on ESG topics. Our focus areas are climate change, biodiversity, and inclusion and diversity. As a firm that places high importance on dialogue, we engage with our stakeholders to make a positive impact in these areas. For example, through impact investing, including via our SDG Farmland Fund and our mortgage proposition. We also have an annual reduction target for our own operations, which will be driven mostly by better mobility options and reducing the energy consumption of our offices. Our new office in Amsterdam from 2027 will also place sustainability at the heart of its design. Finally, data availability and quality are key to the achievement of our targets. We are working to improve our insights and increase transparency, and are in continuous dialogue with our clients on where we can make improvements. As we work through the transitions brought about by evolving geopolitical and environmental circumstances, we take our responsibility as an adviser seriously. Our clients entrust us with their wealth and financial well-being and, in turn, we help to guide them through the changing world we live in. People make the difference We are firm believers that, in the current tight labour market, we must aim to be the employer of choice in the wealth management field. Offering a place where people work together for our clients and, by doing so, can grow and prosper. Clients deserve the best and most passionate team to serve them. That’s part of our DNA. We were able to attract young talent to our Young Private Banking Programme, as well as for AI-related positions and other technology roles. We also strengthened our leadership and attracted additional senior bankers in Switzerland, to ensure our next growth chapter there. We also saw changes to the Management Board this year, as former Chief Risk Officer Wendy Winkelhuijzen took up the role of Head of Private Clients Netherlands and Investment Banking Clients. Damla Hendriks joined us as our new Chief Risk Officer in June. The new composition of our Board has brought a fresh dynamic and energy to our team. At the same time, we are grateful for the contributions of Richard Bruens, who stepped down from the Board after ten years. Message from the Chair 5 Growing further together Looking ahead, our "Growing further together" strategy is designed to build on our positive momentum and continue fostering a growth mindset. This resonated well with our shareholders and the wider market when we presented the strategy and associated targets on our Investor Day in June 2024. We are already well underway towards our financial and non-financial targets. At the same time, we must continue to monitor the impact of external developments and keep an eye out for well-suited, bolt-on acquisition opportunities. There are three key ingredients to delivering our "Growing further together" strategy, which we refer to as "Grow, Scale and Excel". Growth is linked to growing our product and service offering, for example in our private markets offering, as well as our target of 10% average annual growth in assets under management while maintaining a capital-light business model. Scalability will be driven by enhancing our digital capabilities, such as by on-boarding more Belgian clients to our shared platform, and by using AI to automate manual tasks, all the while maintaining our high security and privacy standards as well as our personal touch. Excel refers to how we develop talent, how our staff collaborate to provide the best solutions for our clients, and how we will continue investing in our brand to be an adviser of choice for a broader range of client groups. Because this is what it all comes down to: being close to our clients as their trusted adviser. I would like to thank our clients, colleagues and shareholders for how they have contributed to building impactful relationships in 2024. Whether we're navigating a pivotal moment in one’s life or responding to situations in the world around us, we will continue to drive real conversations about the things that matter, now and for generations to come. 's-Hertogenbosch, the Netherlands, 26 February 2025 Maarten Edixhoven Chair of the Management Board Message from the Chair 6 2024 key figures Van Lanschot Kempen at a glance 9 Growing further together We are the oldest independent financial institution in the Netherlands. Nevertheless, we're firmly focused on the future, driven by our purpose to preserve and create wealth for our clients and for society in a sustainable way. That means taking the long view as we move forward with our clients, standing by them at every step with our welcoming, personal and expert touch. A trusted steward In an ever-changing world, our clients seek a steady hand in the moments that matter, whether it's growing or selling a business, investing or planning a wealth transfer. And in the face of environmental and social change, consumers and businesses alike are becoming increasingly aware of the importance of how we shape the world for future generations. Our close to 300-year heritage stands us in good stead as we support our clients with long-term wealth planning. Over the years we have helped our clients navigate social, political and economic change and we will continue to do so in the years to come. With our strong, specialist position in private banking, investment management and investment banking, we provide products and services to our clients with a unique personal approach. Our values As our clients plan to grow their wealth, prepare a nest egg for retirement, make a transfer to the next generation or make an impact through philanthropy, we provide stewardship with an entrepreneurial edge, grounded in sound knowledge and clear investment principles. A guiding compass Our four values, shown below, steer the way we work together, make decisions and deliver on our strategy, helping us fulfil our promise: Onwards together (Kom verder). This promise encapsulates how we work with clients to tailor their investments, offering a uniquely personal and specialist service led by experts committed to them and their future success. These values were shaped with input from stakeholders such as our employees, clients and the Works Council, to embed their perspectives within these principles. Our values are underlined by our code of conduct, which sets out the commitments we expect from our colleagues, including our three ethical principles: – We are respectful towards others; – We act with discretion; – We think across generations. You can read our full code of conduct at vanlanschotkempen.com/en-nl/about-us/who-we-are/ compliance. Van Lanschot Kempen at a glance 10 What we do and who we do it for Our organisation delivers private banking, investment management and investment banking services, supported by enabling departments. We work with our clients to deliver the right products and solutions for them through our business activities: private banking in the Netherlands, Belgium and Switzerland; online wealth management via Evi; investment management in Western Europe; and investment banking in Western Europe and the US. Private banking is the foundation of our business. Our teams in the Netherlands, Belgium and Switzerland support clients with expert advice tailored to their needs. With an in-depth understanding of their personal situation and goals, our bankers are trusted to help preserve and create wealth for generations to come. We take a long-term view of investing, building a deep understanding of our clients and their goals. Our clients choose to work with us for several reasons. First and foremost is the personal experience we offer, underlined by our belief that building relationships is key to sustainable growth. We're there for our clients as their trusted adviser through any and every stage in life, from building a business to transferring wealth to giving back to society. We're also known for our high-quality service, delivered by knowledgeable people who are experts in their field. We bring our clients and our networks together, enabling meaningful connections. What's more, we provide our clients access to our investment management and investment banking services. And finally, as a highly focused mid-sized wealth manager, our flat organisation and entrepreneurial spirit enable us to move fast, with the scale to stay ahead of technological and regulatory developments and preserve wealth for our clients. Our excellent client service is made possible by the dedicated experts in our organisation. We cultivate their expertise, entrepreneurship and personal approach through: – Investing in talent development: for instance through the Van Lanschot Kempen Academy and our young talent and trainee programmes such as the Young Private Banking programme; – Nurturing employee engagement: with an employee engagement score of 90% in 2024 (2023: 90%); – Fostering collaboration across segments: such as partnerships between private banking and investment banking. How we invest We are active investors with a firm belief in responsible ownership. We look for investee companies with a strong and unique position in the market, a clear leadership vision and skin in the game, such as share ownership or incentivisation. Starting from our client's wishes, we follow three investment principles in everything we do, from selecting individual securities to establishing investment building blocks: – A strong unique selling point; – Clear focus; – Alignment of interests. Private Clients Netherlands In the Netherlands, we are the leading private bank, offering our clients savings and investment products, mortgages, private and business financing, semi-institutional services, wealth transfer and philanthropy services. Our private banking clients include entrepreneurs, wealthy individuals and families, business and healthcare professionals, foundations and associations, as well as affluent clients. Besides our private banking activities in the Netherlands, we are also the only Dutch bank with a Swiss subsidiary, combining local expertise and an international organisation to serve Dutch and Belgian clients in Switzerland. And our online investment platform Evi serves clients directly and via intermediaries, to meet the diverse needs of our affluent clients. Private Clients Belgium Mercier Van Lanschot is our brand in Belgium, bringing together the former Mercier Vanderlinden and Van Lanschot Belgium. We are the challenger in a very attractive market, offering entrepreneurs and wealthy individuals and families comprehensive wealth management services, wealth planning and Lombard loans. Van Lanschot Kempen at a glance 11 Investment Management Clients Our investment management business consists of investment services for our private banking clients, wholesale investment services for institutional clients across Western Europe and fiduciary management for institutional clients in the Netherlands and the UK. With solid investment management and active, high-conviction strategies, our investment experts bring a hands-on, entrepreneurial spirit to manage complex investment challenges. This segment offers: – Investment services for our private banking clients; – Our own funds: small caps, dividends, sustainable equity, credits and listed real assets, alternative credit, non- listed real assets, private markets, farmland and multi- asset impact; – Fiduciary management for pension funds in the Netherlands and the UK. Investment Banking Clients Our specialist investment bank has an international, sector- focused approach in European real estate, life sciences & healthcare, tech & fintech and infrastructure. We serve European corporates, international institutional clients and private banking clients in the Benelux region, offering specialist services such as M&A, equity capital markets transactions, debt advisory services and equities research and trading. Where we're going To continue delivering excellent services to our clients as a focused, independent wealth manager, it's imperative to keep growing our company. Our "Growing further together" strategy aims to expand our position as a leading wealth manager in Western Europe, with a solid foundation in the Netherlands and Belgium. We aim to increase our market share and unlock additional growth in our targeted markets. We will also continue our successful bolt-on acquisition strategy and focus on increasing synergies and cross-selling between our business activities for the benefit of our clients. In particular, investment management and investment banking are organised to increase collaboration with and support for private banking while being profitable on a standalone basis. At our Investor Day in June 2024, we presented financial targets for 2027 that will enable us to grow in a scalable way. Moreover, our "Growing further together" strategy also sets out several sustainability targets to guide us. Financial targets Our strategy centres around generating growth that is scalable, profitable and sustainable for the long term, while maintaining a capital-light business model. We have set a target to grow assets under management (AuM) by 10% a year on average across our client segments, to be achieved through a combination of organic growth, bolt-on acquisitions and market performance. We aim to continue our current commercial momentum, as we are well-positioned to capture the opportunities arising in our markets. We continue to increase our market share by offering our current and new clients the right services to manage their wealth. And there are many additional opportunities for growth, such as the increase in company sales, a growing number of wealth transfers and significant reforms in the pension space: key moments where a trusted adviser like us can make a difference. And through our bolt-on M&A strategy, we seek to acquire companies that offer a clear financial, cultural, client and market fit. We will continue to focus on cost control and increasing efficiency to ensure our growth is scalable. Therefore, we target a cost/income ratio of 67–70%, with a solid capital position – a 17.5% Common Equity Tier 1 (CET 1) ratio according to Basel IV fully loaded. For all these reasons, we expect our strategy to deliver rewarding returns for our shareholders, with a return on CET 1 capital (RoCET 1) target of >18% by 2027 and an attractive dividend pay-out ratio of 70–90%, reflecting our capital-light business model. Sustainability targets The wealth that we preserve and create must be both profitable and sustainable. Our purpose and ethical principles underline our sustainability beliefs: – We help our clients to navigate transitions by collaborating, sharing insights and developing solutions for future generations; – We are active investors with a strong belief in responsible ownership through dialogue; – We lead by example, integrating sustainability into all our roles and expertise. 1 As of 2024, the number of gender pay gap correction variables has changed and includes all employees; the 2023 number includes employees in the Netherlands. 2 We only measure the NPS for wholesale and institutional clients once every two years. Van Lanschot Kempen at a glance 12 We help our clients navigate the important transitions of our time. We focus our actions on the themes where we believe we can achieve the biggest results (based on our scale, activities and specialist knowledge). With that in mind, we've selected three focus themes: climate, biodiversity, and inclusion and diversity. We have set key performance indicators (KPIs) for these themes; for more information, see our sustainability statement. As a firm that strongly believes in dialogue, we work closely with our clients to advise them on the most suitable ways to meet their goals, with a range of sustainable investment solutions that support these transitions. And while we make these options available, our clients always make the final decision on the direction of their investments. We have set a target of a 7% annual weighted average carbon intensity (WACI) reduction for discretionary AuM, and a 9.5% annual reduction in the carbon footprint per square metre of our mortgage portfolio. We also engage with investee companies to encourage progress on their own sustainability targets, and where we do not see enough improvement, we may decide to divest. When it comes to our own operations, we are working to reduce our carbon emissions. In support of this, we have set a target to lower our annual average carbon intensity per FTE by 8%, which we will achieve through reducing energy consumption at our offices and emissions through commuting and international travel. In 2024, we announced that we will be moving our Amsterdam office to a new, more energy-efficient location from 2027. You can read more about our sustainability policies, targets and progress in our sustainability statement. Delivering on our strategy, together To successfully execute our strategy, we will pursue several key themes in the years to come: Grow: We aim to continue to grow as a company alongside our clients in our consolidating industry, by focusing on: – Continuing to drive organic growth momentum; – Growing our client base in the ultra-high-net-worth segment; – Strengthening our private markets and discretionary portfolio management; – Executing bolt-on acquisitions. Scale: We aim to increase the scalability of our business to ensure our growth is profitable, by focusing on: – Streamlining value chains; – Further harmonising our way of working across the Netherlands and Belgium; – Improving data quality and implementing additional AI and IT tools; – Fostering a high change velocity. Excel: We aim to continue to deliver the best possible service to our clients, by focusing on: – Client excellence: delivering unparalleled value to our clients; – Personal excellence: growing through development and performance management; – Team excellence: cooperating strongly across and within our client segments; – Incorporating sustainability as part of our daily operations; – Further building our brand. Progress on our strategy is monitored against a set of KPIs. KPIs Targets Performance in 2024 Performance in 2023 1. CET 1 ratio (Basel IV fully loaded) 17.5% l 19.3% 18.6% 2. Return on CET 1 capital >18% in 2027; progress ahead of our growth path of 1 percentage point per year l 16.2% 14.2% 3. Cost/income ratio 67-70% l 70.1% 71.6% 4. Three-year relative performance of our managed propositions >benchmark l -1.1% -0.2% 5. Employee engagement score (EES) >80% l 90% 90% 6. Gender balance among senior staff >30% female and >30% male by 2029; progress in line with our growth path of 2% per year (2024 target: 21%) l 21.1% 19.0% 7. Corrected gender pay gap 1 <2.0% l 1.4% 3.0% 8. Employee turnover 8-12% l 9.5% n/a 9. Own organisation: annual average carbon intensity per FTE 8% reduction (baseline year 2019) 2024: <1.60 tonnes CO2e per FTE l 1.43 tonnes CO2e per FTE 1.65 tonnes CO2e per FTE 10. Discretionary AuM: annual WACI 7% reduction (baseline year 2019) l 17% n/a 11. Net Promoter Score a. Private Clients Netherlands ≥20 l 45 34 b. Private Clients Belgium ≥20 l 62 n/a c. Evi ≥10 l 11 0 d. Investment Management Clients 2 ≥20 n/a 30 e. Investment Banking Clients ≥20 l 46 n/a 12. Percentage of employees who believe they have a responsibility to behave ethically ≥benchmark (85%) ≥last pulse/EES (if below benchmark) l 92% 89% l KPI more than achieved l KPI achieved l KPI almost achieved l KPI not achieved l KPI far from achieved 1 Topics that are not considered a "sustainability matter" as defined in the CSRD. Van Lanschot Kempen at a glance 13 Double materiality assessment As we preserve and create wealth for clients and society, we maintain a regular dialogue with our stakeholder groups and conduct a materiality assessment every other year to identify the most significant (potential) impacts. In 2023, we introduced double materiality, which recognises the interdependence between financial materiality and impact materiality, considering both the financial impacts of environmental and social factors on a company, and the impacts of the company's activities on the environment and society. Our double materiality assessment (DMA) was conducted in preparation for reporting according to the Corporate Sustainability Reporting Directive (CSRD). The material topics identified in our DMA form the basis of the sustainability statement in our 2024 annual report. Our material topics are shown in the following tables. We value our relationships with all our stakeholders. We seek input and inspiration from various groups, including an advisory board. We aim to maintain an open dialogue, through stakeholder events and conversations on specific topics and themes such as culture and behaviour, inclusion and diversity, client interests, sustainability, technology and investment. The outcomes of these help shape our views and provide input for our strategic cycle. You can see a full overview of our stakeholders and material topics in the "General disclosures" section of the sustainability statement on page 26. Our 2023 DMA formed the basis for our KPIs for the 2024–25 period and for our non-financial reporting in the 2024 annual report. In aligning our DMA to the CSRD, some changes were made to the list that was published in the 2023 annual report. All of Van Lanschot Kempen's material topics are listed below, including topics that are not considered a "sustainability matter" as defined in the CSRD. The topics "Resource use and circular economy via AuM", "Opportunities related to sustainability in products and solutions", "Payment practices with regard to business partners" and "Corruption and bribery" are no longer considered material compared with the list included in the 2023 annual report. Nevertheless, the topic "Opportunities related to sustainability in products and solutions" is now covered by the material topic "Climate". Moreover, the topic "Corruption and bribery" is now covered by the material topic "Business conduct and compliance". Material topic overview (CSRD-aligned) Impact materiality Financial materiality Double materiality Biodiversity Business conduct and compliance Climate Own workforce – inclusion and diversity Growth 1 Own workforce – quality of the workforce Workers in the value chain (AuM) Own workforce – working conditions Quality and relevance of our solutions Privacy Client interests3 Client experience3 Contribution to clients' wealth3 Cybersecurity3 Profitability and cost effectiveness3 Sound risk and capital management3 Van Lanschot Kempen at a glance 14 Full material topic list Material topic Description Biodiversity Impacts and dependencies in relation to biodiversity caused by our own organisation and/or AuM. Inclusion and diversity The impact on employees of promoting inclusion and diversity among the workforce and management, particularly in terms of gender and age, including equal pay for work of equal value and actions to reduce the gender pay gap. Workers in the value chain (AuM) Our policies that address the management of material impacts on workers in the value chain via investee companies (AuM). Quality and relevance of our solutions The impact on clients via the development of innovative solutions that answer evolving, individual client needs. Clients have access to a broad and diverse range of solutions. Our advisory services also bring added value (quality, suitability and execution power). Business conduct and compliance How we maintain a healthy corporate culture, develop and promote good business conduct and adhere to laws and regulations – and the impact of non-compliance with laws and regulations on financial performance or our stakeholders. Growth The impact of long-term, sound growth in AuM and revenues – by attracting new clients due to a strong market position and/or making bolt-on acquisitions – on our financial performance and direct stakeholders. Climate Our strategy to align our business model (including own operations, balance sheet and AuM) with the goal to limit global warming to +1.5°C as specified in the Paris Agreement. The impact or potential impact of climate change- related physical and transition risks – financial and non-financial – on our financial performance and management of these risks. Quality of the workforce Our workforce consists of talented employees who have the relevant expertise and required skill sets. Opportunities are offered to employees to develop themselves and expand their skill sets. Working conditions The impact on employees in terms of working conditions, including security of employment, remuneration, social dialogue, freedom of association, collective bargaining, work-life balance, absence and health and safety. Privacy The impact on our clients of confidentiality, availability, and/or integrity of client data. Client interests The impact on clients in terms of making sure that the products and services we offer are appropriate for our clients and achieve what we promise, coupled with the unique Van Lanschot Kempen client experience. Client experience The impact on clients in terms of easy-to-access, seamless client journeys via various channels (e.g. app, face-to-face, phone) and providing clients with services and solutions at the right time, leading to high levels of client satisfaction. Contribution to clients‘ wealth The impact on clients in terms of the positive financial contribution to their wealth via our investment, advisory, lending and investment banking solutions. Cybersecurity The impact of data protection, in particular on clients, against potential security breaches and attacks, and the impact of any breaches or attacks that occur. Profitability and cost effectiveness The impact of our profitability and cost effectiveness (by maintaining an adequate return on CET 1 capital and strong cost/income ratio) on our direct stakeholders, such as shareholders, bondholders and employees. Sound risk and capital management Our strategic, operational, compliance, sustainability, credit, market, interest and liquidity risk profile and appetite, and how we ensure that these risks are being well managed via sound risk management. A year in review 17 The world around us in 2024 As a financial institution, we are impacted by, and have an impact on, the world around us. Our stakeholders expect us to adjust our products and services to match evolving client needs, market conditions, and environmental and geopolitical challenges. We take this responsibility seriously and respond to shifts where needed, to provide a stable home for our clients' wealth that can weather the winds of change and stand the test of time. Our operating environment After a strong first half of the year, market performance was more stable by the end of 2024, with markets, especially in the US, continuing to rise. With inflation slowly abating, central banks lowered interest rates, which helped to prevent a recession. Markets were dominated by a couple of central themes as around 50% of the world's population elected new political leaders. There was a strong focus on technology stocks, with AI-related stocks in particular outperforming the general stock market. Inflation in the Netherlands declined to 3.3% by year-end 2024 and the situation was similar in Belgium, where inflation dropped to 4.4%. Corporate balance sheets generally remained in good shape and consumer spending remained strong. However, challenges with labour shortages continue, especially in hospitality, construction and IT. As our clients' steward, we are well-placed to navigate economic and political volatility and their consequences while making wealth work for the benefit of clients, society and the planet. The ongoing consolidation of the European wealth management market creates opportunities for portfolio optimisation, regional hubs and increased market share in a time of ageing populations and technological disruption. We also see acquisitions as a tool to drive growth and profitability, and our M&A focus is on opportunities in private banking and investment management in our core markets. The global landscape Geopolitical tensions such as conflict and trade restrictions remain a risk to economic stability. Russia's ongoing war on Ukraine has created devastating human impacts and pressures on energy security in Europe in recent years. We remain watchful of the situation and are here to guide our clients through their security concerns. In addition, the situation in the Middle East remains tense. Aside from the significant human impact, the economic impact is limited to Israel and Lebanon. However, if the conflict were to spread further to a regional war, this would bring potential market disruption from inflated oil prices and supply chain turbulence. In November, the Republican party won the US presidential election. We will keep a close eye on developments with regard to the programme of the Trump administration and its implications for financial markets, and adjust our investment strategies accordingly. Lastly, we are seeing sentiment shift further towards deglobalisation in areas such as trade and immigration. As a firm that relies on international talent, we see a potential risk to the labour market as a result of closed borders. The local landscape The European Parliament elections took place in June 2024. While the centrist European People's Party retained their majority, right-wing and anti-EU populist parties won their highest-ever number of seats, further confirming a shift to the right in European political sentiment. The new Dutch government was sworn in on 2 July 2024, and its first programme presented plans with potential implications for our clients, in areas such as socioeconomic security, taxes, entrepreneurship, climate and philanthropy. Federal and local elections were held in Belgium in 2024, where a proposal for a capital gains tax is a key topic on the table. In our role as a long-term wealth manager, we recognise the uncertainty this shifting landscape can cause for our clients. We monitor developments closely and discuss any potential consequences as part of the regular dialogue with our clients. Dutch pension reform Our society is ageing, and fewer people stay with the same employer for the entirety of their working lives. In response to this changing labour market, the Dutch Future Pensions Act (Wet toekomst pensioenen) came into effect in 2023 and was effective for the first full year in 2024. The shift from a collective defined contribution (CDC) set-up to a more collective individual defined contribution (CIDC) set-up means that every pension fund member has a more bespoke risk/return pension profile depending on age. Pension funds have, in most cases, already chosen between one of two possible pension contracts, one more explicitly and one more implicitly CIDC. All pension providers are expected to complete the transition by 1 January 2028. As an investment solution provider for pension funds and other institutional investors, we work closely with our clients to navigate these changes and ensure our fiduciary management and alternative investment solutions can meet their evolving needs. In addition, we continue to provide an excellent personal online pension experience through Evi. Growth in wealth transfers Transferring the ownership of a family business is a pivotal moment in life that brings both rational and emotional considerations. For example, families often face financial consequences, such as the Netherlands' business succession scheme (bedrijfsopvolgingsregeling), as well as uncertainty about who is eligible to inherit the business when there are multiple owners. A year in review 18 In May 2024, it was estimated that more than 85,000 family businesses in the Netherlands – almost a third – were in the process of transferring ownership. Research carried out by Nyenrode Business University, in collaboration with Rotterdam School of Management and Van Lanschot Kempen, studied 232 family businesses. It showed that 50% of owners want their business to remain in the family, with other options including a sale to a strategic buyer (16%) or a private equity firm (5%). The various options that family businesses face to ensure the next generation of their business call for strategic, long-term wealth planning. As a trusted partner to our clients, we provide families with the overview, flexibility and peace of mind to preserve their wealth across generations and assist with the sale of their business, with the support of our investment bank if they opt to do so. Technology Advances in generative AI tools powered by large language models have led to a surge in investment and innovation as organisations become aware of their potential. Many are embracing AI, with the ambition to drive efficiency and productivity in the short term, and boost innovation and growth in the longer term. We see strong technological capabilities as a key enabling factor for the scalable growth we want to achieve, and we take a responsible approach to maintaining privacy and ethical standards. Van Lanschot Kempen has leveraged AI in several ways: to reduce time spent on manual tasks, to simplify our processes, extract knowledge and generate personalised insights for our clients. Our AI-driven tools are designed to support our colleagues in their work, and the final responsibility over our and our clients' data and the decisions we make with its insights always lies with a human. Our widely used AI applications include our internal ChatGPT environment, Leonardo, and an analytics assistant for our bankers, ClientCenter, which includes dynamic contact planning and meeting preparation features. Cybercrime The incidence of cybercrimes such as ransomware and fraud continues to rise. Ransomware attacks often result from vulnerabilities in IT systems, overly permissive access rights or flaws in system architecture. And in recent years, we have also observed a general trend in bank help desk fraud. These trends pose risks for financial firms such as Van Lanschot Kempen and for our clients, underlining the importance of strong system integrity. We have implemented extensive measures to prevent, detect and resolve such vulnerabilities, including firewall rules, advanced anti-virus software and additional fraud rules to detect abnormalities. We also provide awareness training to ensure our colleagues understand the sensitive nature of the (client) data we handle at Van Lanschot Kempen. For information on our approach to managing cyber risk, see "Risk and capital management" on page 114. Sustainability The window of opportunity to meet the targets of the Paris Agreement is closing fast. There is a clear and urgent need to reduce greenhouse gas emissions to keep the Earth's temperature under control and safeguard vulnerable communities. In 2024, we saw extreme weather events such as heatwaves, floods and hurricanes, which have been linked to climate change. The 29th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change, known informally as COP29, aimed to ensure all parties commit to ambitious national plans while recognising the role of financial institutions in enabling this action. A significant outcome of COP29 was the commitment of developed nations to support developing countries financially as they deal with the effects of climate change. At the same time, we see some diverging views on the direction of sustainability efforts, partly driven by geopolitical shifts. We continue to take the long-term view and assist our clients in navigating the current transitions, through dialogue and at their preferred pace. 2024 was also the first year that large and listed companies, such as Van Lanschot Kempen, reported under the Corporate Sustainability Reporting Directive (CSRD). This was done on a voluntary basis as, at the time of writing, the CSRD was not yet transposed into Dutch law. We aim to stay on top of sustainable finance regulation and use it as a driver of positive impact. Key risk themes for Van Lanschot Kempen The developments mentioned above contribute to specific risks that we face in our sector. In 2024, the key risk themes were: – Rapid decline of markets: responding to turns in the equity markets; – Interest rate decline: responding to turns in the interest rate cycle and changing market circumstances; – Operational and digital resilience: adapting operating frameworks to meet client expectations and evolving regulatory standards; – Cyber risk: protecting against cybercrime; – Data management: in response to the increased volume and complexity of our data; – Compliance risk: risk-based client due diligence and integrating sustainability requirements into our products and services. See "Risk and capital management" from page 114 onwards for more details on our risk themes. A year in review 19 A year in review 20 Van Lanschot Kempen in 2024 In June 2024, we presented our "Growing further together" strategy to become a leading wealth manager in Western Europe, building on our solid foundation in the Netherlands and Belgium. By generating sustainable and profitable growth with a capital-light business model, we were able to deliver value for our clients, employees and wider society. Delivering on our strategy Financial growth At our Investor Day in June 2024, we laid out financial targets for 2027 to solidify our position in our key markets. Our performance in 2024 showed good progress against these targets as we continued to unlock growth opportunities together. Our assets under management (AuM) in 2024 reached a total of €149.3 billion, a 17% increase from 2023. This was driven by organic growth, positive market performance and an acquisition. Our commission income increased by 20% to €511.2 million due to a higher AuM base; however, our interest income fell by 11% to €175.4 million, mainly due to net interest margins declining as expected. We remained strongly focused on improving our scalability and adhering to cost discipline, resulting in a cost/income ratio of 70.1%. All client segments contributed to our net result of €141.9 million, a 13% increase from 2023. In line with our financial targets, we maintained a solid capital position, with a 19.3% Common Equity Tier 1 (CET 1) ratio (based on Basel IV fully loaded). In 2024, we also continued our track record of disciplined bolt-on acquisitions. In the Netherlands, we made good progress on the integration of Robeco's online distribution platform with Evi, and in Belgium we completed the acquisition of Belgian investment adviser Accuro, which added €0.7 billion in AuM. Our growth in Belgium was underlined by the launch of Mercier Van Lanschot in January 2024. Together, we benefit from the combination of a strong entrepreneurial culture and the infrastructure and shared services of a larger corporation. Growth of our business activities Our private banking segments are the foundation of our business, offering comprehensive wealth management services for entrepreneurs, wealthy individuals and families, business and healthcare professionals, foundations and associations. In line with our values, we offer our private banking clients a personal experience and support throughout transformative moments. In addition to our private banking activities, we are also active in investment management and investment banking. Private Clients Netherlands In the Netherlands, 2024 was a strong year for our private banking business. We grew at a faster pace than the market, with notable growth in wallet share and referrals. We saw growth across the country, driven by our personal approach, discipline and deep presence in local networks. Net AuM inflows came in at €2.1 billion, bringing total AuM to €43.7 billion. Operating profit before tax stood at €134.9 million. Growth in lending picked up in the second half of the year, mainly driven by lower interest rates compared with the start of the year. AuM growth was driven by both new and existing clients, who entrusted us with a larger portion of their wealth or converted savings into investments. We were selected for our investment expertise, our combined offering of discretionary portfolio management (DPM) and investment advice, alternatives and mortgages, as well as for access to the services and expertise of our Investment Banking Clients and Investment Management Clients segments. Our unique market position also enabled us to acquire larger clients and volumes in the private office and family solutions space, including ultra-high-net-worth clients. We saw increased demand for alternative investments in both the Netherlands and Belgium. To meet this need, we offer DPM with a personal touch, with "core" investments combined with alternatives such as alternative debt, private equity and impact investments on the basis of client preferences, managed by Investment Management Clients. This provides our clients with more choice than the standardised approach of larger banks. The power of our client service was reflected in our high Net Promoter Score (NPS) of 45 and in the higher number of referrals from clients to their network contacts. In 2024, we saw an increase in company sales as well as a greater number of business transfers inviting the next generation of owners to step up to the plate. As well as our day-to-day relationship management, we also offered our clients educational courses and networking events to equip them with useful knowledge and connections. In November, Van Lanschot Kempen was named Best Private Bank in the Netherlands in 2024 at the annual Global Private Banking Awards, organised by Professional Wealth Management and The Banker – both part of The Financial Times. We were recognised in particular for our client appreciation, growth strategy, sustainability and inclusivity. In Switzerland, we further strengthened the organisation through investments in operational excellence and hiring for key positions to support our current and future growth. We combine the open-minded and social culture of the Benelux region with Swiss stability and financial market access. The breadth and depth of our service offering in Switzerland allows for highly customised services, from tailored mandates to wealth planning across the globe. In 2024, our Swiss clients appreciated our new mobile banking app, which optimises their experience even further. A year in review 21 At Evi, our focus was on the integration with Robeco's online investment platform and on the roll-out of our new pension proposition, in line with the new pension system in the Netherlands. The proposition is a competitively priced solution for affluent clients to build their desired pensions. We also expanded our pension platform to offer an even better user experience, including a new and improved app, which contributed to an NPS of 11. Private Clients Belgium In Belgium, 2024 was our first full year as Mercier Van Lanschot, a new brand with deep roots from the former Mercier Vanderlinden and Van Lanschot Belgium. Our clients recognise our track record as well as our entrepreneurial capabilities for future growth in this attractive market. Simplicity continued to be a strength in 2024, thanks to our clear product offering, transparent pricing and distinctive approach. We saw exceptional net AuM inflows of €2.2 billion, bringing total AuM to €15.1 billion, growing 38% in one year. Operating profit before tax stood at €37.8 million. We also completed the integration of Accuro, strengthening our investment advisory services in Belgium. Looking ahead, we aim to be the top-of-mind private bank in Belgium, driven by our impeccable service and distinctive approach. We are a trusted partner to family businesses as they navigate transitions such as sales or transfers. In 2024, we achieved an NPS score of 62, showing that we continued to deliver excellent client service throughout the acquisition and integration period. Investment Management Clients Our investment engine offers distinctive investment solutions for private, institutional and wholesale clients. We generated €4.9 billion in net inflows from mainly new clients, bringing total AuM to €90.5 billion. Operating profit before tax more than doubled to €24.9 million (2023: €10.1 million). We are firmly positioned for greater scalability and profitability, following a two-year programme focused on efficiency and strengthening our commercial impact. Our wholesale business performed well and saw new inflows in global small caps and European credit. In November, we introduced our third European private equity fund, which gives private banking clients access to small and medium- sized companies in Northwestern Europe. This is part of our broader private equity roadmap. In August, we announced that we had been selected to manage an active sustainable European small-cap mandate for Pension Fund PNO Media, with an initial value of €195 million. This strategy selects high-quality, listed small- cap businesses with attractive valuations, sustainable characteristics, long-term competitive advantages and strong management teams for long-term capital growth. Our long track record, our expertise in small caps and our sustainability-focused investment policy were decisive factors for the pension fund. In the fiduciary segment, we aimed to maintain and grow our position in the Netherlands during a period of change, by focusing on efficiency and preparation for the Dutch pension reform (Wet toekomst pensioenen). In the UK, we leveraged our reputation as a large, trusted player in the Netherlands to develop relationships with several new clients and to demonstrate our expertise in sustainable and impact investing. We were delighted to be named Fiduciary Manager of the Year at the Professional Pensions UK Pensions Awards in June 2024. In a competitive market with low margins, we remain focused on increasing scale as a key driver of profitability. Investment Banking Clients Our Investment Banking Clients segment saw a return of market momentum in 2024 after a challenging 2023. Commission income was up by 10% to €40.2 million, driven by strong results in tech & fintech as well as positive trading results across sector teams. Our debt advisory services were extended from real estate into life sciences, bringing further diversity to our portfolio. Operating profit before tax stood at a modest €3.9 million, and we will look to further increase momentum in this client segment. We increased cross-collaboration with our private banking teams, generating targeted leads with high conversion rates, totalling over €200 million in inflows. Going forward, we continue to focus on further improving our results by continuing to increase commission income and balancing cost control with capacity building, such as by optimising team composition and attracting young talent. Growing together: our organisation and capabilities Values and engagement Our engagement is directly influenced by employee experience, from on-boarding to remuneration, retention and succession. In 2024, our values became more deeply embedded in our organisation – in our employee engagement survey, 92% of colleagues rated their connection with our values as favourable. Our values give direction to the client-centric behaviour we want to see in our company. They are embedded in our organisation from the top down and will form part of our performance management process going forward, ensuring that we assess our employees from both a commercial and a behavioural point of view. Attracting and developing talent to support our growth In 2024, we welcomed almost 400 new colleagues (headcount, net increase of c. 125). However, as we look to the future, talent shortages continue to pose challenges to our industry. We are responding to these by driving throughflow and increasing productivity across our organisation, as well as by ensuring we are an attractive employer to potential and existing talent, not least through the development opportunities we offer. The introduction and continuation of our young talent and trainee programmes, such as the Young Private Banking programme in 2023 and 2024, have contributed to bringing talented people to our company. For existing employees, we have focused our learning and development portfolio on creating a robust and rewarding experience from recruitment to retention, such as by providing opportunities for internal career moves. To help our employees develop their craftsmanship, our HR department collaborates with our commercial teams to run business programmes focusing on core skills. We also offer management skills training to equip managers with the tools to get the best out of their teams. A year in review 22 Fostering an inclusive workplace Inclusion and diversity are embedded in our HR processes – from the on-boarding experience to throughflow and remuneration. In recent years we have focused on driving greater gender equality in our businesses, and we are taking steps towards our goal of at least 30% female representation in senior staff by 2029. In 2024, this stood at 21%. From 2025, we will continue to focus on ethnic diversity, to make our organisation more inclusive and representative of the diverse talent groups in our society. We are also committed to allyship at a senior leadership level, with Board members acting as sponsors of various communities to help foster gender diversity, ethnic diversity and LGBTQ+ inclusion. Better together: growth through acquisitions Our approach to bolt-on acquisitions focuses on opportunities in private banking and investment management in our core markets. The integration of Robeco's online investment platform has been progressing well and has brought important capabilities in the affluent market to our team, combining our expertise with an important player in the Netherlands. What's more, the addition of the Accuro team has further complemented our advisory capabilities in Belgium. Besides commercial benefits, a strong cultural fit is a key element of our selection process for acquisitions. We look for partners with whom we can grow together, for the benefit of our people, clients and wider society. Growth for our shareholders Thanks to our financial performance in 2024, we aim to distribute €116.5 million in dividends and €59.3 million in excess capital to our shareholders in June 2025. Our capital position remained strong in 2024, with a CET 1 ratio of 19.3% (based on Basel IV fully loaded). In February, we announced a share buy-back programme in which we repurchased 700,000 of our own shares for a total amount of €22 million. The programme was completed in May and contributed to our remuneration policy, share plans and the acquisitions of Mercier Vanderlinden and Accuro. Our growth and sustainability profile was once again recognised in 2024 by our continued inclusion in Euronext's AMX Index and AEX ESG Index. Growth for society: putting wealth to work In 2024, we made progress on our sustainability targets with regard to our own operations, with an 44% total reduction in our carbon footprint per FTE (since the baseline year 2019). We also decided, in addition to our current reduction measures, to purchase biofuel as a source of sustainable aviation fuel (SAF) for all flights as of 2025, ensuring that 100% of our air travel is powered by SAF. Since the majority of our impact is made through our investments, we have set a target of a 7% annual weighted average carbon intensity reduction for discretionary AuM. In 2024, this stood at 17%, far ahead of our target. We regularly engage with investee companies to encourage sustainable practices throughout the value chain. In 2024, we conducted 382 engagements and voted at 432 shareholder meetings. However, when engagement fails to lead to improvement, we may decide to divest. In 2024, our Investment Management Clients segment partnered with Collective Action, experts in private markets impact. Through this collaboration, we aim to further broaden our expertise in impact investing and grow our access to the impact solutions market. We also took steps to prepare for the CSRD, which aims to create more transparency in sustainability reporting. This has resulted in our first sustainability statement, which provides further details on how we acted on ESG matters in 2024. 2 Scope of upstream emission is travel of our colleagues (employee commuting and international travel), water consumption and paper consumption. Sustainability statement 25 Sustainability targets overview Material impact Value chain 2024 2024 target Short-term target Long-term ambition Environment Environmental impact (tCO2e) Net-zero Own organisation (per FTE) Upstream and own organisation 2 1.43 <1.60 8% from baseline year 2019 Mortgages (per m2) Downstream 22.61 <21.97 9.5% from baseline year 2023 GHG emissions reduction Net-zero Own organisation (per FTE) Upstream and own organisation1 11% 8% from baseline year 2019 8% annually Mortgages (per m2) Downstream 6.9% 9.5% from baseline year 2023 9.5% annually Assets under management (WACI) Downstream 17% 7% from baseline year 2019 7% annually Social Inclusion and diversity Own organisation Gender diversity in new hires 49% 50%/50% inflow Gender diversity in senior staff 21.1% >21% >30%/>30% male/female Corrected gender pay gap 1.4% <2.0% Quality of the workforce Own organisation Employee turnover 9.5% 8-12% Throughflow 36.1% ≥30% Percentage of employees who believe they have the opportunity for personal development 83% Up to 5% above last EES or above benchmark Working conditions Own organisation Absence from work 2.9% Lower than the financial sector average Governance Business conduct and compliance Own organisation Percentage of employees that take the banker's oath within three months of their on-boarding 99.8% 100% Percentage of employees who believe they have a responsibility to behave ethically 92% Higher than the sector average or higher than the last pulse EES if the last pulse EES was below the sector average Percentage of employees who believe the company culture holds everyone to the same standards of ethical behaviour and promotes transparent communication 87% Higher than the sector average or higher than the last pulse EES if the last pulse EES was below the sector average Sustainability statement 26 General disclosures This sustainability statement is based on the European Sustainability Reporting Standards (ESRS) as required by the Corporate Sustainability Reporting Directive (CSRD). Since the CSRD has not yet been implemented into Dutch law, its application remains voluntary. However, by complying with the CSRD we aim to enhance transparency and accountability. A key aspect of the CSRD is the concept of double materiality. This means we assess and report on how our activities impact the environment and society as well as how ESG topics affect our financial performance. Basis for preparation How we report This sustainability statement is made on a consolidated basis for Van Lanschot Kempen and covers the whole value chain (upstream, own operations and downstream). The scope of consolidation is the same as for the financial statements. No subsidiary undertakings are exempt from consolidated sustainability reporting pursuant to Articles 19a(9) or 29a(8) of Directive 2013/34/EU. The following information is incorporated by reference to other parts of this annual report: – The role of the administrative, management and supervisory bodies (ESRS 2 GOV-1): "Report of the Supervisory Board" and "Corporate governance"; – Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies (ESRS 2 GOV-2) and integration of sustainability-related performance in incentive schemes (ESRS 2 GOV-3): "Report of the Supervisory Board" and "Corporate governance"; – Strategy, business model and value chain (ESRS 2 SBM-1): "Van Lanschot Kempen at a glance"; – Sustainability risk management (IRO-1): "Risk and capital management"; – Disclosure requirements in ESRS covered by the undertaking’s sustainability statement (ESRS 2 IRO-2): "ESRS Content Index" within "Sustainability notes" on page 66). The sustainability statement offers an overview of the main developments in the 2024 financial year. In preparing this report, we determined the expectations of our stakeholders to enable us to address the themes that are most important to them. No relevant pieces of information were omitted for reasons related to classified and sensitive information or information on intellectual property. In addition, Van Lanschot Kempen has not used any exemptions provided under Article 29a of Directive 2013/34/EU of the European Parliament and of the Council of the European Union in the preparation. The sustainability statement was prepared with reference to the ESRS issued by the European Financial Reporting Advisory Group (EFRAG), with specific information reported in accordance with the Greenhouse Gas (GHG) Protocol and the Partnership for Carbon Accounting Financials (PCAF) as specified by the ESRS. All disclosure requirements included in the environment, social, and governance sections were assessed as material according to our double materiality assessment (DMA). In defining short, medium and long term in the sustainability statement, we followed the time horizon scale provided by the ESRS: Time horizon Short term Less than 1 year Medium term 1 to 5 years Long term More than 5 years In applying reporting requirements, we need to make judgements and estimates that may be material to the data reported such as data reported from our upstream and/or downstream value chain. This includes prospective information such as ambitions, objectives, targets and expectations. Inherent to this information is the fact that the actual results may differ in the future, and that information is therefore uncertain. Where feasible, the quantitative data in this report is presented alongside comparative data from the previous financial year for context and clarity. In instances of changed definitions, we have restated the comparative data. No comparative data is available or disclosed for indicators that were new in 2024. With regard to the sustainability statement, there were no errors in prior reporting years that need to be disclosed. We disclose the resulting level of accuracy, the estimation of outcome uncertainty and, where applicable, planned actions to improve the accuracy and outcome uncertainty of sustainability information in future annual reports, for each material topic in the related chapters in this sustainability statement. Information included in this sustainability statement is deemed to be material if it relates to the mandatory requirements of the applicable ESRS standards or provides insights into the material impacts, risks and opportunities (IROs), how we manage those IROs through actions and policies, the indicators we use to measure the effectiveness of our actions in achieving our targets, and other contextual information that helps readers of the sustainability statement understand our disclosures. Another key piece of legislation with regard to sustainability reporting standards and frameworks in this sustainability statement is the EU taxonomy, details of which can be found in the "Environment" section and in the notes to this statement. Assurance on sustainability information In addition to the audit of our financial statements, limited assurance procedures have been performed by our external auditors PwC on the sustainability statement, including references made to other parts of the report and related appendices. See their limited assurance report on page 296. Governance Our actions on sustainability are needed to drive positive environmental and social change while also presenting an opportunity to create long-term value. To ensure effective delivery on our sustainability goals, as well as robust coordination, policy development and risk management, we have established a sustainability governance structure. At the heart of this structure is the Sustainability Board, which is responsible for embedding and integrating sustainability throughout our organisation. Sustainability statement 27 The Sustainability Investment Council is responsible for overseeing sustainable investments, ensuring alignment between our financial decisions and our commitment to sustainability. The various committees, departments and officials involved in sustainability are briefly explained in our sustainability governance document on our website: vanlanschotkempen.com/sustainability-governance- structure. For an overview of our overall governance structure and processes, see "Corporate governance" on page 152. With regard to sustainability topics, we follow the general administrative hierarchy which is described in the sections "Report of the Supervisory Board'' and ''Corporate governance", pages 133 and 152. There are no climate- related factors integrated in the remuneration of the management Board, Supervisory Board and administrative bodies. The remuneration policy for the Management Board, the remuneration policy for the Supervisory Board and the 2024 remuneration report all comply with the requirements set by the Shareholder Rights Directive (SRD II). This directive, Directive (EU) 2017/828, amends the 2007 directive. Hence, the remuneration policies adhere to Articles 9a and 9b of Directive 2007/36/EC. This policy describes how remuneration is organised at Van Lanschot Kempen. Risk management The management of sustainability risks is an integral part of our risk management framework and is incorporated in our regular risk management processes. For more information on how we consider sustainability-related risks within our risk management framework and risk assessments, see the "Risk and capital management" section in this integrated annual report. To monitor sustainability risks, we have an internal sustainability control framework in place. In addition, our internal reporting on sustainability-related risk metrics is incorporated in the risk reports of the applicable risk management departments. The metrics and corresponding risk appetite limits with regard to sustainability risk, which are set out in our risk appetite statement, are reported on in the quarterly risk appetite report. This report is created by Financial Risk Management with input from several business stakeholders. Lastly, an annual sustainability risk report is created by Financial Risk Management in collaboration with several first and second line of defence stakeholders, which includes a description of the most relevant sustainability risks for our business activities, a detailed account of all sustainability risks that are assessed, and an assessment of their materiality. Although the sustainability risk report is an internal document, it is used in interactions with our external auditor and supervisors. Reviewed and approved by the Sustainability Board, the sustainability risk report currently only covers environmental risks, in line with the European Central Bank's (ECB) guidance on climate-related and environmental risks. In 2025, the European Banking Authority will provide guidelines on ESG risks, which will likely also steer towards assessment of social and governance items. We have, where possible, aligned the risks and opportunities of the material topics (disclosed in each section of this statement) to the risks in our annual sustainability risk report. Due diligence within Van Lanschot Kempen Sustainability has become a crucial aspect of due diligence processes. Integrating sustainability into these processes ensures that we are able to identify, prevent and mitigate the actual and potential negative impacts on the environment and on people connected with our business. These include negative impacts connected with our own operations and our upstream and downstream value chain, as well as through our relationships with our business partners. Due diligence is an ongoing practice that responds to and may trigger changes in our strategy, business model, activities, business relationships, operating, sourcing and selling contexts relevant for stakeholder groups. The DMA process may also be impacted in time by sector-specific standards to be adopted. The sustainability statement may therefore not include every impact, risk and opportunity or additional entity-specific disclosure that each individual stakeholder may consider important in its own assessment. We have integrated sustainability in the following existing due diligence processes: Investment due diligence We undertake a thorough sustainability risk scoring due diligence of external managers, which covers the governance of sustainability issues, relevant policies, their implementation and disclosure. We are increasingly seeking evidence from external managers on their sustainability efforts and proactively engage with them on these. In our capacity as an adviser on external third party funds, we also take sustainability risks into account and, where applicable, consider principal adverse impacts of investment decisions on sustainability factors in our due diligence process in the selection and ongoing monitoring of investments. Client due diligence In 2024, we aligned our client due diligence policy with the ECB's guidance on climate-related and environmental risks. Besides that, our responsible lending policy takes environmental and social impact into consideration. This policy covers periodic sustainability screening (due diligence), via a risk filter, of all existing and new business loans, and includes factors such as human rights, social and labour issues, environment and anti-corruption and bribery. See page 114 of "Risk and capital management" for more information on the screening. Sustainability statement 28 Business partner due diligence As working with business partners can bring certain risks, we carry out assessments prior to working with our suppliers. This involves identifying and assessing the risks and determining whether suppliers meet the standards we set out for our business partners. This process may be repeated during the collaboration. Working with our suppliers is essential to achieving our sustainability ambitions, not least because we want to make sure they share our sustainability values and meet certain social and environmental standards. For this reason, we have set out a number of sustainable procurement principles that apply to all goods and services: 1. We aim to limit our environmental and social impact, and ask our business partners to do the same; 2. We encourage our business partners to pitch their most sustainable solutions and share their latest ideas with us; 3. We regularly evaluate whether we’re achieving the sustainability goals we set with our strategic business partners; 4. We reserve the right to terminate collaboration with any supplier if they cause significant adverse impact; 5. We encourage anyone who has any information about controversies caused by us or our business partners to come forward. Strategy, business model and value chain Van Lanschot Kempen provides private banking, investment management and investment banking services, supported by enabling departments. We listen to our clients so that we can deliver the right products and solutions for them through our business activities: private banking in the Netherlands, Belgium and Switzerland, online wealth management via Evi; investment management in Western Europe; and investment banking in Western Europe and the US. For a full account of our strategy, business model, value chain and related sustainability goals, see "Van Lanschot Kempen at a glance", from page 9. Our value creation and stakeholders For us, value creation means growth that is scalable, profitable and sustainable for the long term. We create this value through the long-standing relationships with our clients, colleagues and other value chain partners. In line with our strong focus on relationship building, we aim to contribute to growth for key groups, namely our clients, employees, shareholders and society. We want to contribute to sustainable growth of our clients’ wealth, help our people grow by being an attractive employer, remain a smart investment choice for our shareholders and put wealth to work where we can for the benefit of society and the environment. We engage with our stakeholders in different ways. For example, for private banking clients we organise client events, including lunches at or near our offices, often with a member of the Management Board. Feedback and input are also sought during these events. For employees, we host regular town hall meetings with Management Board members, dialogue sessions on our values, strategy and code of conduct, and sessions related to our half-year and annual financial results. For shareholders, activities include the annual general meeting (AGM) and one-on-one meetings. We have also participated in workstreams and analyses prepared by financial sector associations such as the Dutch Fund and Asset Management Association and the Association of Securities-Issuing Companies. These activities help us assess the potential impact of new legislation packages on our business. The outcomes of these stakeholder dialogues, which gather stakeholder views, including on sustainability-related topics, will be reported to the Sustainability Board and Management Board. For more information on how we engage with our stakeholders, see our stakeholder engagement policy: vanlanschotkempen.com/-/media/files/ documents/corporate/sustainability/stakeholder- engagement-policy.ashx. An overview of our stakeholders can be found in the table on the following page. Sustainability statement 29 Stakeholder group Description Affected stakeholders Private banking clients Within our Private Clients segments, we serve entrepreneurs, family businesses, high-net-worth individuals, business professionals and executives, foundations and associations and affluent individuals in the Netherlands, Belgium and Switzerland. Investment management clients Within our Investment Management Clients segment, we serve institutional clients such as pension funds and wholesale clients in Western Europe. Investment banking clients Within our Investment Banking Clients segment, we serve European corporates, international institutional clients and private banking clients, focusing on the following sectors: European real estate, life sciences & healthcare, tech & fintech and infrastructure. Investors and analysts Our investors have provided us with the financial capital to be able to conduct our business, for which they expect an appropriate return on their investment. Analysts expect us to provide transparent information, both financial and non-financial. Suppliers We consider our main suppliers to be business partners as they are key to our ability to generate value for our stakeholders. Employees The Works Council represents our employees, without whom the organisation would not exist nor be able to deliver on its purpose. Users of the sustainability statement Peers Our peers are best positioned to benchmark our impacts and the impact of certain topics on our organisation, since they are in a similar position. NGOs NGOs represent the voice of society at large and are well positioned to assess our impact on society. Academics Similar to our peers, academics are well positioned to assess our impacts and the impact of certain topics since they closely follow the industry. Their views provide a valuable lens through which to view our impacts. Silent stakeholders Nature Nature and ecosystems, unlike human stakeholders such as employees or clients, cannot directly communicate their interests, concerns or the impacts they endure due to corporate activities. Despite this, nature plays a crucial role in the sustainability and success of businesses and societies. Governments and regulators While government and regulators are not always actively involved in day-to-day business decisions, they play a crucial role in shaping the environment in which we operate. Value chain Our value chain encompasses a wide range of activities in different parts of the value chain; upstream, own operations and downstream. The upstream value chain consists of our procurement activities and relationships with suppliers. Most of the procurement activities are in IT services (mainly software- as-a-service – SaaS – solutions) and consulting services. The quality and stability of the services and systems provided by our suppliers, including aspects such as IT security, privacy, and discretion, are crucial for our core activities. Additionally, suppliers' willingness to commit to sustainability targets is essential for us to fulfil our sustainability goals. The own operations value chain mainly comprises the tasks carried out by our employees (e.g. travel) and facilities. These are geographically assigned to the locations of our own operations (the Netherlands, Belgium, Switzerland, the UK, the US and France). The downstream value chain comprises the activities in which we can have the most impact with relation to sustainability and includes our assets under management (AuM) for Private Clients and Investment Management Clients, our investment banking activities, and our balance sheet. We help our clients navigate through the important transitions of our time. As a firm that strongly believes in dialogue, we work closely with our clients to advise them on the most suitable solutions to meet their goals, with a range of sustainable investment solutions that support these transitions. Sustainability statement 30 The table below gives an overview of our value chain. Upstream Own operations Downstream Procurement Operations AuM Private Clients AuM Investment Management Clients Investment banking activities Balance sheet activities Activity overview Procurement of goods and services (mainly IT and consulting services) with the right balance of risk, value and costs. Van Lanschot Kempen does not procure raw materials. The total spend to business partners in 2024 was c. €112 million. Our employees have the skills, knowledge, and abilities to carry out the tasks needed by Van Lanschot Kempen. Facilities include own offices, business travel and commuter travel activities. Shareholders provide us with financial capital to conduct our business. Wealth management services for entrepreneurs, wealthy individuals and families, business and healthcare professionals, foundations and associations. We also offer online wealth management services for affluent individuals via Evi. Total AuM for Private Clients is €58.8 billion. Meeting pension fund clients’ needs in the pensions transition, leveraging our strengths by offering investment management products to our private and institutional clients and maximising the effectiveness of our value chains to be able to respond more quickly to client wishes and developments around us. Total AuM for Investment Management Clients is €90.5 billion. Delivering value to our clients in our selected sectors within corporate finance, equity capital markets and debt advisory, while generating additional deal flows between Private Clients and Investment Banking Clients. We have a liquidity and investment portfolio (c. €6 billion), a Dutch residential mortgage portfolio (c. €7 billion, including those distributed by third parties) and other loans (c. €2 billion). Other loans include Lombard loans, real estate loans, current accounts and loans to executives and entrepreneurs. Double materiality assessment 2024 is our first year carrying out a DMA in accordance with the ESRS. The DMA is an essential step in implementing and complying with the CSRD. The objective of our DMA is to identify the sustainability matters and information that are material to our business. This includes both the topics that have an impact on our performance (outside-in, financial materiality) and those that we have an impact on (inside-out, impact materiality). The assessment aims to understand and take into account the perspectives of various stakeholders, including clients, employees, shareholders, regulators and business partners. This helps to ensure that our sustainability approach aligns with stakeholder expectations and interests. Moreover, the DMA seeks to identify and evaluate impacts, risks and opportunities related to sustainability issues, allowing us to manage these risks effectively and incorporate them into strategic decision-making processes and risk management process. For the disclosures in our sustainability statement, we followed a structured DMA process with the following steps: 1. Value chain and stakeholder mapping We started with an analysis of our value chain to gain a comprehensive understanding of our business activities, including the identification of our internal and external stakeholders relevant to potential sustainability matters. We used our previous materiality assessments and input from stakeholder engagement activities, and we conducted a value chain mapping exercise to gain a comprehensive understanding of the business context in relation to our upstream value chain, own operations and downstream value chain, including an analysis of our AuM. We did not identify any high risk factors related to specific activities, geographies or business relationships that gave rise to heightened risk of adverse impacts. 2. Identification of potential sustainability matters We listed the potential sustainability matters in accordance with all topics as specified by the ESRS appendix C and enriched this with potentially relevant sustainability matters based on insights from stakeholder engagement, prior materiality assessments and sector analyses. The sustainability matters on this list comprise impacts, risks and opportunities that could potentially have a short-, medium- or long-term effect in a part of the value chain. 3. Assessment of sustainability matters We have carried out a comprehensive assessment of the potential and actual impacts, risks and opportunities of each sustainability matter that influences or is likely to influence future cash flows and therefore the value of our organisation in the short, medium or long term. We assessed the sustainability matters on impact materiality and financial materiality. We assessed a sustainability matter as material from an impact perspective if it is connected to actual or potential significant impacts by Van Lanschot Kempen on people or the environment over the short, medium or long term. We assessed the impact materiality based on the severity and likelihood of potential impacts. A sustainability matter is material from a financial perspective if it triggers or may trigger significant financial effects on Van Lanschot Kempen over the short, medium or long term. We assessed the financial materiality from a CSRD perspective based on a combination of the likelihood of occurrence and the potential magnitude of financial effects, determined on the basis of appropriate thresholds on a scale from 1 to 5 and a threshold of ≥3.5. We have considered connection from the risks and opportunities that may arise from identified impacts throughout the process. Sustainability statement 31 4. Validation of outcome After completion of the assessment, we hosted feedback rounds for validation with internal experts and rounds for approval from the Sustainability Board and Management Board. This was followed by approval from the Supervisory Board. Material sustainability matters The table on the next page lists the topics that are considered sustainability matters as defined in the CSRD and descriptions of how these relate to Van Lanschot Kempen. Sustainability risks and opportunities As part of the DMA, we identified and assessed risks and opportunities related to the material topics. This analysis shed light on the financial, operational, and reputational risks and opportunities that Van Lanschot Kempen might face. Environment The assessment revealed a liquidity risk related to our mortgage portfolio due to physical climate risk factors (e.g. flood, drought or wildfire). This risk relates to clients who use their savings to repair their homes, which could impact our liquidity position. Another financial risk is potential public scrutiny. We note that sustainability actions and comments are under high scrutiny from various stakeholders. We aim to mitigate this risk by setting clear and measurable goals according to our strategy. By strategically steering capital towards net-zero initiatives, we aim to not only contribute to our sustainability goals, but also mitigate the risk of public scrutiny. We also acknowledge the financial and operational risks associated with inadequate energy supply, high energy consumption and an inappropriate energy mix. To mitigate these risks, we have implemented energy efficiency measures and use biogas, green electricity and district heating where available, resulting in a reduced environmental footprint. Social Our assessment further highlighted the financial risk and operational disruption that may be caused by high employee turnover or absence from work, resulting from a suboptimal work-life balance. We believe that employee satisfaction is an important mitigation factor and we achieve this by offering competitive wages and promoting a healthy work- life balance. This approach not only reduces the risk of financial losses but also positions Van Lanschot Kempen as an attractive employer, facilitating our appeal to external talent and providing financial opportunities. We recognise the positive impact that balanced work-life practices have on our employees, significantly contributing to their overall well-being. However, we also acknowledge the financial and operational risks, including disruption and financial losses, that can result from high employee turnover or absenteeism caused by suboptimal work-life balance. Additionally, the negative impact on employees' health and safety, such as increased absence due to stress from higher work pressure, poses a financial risk that we must manage carefully. We are committed to fostering equal opportunities by ensuring the representation of different genders within Van Lanschot Kempen, which positively impacts our employee satisfaction. Conversely, unequal representation or opportunities can have a negative effect on our employees, clients and wider business performance. Transparent and equal remuneration policies are essential for maintaining high employee satisfaction, and the lack thereof can negatively impact morale. Good talent management is another area where we see significant positive impacts on employee satisfaction, and it also presents a financial opportunity through reputational gain and the attraction of external talent. However, insufficient talent management can lead to higher employee turnover and operational disruption, posing a financial risk. In addition, we recognise the financial risk of reputational damage and potential litigation costs arising from privacy security incidents and inadequate client privacy protection. To mitigate this risk, we have implemented robust policies and processes to safeguard client privacy, ensuring regulatory compliance and safeguarding the company's reputation. Governance We acknowledge the financial risk of unethical incidents and a potential decline in revenue resulting from a weakened ethics and integrity culture. To mitigate this risk, we place strong emphasis on maintaining an ethical culture within the organisation, promoting integrity and responsible business practices. Based on the more extensive assessment in our annual sustainability risk report, these sustainability-related risks are currently not material for our business activities. The sustainability risk report helps us in creating relevant mitigation actions. However, as sustainability risks evolve and the expectations from both clients, regulators and society regarding these themes change, we will continue to extend our sustainability risk management capabilities. Sustainability statement 32 Sustainability matter Description Environment Climate Our strategy to align our business model (including own operations, balance sheet and AuM) with the goal to limit global warming to +1.5°C as specified in the Paris Agreement. The impact or potential impact of climate change-related physical and transition risks – financial and non-financial – on our financial performance and management of these risks. Biodiversity Our impacts and dependencies in relation to biodiversity caused by our own organisation and/or AuM. Social Inclusion and diversity (own workforce) The impact on employees by promoting inclusion and diversity among the workforce and management, particularly in terms of gender and age, including equal pay for work of equal value and actions to reduce the gender pay gap. Quality of the workforce (own workforce) Our workforce consists of talented employees who have the relevant expertise and required skill sets. Opportunities are offered to employees to develop themselves and expand their skills. Working conditions (own workforce) The impact on employees in terms of working conditions, including security of employment, remuneration, social dialogue, freedom of association, collective bargaining, work-life balance, absence from work and health and safety. Workers in the value chain (AuM) Our policies that address the management of material impacts on workers in the value chain via investee companies (AuM). Privacy The impact on our clients of confidentiality, availability, and/or integrity of client data. Quality and relevance of our solutions The positive impact on our clients of adequate digital practices and processes resulting in lower prices and/or an improved quality of service. Governance Business conduct and compliance How we maintain a healthy corporate culture, develop and promote good business conduct and adhere to laws and regulations – and the impact of non-compliance with laws and regulations on financial performance or our stakeholders. Sustainability statement 33 Environment Climate The world around us is changing – demanding fundamental transitions in how we consume energy, food and other resources. We’re focused on helping our clients navigate through these transitions, with an active, engaged approach based on our investment principles. We have set clear targets in all areas in which we as Van Lanschot Kempen have an impact – and regularly report our progress. Through our double materiality assessment (DMA), we identified several material topics that are critical to our long- term climate strategy: – Climate change mitigation; – Climate change adaptation; – Energy consumption. Impact, risks and opportunities (IROs) Qualitative IRO description The positive impact of capital deployment towards net-zero solutions contributing to climate change mitigation The negative impact on climate change mitigation of not enough capital deployment towards net-zero solutions The financial risk of public scrutiny due to insufficient net-zero capital deployment The financial opportunities of steering capital towards net-zero solutions The financial risk of loss in liquidity due to clients who use their savings to repair their homes The financial risk and operational risk as a result of inadequate energy supply, high energy consumption and the wrong energy mix The financial opportunity of creating cost savings through energy efficiency measures Transition plan for climate change mitigation Our transition plan, also known as our climate strategy and action plan, describes our strategy for transforming our business model to combat climate change and contribute to limiting this climate change to +1.5ºC. Our climate strategy and action plan outline our priorities and decarbonisation levers, together with the policies and actions we have implemented to meet our targets, which are compatible with the EU Paris-aligned benchmarks. Van Lanschot Kempen has a Sustainability Board in place (with two members from the Management Board and involvement of the risk management department) to which the Management Board has delegated responsibility for driving and implementing the sustainability strategy and policies for the whole of our company. This includes our strategy on climate change and its related targets and actions. Our Management Board is responsible for developing a vision for long-term value creation and an appropriate strategy, including the transition plan for climate change mitigations. In 2002, we published our first corporate social responsibility report, marking our initial step in sustainability reporting. In the years that followed, we launched several sustainability initiatives, introduced sustainable product offerings and began measuring our carbon emissions to better understand and mitigate our environmental impact. A significant milestone was reached in 2019, when we implemented a comprehensive climate policy. This policy, together with our climate strategy and action plan, underscores our commitment to addressing climate change and outlines our strategic approach to reducing our carbon footprint. We are committed to help limit climate change to +1.5ºC by the end of this century compared with pre-industrial levels (in accordance with the Paris Agreement), and have substantiated this commitment by joining initiatives including: – The Climate Commitment of the Dutch Financial Sector; – The Net-Zero Asset Managers Initiative; – The Institutional Investors Group on Climate Change; – Climate Action 100+; – The Dutch Climate Coalition; – The Anders Reizen Coalition. To reduce our carbon footprint effectively, we identified three major decarbonisation levers to help limit the effects of climate change: – Minimising the carbon footprint of our own operations; – Encouraging our clients with residential mortgages to reduce their carbon intensity; – Lowering the carbon intensity of the investments we manage on behalf of our clients. Our transition plan is embedded via our non-financial key performance indicators (KPIs) and yearly reduction targets. In setting the targets and monitoring our progress on these decarbonisation levers, we apply the Greenhouse Gas (GHG) Protocol and standards developed by the Partnership for Carbon Accounting Financials (PCAF). While PCAF’s methodology for financed emissions accounting already covers various asset classes, the calculation methodology for facilitated emissions is still in development. Once this methodology is further developed by PCAF and mandated by the European Sustainability Reporting Standards (ESRS), we will integrate it into our assessment to determine whether it is significant enough within our value chain to report on. In 2023, we set targets for 2024 and 2025. In 2025, we will review these targets and set new ones for 2026 and 2027, which we will further align with ESRS requirements. Our baseline year, 2019, was the last year before the pandemic in which economic and operational conditions were stable. It provides a reliable reference point for measuring changes in emissions in the subsequent years. By using 2019 as the baseline year, we can more accurately assess the impact of our emission reduction efforts without the disruptive effects of the pandemic. At this time, we conclude that we do not need to make significant investments (opex and capex) to reach the targets set out in our climate strategy and action plan. As a result, we do not currently have any assets at material physical risk. We have also carefully considered whether committing to the Science Based Targets initiative (SBTi) would complement the above objectives. The outcome of this consideration is that it would not. The initiative itself is still in development, and we cannot currently foresee to what extent this initiative aligns with our goal of encouraging companies in which we invest to align their strategies with transition pathways derived from the aim to limit climate change to +1.5˚C. Sustainability statement 34 Our decision not to commit to the SBTi does not change our commitment to help limit climate change to +1.5˚C. In addition, we will continue to connect to standards and initiatives that help mitigate climate change and help us meet our objectives. Our targets in this area To make our commitments actionable, we have set short- and long-term targets in the following three areas: – Own operations; – Residential mortgages; – Assets under management (AuM). Own operations While the emissions from our own operations are relatively small compared with our downstream activities, we believe in leading by example. For this reason, we have an annual 8% reduction target for the carbon footprint of our own operations in all countries per FTE (from baseline year 2019). To achieve this, we have identified the main sources of our carbon emissions – such as company car use and international travel – and we have come up with initiatives to address these, such as moving to an all-electric car fleet and promoting train travel for international business trips. So far, we’ve achieved a remarkable 44% reduction in our carbon footprint between 2019 and 2024. As part of our ambition to continue to reduce carbon emissions towards 2030, we expect the GHG reduction measures we have implemented to result in a drop in our GHG emissions to a "hard-to-abate" level, which we will offset. Hard-to-abate GHG emissions are emissions that are difficult to reduce or eliminate due to technological limitations or economic challenges. Residential mortgages We offer our clients in the Netherlands residential mortgages that include incentives for improving the energy efficiency rating of their homes, thereby reducing carbon intensity. For this, we use a combination of the Carbon Risk Real Estate Monitor (CRREM) +1.5ºC pathways for single family homes and multi-family homes in the Netherlands. The CRREM provides the real estate industry with transparent, science-based decarbonisation pathways aligned with the Paris Agreement goal of limiting global temperature rise to +2.0°C, with ambition towards +1.5°C. The carbon intensity of our mortgage clients' homes currently lies above the CRREM pathway. To converge to the CRREM pathway by 2037, an annual reduction target of the carbon footprint per m2 by on average 9.5% (from base line year 2023) is required. We provide our clients with access to external experts for advice on how to improve energy efficiency. However, meeting this ambition also depends to a large extent on factors beyond our control as a wealth manager and provider of mortgages. Examples of such factors include: – Incentives from governments for home owners to invest in energy efficiency measures; – The increased availability of renewable energy and implementation of natural gas-free neighbourhoods; – Technological developments. In view of this, we continue to actively seek collaboration with other actors and peers to search for solutions to improve data and help reduce their carbon footprint. We will review our ambitions in this respect every two years based on the latest insights into the energy transition and/or adjustments to relevant transition pathways (e.g. updates to CRREM). Assets under management We aim to be a net-zero investor by 2050 by aligning our AuM with a long-term carbon intensity reduction pathway of on average -7% per year, in terms of weighted average carbon intensity (WACI). We use 2019 as our baseline year for the long-term WACI reduction of portfolios. When this is not available, we use the first year for which data is available. This pathway is derived from the Paris Agreement and EU climate benchmarks. The WACI measures a portfolio’s exposure to carbon-intensive issuers and serves as a proxy for a portfolio’s exposure to climate transition risks. By 2030, our discretionary AuM should be on this pathway. A challenge in meeting this target is the availability of actionable data on the carbon footprint of investee companies, as well as gaining the necessary insight into the opportunities and risks related to climate change perceived by their management. We will continue to work on data improvement and anticipate that regulations such as the Corporate Sustainability Reporting Directive (CSRD) and related ESRS will prompt more companies to disclose this information. Risks and opportunities Climate change is a threat for humanity as a whole. Regardless of the business implications, we see a moral imperative to make a positive contribution. In addition, an adequate response is also a matter of sound business conduct. These are key topics of interest for our current clients and even more so for the next generation of clients. If we don’t adequately respond by offering relevant solutions that reflect this, we risk losing market share. At the same time, offering relevant and attractive solutions and services also allows us to attract new clients and capture a larger share of wallet among existing clients. One such solution is our SDG Farmland Fund, which provides worldwide access to sustainable land ownership with the aim to drive a paradigm shift from a conventional to a regenerative farming system, while growing the value of our clients’ assets. Besides our sustainable investment solutions, we offer residential mortgages where clients' interest rates are linked to the registered energy label of their home. The more energy-efficient the home, the lower the mortgage interest rate. Moreover, the mortgage interest rate will automatically come down if clients improve their home’s energy label to a C or better. Beyond the availability of specific services and solutions, we are seeing clients increasingly seeking companies that align well with their personal values. This means that it is not sufficient for Van Lanschot Kempen to only offer relevant solutions – we must also incorporate sustainability more broadly in our own operations (such as through our carbon reduction targets). In the context of our bolt-on acquisition strategy, we aim to verify that target companies hold similar sustainability views to ours and contribute to our sustainability goals. A concrete reflection of this is our approach to post-merger integration planning, which includes accounting for how the acquired business will implement sustainability requirements and start contributing to our sustainability goals. In addition, we seek targets that will enhance our capabilities and solutions for clients. This specifically includes targets that offer relevant sustainable investment solutions primarily related to climate change. Sustainability statement 35 We recognise that our business is inextricably linked to the rest of society and the health of the broader economy. Considering the risk that climate change poses to society in general and the economy in particular, Van Lanschot Kempen does not in any way consider itself insulated from the direct impacts of climate change. We are committed to making a difference through our services and solutions as well as through our own operations. Due to the relatively limited scope of our own operations, the tangible contribution of the latter is limited. However, we believe that it is important to walk the talk to signal this commitment to our stakeholders. Risk policy and sustainability risk report The main internal policy we have developed to manage the impacts, risks and opportunities of our business activities is our sustainability risk policy. This policy describes our high- level sustainability risk strategy, our definitions of sustainability risk, our governance structure, roles and responsibilities, and the way we manage sustainability risks within our risk appetite. Setting this policy is in line with our sustainability governance and stakeholder engagement process, as stated in "General disclosures" on page 27 and 28. In line with our sustainability risk policy, we create an annual internal sustainability risk report which provides input for discussion on further improvements to our sustainability risk management efforts, including scenario analysis with respect to climate-related physical and transition risks. All relevant conclusions of this sustainability risk report are included in "Risk and capital management" from page 114. Our assessment spans the majority of our activities, ranging from our upstream activities to own operations and our downstream activities. Targeted towards internal stakeholders, our external auditors and our regulators, the report specifically focuses on the financial repercussions for us and aims to provide nuanced insights into our sustainability risks to enable strategic decision-making. Overall, we conclude that sustainability risks are currently not material and therefore do not require capitalisation beyond the capital taken into account in the internal capital adequacy assessment process (ICAAP) and do not require additional stage 1, 2 and 3 provisions under IFRS9. However, as climate and nature-related risks evolve and the expectations from our stakeholders increase, we will continue to extend our sustainability risk management capabilities. When analysing sustainability risks for Van Lanschot Kempen, we distinguish between direct exposures (via our balance sheet and operations) and indirect exposures via our AuM. The sustainability risks through our balance sheet are mainly manifested through credit risk, market risk and liquidity risk. From a credit risk perspective, our main exposure is to residential mortgages, which are exposed to sustainability risks through both physical risk (e.g. flood risk and drought risk) and transition risk (e.g. energy efficiency risk and climate label risk). Other sustainability risks through lending are limited, given our very limited exposure to (possibly climate-sensitive) business loans and general preference for secured lending. Moreover, our liquidity investment portfolio almost exclusively consists of highly creditworthy debt securities (AA-rated or higher) issued by governmental and semi-governmental issuers and agencies or covered bonds and residential mortgage-backed securities with significant buffers. From a market risk perspective, there is limited net exposure through our trading activities and limited exposure related to the co-investments in our own investment funds through our management book. From a liquidity risk perspective, the sustainability risks are mostly related to client deposit withdrawals in the event of a major physical climate incident. In addition, there is a sustainability-related risk within our business model through our commission income. Our commission income could be impacted as a result of a decline in AuM following an impact on financial markets due to materialising physical or transition climate risks. The sustainability risk drivers used in our analysis, assessment and monitoring can differ per business activity. For both physical and transition risks, we distinguish between multiple risk drivers that are selected, based on their relevance for us, from a broader set of European Central Bank (ECB)-listed risk drivers. For example, when analysing credit risk, liquidity risk and operational risk, we group physical risks into droughts, riverine and sea floods; heatwaves and wildfires; and hail, storms and hurricanes. For transition risks, a distinction is made between environmental taxation, regulatory requirements, policy and behavioural changes and technological developments. For some risk types, we analyse a subset or combination of risk drivers. The set of risk drivers is susceptible to change as our business activities and sustainability risk insights evolve. The main risk from our IROs is the financial risk of loss in liquidity due to clients who use their savings to repair their homes. We have assessed this sustainability risk via the materiality assessment in our sustainability report, as shown in the table on the following page. In this assessment, we define transmission channels as ways in which risk drivers can impact business activities through general risk types. For instance, a flood event will have an effect on the valuation of (mortgage) collateral, impacting negatively on capital and P&L, while at the same time impacting our liquidity position as clients withdraw funds to cover costs of repairs. Recent initiatives to gain insights into these risks include: the development of quantitative climate-oriented stress tests for our portfolios; the creation of a sustainability risk matrix to visualise our sustainability risk materiality assessment; and qualitative analyses facilitated by in-house experts. This integrated approach enables us to proactively navigate the intricate challenges presented by climate and environmental risks within risk management. For more information about our risk management framework and risk assessments, see "Risk and capital management". The transmission channels are defined and mapped according to the different ways the risk drivers impact our activities per risk type. In contrast with our IRO analysis, we assess materiality within our sustainability risk report in line with ECB guidance, based on a prudential and IFRS 9 perspective. The time horizon definitions are aligned with guidance from De Nederlandsche Bank (DNB): short term (0-5 years), medium term (5-10 years) and long term (>10 years). From a data availability and efficiency perspective, it is not always feasible or efficient to assess the materiality of every transmission channel over multiple time horizons. Sustainability statement 36 For that reason, we have chosen the following approach in our materiality assessment, which is all-encompassing yet efficient: – We assess the materiality on the horizon we expect to be most impactful; – If the risk is deemed immaterial on the most impactful horizon, the risk is deemed, by definition, to be immaterial on all time horizons; – If the risk is deemed possibly material on the most impactful time horizon, further assessment on other horizons is required, with corresponding outcomes. Climate risk drivers Transmission channels Time horizon Physical Droughts Direct foundation damage to property used as collateral Long term Riverine and sea floods Direct flood damage to property used as collateral Long term Heatwaves and wildfires Direct wildfire damage to property used as collateral Long term Hail, storms and hurricanes Direct storm damage to property used as collateral Long term Transition Environmental taxation Direct carbon emission taxes Medium term Regulatory requirements Minimum energy label for residential property Short term Policy and behavioural changes Consumer aversion to polluting activities Short term Technological developments Breakthrough in low-cost energy Medium term Climate change mitigation and adaptation policies We identified that we can make a significant impact on climate change mitigation and adaptation in our downstream value chain through our investment management activities and within our own operations via our approach to business travel, including commuting. By focusing on these key areas, we aim to drive meaningful progress and contribute to our climate-related targets. We have set two main policies: – Climate change policy for our investment management activities; – Business travel policy for our own organisation. Investment management activities As a long-term investor, we believe climate change represents a systemic risk facing the economy, society and the environment, and we want to consider the risks and opportunities this presents for our investments in the decades to come. Climate is one of our sustainability focus areas, and we are convinced that we can contribute to progress in this area. We believe in sustainable value creation through long-term stewardship. We have embedded these activities in our climate change policy: vanlanschotkempen.com/-/media/files/documents/ investment-management/esg/policies/climate-change- policy.ashx. Our Sustainability Investment Council approves this policy according to our sustainability governance, and it is reviewed annually. We also use the input from our stakeholder engagement process in setting this policy. We organise our sustainable investment efforts across four pillars: Pillar 1: Exclusion We do not want to invest in companies and countries involved in activities with severe negative impact on people and/or the environment. Such activities may be product or services-based or related to conduct. We have assessed several activities which are likely to be detrimental to the transition towards a low-carbon economy and to meeting the Paris Agreement goals. During the transition, we believe that thermal coal mining and oil sands have the most adverse impact on climate change and the environment, and can be substituted. As part of our climate change policy, we are therefore committed to not investing in companies breaching revenue-based thresholds from thermal coal mining and/or oil sands. For more details about all our exclusions, see our exclusion policy: vanlanschotkempen.com/-/media/files/documents/ investment-management/esg/policies/exclusion-policy.ashx. Pillar 2: ESG integration To ensure that climate risks and opportunities are adequately considered in our funds’ investment process, we prefer to invest in companies (via our internal and external fund managers) that integrate their climate risks and opportunities into their organisation, and have the ability and show willingness to move towards a low-carbon economy. Pillar 3: Active ownership We believe that effective shareholder engagement with investee companies contributes to positive change. Hence, portfolio managers and the Sustainability & Impact Investing team collectively engage with companies, fund managers and stakeholders on a wide array of strategic, financial and ESG topics to mitigate risks and unlock opportunities. The engagement process is integrated in the work of our investment professionals. For more details on our engagement approach, see our stewardship & engagement policy: vanlanschotkempen.com/-/media/files/documents/ investment-management/esg/policies/stewardship-and- engagement-policy.ashx. Sustainability statement 37 Moreover, portfolio managers and the Sustainability & Impact Investing team collectively engage on a wide array of strategic, financial and ESG topics to mitigate sustainability- related risks and unlock opportunities. We aim for an integrated approach by working closely across investment teams and strategies. Exercising voting rights is an important instrument of engagement and stewardship, and is central to a well-functioning governance system. For more details on our climate voting, see our voting policy: vanlanschotkempen.com/-/media/files/documents/ investment-management/esg/policies/voting-policy.ashx. Pillar 4: Positive impact We recognise that solutions contributing to limiting climate change are also needed, so we provide these solutions to our clients for different asset classes where possible. Currently, we have our Global Impact Pool which contributes to solving global problems around the food, water, health and climate nexus, while explicitly targeting a market-rate financial return, and our SDG Farmland Fund which invests in sustainable agricultural land and is committed to promoting regenerative agricultural practices, including improving biodiversity and reducing GHG emissions. Own organisation We are committed to enhancing sustainability in our own organisation. To achieve this, we have identified business travel and commuting as primary sources of our carbon emissions. We promote sustainable mobility choices for our business travel, such as train use (instead of flying) for international travel less than 700 kilometres and using electric lease cars instead of fossil fuel cars. To embed this in our organisation, we have a business travel policy in place. Our business travel policy enhances climate change mitigation within our own organisation by describing how we travel at Van Lanschot Kempen to achieve our reduction targets. The main principles for our domestic and international business travel policy cover sustainability, "our way of working" (i.e. hybrid working), travel comfort, total travel time and travel expenses. The policy applies to all employees of Van Lanschot Kempen and is reviewed yearly and updated in line with our organisation's ambition and wider society. The policy is published on our intranet, and new policies are communicated and forwarded via HR newsletters. To complement these efforts, we have joined the Anders Reizen Coalition of over 70 large organisations, representing over 550,000 employees. The shared ambition of this coalition is to reduce GHG emissions and promote more sustainable travel choices. By joining it, we have committed to the Anders Reizen guidelines (best practices). Energy consumption Due to the nature of our business, our impact on energy consumption is confined to our own operations. Our gas and electricity usage has been steadily declining for several years, thanks to improved utilisation of available office space, various energy-saving measures and hybrid working, all implemented since the pandemic. Currently, most office locations in the Netherlands are heated using 100% biogas or district heating. In addition to increasing our use of biogas and district heating, we also aim to reduce our overall gas consumption. Further gas-saving measures include thermostatic valves. We have made our office operations more energy-efficient by using more sensor lighting, energy-efficient monitors and laptops, smart energy meters and other energy-saving technologies. Most of our Dutch offices now use "green" electricity. As a result, carbon emissions related to electricity consumption are minimal for our Dutch office locations. However, it's important to note that while we have made significant strides in our Dutch offices, we are in the process of implementing similar energy-saving measures and sustainability practices in our international locations. This includes: – Transitioning to green electricity sources when available; – Transitioning to biogas sources when available. By extending our approach to our non-Dutch offices, we aim to achieve the same level of energy efficiency and sustainability across all our offices. Given these ongoing efforts and the significant progress we have already made, we do not believe that a policy on energy consumption is needed at this time. The table below summarises our overall energy consumption under Scopes 1 and 2 for 2023 and 2024, categorised by energy type. For the calculations, we use the registered data from our energy providers in the Netherlands, Belgium, the UK and Switzerland. Energy source Consumption 2023 (MWh) Consumption 2024 (MWh) % 2024/ 2023 Fossil energy 6,611 5,154 78 Fossil fuel lease cars 4,814 3,301 69 Natural gas combustion in buildings 1,104 1,077 98 Purchased fossil electricity 693 775 112 Nuclear energy 0 0 0 District heating 1,255 1,574 125 Renewable energy 6,843 5,563 81 Biogas combustion in buildings 1,143 763 67 Purchased renewable electricity 5,700 4,800 84 Total energy consumption 14,709 12,290 84 Energy source definitions Fossil fuel lease cars: total diesel and gasoline usage from our lease cars, converted into MWh. Natural gas combustion in buildings: total natural gas (m3) consumption for our office buildings, converted into MWh. Purchased fossil electricity: the purchased fossil electricity consumed in our buildings (MWh). District heating: the amount of district heating in Gigajoule purchased, converted into MWh. Biogas combustion in building: the amount of biogas (m3) purchased, converted into MWh. Purchased renewable electricity: the electricity consumed in buildings (MWh) and by electric lease cars (MWh). Sustainability statement 38 Metrics and results 2024 Our progress on sustainability is also monitored against a set of key performance indicators (KPIs) for 2024–25, which are presented on page 12 in "Van Lanschot Kempen at a glance". Our targets related to our own operations, mortgages and AuM are presented in the table with the overview of our sustainability targets on page 25. Besides our own targets, we measure our GHG emissions in line with the ESRS, and these figures can be found in the table below. In ktCO2e 2019 (baseline year) 2023 2024 % 2024/ 2023 Scope 1 GHG emissions Gross Scope 1 GHG emissions 3.01 1.55 1.19 77 Scope 2 GHG emissions Gross location-based Scope 2 GHG emissions n/a 1.47 1.40 95 Gross market-based Scope 2 GHG emissions 0.08 0.18 0.19 101 Significant Scope 3 GHG emissions Purchased goods and services n/a n/a 2.02 n/a International business travel Air 1.04 0.50 0.60 119 Train n/a 0.01 0.01 105 Employee commuting Car 0.18 0.91 0.90 100 Public transport 0.02 0.05 0.08 155 Investments Loans n/a n/a 224.56 n/a of which Scope 1 and 2 40.03 of which Scope 3 184.53 Mortgages n/a n/a 44.80 n/a AuM n/a n/a 67,831.95 n/a of which Scope 1 and 2 14,665.39 of which Scope 3 53,166.56 Gross Scope 3 GHG emissions n/a n/a 68,104.92 n/a Total GHG emissions n/a n/a 68,106.30 n/a In tCO2e/€ 2023 2024 % 2024/20 23 GHG intensity per net revenue n/a 0.10 n/a GHG emission definitions Gross Scope 1 GHG emissions: Total direct emissions (ktCO2e) from own operations, including biogas, natural gas, company car fuel and diesel for testing emergency power supply. Gross location-based Scope 2 GHG emissions: Total indirect emissions (ktCO2e) from own operations using location- based conversion factors, including electricity and district heating. Gross market-based Scope 2 GHG emissions: Total indirect emissions (ktCO2e) from own operations using market- based conversion factors, including electricity and district heating. Gross Scope 3 GHG emissions: Total indirect emissions from our upstream value chain (ktCO2e), including the categories defined under other definitions. We report on those categories that have been assessed to be material, which includes other Scope 3 categories. Total GHG emissions: Total gross Scope 1, gross Scope 2 and gross Scope 3 emissions. The total GHG emissions per net revenue consists of the total GHG emissions which are divided by the managerial income from operating activities. Other definitions Purchased goods and services: Total indirect emissions from purchased goods and services. International business travel: Total indirect emissions from international business travel emission categories: Air: indirect emissions from air travel; Train: indirect emissions from international train travel. Employee commuting: Total indirect emissions from employee commuting: Car: indirect emissions from car travel. This entails electricity use of lease cars and declared business use kilometres of privately owned cars. Lease cars emissions in relation to diesel and gasoline use are captured under Scope 1 GHG emissions. Public transport: indirect emissions from public transport (train, bus, metro and tram). Investments: Total indirect emissions from investment emission categories: AuM: total indirect emissions from our AuM; Mortgages: total indirect financed emissions from our mortgage portfolio; Loans: total indirect financed emissions from our business loans. Sustainability statement 39 Carbon calculation for our own organisation The carbon emissions related to our own organisation are calculated and reported in line with the GHG Protocol, using the conversion factors set out by internationally recognised organisations and published on the website co2emissiefactoren.nl. We applied the following in our calculation method: – We used several assumptions and estimates for all business travel using public transport when converting expense claims into kilometres travelled; – Total transport in kilometres for the delivery of office supplies and catering relates solely to our activities in the Netherlands and is based in part on estimates; – Emissions from offices without utility meters are estimated based on square metres and Statistics Netherlands data with average natural gas consumption and electricity usage per office area. We assume that these offices use the average electricity mix of the Netherlands and natural gas (not biogas); – Travel movements of colleagues with a fixed travel allowance are estimated based on the average number of days colleagues go to the office and weeks in the year, less annual leave. It is unlikely that potential errors or inaccuracies in the estimates and assumptions referred to above would have a significant impact on the final results, given that the elements in question only account for a limited proportion of total calculated carbon emissions. Carbon calculation for financed emissions For the carbon calculations of our financed emissions, we use the PCAF methodology. PCAF provides a standardised approach for financial institutions to measure and disclose the GHG emissions associated with mortgages, investments and business loans. By using the PCAF methodology, we ensure consistency and comparability in reporting, enabling us to track progress in reducing our carbon footprint and contributing to global climate goals. The PCAF standard offers different calculation methods based on data availability and quality, allowing us to choose the most appropriate method for the specific context. We elaborate on our approach per topic below. From our DMA we concluded that we do have material impact in our downstream value chain, so from 2024 we have also added the PCAF methodology to our Scope 3 business loans and AuM. We have the following PCAF data quality score per PCAF classification, where 1 is the highest and 5 the lowest possible: PCAF classification financed emissions PCAF data quality score Mortgages 3 Loans 5 AuM 3 Mortgages To calculate emissions data for mortgages, we work together with other financial institutions via PCAF on best practices for reporting of Scope 3 emissions. Scope 3 emissions related to residential real estate (RRE) include both direct carbon emissions from RRE assets due to combustion of fossil fuels (typically natural gas) and indirect carbon emissions from electricity consumption. To estimate the carbon emissions of RRE, data regarding the natural gas and electricity consumption per residential object is needed. Because this data is not publicly available, the consumption is estimated by using external data from Statistics Netherlands, which gives the actual energy consumption of households in the country. In 2024, Statistics Netherlands released new data which we used to update our calculation method. This means that the 2024 reported data is not comparable with the 2023 reported data. Loans Although our loan portfolio does not constitute a significant portion of our carbon footprint compared with our investments, we still calculate the related carbon emissions. The carbon emissions from our loan portfolio are estimated following the PCAF methodology by using the calculation estimates for business loans. For this calculation, we rely solely on country- and sector-specific proxies from the PCAF emission factor database, using emission factors per unit of the asset (e.g. tCO2e per euro of an asset in a sector). According to the PCAF standard, this results in a PCAF score of 5. Assets under management To calculate the emissions of our AuM, we use the PCAF methodology. Emissions from land use, land-use change and sovereign forestry are included. Our coverage for reporting via the PCAF methodology is 85% of our total AuM. The accompanying PCAF data quality score is 2.88. In 2024, we further improved our reporting process for carbon emissions related to our AuM, which means that our Scope 3 emissions are not comparable with 2023. We have extended the scope to our full AuM. The main source for emission data is our ESG data provider, MSCI. The data is matched based on the international securities identification number (ISIN) and the most recent data available is included. If there is no data available via the MSCI source, then an estimate is made based on country- and sector-specific proxies from the PCAF emission factor database. To enhance the overall coverage of our total AuM, we extrapolate the emission data based on the average available greenhouse gas emissions of our AuM to achieve full coverage. Going forward, we will work on further data quality improvements. Carbon offsetting We will continue to work on reducing our CO2e emissions in the years ahead. Unfortunately, we will not be able to bring them down to zero as there will always be emissions left over from our activities. Each year, we offset our remaining GHG emissions related to our own operations. We offset the 2024 carbon footprint related to our own operations via reforestation and afforestation projects in Mexico. To offset the 2024 carbon footprint of our own operations, we acquired 3,019 tonnes of carbon credits. We hold a contract with Trees for All with audit rights for our carbon credits. Trees for All carbon projects are certified by Plan Vivo, which is the international standard for carbon offset that focuses on local communities. Projects with a Plan Vivo certification guarantee carbon sequestration, as well as contributing to better living conditions, sustainable land management and the conservation of biodiversity. Several independent checks have been carried out to prove that the company's carbon emissions have been captured correctly. Sustainability statement 40 In addition, we collaborate with Land Life Company, which has planted 160,000 trees on our behalf in Portugal and Australia since the start of our collaboration in 2023. The carbon is captured and stored, creating our own carbon sink, which we aim to use to offset our future emissions. Over the next 40 years, these trees will store around 43,000 tonnes of carbon emissions and when they have grown big enough, we expect to be able to offset the remainder of our own organisation's carbon emissions. For both of these projects we have Verified Carbon Standard-certified right of audit, and they both contribute to our journey to net zero in our own operations by 2030. Biodiversity How we manage our impact In our DMA we identified that biodiversity is a material topic for us with regard to our upstream value chain. It is not a material topic for our own operations. There could also be an impact on AuM, but data constraints limit our abilities to assess scale, extent and scope of impact. Despite these limitations, we are actively involved in initiatives related to biodiversity, as it remains one of our sustainability focus themes. As more comprehensive data becomes available in the near future, we will explore ways to enhance our understanding and impact in this area. Our policy Our biodiversity policy contains information regarding our background and position on biodiversity, how biodiversity is embedded into our investment approach, the implications of biodiversity for our own operations and governance, stakeholder consultation and reporting. Our own operations and AuM are in scope of the policy, while our balance sheet is out of scope of the policy. See our policy for more information: vanlanschotkempen.com/biodiversity-policy. We maintain regular dialogue with our stakeholder groups to understand their needs, ideas and concerns. See our stakeholder engagement policy for more information: vanlanschotkempen.com/-/media/files/documents/ corporate/sustainability/stakeholder-engagement- policy.ashx. The most important stakeholder group for our biodiversity policy is nature, which can't advocate for itself directly. With this in mind, we've asked two social organisations representing nature to review our biodiversity policy. This policy, which contains contact details for the Corporate Sustainability team, is available on our website: vanlanschotkempen.com/en-nl/about-us/sustainability/ policies-and-resources. The Sustainability Board drives the sustainability strategy and is responsible for implementing and embedding sustainability, including biodiversity, within our company. The Sustainability Board representatives are appointed by the Management Board. During their bi-monthly meetings, the Sustainability Board approves sustainability priorities and monitors the implementation of the strategy and these priorities. The Sustainability Board is the most senior body in our organisation that has approved the biodiversity policy. For more information on sustainability governance, see our website: vanlanschotkempen.com/sustainability- governance-structure. We have presented our biodiversity information in three parts: impact via our upstream value chain, own operations and AuM. Impact via our upstream value chain Qualitative IRO description The positive impact of using stewardship to influence suppliers to adopt more sustainable practices, thereby contributing to limiting biodiversity loss The negative impact on climate change if no stewardship actions are taken to influence suppliers to limit biodiversity loss We believe we can make a positive impact by engaging with suppliers to convince them to make use of practices that limit biodiversity loss. At the same time, we could have a negative impact on limiting biodiversity loss if we don't take this into account while selecting and engaging with our suppliers. Biodiversity and climate change are deeply interconnected, and the loss of biodiversity can have negative impact on climate change. If a (potential) supplier received no questions from us regarding limiting loss of biodiversity, they would have little or no incentive to work on limiting this loss and the resulting negative impact on climate change. Procurement We have integrated a responsible purchasing policy into our business partner due diligence policy to ensure that we only work with suppliers that meet our integrity and sustainability standards. All larger purchasing processes (above €25,000) are subject to sustainability monitoring and we offer training to employees who are regularly involved in the procurement process. We have not performed any assessments regarding our suppliers' biodiversity impact and dependencies. There is no specific focus on biodiversity in our responsible purchasing policy, as the limited availability of data does not currently allow for this topic to be structurally integrated in how we engage with suppliers. See our value chain on page 29 for a description of our suppliers. Impact via our own operations We have not identified a material impact on biodiversity via our own operations. We have offices in the Netherlands, Belgium, Switzerland, the UK, the US and France. Our main offices are located in ‘s- Hertogenbosch, Amsterdam and Antwerp. All our other offices are labelled as local offices, whose main purpose is to host client visits. A list of our offices in the Netherlands, Belgium and Switzerland is available on our website: vanlanschotkempen.com/en-nl/contact. We have used a Natura 2000 dataset to measure the distance between Natura 2000 sites and Van Lanschot Kempen offices in the Netherlands and Belgium. The distances between our office locations range from 600 metres to 16 kilometres. As we are not involved in activities that directly affect natural habitats, our office buildings do not have any direct physical impact on biodiversity and are thus not marked as priority locations. This is supported by ENCORE data. We concluded it is not necessary to implement biodiversity mitigation measures in our own operations. Sustainability statement 41 Although we have not performed an extensive dependency assessment of Van Lanschot Kempen in relation to our office locations, we have identified three ways in which we are dependent on nature: – For the well-being of our employees, clients and other stakeholders; – For the resources we use as a financial institution such as office buildings, food and paper; – In our business operations, since climate change, exacerbated by biodiversity loss, can disrupt business operations, such as in extreme weather events. None of these three dependencies were marked as material risks. For more information on the business operations- related risks, see "Risk and capital management" from page 114. Each year, we assess various environmental themes in relation to operational risks. With regard to physical risks, we have identified the following risk drivers: droughts, riverine and sea floods; heatwaves and wildfires; and hail, storms and hurricanes. With regard to transition risks, the risk drivers include environmental taxation, regulatory requirements, policy and behavioural changes and technological developments. These risks were assessed as immaterial based on a quantitative and/or qualitative assessment in our internal sustainability risk report as part of our risk management framework (see "General Disclosures" for more information). Although biodiversity-related physical, transition and systemic risks are assessed as either immaterial or impossible to integrate in our risk models at this stage, we remain committed to reducing our negative impacts and promoting positive impacts by focusing on areas in which we are most able to make a meaningful contribution. We have translated our ambition to conserve biodiversity into measures for our own operations, focusing on several drivers of biodiversity loss: – Land use change: we are increasing the habitat availability and species diversity in the gardens around our Dutch offices; – Pollution: we are working to reduce our residual waste and reuse furniture where possible; – Climate change: our goal is to reduce the carbon emissions of our own operations by 8% per FTE (baseline year: 2019). We do this using mostly green electricity for our offices, heating our Dutch main offices predominantly with biogas, electrifying our lease cars and discouraging air travel; – Exploitation: our catering provider is focused on offering more plant-based options, to reduce over-reliance on animal products. Impact via our AuM We could make an impact on biodiversity via our AuM, but data constraints limit our abilities to assess the scale, extent and scope of this impact. An overview mapping how our AuM is likely to have nature-related impacts, dependencies, risks and opportunities can be found in the Taskforce on Nature-related Financial Disclosures (TNFD) guidelines. As biodiversity with regard to AuM is not material, we have not identified which part of the portfolio would be most impacted. We aim to protect our clients' assets from dependencies, reducing negative impacts and promoting positive impact by focusing on the areas most relevant to our business. We included the following targets on biodiversity in our latest version of the biodiversity policy: – Engage companies with MSCI orange flags on biodiversity; – Engage companies with Sustainalytics ratings of "low management" and "medium/high exposure" on biodiversity. The MSCI ESG controversy rating and the Sustainalytics scoring both signal inadequate management of biodiversity by certain companies. The scope of our biodiversity targets are our Article 8 investment funds with a minimum committed portion of sustainable investments. The target is an annual target, with 2025 as the first reporting year and baseline year. We will include biodiversity as a topic in our 2026–27 KPI framework, in which targets will be set for a two-year period. Besides our engagement targets, we have already taken several steps to underline our responsibility towards biodiversity. In March 2021, we signed the Partnership for Biodiversity Accounting Financials (PBAF) agreement, which commits Van Lanschot Kempen to measuring the impact of loans and investments on biodiversity, taking action to reduce our negative impact and protect and restore biodiversity, and working towards a single global approach for the financial sector. In November 2021, we signed the Finance for Biodiversity Pledge, in which we committed to biodiversity-related best practices including collaboration, engagement and setting concrete targets by 2024. See Appendix 1 of our biodiversity policy for our biodiversity commitments in line with this pledge. Finally, in January 2024 we became an early adopter of the TNFD, which requires us to publish our first TNFD-aligned disclosures for the 2024 financial year. This report can be found on our website: vanlanschotkempen.com/en-nl/ about-us/sustainability/reporting-and-regulation. EU taxonomy Van Lanschot Kempen is a wealth manager with a banking licence: we are active both in asset management (via Van Lanschot Kempen Investment Management) and in credit. We therefore disclose our EU taxonomy alignment and eligibility in accordance with the requirements for these activities. Financial institutions are required to disclose their green asset ratio (GAR) and corresponding EU taxonomy alignment related to limiting and managing their impact in connection with environmental objectives. In addition, this is the first year that financial institutions are required to report the EU taxonomy eligibility of assets related to the sustainable use and protection of water and marine resources, the transition to a circular economy, pollution prevention and control, and the protection and restoration of biodiversity and ecosystems. Sustainability statement 42 In our capacity as a wealth manager, 1.4% of our assets under management (AuM) related to turnover and 2.0% of our capital expenditure (capex) were EU taxonomy-aligned in 2024. In our capacity as a credit institution, our turnover and capex GAR was 9.8% in 2024, while 56% of our GAR assets were EU taxonomy-eligible. As a result, the taxonomy alignment for the group, weighted on the basis of income from our asset management and credit institution activities, is 6.4% and 6.6% respectively for turnover and capex. Assets under management Our EU taxonomy-aligned AuM includes exposures to companies offering solutions to limit and/or address climate change across portfolios. We have not yet set a minimum percentage of EU taxonomy-aligned holdings for any of our own investment funds, discretionary portfolio management solutions, and/or Markets in Financial Instruments Directive (MiFID) II sustainability preferences profiles. This is because we still lack full insight into the EU taxonomy alignment of investee companies. We expect that the robustness and accuracy of this data will improve with the increasing uptake of the EU taxonomy by relevant institutions and the improved flow of data through service providers. When the data is of sufficient quality, we will be able to set commitments on the minimum share of EU taxonomy- aligned holdings for discretionary portfolios. In accordance with our ambition to help our clients navigate transitions, we aim to increase the share of EU taxonomy- aligned AuM over the coming years. In comparison with FY 2023, when the asset management key performance indicators (KPIs) reported at the scope of Van Lanschot Kempen, in FY 2024 we have only published the AuM related to Van Lanschot Kempen Investment Management for EU Taxonomy Annex IV. For taxonomy alignment related to Van Lanschot Kempen, see page 67. Balance sheet Our GAR mainly represents residential mortgages used to finance energy-efficient homes. In the years to come, we aim to increase this ratio by offering more attractive interest rates to finance homes with a higher energy performance certificate (EPC) and provide third-party expert advice to help clients increase the energy efficiency of their homes. Our EU taxonomy-aligned residential mortgages include loans with collateral objects that we estimate to be within the top 15% of the housing stock in terms of energy efficiency. We use EPC labels when available, and in the absence of the relevant EPC, we use the permit year, which reflects the specific building regulations in effect at the time. By using permit years, we most likely underestimate our GAR, as it does not take into account any improvements made to the collateral objects. To reduce this gap, we are working on increasing our EPC coverage. We have assessed various physical climate risks in relation to our residential mortgage portfolio (see "Sustainability risk" on page 119). These include the climate hazards referred to in the EU Taxonomy Regulation and marked as particularly relevant in the Dutch context by the the Energy Efficient Mortgages Hub Netherlands, with the exception of heatwaves. We aim to further analyse our exposure to risks resulting from heatwaves in the near future. Our current assessment is that these risks are less material than the other risks that have already been assessed. Based on the outcomes of our assessments, we have categorised all homes that meet the technical screening criteria (TSC), being the "substantial contribution" and the "do no significant harm" criterion, as EU taxonomy-aligned. Other green assets include co-investments in own funds through our management book. We also invest part of our liquidity book in taxonomy-aligned bonds. As with our AuM, we expect that the robustness and accuracy of this data will improve with the increasing uptake of the EU taxonomy. Loans and advances, other than residential mortgages, generally comprise products that are supplemental to our private banking relationship model (such as loans to healthcare professionals and business professionals) and are not offered to parties that are in scope for the EU taxonomy. We do not have exposure to non-financial corporations subject to the Non-Financial Reporting Directive and, as a result, Template 2 "Breakdown by NACE", is omitted. In line with our responsible lending policy, we do not finance activities relating to nuclear energy and we have strict criteria for financing fossil fuel activities. For the corporate exposures, we have evaluated exposures to the nuclear energy and fossil fuel sectors on the basis of the Nomenclature of Economic Activities (NACE) codes and the activities described in the regulation. For this scope of reporting, exposures are insignificant. This overview can be found in Annex XII: Template 1 "Nuclear energy and natural gas-related activities", on page 68. Sustainability statement 43 Social Own workforce Through our double materiality assessment (DMA), we identified several material topics that are critical to our own workforce, which translate to the following sustainability matters: Sustainability matter Material topic Inclusion and diversity Inclusion and diversity Equal pay for equal work Quality of the workforce Talent and skill management Working conditions Work-life balance Health and safety We have identified the following material impacts, risks and opportunities for these topics. Impact, risks and opportunities (IROs) Material IROs for our own workforce The positive impact of representation of ethnic minorities and different genders within Van Lanschot Kempen on equal opportunities for employees of different backgrounds The negative impact of unequal representation of ethnic minorities and different genders within Van Lanschot Kempen or unequal opportunities for employees of different backgrounds The negative impact on employee satisfaction of Van Lanschot Kempen's employees through a lack of transparent and equal remuneration policies The positive impact on employee satisfaction through the implementation of effective talent management strategies due to improved career development opportunities, recognition of skills and a more supportive work environment The positive impact on employee satisfaction by providing sufficient compensation for high employee performance, resulting in a culture of recognition and motivation The financial risk of higher employee turnover and operational disruption due to insufficient talent management for our employees The financial opportunity of reputational gain and external talent attraction by offering good talent management The positive impact on our employees from balanced work-life practices contributing to employee well-being The negative impact on our employees from imbalanced work-life practices harming employee well-being The financial and operational risk of disruption and financial losses due to high employee turnover or absence from work caused by suboptimal work-life balance The negative impact on employees' health and safety (absence from work) due to stress as a result of excessive work pressure The financial risk of a higher absence rate due to stress as a result of excessive work pressure General disclosures Our employment conditions reflect our commitment to providing attractive terms of employment with flexibility, transparency, a life-phase-conscious approach, work-life balance and personal development. Our training policy highlights continuous learning and development: employees' talents and growth opportunities are discussed with their managers to identify necessary training opportunities. We have a policy with guidelines for managing conflicts of interest and ensuring ethical behaviour, stressing the importance of qualifications and experience in decision- making. Our recruitment process features trained hiring ambassadors, who promote unbiased interviewing and attract high-performing talents based on qualifications and skills. When attracting new colleagues to Van Lanschot Kempen, our recruitment and selection are based on job profiles. In addition, personal development agreements and continuous professional education are introduced and stressed throughout the selection process. Furthermore, to address the potential negative impact of gender-biased job profiles and vacancies, we write job descriptions in gender- neutral language. To eliminate barriers potential new employees may experience when applying for a position, we also take a critically reflective approach to the skills and experience we require for a job. The Management Board oversees policies and guidelines promoting equal treatment and opportunities at Van Lanschot Kempen, such as our inclusion and diversity policy, which emphasises the importance of diverse perspectives and attracting, developing, and retaining diverse talent. Our code of conduct establishes our three ethical principles, one of which is to be respectful towards others, encompassing colleagues, clients, and other stakeholders. All employees are expected to complete an e- learning course on our code of conduct, which highlights the importance of respect and of preventing discrimination. We encourage employees to speak up and act professionally, even in the face of disagreements. Our policy on desirable and undesirable behaviour underscores the importance of a safe workplace and enforces a zero-tolerance stance on undesirable behaviour, such as discrimination. It highlights the responsibility of every employee to interact decently and respectfully with colleagues. In addition, our inclusion and diversity policy aims to create a more inclusive workplace where everyone feels valued and respected. Besides diversity in terms of gender, nationality, age, educational level, sexual orientation and gender identity, religion, ethnic background, disability or distance from the labour market, our commitment to diversity also includes individuals' skills, personal experiences and socioeconomic backgrounds. It includes measures to eliminate discrimination and promote inclusion, such as our inclusion & bias awareness training that raises awareness of unconscious bias and inclusive behaviour. All colleagues, including middle and upper management, are encouraged to participate in this training. We conduct regular equal pay analyses to ensure equal pay for equal work, aiming to close the corrected pay gap between men and women and promote fair compensation practices. We have also signed the Workplace Pride Declaration of Amsterdam, which is a commitment to foster a more inclusive workplace for LGBTQ+ employees. Labour practices within Van Lanschot Kempen respect human rights; forced labour and child labour do not occur within our organisation. Our workforce policies act in the spirit of internationally recognised instruments, including the UN Guiding Principles on Business and Human Rights. However, we have not tested the official alignment of our policies against these principles. Sustainability statement 44 We have made several adjustments to our physical environment to ensure the health and safety of colleagues, clients and other visitors with disabilities. Specifically, we provide disabled parking spaces, toilets equipped for disabled people and Braille buttons in our lifts. Depending on the disability, we aim to find a tailor-made solution to meet individual needs. The provisions made depend on the person's limitations. We have comprehensive documents and resilient policies in place that address workplace accident prevention and management systems. Our business continuity management policy outlines the objectives for business continuity management, detailing the structure and roles within the organisation, emphasising operational resilience and detailing training and country-specific provisions. Our general risk management framework provides an overview of our integrated risk management activities, governance, and processes, aiming to identify, assess, manage, monitor and report risks across the organisation. What's more, our operational risk management framework elaborates on our strategy for identifying, managing, monitoring and reporting operational risks, including those related to workplace accidents. The incident management policy explains the process for identifying, reporting, classifying, and documenting incidents, aiming to prevent and manage incidents that could harm our reputation and integrity. We do not have a formal policy addressing workplace accidents; however, we do have a specified company emergency response plan that addresses how to act in different incidents, including medical and other emergencies such as fire and natural disasters. For each material impact, risk or opportunity related to our workforce, we specify policies and actions to mitigate negative impacts on our own workforce or to enhance positive impacts. When these actions target specific employee groups, this is specified. Engagement We measure engagement via our annual employee engagement survey (EES), which received an 86% response rate in 2024 (2023: 84%). Based on certain questions within the EES, we can track employees' satisfaction regarding diversity, equal opportunities and their perception of dignity and respect within Van Lanschot Kempen. In addition to the EES we organise focus groups, interviews and surveys to understand the employee and manager experience, to identify specific needs across various departments and to provide insights on where to focus attention. The Management Board holds overall accountability for employee engagement within the organisation, which is assessed through our EES. The results are presented to the Management Board and the Works Council, further distributed to managers throughout the organisation and communicated to the broader employee population and in the sub-teams. The outcomes of the surveys contribute to setting the strategic direction for employee engagement initiatives and ensuring that the company's approach aligns with our broader organisational goals and values. The Human Resources management team is responsible for the operational implementation of employee engagement policies and procedures. The outcome of open text questions in the EES helps to determine specific interventions on inclusion and diversity, such as the above-mentioned inclusion & bias awareness training, inclusive leadership sessions and our Diversity Day, which highlights the benefits of a diverse workforce. We have also introduced several initiatives to support health and well-being via our new HelloYou portal, with customised well-being programmes. Examples include online sport classes and e-learning modules on nutrition, energy management and a healthy work-life balance. Moreover, the Van Lanschot Kempen Academy offers various workshops and webinars on topics such as understanding menopause, supporting parents of young children and more. These sessions are designed to educate employees on diverse experiences and promote a more inclusive workplace. We complement our EES with various sessions on specific topics throughout the year. These include events of various sizes that bring cohorts of the workforce together to share experiences, such as stress management workshops and discussing the outcomes per business line in depth. The objective is to eliminate barriers to sharing thoughts and insights. These sessions are organised by HR and management as well as by various employees and networks. We have established a number of inclusion and diversity networks such as VLK Women, VLK International, Young Van Lanschot Kempen and VLK Pride, which share valuable insights on the perspectives of their network members. In addition, we also have a dedicated colleague who provides support to employees with a disability. We do not only get insights into engagement through the EES, but also through our Works Council, which collects and presents employees' views and concerns during monthly check-ins and yearly consultations, and gives feedback on updates to employment conditions. The topics discussed include working conditions, organisational changes, employee welfare and any other management decisions that may affect the workforce and in which the Works Council has a legal role to advise on or approve. Works Council representatives are chosen through elections, with seats allocated to represent every segment. Besides the requirement by law, the Works Council takes various roles in decision-making processes related to workplace policies and practices. Regular meetings and co-working on changing employment conditions are part of the structure we have put in place. The Works Council members are part of the business and at the same time serve as representatives of the organisation. They are well known within the company and employees often approach them to provide their input. We do not have a formal structure for collecting and organising this feedback. There are informal channels for feedback available for all employees through annual surveys, our active feedback culture and various boards representing our young employees. Raising and remedying concerns While we do not directly provide remedy for negative impacts on our own workforce, we contribute to remediation by implementing several actions to address and mitigate material negative impacts on our workforce. These actions include addressing gender pay gap outliers, providing access to a company doctor to manage absence from work and offering health and career coaching. For more details, see the actions per material topic. Sustainability statement 45 Van Lanschot Kempen has a number of channels in place for employees to raise issues, including confidential counsellors – both internally and externally – as well as a Complaints Committee. An external confidential counsellor is available for employees who prefer to raise their issue through outside channels. Our employees can also talk to their manager or their HR business partner to flag concerns, contact members of the Works Council for general concerns, or alternatively members of the board of any of our employee resource groups (ERGs). We provide an overview of all "Speak Up" channels via our intranet, on the same webpage as our code of conduct, which is featured prominently on our homepage. Our confidential counsellors are also listed on our intranet and, throughout 2024, we conducted an awareness campaign to draw attention to them and their role. We have a number of ERGs, each with a dedicated Management Board sponsor. The chairs of the ERGs meet with their sponsors during the year and inform them of the latest developments specific to their ERG. This engagement also provides an opportunity to raise specific concerns on formal structures and informal cultural issues. Our complaints procedure ensures that employees with complaints are taken seriously, heard fairly, and treated independently. Complaints are handled with care, and submitting a complaint does not lead to negative consequences for the complainant. The procedure provides clear guidance for effective and accessible complaints handling, allowing the complainant to be heard and facilitating mediation between the complainant and Van Lanschot Kempen. It also requires confidentiality from anyone involved in handling the complaint, and information about the complaint will not be added to the staff file unless the employee requests it. This complaints procedure is available via our intranet for all employees. Via the EES we ask our employees whether they feel they can report instances of dishonest or unethical practices to the appropriate level or authority without fear of reprisals. Issues reported to the confidential counsellors are aggregated and anonymised before being presented annually to the Compliance & Operational Risk Committee for monitoring. Additionally, issues flagged through the complaints procedure are tracked by the complaints committee secretary. Through this process, we can assess the effectiveness of these channels. We have formal procedures in place to identify the action to take in response to actual or potential negative impact on our workforce, depending on the context. As mentioned, a complaints procedure is in place in case an employee submits a formal, written complaint to the official secretary of the Complaints Committee, and a final recommendation will be prepared for the Management Board. If negative scores are observed on specific topics within the EES, or if Van Lanschot Kempen is underperforming on its people- related key performance indicators (KPIs) – such as gender balance of inflow and gender balance of senior staff – targeted action plans are initiated where necessary. Incidents, complaints and human rights impacts Each year, our confidential counsellors compile an annual report detailing various incidents, including those related to discrimination and harassment, that have been reported to them. This report includes the total number of such incidents reported within the year. All data used is anonymised. Individuals who experience discrimination or harassment are not required to report these incidents. As a result, the reported figures only include incidents brought to the attention of our confidential counsellors. This means that the actual number of discrimination and harassment incidents within Van Lanschot Kempen could be higher. – Number of incidents of discrimination or harassment: 6 – Number of complaints filed through this channel for people in own workforce to raise concerns: 25 No severe human rights issues and incidents connected to our own workforce occurred in 2024. No fines, penalties and compensation for damages were incurred in 2024. Inclusion and diversity Strategy and business model As a personal, specialist knowledge and service-based organisation, our employees' professionalism, expertise, skills and behaviour determine the quality of our service and client experience. The inclusion of individuals from diverse gender backgrounds in our workforce can positively impact our employee satisfaction by ensuring equal opportunities, whereas unequal representation and opportunities for different genders may have a negative effect. We aim to attract, develop, and retain diverse talent, with specific goals to increase the percentage of women in senior positions and to improve diversity overall throughout the organisation. The impact of diversity on employee satisfaction, resulting from the inclusion of individuals from different genders and ensuring equal opportunities for employees from various backgrounds, is visible in the correlation between our inclusion and diversity score in the EES and in our overall inclusion and diversity efforts. The score on the questions in the EES related to this topic significantly improved after launching specific initiatives on inclusion and diversity in 2021, reaching 88% from 66% in 2019. Across 2022 and 2023 this score remained consistent at 88%, increasing to 91% in 2024. This score reflects the answers to three questions in the EES, which is sent to all employees: – My colleagues at Van Lanschot Kempen treat each other with dignity and respect regardless of their personal identities (94%); – Van Lanschot Kempen supports diversity in the workplace (90%); – My immediate manager supports equality of opportunity for all employees (88%). We expect the positive effect of inclusion and diversity on employee satisfaction to occur over the medium and long term. As we are continuously working on improving our gender diversity, we expect any negative impact on employee satisfaction from inadequate inclusion and diversity levels to occur only over the short term. These material impacts are specifically focused on equal opportunities for different genders. Any other gender than the current dominant gender in our company (male), could be negatively affected by a gender imbalance. We take a data-driven approach to measuring gender across all key HR processes, and we also analyse the results of the EES based on different characteristics to assess whether there are any points that need attention. All employees were included in the scope of this materiality assessment. 3 For FY 2024, we cannot register any other genders than male and female in our HR management system. Sustainability statement 46 The negative impact on the satisfaction of employees from unequal representation of different genders caused by unequal opportunities for employees of different backgrounds could be systemic if unequal opportunities were evident, indicating discriminatory practices. Research shows that diverse teams and organisations that include balanced representation of genders, outperform their less diverse competitors because employees are more innovative and make better decisions. We are committed to increasing the diversity of our workforce, which supports us in delivering the best service to our clients through our high- performing teams. We also believe that taking inclusion and diversity seriously is necessary to keep up with the developments in our environment and in society as a whole. With every year that passes, our clients and colleagues are becoming more diverse. Growth opportunities will be hampered for organisations that lack the adaptability to serve people from across society. We address these impacts by offering flexible work arrangements, engaging with employees for feedback and investing in training and skill development, and by implementing comprehensive health and safety programmes. These initiatives are particularly important in fostering an inclusive environment, where individuals from different gender backgrounds feel valued and supported. Our approach aims to ensure that equal opportunities are offered regardless of background and is assisted by our strategic partnerships with external partners, which specialise in inclusive employment practices and provide us with advice on our policies and practices. The gender distribution in number of employees at top management level is reported following the European Sustainability Reporting Standards (ESRS). Top management is defined as one and two levels below the Management and Supervisory Boards. Number of employees at top management level by gender on 31/12/2024 (headcount) Number of employees Percentage of employees Male 137 72% Female 53 28% Other/Not disclosed 3 — —% Total employees 190 100% Our policies on this topic Van Lanschot Kempen also leverages its inclusion and diversity policy to capitalise on opportunities to foster an inclusive and diverse workplace. This approach enhances innovation and adaptability, allowing us to better meet the needs of our diverse client base. Key aspects include promoting gender diversity and ensuring equal pay for equal work, which both attracts and retains diverse talent and ensures a dynamic workforce. The policy also emphasises the importance of bringing different perspectives to the table, which is crucial for executing our wealth management strategy. By focusing on these areas, we can drive growth and success while maintaining a strong and capable workforce. The policy is made publicly available on our website (vanlanschotkempen.com/-/media/files/documents/ corporate/who-we-are/inclusion-and-diversity/inclusion- and-diversity-policy-van-lanschot-kempen.ashx) and describes our vision, ambition and approach, which: – Emphasises the importance of diversity in all its forms and highlights the value of diverse perspectives and our commitment to attract, develop, and retain diverse talent; – Supports our ambition on inclusion and diversity, which is to increase the percentage of women in top levels, senior management, and within all other levels throughout the organisation, and to improve representation across other aspects of diversity; – Is structured around five pillars to unlock the potential of inclusion and diversity, as described in our policy. This policy is applicable to all of our employees. We regularly share the policy internally on specific diversity-related calendar days marked by the company to encourage colleagues to read it. The policy is also supported by our inclusion and diversity-related employee networks. The Management Board is the most senior level at Van Lanschot Kempen responsible for the implementation of this policy. The policy was approved by the Management Board and signed off by the Supervisory Board. The Management Board is responsible for setting the strategic direction of the organisation, and is responsible for the oversight of our policies and for monitoring and achieving specific KPIs related to inclusion and diversity. Furthermore, as stated within the policy, leadership is expected to lead by example, for instance via the Van Lanschot Kempen Partnership. The partners are leaders who commit to Van Lanschot Kempen for the long term and take responsibility for its success. Partners are expected to play their part, as a group and individually, both internally and externally. Partners are expected to bring their full commitment and talents to the organisation with due regard to inclusion and diversity. In 2024, they concentrated on fostering collaboration through initiatives such as the roll- out of the code of conduct, enhancing investment management and private banking collaboration, advancing our sustainability strategy, promoting inclusion and diversity, developing talent, and strengthening brand ambassadorship and company pride. Through our inclusion and diversity policy, we respect third- party standards such as the hiring quota law known as "Wet ingroeiquotum", and underline our commitment to meeting the requirements set forth by this legislation. This law, introduced in January 2022, focuses on gender diversity in the Dutch financial services industry. We file our submission to the Social and Economic Council of the Netherlands (SER) annually. For several years now, we have also participated in the Equileap Gender Equality Report. This comprehensive assessment ranks 4,000 public companies worldwide based on a unique Gender Equality Scorecard. Sustainability statement 47 Our commitment has yielded progress: in 2023, our Equileap score rose to 59/100, up from 42/100 in 2021. We also participate in the Workplace Pride Global Benchmark tool, which is designed to measure the LGBTQ+ policies and practices of employers. In 2024, we were mentioned as one of the top six organisations that have made the most progress on the Workplace Pride Global Benchmark. In setting our inclusion and diversity policy, we give consideration to the interests of key stakeholders. We consider our policy not to be a static document and aim to continuously evolve our approach to meet the needs of stakeholders. This includes taking into account the outcome of the EES, and feedback received from employees in other forms, such as via our ERGs or our Works Council. Interviews were conducted with colleagues to reflect the diverse perspectives and needs of the workforce, and review sessions were organised with internal and external stakeholders. Our actions on this topic We aim for 50% male and 50% female inflow of employees across all levels of our organisation, which is supported by a targeted action plan including: – Flexible hours and working conditions to provide employees with the flexibility to manage their work schedules and conditions to better balance their personal and professional lives, with a life-phase and gender-conscious approach. This action is applicable to all Van Lanschot Kempen employees. – Unbiased interview technique training in our hiring process to standardise the approach and evaluate candidates based on objective criteria. This action is directed at hiring managers and HR recruitment teams. – Game-based assessment for junior positions to reduce the potential for biased decision-making by evaluating candidates' skills and abilities in a more engaging and unbiased manner. This action is directed at candidates for junior positions including entry-level roles, working students and at interns as non-employees. – Partnerships with agencies and networks focusing on female talent with the objective to create a more diverse talent pipeline, by collaborating with external agencies that specialise in identifying and nurturing female talent. This leads to more women being considered for various roles within the organisation at all levels. We also aim for a minimum of 30% female and 30% male employees in the three levels immediately below the Management Board. To achieve this target, we have developed concrete action plans, including: – For senior staff positions, we aim to compile a recruitment shortlist that is well balanced from a gender perspective. – To maintain continuous awareness of our target for employees in senior staff, and to foster commitment to achieving our shared action plan, the topic of gender diversity is regularly discussed in our management teams, supported by our HR business partners and our recruitment team. – We take a data-driven approach to measuring our progress, and report a breakdown on gender for all key HR processes (for instance, succession planning, end-of- year promotion cycle, inflow, outflow, and also throughflow/internal mobility). These actions on inclusion and diversity are ongoing and applicable year-round. They do not have a specific time horizon. Our targets on this topic We have adopted several gender diversity targets that directly concern our employees. These align with our policy objectives, taking into account our vision, ambition and approach toward diversity. Our Management Board is responsible for setting the targets, with advice from the HR management team. The Management Board is updated on a quarterly basis on the performance of these targets. Target 1: 50% male and 50% female inflow of employees across all levels of our organisation. In 2024, the percentage of new female employees was 49%, in line with our target. At the time of the implementation of our inclusion and diversity policy (launched in 2022; baseline year 2021), this figure stood at 33% female and 67% male employees. As of year- end 2022, the inflow of female employees had increased to 41%, remaining unchanged at 41% at year-end 2023. In setting this target, we took an analysis of the gender balance amongst graduates in the Netherlands into account. Target 2: A minimum of 30% men and 30% women in the three levels immediately below the Management Board (senior staff). In setting this target we used a gender- predictive model from an external party that advises us on diversity. Following their recommendations we have defined a growth path with which we aim to grow our female representation by 2% a year, which will support us to reach this target by 2029. At the time of the implementation of our inclusion and diversity policy (launched in 2022; baseline year 2021), 15% of our employees in senior staff were female compared with 85% male. In 2024, we reached a gender balance among senior staff of 21% women, in line with the target from our growth path of 21% women by 2024. Equal pay for equal work Strategy and business model Equal pay for equal work is a material topic for our own operations. There is a potential negative impact on the satisfaction of our employees from not having transparent remuneration policies and clear guidelines on equal pay for equal work. This could negatively affect the culture of our company, especially if people do not feel appreciated or treated fairly. To measure employee satisfaction on equal pay for equal work, we ask our employees two questions on fair pay in our EES. All employees have been included in the scope of the materiality assessment. This material impact is directly connected to our strategy and business model, which emphasises the importance of attracting, developing and retaining a diverse and talented workforce. This is essential for delivering a high-quality service level to our clients and maintaining a high Employee Net Promoter Score, which in 2024 stood at 35 (target: above 10). The absence of transparent remuneration policies and clear guidelines on equal pay for equal work would negatively impact employee satisfaction, leading to abnormally high employee turnover, affecting the quality of our workforce and our ability to attract talent. This would eventually have the potential to cause operational disruption and impact the level of client service in the short to medium term. Sustainability statement 48 With regard to employee satisfaction, we specifically address transparent remuneration and equal pay for equal work, and we undertake several actions to understand and adjust, where appropriate, our procedures. This includes benchmarking our paylines and salary scales on a yearly basis and benchmarking the entire remuneration system every three years for our employees in the Netherlands. We outline our specific paylines and salary scales within our employment conditions, which are published internally for all employees to view, as well as conducting an annual analysis on our gender pay gap, assessing and addressing outliers identified as part of the gender pay gap analysis, and analysing results on fair pay from the EES. To retain talent, we offer flexible work arrangements, engage with employees for feedback, invest in training and skill development and implement comprehensive health and safety programmes. Furthermore, we maintain strategic partnerships and robust financial planning to manage risks. These measures ensure that we can sustain operations, support employee well-being, and maintain financial stability, demonstrating our capacity to handle material impacts and risks effectively. Our uncorrected gender pay gap stood at 27% in 2024. To calculate this, we analysed our employee population as of April 2024, which is also the basis for our corrected gender pay gap calculations. The April 2024 population is considered an estimate, as we have annualised these figures to provide an overview of the entire year rather than using gross annual pay. To ensure the accuracy of this estimate, the figure has been corroborated against the development of the employee base throughout the year. Due to the limited changes in our workforce, we believe that our current methodology accurately reflects the 2024 gender pay gap. To account for in-kind pay, we have included an estimate for the mobility and lease budget, based on our mobility policy and the number of users covered by this policy. 2024 uncorrected gender pay gap Uncorrected gender pay gap 27% We operate a merit-based remuneration policy in order not to discriminate on the basis of gender, age, nationality, social status or cultural background. To manage the impact of equal pay for equal work, we perform an entity-specific annual corrected gender pay gap analysis. In the methodology used to assess the corrected gender pay gap, a correction is made for differences in pay due to age, job level and tenure, for example. We further analyse the corrected gender pay gap at different levels in the organisation to determine whether there are any unexplained differences. If unequal pay practices were apparent, suggesting biases within the compensation and reward systems, and potentially indicating discriminatory practices, this could be viewed as systemic within our operational context. This is particularly relevant given that the corrected gender pay gap benchmark for financial institutions in the Netherlands is 10.4% in favour of men (CBS, 2023). With respect to the measurement of employee satisfaction with our approach to fair pay, we observed a slight improvement to 61 in the EES, well above the benchmark of 49 (2023: 57 vs benchmark of 55; 2022: 53 vs benchmark of 57). The results of the EES on fair pay are above the financial services benchmark but low relative to employee satisfaction scores on other topics. The scoring on the fair pay questions is slightly more favourable among female colleagues than male colleagues. 2024 remuneration ratio The annual total remuneration ratio of the highest paid individual to the median annual total remuneration for all employees 18% Our annual total remuneration ratio stood at 18% in 2024. We calculated this based on our employee population as of December 2024. This population is considered an estimate, as we have annualised these figures to provide an overview of the entire year rather than using gross annual pay. Due to the limited changes in our workforce, we believe that our current methodology accurately reflects the 2024 remuneration ratio. To account for in-kind pay, we have included the mobility and lease budget. Policies on this topic We have adopted several policies in which this material topic is addressed. Our inclusion and diversity policy emphasises the importance of diversity in all its forms, including gender, nationality, age, educational background, sexual orientation, gender identity, religion, ethnic background, disability and socioeconomic background. This policy applies to all Van Lanschot Kempen employees, including colleagues based outside the Netherlands. The Management Board is responsible for the implementation of this policy. The policy is dynamic and continuously evolves to meet the needs of stakeholders. Regular reviews, employee surveys and open dialogue are used to collect feedback and improve the policy. It has been approved by the Management Board and signed off by the Supervisory Board. Our inclusion and diversity policy is published on our corporate website, making it accessible and transparent to all stakeholders. The employment conditions of Van Lanschot Kempen in the Netherlands, and separately for Belgium, describe all compensation and benefits in a comprehensive and transparent manner, with attention to flexibility and a life phase-conscious approach. These conditions are an integral part of our employment contracts and apply to employees in these countries. Specific benefits that apply to employees in Belgium are detailed in the employment contract. The Management Board is responsible for the implementation of this policy. The Works Council must consent to any changes in the employment conditions as prescribed by the Works Councils Act (Wet op de Ondernemingsraden, WOR). The employment conditions are published on our intranet and shared with new employees before they sign their contract. Our variable remuneration policy sets out our policy on variable remuneration and encourages employees to act in the best interests of clients and other stakeholders, within the limits of legislation and regulations. This policy applies to all our employees. The Supervisory Board, the Remuneration Committee and the Management Board are responsible for the implementation of this policy. The Works Council must consent to any changes in the employment conditions as prescribed by the Works Councils Act. The variable remuneration policy is communicated internally and published on the Van Lanschot Kempen intranet. Sustainability statement 49 A description of the policy is included in this annual report on page 149) and the remuneration disclosures in the 2024 Pillar 3 disclosures. The remuneration policy for the Management Board is designed to attract and retain qualified leaders to successfully deliver on our strategy. The policy reflects our values and our code of conduct. The Supervisory Board, the Remuneration Committee, and the annual general meeting (AGM) are responsible for the implementation of this policy. The remuneration policy for the Management Board was adopted at the May 2024 AGM following a proposal by the Supervisory Board. The Works Council has the right to advise on the proposed remuneration policy. The policy is published on our corporate website as part of the AGM information. The remuneration policy for the Supervisory Board enables us to appoint and retain high-quality and diverse Supervisory Board members, who perform their duties and act in accordance with the interests of Van Lanschot Kempen and its stakeholders. The policy reflects our values and code of conduct. The AGM is responsible for the implementation of this policy and requires approval from its voting shareholders. The remuneration policy for the Supervisory Board is published on our corporate website as part of the AGM information prior to approval. Our actions on this topic We aim to avoid discrimination on the basis of gender, age, nationality, social status or cultural background with respect to our own workforce. We have undertaken several actions to manage the impact that unequal pay for equal work might have on our employees. We take continuous steps to remain within our target of a corrected gender pay gap below 2.0% (equal pay for equal work). We run extra checks on the end-of-year proposed salary increases and allocations of variable remuneration, in line with our view that appropriate checks and balances need to be embedded in the remuneration and rewards process. Flagging potential issues, for example in hiring or promotions, is part of the day-to-day work of our HR teams. This action applies to our own workforce and is ongoing without a set end date. We assess outliers with specific follow-up actions. The results for our non-Dutch offices are included for the first time in 2024, with follow-up actions planned for 2025. In our hiring process, we take steps to reduce the potential for bias by setting salary bands for roles and instructing our recruitment team not to ask for previous salary information. This action applies to our own workforce and is ongoing without a set end date. We track the outcome of equal pay analyses on new hires within the Netherlands, with specific attention to job levels and pay scales. The results are discussed with our recruitment team to ensure ongoing awareness of this topic. We have implemented a transparent jobs & career framework with clear pay scales and career bands within our employment conditions. This framework was introduced in 2020 for the Netherlands and was recently implemented in Belgium, Switzerland and the UK. The jobs & career framework aims to ensure that every employee feels equally paid for equal work. This action applies to our own workforce and is expected to be completed by 2026. We aim to keep the fair pay results of the EES in line with or better than the results of 2023 and will monitor our KPI on engagement. The HR People Services team is available to answer questions on employment conditions and remuneration. As a next step in the level of service we provide to our internal stakeholders, we are developing a HR chatbot for all policy- related questions while retaining a personal approach for more complex inquiries. In 2024, we implemented walk-in sessions with the HR People Services team, which were well attended. This action applies to our own workforce and is expected to be completed in 2025. We will evaluate the use of the HR chatbot and continue to monitor our KPI on engagement. We benchmark our paylines and salary scales with an external party to ensure that remuneration is sufficiently attractive. To determine how our remuneration develops in relation to the market, a benchmark study is carried out once every three years on the entire remuneration system. The results of the benchmarks are shared with the Works Council. This action applies to our own workforce and is ongoing, with annual checks. Our target on this topic Our target is to achieve a corrected gender pay gap of less than 2.0%. This corrected gender pay gap is an entity- specific data point. Focusing on the corrected gender pay gap rather than the uncorrected gender pay gap is crucial for addressing and decreasing unequal pay between genders. The corrected gender pay gap accounts for various factors such as job role, experience and education, providing a more accurate and fair comparison of compensation across genders. By analysing the corrected gender pay gap, we can identify and address the root causes of pay disparities and implement targeted strategies and policies that effectively reduce gender-based pay inequalities. This target is relative and measured as a percentage. The target applies to all levels of the organisation, including operations outside the Netherlands as of 2024. The baseline value for this target was 4.0% in 2021. The target period is set for 2024–25, with no interim targets. The target of less than 2.0% is ambitious and was initially set for the Netherlands, but is expanded to include operations outside the Netherlands as of 2024. The target is not set to 0% due to the nature of our reward system, which includes variable pay linked to performance, allowing for some variation in bonuses paid. Our Management Board is responsible for setting this target, with advice from the HR management team. This KPI directly concerns our employees. The corrected gender pay gap for 2024 stands at 1.4%, a reduction from 4.0% in our baseline year 2021. In the Netherlands our corrected gender pay gap for 2024 is 2.0%, a decrease from 3.0% in 2023 (2022: 2.7%), demonstrating solid progress against our target. The processes through which this effectiveness is tracked are detailed in our actions on this topic. The defined level of ambition to be achieved is a corrected gender pay gap of less than 2.0%, and progress is evaluated using this quantitative indicator. Progress on this KPI is communicated to employees via our intranet and disclosed in our annual report. 4 For FY 2024, we cannot register any other genders than male and female in our HR management system. Sustainability statement 50 Talent and skill management Strategy and business model Talent and skill management is a material topic for our own operations. We make a positive impact on employee satisfaction through the implementation of effective talent management strategies, such as our new performance and development framework, improved career development opportunities, recognition of skills, a supportive work environment and sufficient compensation for high performance, resulting in a culture of recognition and motivation. In the current market landscape, we anticipate that it will remain challenging to find talented individuals. As a result, we face both risks and opportunities in relation to talent and skill management. The financial risk of higher employee turnover and operational disruption due to insufficient talent management contrasts with the financial opportunity for reputational gain and external talent attraction by offering effective talent management. The quantification of this risk is not currently feasible. We expect the positive impacts, risks and opportunities to be applicable over the short to medium term. The environment in which we operate is competitive and changes continuously, so we believe that it is important to invest time in our employees' personal growth, skill development and mandatory training. It's essential for us to maintain and update the knowledge and skills of our employees, not only to meet legal training requirements but also to contribute positively to society. Our daily responsibilities include staying current with mandatory training relevant to the role of our employees. Some of these training sessions are required for regulatory compliance, while others are essential to emphasise our way of working. We have set up an overarching Van Lanschot Kempen Academy for all learning solutions, supported by domain- specific business academies. To contribute to continuous growth through everyday work, we offer feedback and diverse training initiatives, including specialised development programmes such as the Young Private Banking programme and Female Leadership programme. These efforts enhance employee satisfaction, skill development and career growth, fostering a culture of recognition and motivation. By offering training in technology, sustainability and well-being, we support employees' personal and professional growth, strengthening our reputation and talent attraction. On the other hand, inadequate training could leave our employees feeling unprepared and frustrated, prompting them to seek a new employer who supports their growth. Managers and HR are responsible for this ongoing guidance and support to their employees. We recognise that some people in our workforce with particular characteristics or working in specific contexts may experience impacts from this material topic to a greater extent. As a result, we promote continuous growth through active engagement and feedback, which helps to identify specific groups within the workforce with unique risks and opportunities. Through input from questions in the EES and feedback from our employee experience panels, we are able to develop a deeper understanding of these unique risks and opportunities. We embrace a "learning by doing" approach to learning and development. The most impactful learning extends beyond classroom training or courses and takes place through active engagement in one's job, alongside learning from and collaborating with colleagues. All our employees are eligible for these training options and we do not differentiate when assigning or targeting training solutions. However, we provide additional support to specific groups by allowing them more time and resources in areas where they may need extra help to acquire the necessary knowledge and skills. Due to the current unavailability of accurate information on training hours, we are unable to provide a detailed analysis at this time. As this is a phase-in data point, we are committed to enhancing our data collection processes and are actively working towards improving data quality. Talent retention is becoming more and more important within our company, and we have observed that career development is one of the key drivers of retention. We focus on keeping our employees engaged, providing flexible and inclusive working conditions, professional development and throughflow opportunities, and promoting inclusion and diversity. At the same time, the quality of our workforce has a direct impact on the experience of the clients we serve. We measure the experiences of our employees based on the answers that are given in the EES. Achieving our ambitions requires us to attract and develop top professionals. Performance development creates the best return on our investment in talent. Our transparent and decisive approach to performance enables us to deliver the best service to our clients through our expert colleagues. Our most specialised colleagues are trained through targeted development programmes that encompass training, mentorship and continuous learning opportunities to keep them at the forefront of their fields. Career development reviews in 2024 Gender Male Female Other/ Not disclosed 4 Total Percentage of employees that participated in regular performance and career development reviews 90.2% 86.1% —% 88.6% The number of reviews in proportion to the agreed number of reviews by the management 99.9% 99.6% —% 99.8% To maintain our quality of service and client experience, we make sure that our internal vacancy pipelines are activated through talent reviews, succession planning and workforce planning. We have a robust process in place to determine the succession of key positions within the company. While this process is not publicly available, it is closely aligned with our company's KPIs to reach our goals in critical areas such as diversity. This approach ensures that we are well-prepared to maintain our strategic and operational resilience. Sustainability statement 51 Our code of conduct is a critical prerequisite to our learning and development framework, ensuring that all employees adhere to the organisation's values, ethical standards and compliance requirements. It fosters a positive and inclusive work environment by emphasising values, ethical principles, respect and discretion. It champions fair and trustworthy services while complying with laws and regulations, aligned with the organisation's values. The code is provided as a policy and is mandatory for all new hires to complete through e-learning. Our policies on this topic We are not currently planning to adopt one specific policy on talent and skill management. Instead, we have a comprehensive and integrated approach in place to effectively manage these matters. Our employment conditions are designed to provide flexibility and support for all employees at different stages of their careers and lives, promoting personal and professional growth. For example, they provide access to resources such as the Van Lanschot Kempen Academy, the Young Professionals Curriculum and internal job vacancies. Employees are also required to complete mandatory compliance courses each year to stay informed and up to date. Our development and next steps guidance emphasises the importance of continuous professional growth, and provides resources and guidance for employees to advance their careers. This document is linked to the employment conditions and follows the learning and development (L&D) framework, highlighting the available learning opportunities and career paths within the organisation. The 2024 L&D framework encompasses all of our learning and development initiatives, both mandatory and non- mandatory. It outlines the roles and responsibilities of employees, managers and departments involved, covering group-wide learning and development initiatives and specifying which topics and types of training are mandatory for employees based on their target audiences. The framework provides clear guidelines and objectives; the way of working is supported by the philosophy and vision on L&D, checked and supported by evaluations and feedback via the tools available to employees. The L&D framework applies to all individuals working under our responsibility, including those with fixed-term or indefinite contracts, external hires and interns. It excludes external employees. The framework has been introduced as part of a growth cycle for employees, leading to performance evaluations when conditions are not met. All policies on this topic are available to employees via our intranet and the Management Board is ultimately responsible for their implementation. The Management Board has the final say on the employment conditions and, through the Compliance & Operational Risk Committee, is involved in approving and supporting the L&D framework. HR and Compliance are responsible for tracking and ensuring completion rates. The EES, pulse surveys, staff questionnaires and input from the Works Council provide valuable insights that can inform and refine learning and development offerings. These tools gather feedback on employee satisfaction, needs, and experiences, enabling the organisation to tailor training programmes, address skill gaps, and enhance overall workforce development strategies. Professionals in the public Dutch Securities Institute (DSI) register are required to meet all DSI competence requirements. Those who do not fully meet European Securities and Markets Authority requirements are candidate-certified and must take exams or tests and demonstrate ongoing competence. DSI was created for self- regulation and has a covenant with the Dutch Authority for the Financial Markets (AFM). Our policies ensure these standards are met through continuous development and regular assessments, aligning with DSI's self-regulation principles and the AFM covenant. Our actions on this topic The Van Lanschot Kempen Academy provides overarching learning solutions, supported by specialist academies. In 2024, we developed all academies further through content curation and development that contributes to our future growth ambitions. This initiative applies to all employees across our business segments and is expected to be completed by Q1 2025. We also activate our internal pipeline through talent reviews, succession planning and workforce planning. We aim for proportional promotions while considering the composition of our workforce. For example, we recognise that some support functions, which are often held by women, have limited scope for promotion. This action applies to all employees, with targets reviewed quarterly and no specific time horizon. Our targets on this topic Target 1 aims for an average staff turnover rate of 8–12%.Our score in 2024 was 9.5%, in line with our target. Achieving this rate will help to maintain a balance between fresh perspectives and experienced employees, fostering a culture of continuous learning. By monitoring employee turnover within this range, we can assess the effectiveness of policies related to employee retention and satisfaction. High turnover may indicate issues that need addressing, while low turnover within the target range suggests a stable and satisfied workforce, which contributes to social sustainability. Our target for employee turnover was adjusted to 8–12% for 2024–25 to include all reasons for turnover except reorganisation. Staff turnover includes regular employees and excludes working students, interns, and external employees. The turnover percentage is determined by dividing the number of employees who have left in the last twelve months, excluding reorganisation, by the average total number of staff during the same period (excluding working students and interns). Target 2 focuses on maintaining our internal throughflow KPI at ≥30%. In 2024, throughflow was 36.1%, in line with our target of ≥30%.Tracking the movement of employees within the organisation provides us with insights that help to offer opportunities for growth, skill development and career progression, which can reduce stagnation and improve overall organisational health. This aligns with sustainability goals by promoting a dynamic and adaptable workforce. The performance against the target is calculated by taking all vacancies filled by employees, excluding entry level functions, divided by all new hires. Target 3 is to ensure that the percentage of employees who believe they have the opportunity for personal development and growth meets or exceeds the benchmark of 74% (2024) (or the results of the last pulse or the EES if below the benchmark). Sustainability statement 52 The last pulse survey or EES serve as a baseline value for this target. We aim for a score of up to 5% above the results of the last EES on employees' belief that their personal development opportunities boost engagement and motivation. Our score for FY 2024 is 83.0%, well above our target. We believe that we can retain talent and maintain high morale by ensuring that a significant majority of employees feel they have opportunities for personal development and growth. This can mitigate risks associated with low employee engagement and high turnover, and create opportunities for innovation and improved performance. Performance against this target is assessed by calculating the proportion of responses from the EES that agree or agree somewhat with the statement, divided by the total number of responses. Together, these metrics create an environment where employees feel valued, supported and motivated to develop their skills, contributing to overall organisational growth and innovation. Employee turnover, throughflow and development in 2024 Staff turnover 8-12% 9.5% Throughflow ≥30% 36.1% Percentage of employees who believe they have the opportunity for personal development and growth 83.0% The Management Board is responsible for target setting, with advice from the HR management team. Our targets are measurable, expressed in percentages and apply to all employees for the period 2024–25. Progress on KPIs, both internal and external, is communicated to the Sustainability Board and the Management Board. In addition, this KPI information is shared with the relevant management teams. Working conditions: health & safety and work-life balance Strategy and business model We are a knowledge and information-driven, people- oriented company, operating in sectors where employee expertise and well-being are critical. Our activities, which involve high-intensity intellectual work, can lead to mental health issues and increased sickness-related absence, which pose well-being and financial risks. Our employees are essential to our success, so we must make sure that they can create and maintain a good work-life balance. Health and safety and work-life balance are material topics for our own operations. Balanced work-life practices have a positive impact on our employees, significantly contributing to their overall well-being. A positive work-life balance enhances employee well-being, job satisfaction, and productivity while reducing mental health issues and turnover rates, thereby preserving institutional knowledge and cutting recruitment and training costs. This positive impact may occur over the short to medium term. We believe that employees with a positive work-life balance are more engaged, more knowledgeable and accountable, experience better mental health and provide better service to our clients. To help our employees with this, we offer attractive employment conditions for every life phase, each of which has different requirements and expectations. We offer various types of leave to suit different life phases. Special employment conditions offer support to employees such as budget for childcare, and workshops to support employees in, for example, the menopause. We offer professional counselling, coaching and a stress management programme for employees and managers to become more stress-resilient. In our organisation, high work pressure has the potential to be a systemic issue. Our values of being personal and entrepreneurial encourage employees to put our clients' interests first and to achieve the highest standards of quality for them. To ensure that our dedication does not lead to continuously high work pressure and stress, we provide clear guidance and support to help sustain high productivity and foster a positive, balanced workplace for all employees. We are aware of these possible pitfalls of our values and therefore continuously assess and adjust our strategy to mitigate these negative impacts and enhance the positive ones, ensuring a supportive work environment for our employees. High work pressure can lead to negative impact on employees' health and safety, often resulting in increased absence rates due to stress or imbalanced work-life practices. This, in turn, poses a financial risk and a risk of operational disruption or financial loss due to high employee turnover or absence rates caused by a sub-optimal work-life balance. A poor work-life balance increases stress and mental health issues, lowers productivity, raises absence rates and turnover, and leads to operational disruptions and higher costs. These negative impacts may occur over the short to medium term. Financial risks may occur over the medium to long term. Addressing these risks through targeted interventions such as mentorship programmes, mental health resources and enhanced work-life balance measures is essential for organisational stability. To address these issues, we have formulated an action plan with the following priorities: – Actively monitoring work pressure and stress levels through the EES and pulse surveys, and implementing appropriate follow-up actions; – Gaining further insights about the health and well-being of our employees through preventive medical check-ups. This includes a survey on lifestyle and workload, a physical examination and an advisory conversation to discuss the results and potential follow-up interventions. Participation is voluntary and registration is conducted through the supplier's platform to ensure privacy; – Encouraging employees to improve their physical and mental health by offering health and well-being interventions through the HC Health vitality platform; – Promoting a healthy work environment by providing physiotherapy and chair massages at work and proper workstations for home offices. Our regular employee surveys provide insights into our workforce and identify groups at greater risk of harm, such as stress and burnout. Based on the survey data, we implement targeted interventions such as flexible working hours, remote work options and well-being programmes to enhance the well-being, job satisfaction and productivity of our employees. By continuously monitoring and adjusting our strategies, we align with our values of being personal, specialised, entrepreneurial and decisive. Sustainability statement 53 Embracing our value of being entrepreneurial, we continuously innovate and adapt our practices to meet the evolving needs of our employees, so they have the flexibility and support needed to thrive. These practices are embedded in our business model to promote a culture of flexibility and support. Our mental health resources and well-being programmes also help reduce the risk of increased absence rates. We implement comprehensive health and safety programmes, offer flexible work arrangements, engage with employees for feedback and invest in training and skill development. Additionally, we maintain strategic partnerships and robust financial planning to manage risks. By cross-training employees, flexible staffing and remote work technology, we will be able to maintain business continuity in the event of significantly high absence rates. We monitor workforce metrics to detect absence trends, enabling action to address underlying issues and support well-being. These measures help us to sustain operations, support employee well-being and maintain financial stability, demonstrating our capacity to handle material impacts and risks effectively. In addition to policies that meet general needs, we offer a life-phase aware personnel policy, recognising that employee needs differ at each stage, situation or event in our employees' lives. Employees taking family-related leave in 2024 Percentage of employees entitled to take family-related leave 100% Total: percentage of entitled employees that took family-related leave 17% Male: percentage of entitled employees that took family-related leave 14% Female: percentage of entitled employees that took family-related leave 22% Employees entitled to family-related leave through social policy and (or) collective bargaining agreements 100% Percentage of people in our workforce covered by a health and safety management system based on legal requirements and (or) recognised standards or guidelines 87% For the percentage of people in our workforce covered by a health and safety management system based on legal requirements and/or recognised standards or guidelines, employees in our offices in countries other than the Netherlands are not included. For these employees, similar health and safety management systems are developed, in line with local standards and needs. We are not permitted to register the reason for our employees' absence, so we have not reported the number of cases of employees' recordable work-related ill health. Our target on health and safety and work-life balance Our goal for 2024 was to achieve a percentage absence rate lower than the financial sector average (based on Statistics Netherlands' index on absence in the financial sector), which is used as the baseline value. Health and safety in 2024 Absenteeism 2.89% This target is relative and expressed in percentages. The absence rate for 2024 is calculated as the total number of sick days of employees, as a percentage of the total number of available calendar days of employees in the reporting period. This rate includes absences longer than one year and excludes family-related leave. The scope of this target is all Van Lanschot Kempen employees and the target applies for 2024-25. The Management Board is responsible for target-setting on this KPI, with the HR management team advising on the target- setting. To achieve this target, we have put several policies and actions in place. The effectiveness of these is tracked in relation to our target. However, we note that it is not possible to measure the extent to which these actions and policies directly influence the target, due to the qualitative nature of the initiatives. This makes it challenging to establish a direct correlation with the quantitative target. Additionally, due to privacy legislation, we are not permitted to collect or record data about the causes of an employee's absence from work. This limitation further complicates our ability to analyse the direct impact of our initiatives. Our policies on health and safety We have not adopted one specific policy to address the health and safety of our employees. Instead, we have several related policies in place. – Our absence policy provides information on the statutory regulations regarding employability, sickness absence and reintegration. It addresses absence by outlining clear procedures for reporting and managing sickness absence, including notifying supervisors promptly, a structured return-to-work process with possible adjustments, access to support services such as occupational health consultations, and regular monitoring and review of absence patterns to identify and address underlying issues. This policy specifically applies to all employees in the Netherlands. In Belgium and the UK, we have a simplified version of this absence policy in place. – Our policy on desirable and undesirable behaviour describes what we define as undesired behaviour, the actions employees can undertake if they experience it, and the support resources available (internal and external confidential counsellors). This policy sets the standard for how employees should behave towards each other and contributes to creating a safe and healthy workplace environment. This policy applies to all employees in the Netherlands and Belgium, and not to other foreign offices due the differences in local legislation. – Our complaints procedure ensures that an employee with a complaint is taken seriously, feels heard in a fair and independent manner and that the complaint is handled with due care. The submission of a complaint does not have any adverse consequences for the complainant. Our office in the UK has a simplified version of the complaints procedure in place. The scope of each policy may differ due to different regulatory requirements in different countries. The Management Board is responsible for the implementation of these policies. In setting these policies, we have considered the interests of key stakeholders. For the absence policy, we received input from the Works Council, which represents our employees. Sustainability statement 54 For the policy on desirable and undesirable behaviour and the complaints procedure, input was received from both the Works Council and our confidential counsellors, who represent employees who have experienced undesirable behaviour. These policies are published on the intranet, and new policies are communicated and forwarded via HR newsletters. Although we have not yet adopted one specific formal policy to address the negative impacts of work pressure and stress on the health and well-being of our employees, we have an established approach to managing these challenges, which consists of analysing data about work pressure and stress collected through the EES and pulse surveys, and analysing data from our Occupational Health & Safety Service on the causes of our employees' absence. Our commitment to our core values and employee well-being drives us to continually enhance our practices, providing a supportive and healthy work environment for all our employees. In support of this, we aim to adopt a health and well-being policy (including mental health) in 2025. Our actions on health and safety We strive to ensure that our actions generally contribute to the overall health and safety of our employees, as this is of great importance to us. We offer various tools that support employees with their health and well-being, which contributes to a mentally and physically stronger workforce, thus making employees less susceptible to stress from work pressure. As we do not have a formal health and safety policy in place, there is no direct connection between our actions and such a policy. Our tools include: – Physiotherapy: Colleagues with physical complaints such as back pain or tension headaches can book on-site physiotherapy. This is available for all employees in the Netherlands. – HelloYou portal: HelloYou is a health & well-being platform rich in content and modules that employees can use to work on their mental and physical health. The content is helpful in reducing stress levels, contributing to a healthier workforce and lower absence. The HelloYou portal is accessible to all employees with intranet access in the Netherlands, Belgium and the UK. The quality of an office or home workplace has significant implications for both productivity and mental health; employees in a functionally ergonomic environment experience fewer interruptions and can concentrate better. This results in less stress and better performance. Employees who feel good in their work environment stay motivated and engaged. We therefore provide: – A suitable home workplace; – Access to ergonomic tools: all employees in the Netherlands can request an ergonomic aid tool if necessary, provided a physiotherapist prescribes it; – Workplace assessments: all employees can request a workplace assessment and advice from a physiotherapist about their workplace at home. We also provide an on-site stress resilience programme, which consists of a masterclass, workshop and (online) coaching session for employees, and a workshop for managers. This helps employees understand stress better and become less susceptible to work pressure. In the workshop, employees get familiar with their own stress system, enhance their resilience and learn the right techniques, tips and tools to handle stress. This is available for our employees in the Netherlands. These actions have no defined time horizon for completion. Our commitment to mitigating the negative impact of work- related stress on employees' health and safety is demonstrated through investments in both current and future resources. Through a combination of targeted stress management programmes, enhanced support services and proactive financial planning, we address both the negative impact on employees' health and safety due to stress and the financial risks associated with higher absence rates. These efforts underscore our commitment to the well-being of our employees and the sustainability of our business operations. By offering psychological and occupational services, we aim to create a supportive work environment that prioritises well-being and reduces absence rates. Our policies on work-life balance We have not adopted one specific work-life balance policy but formed a comprehensive approach to manage this effectively. Our goal is to support employee well-being through balanced work-life practices and minimise risks from imbalanced practices. Our actions on work-life balance To prevent or mitigate negative impacts on our workforce, we have implemented several key actions: – "Leading the Change": This online programme consists of two workshops for staff and a webinar for managers, aimed at supporting employees during challenging phases in their lives. The workshops provide practical tools and tips for maintaining a good work-life balance and help lower stress levels, particularly for parents of young children or those experiencing menopause. The webinar equips managers with tools to discuss physical and mental aspects of (young) parenthood, menopause and perimenopause, and helps to ensure employees do not drop out during these life phases. The target audience is all employees. – Energy management workshop: This workshop focuses on learning and experiencing how to manage personal energy. Participants are provided with practical tips and tricks that can be applied immediately in their daily life. Training employees in energy management positively impacts their work-life balance and resilience to stress, with the aim to reduce absenteeism. The scope of this action is employees in the Netherlands. – Employment conditions for every generation: We offer various non-statutory schemes to ensure a good work- life balance, tailored to the different requirements and expectations in each life phase. These schemes include maternity leave with 100% gross monthly income, 100% paid parental leave for partners, parental leave allowance, 100% paid sickness and incapacity for work during parental leave, 100% short-term-care leave, sabbatical leave, leave to support special life events, babysitter credit and grandparent leave. The scope of these employment conditions is employees in the Netherlands. We have not defined a time horizon to complete these actions as these are all ongoing. Thanks to our approach to absence management and data analysis, the overall absence rate trend is consistently low. However, it is challenging to link the results to specific targeted actions. 5 For FY 2024, we cannot register any other genders than male and female in our HR management system. 6 "Other" as prescribed in ESRS S1-6 being those making up less than 10% of total workforce or fewer than 50 employees. Sustainability statement 55 However, we continuously monitor the effectiveness of our initiatives through the EES and pulse surveys. Key metrics such as absence rates and employee satisfaction are tracked to assess the impact. We continuously refine and enhance our programmes, ensuring they meet the evolving needs of our workforce. By implementing these actions, we show our commitment to providing support and remedies for employees affected by material impacts, fostering a healthy and supportive work environment. Employee characteristics A detailed overview of our employee characteristics is presented below. This section provides insights into the composition of our workforce, including gender diversity and employee turnover. All employee characteristics are reported at the end of the reporting period and in headcount, unless otherwise specified (FTE for employment type). The data is based on our HR system and the underlying contracts of our employees. The number of employees reported reconciles with the number of staff at year-end 2024 on page 235 in the financial statements, excluding our non-strategic investment. Number of employees by gender on 31/12/2024 Gender Number of employees (headcount) Male 1,364 Female 827 Other/Not disclosed 5 — Total employees 2,191 Number of employees by employment type on 31/12/2024 Male Female Other/ Not disclosed1 Total Permanent employees (FTEs) 1,185 629 — 1,814 Temporary employees (FTEs) 101 103 — 204 Non-guaranteed hours employees (FTEs) — — — — Full-time employees (headcount) 986 406 — 1,392 Part-time employees (headcount) 378 421 — 799 Number of employees by country on 31/12/2024 (headcount) Netherlands 1,910 Belgium 198 Other 6 83 Total employees 2,191 Number of employees by country and employment type on 31/12/2024 Netherlands Belgium Other2 Total Permanent employees (FTEs) 1,549 188 77 1,814 Temporary employees (FTEs) 199 2 1 204 Non-guaranteed hours employees (FTEs) — — — — Employees who have left the company and employee turnover in 2024 Employees who left the company during the reporting period (headcount) 267 Employee turnover 13% The percentage of employee turnover is reported in line with ESRS. This differs from the employee turnover that we report for our talent and skill management, where employees leaving as a result of reorganisation are excluded. To measure the number of employees who have left Van Lanschot Kempen and the percentage of employee turnover, all employees who left Van Lanschot Kempen during the reporting period are included. This number is divided by the average of all the employees (regular employees and working students) at Van Lanschot Kempen during the reporting period. Number of non-employees by type on 31/12/2024 (headcount) Employees who are self-employed — Employees provided by undertakings primarily engaged in employment categories 108 Total employees 108 The number of non-employees is reported at the end of the reporting period and is based on headcount. The data is based on our HR system and the underlying contracts of our employees. Workers in the value chain How we manage our impact Our activities can have a significant potential impact on workers in the value chain, both upstream and downstream. This includes potential impacts on labour and other human rights, which could be linked to our procured goods and services and to the services we provide to our clients. This is particularly relevant when we invest – on behalf of our clients – in countries and sectors in which human rights and labour rights violations might be present. Based on our materiality assessment, workers in the value chain is a material topic for us with regard to our AuM (downstream value chain). The workers in the value chain of our investee companies are included in the scope. Qualitative IRO description The negative impact of poor working conditions on workers in the value chain through investee companies. Sustainability statement 56 In all of our activities, we seek to respect international human rights and labour rights. This includes prevention of child labour, forced labour, human trafficking and discrimination, as well as respecting freedom of association, equal remuneration, the right to collective bargaining and other rights. We also expect our investee companies to do the same. Our policies on this topic We have two main policies related to workers in the value chain: a human rights and labour rights policy and an Organisation for Economic Co-operation and Development (OECD) policy in place to manage material impacts, risks and opportunities related to workers in the value chain. As a responsible wealth manager, we are committed to respecting international human rights, at all times and in all our different roles: as a lender, investor, service provider, employer and purchaser. These five roles can be translated into our activities in our upstream value chain (suppliers) and in our downstream value chain (investing on behalf of our clients in our Private Clients and Investment Management Clients segments and financing in our Private Clients segments). The scope of these policies covers these five roles, but the topic "workers in the value chain" is only material from an investment perspective. Human rights and labour rights policy The aim of our human rights and labour rights policy is to avoid harm, eradicate malpractice, remediate negative impacts and to generate positive social outcomes and impact along the value chain. Furthermore, in all of our roles, we seek to respect international human rights and labour rights. This includes forbidding child labour, forced labour, human trafficking and discrimination, as well as respecting freedom of association, equal remuneration, the right to collective bargaining and other rights. We also expect the parties with whom we interact, whether it be in our role as an investor, lender purchaser, service provider or employer to do the same. We believe that companies can only be successful over the long term if they generate sustainable social, environmental and financial value for all stakeholders. This policy combines labour and other human rights because many of the labour rights (such as the right to work and the right to living standards) can be considered as fundamental human rights. In the policy, we state that we are a signatory to the UN Global Compact (UNGC), a global standard for companies to align their strategies and operations with universal principles on human rights, labour, environment and anti-corruption. We adhere to the UN Guiding Principles on Business and Human Rights (UNGP), the OECD Guidelines for Multinational Enterprises (MNEs), the Principles for Responsible Investment (PRI), and International Labour Organisation (ILO) and UN conventions, listed in our convention library. We are also a member of the Investor Alliance for Human Rights. In line with our sustainability governance, the Sustainability Board approves the human rights and labour rights policy, which is also discussed in the Sustainability Investment Council and reviewed periodically to reflect material changes. Our human rights and labour rights policy is available on our website: vanlanschotkempen.com/sustainability-policies- and-resources. OECD policy In our OECD policy we explain how we, through various linked policies, comply with the OECD Guidelines. This policy applies to our activities as an investor, lender, service provider, employer and purchaser. In this policy we give an overview of our business and organisation and present an assessment of our potential adverse impacts. It also includes an overview of our policies to identify, prevent and mitigate these and explain how these policies make us compliant with the OECD Guidelines. For example, our sustainable investment charter for client investments aims to identify potential and actual negative impacts for a large number of sustainability themes, including those covered by the OECD Guidelines. On the basis of our investment process (which leads to only small stakes in companies), we assess the chances of causing or contributing to negative human rights impact as low. This means that Van Lanschot Kempen would at most be directly linked to such a negative impact. In that case we would apply an engagement approach, fully in line with the OECD Guidelines. In line with our sustainability governance, the Sustainability Board approves the OECD policy, which is also discussed in the Sustainability Investment Council, and reviewed periodically to reflect material changes. Our OECD policy is available on our website: vanlanschotkempen.com/-/media/files/documents/ investment-management/esg/policies/oecd-guidelines.ashx. Impact on our AuM We are exposed both directly and through investment funds to a large number of entities. As a wealth and asset manager, we are primarily exposed to potential and actual human rights and labour rights impacts through our investments globally. We acknowledge the complexity of the environment in which we operate and we are conscious of the possibility that some of our investments in higher-risk sectors may cause or contribute to adverse human rights impacts. Our ability to manage these risks or to have influence on mitigating them in our investments largely depends on the investment strategy and the possibility of using our leverage through the different responsible investment tools in the investment process. In our activities as investor we want to avoid causing or contributing to any negative impacts in relation to the various OECD themes. However, via the activities and supply chains of our clients, suppliers or investees we may become directly linked to negative impacts, especially when these supply chains are located in regions with relatively weak regulation and enforcement, such as in emerging economies. These impacts relate mostly to the OECD themes of employment, human rights, environment, bribery and – to a lesser extent – consumer interests. Our ongoing due diligence procedures use specific filters, standards and parameters for sectors that are deemed potentially high-risk from a human rights perspective. We have also established specific policies to exclude companies that structurally harm human rights, such as manufacturers of controversial weapons. Going forward, we aim, in addition to the disclosures in our integrated report, to further improve our reporting on human rights (policies, implementation and results) by using – among other tools – the UNGP reporting framework. Sustainability statement 57 We use the following four-step approach with listed companies to manage our ESG risks and opportunities and integrate them in the investment process: 1. Exclusion; 2. ESG integration; 3. Active ownership (engagement and voting); 4. Positive impact. For more information on our approach to ESG risks, see "Risk and capital management", page 119. In addition, we have processes in place for unlisted companies. Our exclusion criteria are designed to address actual human and labour rights impacts, while our monitoring and engagement are designed to address potential human and labour rights impacts. We rely on third-party data, from our ESG data provider MSCI, to flag issues related to workers in the value chain, such as high-risk exposure, inadequate management of the risk issue or actual controversial conduct. All sectors could potentially have negative impacts on workers. We consider labour rights relevant for workers in all sectors. Our actions on this topic We seek to factor in human rights and labour rights in our investment analysis where these factors are most material. This policy commitment to respect human rights and labour rights is integrated into our governance frameworks, management systems, investment beliefs, policies and strategy. When our external ESG data provider, MSCI, flags controversies related to rights of workers in the value chain, we engage with the companies involved and track the number of our engagements. MSCI does not disaggregate specific characteristics in the controversies they flag. If our external data provider doesn't provide a flag on a controversy, we are dependent on other external stakeholders to raise their concerns; otherwise we are not aware of a controversy and we can't take action. In 2024, we did not have any red flags related to rights of workers in the value chain. If we identify any flags from our ESG data provider, MSCI, then we make an explicit request for the companies involved in controversies to make a change. These "engagements for change" must pass four milestones: raise the concern with the company, the company acknowledges the issue, the company initiates action on the issue, and the company implements a programme (closing of the engagement). Measuring progress on these milestones is a proxy for the effectiveness of the engagement. We don't directly engage with potentially affected workers in the value chain. We ask the company for transparency on the measures they are implementing to remedy the impact, and to set up policies and procedures to avoid this from recurring. For our discretionary AuM, we set thresholds for minimum ratings and controversy flags relating to workers in the value chain. We exclude companies involved in very serious controversies and, where we have leverage, we engage with companies to improve their performance. We do not conduct a specific screening of particularly vulnerable stakeholder groups. For engagement with our investee companies, we assess and engage with them proactively where we identify concerns. We apply two different approaches – "actual impact" or "potential impact" – or a combination of the two. Actual impact engagements: Engaging with companies involved in human rights and labour rights controversies, such as those that violate the UNGPs. We ensure that these companies have put sufficient processes in place to address and remedy the adverse negative impact on communities or individuals involved. Ultimately, we can escalate or divest if companies are unwilling to improve their practices. Potential impact engagements: Reviewing holdings and identifying companies operating in sectors and geographies that make them more vulnerable to potential labour and human rights abuses. We engage with these companies proactively to ensure they have the right tools and systems in place to prevent those risks from materialising, and have procedures in place to prevent or remediate possible negative consequences. We are part of the Platform Living Wage Financials and have been active in direct and collaborative engagements regarding living wages with apparel and textile companies, with the aim to ensure that employees are paid a living wage. For more information about these engagements, see our website: vanlanschotkempen.com/en-nl/investment- management/sustainability-approach/engagement- factsheets. We are also supporting Advance – the PRI-led social issues engagement that is a collaborative stewardship initiative for human rights and social issues. Besides engagement, we can use our voting rights to express our views on labour and other human rights aspects of investee companies' sustainability performance. We use our voting rights in line with our engagement activities. For example, we may exercise our voting rights regarding unadjusted gender pay gaps or issues relating to board gender diversity. We may also vote for proposals that ask companies to report on the quality of their workplace practices and on their efforts to improve the quality of their workplaces. We are in favour of ensuring that boards act on social responsibility and have a meaningful human and labour rights risk oversight mechanism in place. Companies are expected to pay living wages, and have zero tolerance for forced labour and modern slavery in their operations and supply chains. They also need to have a whistleblower protection policy in place. More information is available in our proxy voting policy: vanlanschotkempen.com/-/media/files/documents/ investment-management/esg/policies/voting-policy.ashx. We review shareholder proposals addressing human and labour rights on a case-by-case basis and are likely to support meaningful requests towards management on safeguarding these rights and increasing public disclosure on related topics. Respect for human rights is fundamental to advancing the United Nations Sustainable Development Goals, as stated by PRI. This includes the eradication of forced labour, human trafficking and other human and labour rights violations. Sustainability statement 58 International standards, norms and covenants aim to safeguard all basic human rights. The Office of the United Nations High Commissioner for Human Rights defines human rights as “the rights inherent to all human beings, whatever their nationality, place of residence, sex, national or ethnic origin, colour, religion, language, or other status”. All human beings are equally entitled to human rights without discrimination. These human rights are described in the International Bill of Human Rights, which comprises the Universal Declaration of Human Rights, the International Covenant on Economic, Social and Cultural Rights, and the International Covenant on Civil and Political Rights and its two optional protocols. In addition to the International Bill of Human Rights, there are also standards developed by the ILO, which are part of the international framework of human rights. This includes the eight core ILO conventions. In section five of our OECD guidelines, we describe a combination of the six OECD steps and our due diligence process. Additional human rights treaties define, in greater detail, various rights with respect to particular groups of people or circumstances. We aim to report at least annually to our clients and other stakeholders on our progress regarding the commitment, ambition and objectives of our own and client portfolios. We do not currently have a grievance mechanism in line with the eight UNGP principles. We do have a complaints procedure for third parties to raise concerns. Although we do not directly engage with the workers in the value chain for setting the complaints procedure, we do discuss this topic in our stakeholder engagement process, as stated on page 28. If third parties, such as workers in the value chain, suppliers, intermediaries or NGOs, wish to lodge a complaint, they can contact our Chief Compliance Officer via our corporate website (see under "Reporting irregularities"). If clients wish to lodge a complaint concerning general, operational or financial irregularities, they can use the complaints procedure (also published on our corporate website). Any issues raised will be reported to Compliance; as of the end of 2024 no issues related to workers in the value chain had been raised. We do not currently check the effectiveness of the channels in line with UNGP principles, but we do review our complaints procedure every three years. In 2024, there were no cases of non-respect of the UN Guiding Principles on Business and Human Rights, ILO Declaration on Fundamental Principles and Rights at Work, or OECD Guidelines for Multinational Enterprises that involve value chain workers. We depend on the statements provided by the affected companies or civil society reports to assess whether value chain workers are aware of processes available to raise their concerns, where these come to light. We don't have targets in place with regard to workers in the value chain. In 2025, we will review our engagement process, during which we will also evaluate our approach to human and labour rights. This evaluation will inform the target- setting process for 2026-27. Privacy for our clients Through our DMA, we identified privacy for our clients as a material topic with the following negative impact and risk: Qualitative IRO description The financial risk of reputational damage and/or litigation costs if policies and processes to protect clients' privacy are inadequately applied The negative impact of inadequate cyber security and/or IT security on systems of services to protect our clients' privacy Strategy and business model Processing personal data is inherent to the products and services that we offer and is an integral part of our business operations. This data includes information about natural persons, which is necessary for delivering the products and services our clients expect from us. We process personal data as part of our business model, according to applicable laws and regulations. Given that discretion is one of our core ethical principles, the protection of personal data necessitates a commitment to standards that exceed the average. The impact of data breaches can significantly affect our business model, potentially resulting in non-financial harm, primarily in the form of reputational damage, and financial repercussions such as fines and paid damages. This means that privacy is a material topic for our own operations. The financial risk associated with reputational damage and litigation costs can be significant if our policies and processes to protect clients' privacy are inadequately applied. Besides the financial risk, there is a larger risk of reputational damage. Our commitment to discretion is a key aspect of reputational risk: should we fail to maintain the confidentiality of clients' personal data, they may seek alternative financial institutions that can better safeguard their information. Furthermore, inadequate cybersecurity and IT security measures can negatively impact our systems and services, compromising our clients' privacy and trust. If this were to occur, the negative reputational and financial impact would emerge in the short to medium term. In response to the potential impact of privacy breaches, we have implemented processes to mitigate inherent risks, which we outline below. We have also established procedures to enable data subjects to exercise their rights effectively. Inadequate information security can result in data breaches and compromised data may be exploited, for example in phishing scams. All clients who are natural persons may be materially impacted by such incidents. This concern predominantly pertains to clients of Private Clients Netherlands and Private Clients Belgium. While the activities of Investment Banking Clients and Investment Management Clients also involve personal data, the impact is generally limited to instances where the data pertains to individuals in a business context, such as email addresses containing first and last names. The negative impact of the unlawful or incorrect processing of personal data could be widespread. For example, if unnecessary personal data is processed, this is unlawful and could impact a large group of people due to the potential breach of their personal privacy. Sustainability statement 59 Incidental data breaches typically entail individuals or smaller groups of clients. Most data breaches are due to human error and result from small mistakes, for example sending an email to a wrong email address. We put strong emphasis on operational resilience, particularly when it comes to privacy. All business activities, including those related to privacy for our clients, could be subject to disruption due to unforeseen events such as utility outages and other data breaches. The risk that (strategic) objectives cannot be achieved in a complete, accurate and timely manner as a result of serious interruptions and/or unforeseen events is referred to as business continuity risk. To mitigate this risk, we have set up business continuity management (BCM) procedures within our organisation. As part of BCM, a significant data breach would be managed by a related Crisis Support team, and coordinated by the Crisis Management team. Data breaches with limited impact are handled by Internal Control, the Privacy Officer and the Data Protection Officer (DPO). According to the General Data Protection Regulation (GDPR), children are less aware of the risk involved in the processing of personal data. For this reason, GDPR requirements make a distinction in terms of a person's age. National legislation can make further distinctions between the age and other characteristics related to a person's rights. We have assessed the legal requirements of these characteristics and applied these in our data privacy policy. We use the data protection impact assessment (DPIA) method to assess the risks to which natural persons may be exposed when their personal data is processed, and for establishing what measures should be taken to mitigate these risks. DPIA is a systematic description of the processing of personal data. This includes a description of the lawful base of processing. It also involves assessing the necessity and proportionality of the processing. We also conduct a balance test to evaluate the interests of both Van Lanschot Kempen and our client. Finally, DPIA outlines the intended measures to mitigate risks, ensuring compliance with GDPR. It is carried out when legally required and is reviewed every three years or sooner, as needed. Engagement with our clients We present a privacy statement to our private banking clients before their personal data is processed. This privacy statement is also published on our website: vanlanschotkempen.com/-/media/files/privacy-statements/ privacy-statement-van-lanschot-kempen-private-banking- nl.ashx. In it, the email address of the DPO, an independent internal supervisor, is published. Clients can also send in complaints via the specific complaints channels, which handle all types of complaints. We have a procedure in place that states the requirements when handling subject access requests. What's more, the legal GDPR requirement on the independent position of the DPO ensures transparency and accountability. Complaints about privacy are reported through this channel infrequently. We do not directly engage with clients on privacy matters unless they contact us to execute their rights under GDPR. Under this regulation, there is no requirement to engage directly with clients in relation to privacy. Although there is not a legal obligation for financial institutions to inform data subjects of a data breach, the DPO will consider if the affected data subjects need to be informed based on the criteria set by GDPR Article 34 and advise the business accordingly. Data breaches are reported according to our incident management procedure, which ensures that we meet the deadline set by GDPR to report data breaches. They are initially handled by Internal Control and when needed reviewed by Compliance and the DPO. The Privacy Officer is responsible for contact regarding privacy issues at Van Lanschot Kempen. No remedy is offered due to the fact that this is usually impossible in case of GDPR breaches. If our clients do have concerns, three channels are available: a generic channel for all types of complaints, including those that are privacy-related; another for specific requests under GDPR, such as the right to be informed; and the last through the Dutch Data Protection Authority. Every quarter, issues raised and addressed are reported via the Quality & Services department and to the Privacy Committee. In 2024, there were six complaints regarding privacy using these channels. Every quarter, the number of data breaches is reported in a data privacy report to the Privacy Committee. This committee is responsible for monitoring data breaches and leaks and initiating improvements if necessary. In 2024, a total of three data breaches were reported to the Dutch Data Protection Authority. In addition, requests by clients via [email protected] included two requesting a deletion of personal data and two requests to view their personal data processed in the last year. Based on the information provided above, we are confident that these channels are effective. Policies regarding protection against retaliation for individuals who use channels to raise concerns or needs are in place. Our data privacy policy underlines the rights of data subjects and emphasises the independent position of the DPO. Additionally, our whistleblowing policy highlights the rights of whistleblowers, including those related to GDPR. We have not officially tested the policies fit for this purpose. Our policies on this topic Our data privacy policy sets the requirements for processing personal data relating to natural persons, ensuring confidentiality and compliance with GDPR, including the rights of data subjects. The policy is applicable to all employees, with the Management Board responsible for its implementation. The policy affects all clients, prospects and employees. Our code of conduct describes our values and ethical principles, such as discretion, and applies to all our employees on a group-wide basis. Our code of conduct is also publicly available. The Management Board is responsible for its implementation. Our guidelines for building AI provide comprehensive guidance on appropriate and inappropriate practices when using (generative) AI. This should be developed without the use of personal data. However, when using the systems, there is a chance that personal data may be used. Our guidelines for using AI offer guidance on the application of (generative) AI models using client personal data, which may affect those clients. Both of these guidelines comply with the EU AI Act. They apply to Van Lanschot Kempen, its business segments and legal entities, and are subject to existing Sustainability statement 60 policies and standards. The Management Board is responsible for their implementation. Our information security policy delineates the requirements necessary to safeguard the security of all information and IT assets, defining the objectives of information security, roles and responsibilities, and the IT risk management framework. This policy applies on a group-wide level, with the Compliance & Operational Risk Committee delegating responsibility to the Corporate Information Security Officer. The policy is based on good practices (e.g. ISO27001, NIST) and ensures regulatory compliance with regulations such as the Digital Operational Resilience Act (DORA). These policies are not made public and are intended for employees, published on our intranet for consultation. Our three lines of defence model ensures that relevant committees and departments are included in policy-setting to determine the impact of changes, although clients are not seen as direct stakeholders due to a lack of direct communication. Human rights policy commitments relevant to consumers and end-users are reflected in our data privacy policy, code of conduct and AI guidelines, aligning with Articles 2, 7 and 12 of the Universal Declaration of Human Rights. Our actions on this topic Our commitment to not causing or contributing to material negative impacts on clients and end-users is reflected in our ethical principle "We act with discretion", our adherence to GDPR, and the general discretion of our employees, which is integral to our service as a wealth manager. The Privacy Committee, instructed by the Compliance & Operational Risk Committee, is responsible for establishing and monitoring the data privacy policy. This includes executing the control framework, conducting risk assessments, ensuring compliance with the privacy policy and preparing quarterly reports. Specific tasks involve monitoring the execution of the control framework and discussing the outcomes of control activities conducted by Internal Control and the DPO. This action is implemented on a group-wide basis and does not have a specified time horizon. It contributes to the protection of personal data, indirectly impacting the risk of privacy breaches, although no direct remedy is provided to clients, as prevention is the primary focus. In addition, the monitoring of the number of data breaches reported to the Dutch Data Protection Authority is conducted on a group-wide basis without a specified time horizon. This action helps us to identify privacy risks retrospectively. An increase in reported data breaches may indicate underlying structural issues that need to be addressed. The effectiveness of our data privacy management is reported to the Privacy Committee each quarter, with relevant actions escalated to the Management Board. Necessary actions in response to actual or potential material negative impacts on consumers and end-users are identified through risk assessments, with gaps identified in relevant policies and prioritised based on their impact. While no remedy is typically offered for GDPR breaches due to their nature, data breaches are managed accordingly, and root cause analyses are conducted if relevant. Targets in relation to privacy At Van Lanschot Kempen, we integrate the management of data privacy within our broader compliance risk framework. Our defined risk appetite for compliance risks is clear: we have no appetite for risks resulting from non-compliance with applicable laws, regulations, our code of conduct and other applicable industry standards of good practice. While we acknowledge that incidents may occur, we emphasise the importance of reporting these incidents, to minimise their impact and enhance our learning and improvement processes. Setting specific targets for data privacy incidents could undermine this proactive approach. We do not currently intend to set any targets related to this topic. Quality and relevance of our solutions Quality and relevance of our solutions is a material topic for our own organisation. We create a positive impact on our clients through ensuring adequate digital practices and processes resulting in lower prices and/or an improved quality of service. Feedback on the quality and relevance of our solutions is essential as it informs our actions and drives continuous improvement. Qualitative IRO description The positive impact on our clients of adequate digital practices and processes resulting in lower prices and/or an improved quality of service Conducting client research, which includes assessing their loyalty and satisfaction, is integral to our approach. We sincerely believe that listening and responding to client wishes will make our organisation better. We work agile: taking action and measuring outcomes based on identified needs. If wishes or needs change, we adapt accordingly. We learn, we adapt and we act. Considering our culture and values, we feel that a formal policy might not support this approach. We therefore have no intention of adopting a formal policy at this time. Our actions on this topic We monitor client satisfaction with our digital services in two ways: through quarterly Net Promoter Score (NPS) surveys and through our digital channels. While it is challenging to precisely measure the effectiveness of individual actions, we have observed a general increase in client satisfaction with our digital services. This overall positive trend suggests that our collective efforts are resonating well with our clients, even if the impact of specific initiatives cannot be distinctly quantified. Monitoring client satisfaction through quarterly NPS surveys By systematically gathering input from our clients, we identify areas with improvement potential. These insights are discussed by various stakeholders across our organisation. Depending on the prioritisation, stakeholders incorporate these improvements into their respective roadmaps. By addressing these potential improvements, we aim to enhance client satisfaction with our digital services, which in turn positively impacts our NPS. Sustainability statement 61 Each quarter, we compile a "client feedback book" that consolidates input received from our private banking clients in the Netherlands and Belgium. This comprehensive document is shared with all relevant stakeholders, including the Management Board, ensuring that everyone is informed and aligned on the areas needing attention and the steps being taken to address them. From the client feedback book, we define focus areas and assign an owner at the management level. From here, the progress of these focus areas is monitored. This structured approach allows us to maintain a client- centric focus and drive continuous improvement in our digital offerings. When we receive feedback, it is carefully considered and integrated into our priorities, with client interests at the core of our actions. There is no specific timeline for the completion of these actions. We identify improvement opportunities based on feedback, and their implementation depends on the stakeholder roadmaps. Monitoring our client satisfaction through digital channels To ensure we are consistently meeting and exceeding client expectations, we continuously collect feedback across our various digital client channels. These channels include: – Our public website; – Our web portal, Mijn Private Bank; – Our mobile apps. We continuously collect client feedback within our digital channels using feedback buttons. Clients can provide satisfaction ratings (1–5) and choose to leave open comments to further explain their preferences or areas for improvement. All feedback is directed to the relevant teams, enabling them to easily digest and take action on it. Our mobile app and web teams discuss, categorise and prioritise this feedback on a bi-weekly basis. Quick fixes are addressed immediately when possible, while larger items are added to the product backlog item. In addition to aggregated feedback, single-line feedback is also shared with the teams. If necessary, we contact clients to further elaborate on their feedback. The scope for this action comprises Private Clients Netherlands, including our online distribution platform Evi and excluding Switzerland. Certain user journeys or workflows are continuously measured. Each team responsible for a digital channel has its own roadmap, developed with the objective of delivering value to users. Client feedback is a significant driver of change. The time horizon for key actions is not always decided within the digital teams, as each team focuses on one digital product. The executive meta scrum (EMS), comprising key business stakeholders and digital leaders, discusses and decides on the overarching roadmap. Depending on the priorities set, time horizons for key actions can range from a few weeks to 12 months. These time horizons are flexible and reviewed regularly at the monthly EMS meeting. Within the digital department, we take action based on the focus areas identified from client satisfaction feedback about our digital channels. Often, more research is needed to better understand improvement areas, which is then requested from clients. This structured approach ensures that we remain responsive to client needs and continuously enhance our digital services. Ensuring uptime of digital channels The uptime of our digital channels is crucial for ensuring client satisfaction. While clients may not express increased satisfaction when our products are functioning properly, any downtime can lead to significant dissatisfaction. This means that maintaining high availability is a fundamental requirement. To address this, we have established procedures with service levels that vary according to the importance of each application. We monitor, alert, and ensure uptime for all our business applications, adhering to our agreed service levels. This comprehensive approach helps us maintain the reliability and performance of our digital services, which is essential for client satisfaction. We conduct an annual review to assess and refine these procedures, ensuring they remain effective and aligned with our commitment to delivering exceptional digital experiences. Our targets on this topic Feedback is essential as it informs our actions and drives continuous improvement. The qualitative insights derived from client feedback are more significant than the numerical scores or values. When we observe a trend, whether upward or downward, we seek to understand the underlying factors that contribute to these changes. It is important to note that there are no predefined targets associated with this feedback. We do not intend to establish such targets in the future, as feedback serves as a means to an end, rather than an end in itself. Our primary focus is on leveraging these insights to enhance our services and better meet the needs of our clients. Sustainability statement 62 Governance It is important for us to conduct our business activities in accordance with the expectations of our clients, employees, shareholders and supervisory authorities. We maintain high ethical standards, in alignment with our values, code of conduct and risk appetite, and within the boundaries of applicable laws, rules, regulations, internal policies, procedures and industry standards relevant to our business. Impact, risks and opportunities (IROs) Qualitative IRO description The financial risk of reputation loss, fines and lawsuits caused by non-compliance with regulations by Van Lanschot Kempen The financial risk of unethical incidents caused by worsened ethics and integrity culture We have conducted a materiality assessment for our own operations located in the Netherlands, Belgium, Switzerland, the UK, the US and France. The impact, risks and opportunities include the financial risk of reputational damage, fines and lawsuits due to non-compliance with regulations by Van Lanschot Kempen, as well as the financial risk of unethical incidents caused by insufficient ethics and integrity in our culture. Based on this assessment, business conduct was identified as a material topic for our own operations. We expect the financial impacts, risks and opportunities to occur over a short to medium time period. The Management Board is responsible for all business conduct and the Supervisory Board oversees this. The Management Board is responsible for the management of the company, and its duties include drawing up and achieving our purpose, our strategy and related risk profile, our goals and the pattern of our results, while also addressing the environmental and social aspects of doing business that are relevant to the company. It has established a permanent, independent compliance function to identify, assess, monitor and report on compliance risks across all our activities, including business conduct. The administrative role is fulfilled by the first line of the business. As per our three lines of defence model, the first line is the risk owner. Compliance, as a second line function, identifies, assesses, monitors and reports on compliance risks across all our activities. The Supervisory Board oversees the policies pursued by the Management Board and the general conduct of affairs at the company and its associated business. The Supervisory Board advises the Management Board on the performance of its duties, including aspects related to business conduct. The Supervisory Board oversees the execution of the annual compliance plan and reviews the quarterly compliance reports. The Management Board collectively possess broad knowledge and experience in the financial sector, covering governance, business conduct, financial reporting, risk management, strategic planning, IT, investor relations, sustainability and relevant laws and regulations. Members have managerial experience, preferably in the financial sector or a listed company, and adhere to social, ethical and professional standards. The Supervisory Board also collectively possess broad knowledge and experience in areas including the financial sector, business conduct, managerial roles, risk management, business economics, financial reporting, auditing, IT, sustainability and relevant laws and regulations. Management and Supervisory Board members follow a continuing education programme which includes topics such as corporate governance, risk management, duty of care, client interests, anti-financial crime and sustainability. Our policies The following policies manage our material risks related to business conduct. Our policies apply on a consolidated group-wide basis. There may be deviations to the policies and their application at local level in countries that we operate in based on relevant legislative and regulatory requirements, after approval from the relevant management team(s) or the Compliance & Operational Risk Committee. Regulatory compliance We aim to protect our clients, safeguard our reputation and uphold the highest standards of integrity and accountability by maintaining a proactive approach to regulatory compliance. Our regulatory compliance programme is designed to ensure adherence to all applicable laws, regulations, and ethical standards. This programme involves establishing robust internal policies and procedures to prevent regulatory breaches, conducting regular training and awareness sessions for employees, and implementing comprehensive risk assessment, monitoring and reporting mechanisms. This is documented and managed within the governance risk compliance system. For more information on the compliance programme, see "Compliance training and awareness programme" in "Risk and capital management", page 118. Our "policy of policies" aims to set out the standards to implement and maintain a centralised, coherent and complete policy framework within our organisation. This framework ensures effective and consistent communication of obligations and requirements to employees, adherence to applicable laws, rules, regulations, industry standards, and our values and risk appetite. It also outlines the roles and responsibilities within the organisation regarding policy development, implementation and maintenance, and sets out the hierarchy and interaction between various types of governance documents. Our compliance risk management and monitoring framework ensures adherence to legal, regulatory, and internal policies by identifying and assessing risks, implementing relevant policies and providing employee training. Continuous monitoring and incident management procedures are in place to address compliance issues promptly, supported by a strong governance structure for oversight. For more information on the compliance framework, see "Compliance risk" in "Risk and capital management", page 118. Our compliance charter details our commitment to maintaining regulatory compliance and upholding ethical standards. The charter defines the role and responsibilities of the compliance function within our organisation, emphasising proactive risk management, monitoring and reporting. It sets the foundation for a strong compliance culture, promoting transparency, integrity and adherence to laws and regulations. Sustainability statement 63 Our risk appetite statement outlines our approach to managing and mitigating risks in alignment with our strategic objectives and regulatory requirements. It emphasises a balanced risk-taking culture, ensuring that risks are identified, assessed and managed within defined limits to protect our stakeholders' interests. The statement highlights the importance of maintaining a strong capital position, robust liquidity and sound operational practices while fostering a prudent risk management framework that supports sustainable growth and value creation. Our efforts to maintain regulatory compliance are also supported by a learning and development framework. This framework ensures that all employees, including the Management and Supervisory Boards, receive appropriate training and possess the relevant knowledge, skills, necessary certifications and expertise for their roles to stay up to date with regulatory changes. All employees are required to participate in the mandatory, basic compliance training and awareness programme, which is implemented across Van Lanschot Kempen. The programme includes e- learning content on our code of conduct as well as modules on integrity essentials, client tax integrity, the basics of the General Data Protection Regulation (GDPR) and privacy, procurement (for non-procurement staff), gifts and entertainment, the basics of corruption and bribery, whistleblowing policy and the basics of financial crime. The programme is periodically evaluated to ensure it meets changes in regulation and the needs of our organisation. We are currently assessing the necessary frequency. Our internal investigations policy sets out how an internal investigation will be performed following any suspected or actual act or failure to act by one or more employees in breach of the law, regulations and/or internal rules, such as the code of conduct. This policy guarantees that the interests and responsibilities of everyone involved are sufficiently taken into account during any internal investigation. It describes the procedure followed during an investigation, the conditions an investigation must meet and the disciplinary measures that may be imposed as a result. Our client suitability and appropriateness policy ensures that financial products and services are tailored to clients' individual profiles, including their financial situation, investment objectives, risk tolerance, knowledge and sustainability preferences. In doing so, we strive towards client-centric service, high ethical standards and regulatory compliance, as mandated by Markets in Financial Instruments Directive (MiFID) II. Ensuring suitability not only protects our clients but also maintains the integrity of our financial advisory practices. Finally, our product governance ensures that we thoroughly assess all our products and services to assure they comply with regulatory standards and our risk appetite both before the product or service is launched and on an ongoing basis. The frequency with which this review occurs depends on the risks and impact associated with the product or service. This policy aims to safeguard client interests by maintaining high standards of quality, compliance and suitability. It involves a structured process for product development, including risk assessment, regulatory compliance checks, and ongoing reviews to ensure products remain aligned with client needs and market conditions. The policy is applied at predetermined intervals or in response to significant changes. Ethics and integrity Our values – personal, specialised, entrepreneurial and decisive – describe who we are, how we work and how we approach our clients, other stakeholders and each other. Our values are part of our identity and inform our behaviours. Our values are part of our code of conduct, which outlines what we consider the essence of ethical behaviour and guides us in our decision-making process. It is not an exhaustive list of rules, but commitments based on three ethical principles: we are respectful towards others, we act with discretion and we think across generations. The code of conduct is evaluated in line with our "policy of policies". Promoting a respectful and professional workplace culture is the focus of our policy on desirable and undesirable behaviour. This policy outlines clear expectations for employee conduct, prohibiting harassment, discrimination and other inappropriate behaviour that contradicts our code of conduct. Through this policy, we encourage employees to speak out when they identify unlawful behaviour and behaviour that breaches the code of conduct. This policy also outlines how to discuss pressing matters with both internal and external confidential counsellors. To support this, our whistleblowing policy encourages employees and any third party involved to report any unethical behaviour or violations of laws and regulations, or behaviour that contradicts our code of conduct. Our whistleblowing policy is in accordance with the Whistleblower Protection Directive 2019/1937. Extensive information on the reporting channel for whistleblowers is provided on our corporate website and intranet. This policy guarantees confidentiality, protection against retaliation and a fair investigation process, ensuring that any wrongdoing is addressed promptly and trust is maintained within our organisation. The reporting centre is staffed by an employee appointed by the Management Board, which is currently the Head of Internal Audit. This appointment is communicated to all stakeholders and detailed on the intranet. The Head of Internal Audit also undergoes continuous training to maintain their audit role standards. Our anti-bribery and corruption policy further reinforces our commitment to ethical business practices. By prohibiting any form of bribery and ensuring compliance with regulatory requirements, the policy helps to maintain a level playing field, protect our reputation and ensure fair and transparent business practices. Managing potential conflicts of interest is another critical aspect of our ethical framework. Our conflicts of interest policy requires employees to disclose any potential conflicts and take steps to mitigate or avoid them. This policy, along with related policies such as the personal account dealing policy and the gifts & entertainment policy, emphasises transparency and fair treatment of clients, putting their best interests first. Our market conduct policy sets the standards for ethical behaviour and compliance. It aims to prevent market abuse, insider trading and conflicts of interest, ensuring fair and transparent conduct by all employees. The policy includes guidelines for monitoring, reporting and addressing any breaches, reinforcing our commitment to market integrity and the interests of clients and stakeholders. Sustainability statement 64 Accountability and stakeholders The Compliance & Operational Risk Committee is responsible for the implementation and execution of our 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. Matters such as the root causes of major operational risk incidents are discussed in this committee. The target groups for our policies must be determined in the developmental phase when creating new policies. The policy proposal must then be submitted to the relevant committee after coordination with the Compliance management team. With regard to our code of conduct, external stakeholders are also involved in the development of this policy. After the policy has been approved by the relevant management team, the policy adviser coordinates with stakeholders, the first line of defence and compliance officers (including foreign offices) to implement the policy. The policy is then translated, communicated across the organisation, posted on our intranet and, if necessary, the corporate website. We also inform our target audience directly via email. Our actions on this topic We are dedicated to developing, maintaining and evaluating a strong corporate culture that aligns with our values and strategic objectives. Our approach encompasses a variety of initiatives designed to integrate new employees, provide ongoing training, facilitate open dialogue and foster an inclusive and supportive work environment. Through these initiatives, we continuously work to establish, promote and monitor our corporate culture, ensuring it remains aligned with our values and supports the growth and well-being of our employees and the organisation as a whole. All key actions listed below are group-wide and conducted as often as needed, with indefinite timelines. Regulatory compliance Systematic Integrity Risk Analysis (SIRA): This is designed to identify, assess and manage integrity risks within the organisation. It involves identifying potential risks, evaluating their likelihood and impact, and developing mitigation strategies such as policy adjustments, enhanced monitoring, and employee training. We ensure the effectiveness and relevance of the SIRA process through continuous monitoring, regular reporting and periodic reviews in addressing emerging risks. For more information on SIRA, see "Internal fraud" under "Risk and capital management", page 117. Action management procedure: This is in place to address gaps in our control environment and mitigate risks to acceptable levels. The procedure outlines the roles and responsibilities of each line of defence, with the first line of defence executing actions and the second line of defence validating, monitoring and approving substantial or high risks. This ensures effective risk management and accountability. Governance risk compliance tool: We use this system within our risk management framework to ensure strong governance and compliance practices. It documents, categorises and assesses all identified risks, detailing the overall risk framework and specifying controls, incidents and actions. Responsibilities and timeframes for resolving incidents are assigned, with open actions and incidents reviewed in quarterly and annual reports and discussed with management teams. Ethics and integrity Our On-boarding Day is a quarterly event that welcomes all new colleagues to our organisation, providing an opportunity to get to know the firm and each other. It includes an introduction to our strategy, values, and culture. As part of the compliance training & awareness programme, the Compliance department delivers an interactive presentation focusing on our code of conduct, and our ethics and integrity culture. The content of the On-boarding Day presentation is reviewed and evaluated in accordance with our policy of policies. Besides this, we hold dialogue sessions on our latest edition of the code of conduct with relevant stakeholders to discuss potential updates to the code of conduct and address dilemmas or other topics related to promoting our corporate culture. These sessions ensure that our code of conduct is relevant and applicable to everyone's role within the organisation. We have also established several networks for employees to promote community, inclusivity and professional development: Anima Una (employee association), VLK International, VLK Running, Young Van Lanschot Kempen, VLK Women and VLK Pride. Our targets on this topic Regulatory compliance We have not set targets on regulatory compliance risk, but we strive to stay within our predetermined risk appetite. Ethics and integrity We have several targets for ethics and integrity, which are all relative, as these targets are measured in percentages. In accordance with regulatory requirements, the banker's oath is mandatory for all banking personnel operating within the Netherlands. This means that all our employees based in the Netherlands, along with external employees such as freelancers, contractors, and temporary workers engaged with our company for a duration of at least three months, are obliged to undertake this oath. We aim to ensure that 100% of colleagues in scope take the banker's oath within three months of their on-boarding, as required by law. Indications of how well employees are adhering to the code of conduct are provided by our performance on two external and internal gauges: – The percentage of employees who believe they have a responsibility to behave ethically; – The percentage of employees who believe the company culture holds everyone to the same standards of ethical behaviour and promotes transparent communication. Sustainability statement 65 Score 2024 Percentage of employees that take the banker's oath within three months of their on-boarding 99.8% Percentage of employees who believe they have a responsibility to behave ethically 92.3% Percentage of employees who believe the company culture holds everyone to the same standards of ethical behaviour and promotes transparent communication. 87.0% We have set these key performance indicators (KPIs) for 2024–25 and they are assessed through our annual employee engagement survey. For both, the target is to achieve a score higher than the benchmark, or the last employee engagement survey (EES) if it was below the benchmark. The benchmark is the sector average provided by Willis Tower Watson for each question, as part of the EES. The current first and second targets are set at 83% and 79%, respectively. The scope of these two targets is group-wide and they apply to all employees. We measure our scores against the previous year's employee engagement score, which serves as the baseline year. The table above presents the scores for each target. The percentage of employees who take the banker's oath within three months of their onboarding is 99.8%. At the end of the reporting year, five employees had not taken the banker's oath within three months of their employment. In addition, the EES results indicate that 92% of our employees feel a personal responsibility to act ethically, surpassing the benchmark of 83% for this question. Furthermore, 87% of employees believe that our company culture consistently upholds uniform standards of ethical behaviour and fosters transparent communication, exceeding the benchmark of 79% and thereby meeting the target for this KPI. Sustainability statement 66 Sustainability notes ESRS content index ESRS standard Disclosure requirement Description Page number ESRS 2 BP-1 General basis for preparation of sustainability statement 26 BP-2 Disclosures in relation to specific circumstances 26 GOV-1 The role of the administrative, management and supervisory bodies 26 GOV-2 Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies 27, 133, 152 GOV-3 Integration of sustainability-related performance in incentive schemes 133, 152 GOV-4 Statement on due diligence 27 GOV-5 Risk management and internal controls over sustainability reporting 27, 119 SBM-1 Strategy, business model and value chain 28 SBM-2 Interests and view of stakeholders 28 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 33, 40, 43, 58, 60, 62 IRO-1 Description of the process to identify and assess material impacts, risks and opportunities 30 IRO-2 Disclosure requirements in ESRS covered by the undertaking's sustainability statement 30 E1 E1-1 Transition plan for climate change mitigation 33 E1-2 Policies related to climate change mitigation and adaptation 36 E1-3 Actions and resources in relation to climate change policies 36 E1-4 Targets related to climate change mitigation and adaptation 34 E1-5 Energy consumption 37 E1-6 Gross Scopes 1, 2, 3 and total GHG emissions 38 E1-7 GHG removals 39 E4 E4-2 Policies related to biodiversity and ecosystems 40 S1 S1-1 Policies related to own workforce 43-55 S1-2 Process for engaging with own workforce and workers' representatives about impacts 44 S1-3 Process to remediate negative impacts and channels for own workforce to raise concerns 44 S1-4 Taking action on material impacts on own workforce 43-55 S1-5 Targets related to managing material negative impacts 43-55 S1-6 Characteristics of the undertaking's employees 55 S1-7 Characteristics of non-employees in the undertaking’s own workforce 55 S1-9 Diversity metrics 45 S1-13 Training and skills development metrics 50 S1-14 Health and safety metrics 52 S1-15 Work-life balance metrics 52 S1-16 Remuneration metrics (pay gap and total remuneration) 47 S1-17 Incidents, complaints and severe human rights impacts 45 S2 S2-1 Policies related to value chain workers 56 S2-2 Processes for engaging with value chain workers about impacts 57 S2-3 Processes to remediate negative impacts and channels for value chain workers to raise concerns 58 S2-4 Taking action on material impacts on value chain workers 58 S4 S4-1 Policies related to consumers and end-users 59 S4-2 Processes for engaging with consumers and end-users about impacts 59 S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns 59 S4-4 Taking action on material impacts on consumers and end-users 60 S4-5 Targets related to managing material negative impacts 60 G1 G1-1 Business Conduct and Corporate Culture Policy and actions 62 Sustainability statement 67 Our EU taxonomy alignment and eligibility Green asset ratio tables Our GAR is presented in the tables below and on the following pages, which are based on the prescribed templates in Annex VI of the EU Taxonomy Disclosures Delegated Act. The EU taxonomy alignment of our AuM is broken down in the table below, corresponding to the format prescribed in Annex IV of the EU Taxonomy Disclosures Delegated Act. EU taxonomy Annex IV: KPI of asset managers € million The weighted average value of all the investments that are directed at funding, or are associated with EU taxonomy-aligned economic activities relative to the value of total assets covered by the KPI The weighted average value of all the investments that are directed at funding, or are associated with EU taxonomy-aligned economic activities Turnover-based 1.4% Turnover-based 1,292 Capital expenditures (capex)-based 2.0% Capex-based 1,802 The percentage of assets covered by the KPI relative to total investments (total AuM), excluding investments in sovereign entities 74.3% The monetary value of assets covered by the KPI, excluding investments in sovereign entities 90,005 Additional, complementary disclosures: breakdown of KPI denominator The percentage of derivatives -0.8% The monetary value of derivatives -142 The proportion of exposures to EU financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU The value of exposures to EU financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU For non-financial undertakings 4.6% For non-financial undertakings 4,153 For financial undertakings 6.4% For financial undertakings 5,776 The proportion of exposures to financial and non-financial undertakings from non-EU countries not s ubject to Articles 19a and 29a of Directive 2013/34/EU The value of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU For non-financial undertakings 60.3% For non-financial undertakings 54,260 For financial undertakings 11.7% For financial undertakings 10,538 The proportion of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU The value of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU For non-financial undertakings 10.2% For non-financial undertakings 9,208 For financial undertakings 6.7% For financial undertakings 6,066 The proportion of exposures to other counterparties and assets 0.9% The value of exposures to other counterparties and assets 832 The proportion of all the investments that fund economic activities that are not EU taxonomy-eligible 0.8% The value of all the investments that fund economic activities that are not EU taxonomy-eligible 701 The proportion of all the investments that fund EU taxonomy- eligible economic activities, but are not EU taxonomy-aligned 2.7% The value of all the investments that fund EU taxonomy- eligible economic activities, but are not EU taxonomy- aligned 2,400 Additional, complementary disclosures: breakdown of KPI numerator The proportion of EU taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU The value of EU taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU For non-financial undertakings: For non-financial undertakings: Turnover-based 1.3% Turnover-based 1,185 Capex-based 1.9% Capex-based 1,692 For financial undertakings: For financial undertakings: Turnover-based 0.1% Turnover-based 108 Capex-based 0.1% Capex-based 110 The proportion of EU taxonomy-aligned exposures to other counterparties and assets The value of EU taxonomy-aligned exposures to other counterparties and assets Turnover-based 0.0% Turnover-based 39 Capex-based 0.0% Capex-based 24 Breakdown of KPI numerator per environmental objective EU taxonomy-aligned activities 1. Climate change mitigation Turnover 1.3% Capex 1.9% Transitional activities Turnover 0.1% Capex 0.2% Enabling activities Turnover 0.7% Capex 0.9% Sustainability statement 68 EU taxonomy annex IV: KPI of asset managers 2. Climate change adaptation Turnover 0.1% Capex 0.1% Enabling activities Turnover 0.0% Capex 0.0% 3. The sustainable use and protection of water and marine resources Turnover 0.0% Capex 0.0% Enabling activities Turnover 0.0% Capex 0.0% 4. The transition to a circular economy Turnover 0.0% Capex 0.0% Enabling activities Turnover 0.0% Capex 0.0% 5. Pollution prevention and control Turnover 0.0% Capex 0.0% Enabling activities Turnover 0.0% Capex 0.0% 6. The protection and restoration of biodiversity and ecosystems Turnover 0.0% Capex 0.0% Enabling activities Turnover 0.0% Capex 0.0% Annex XII: Template 1. Nuclear energy and natural gas-related activities Balance sheet & asset management Row Nuclear energy-related activities 1 The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. No 2 The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. No 3 The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. No Natural gas-related activities 4 The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. No 5 The undertaking carries out, funds or has exposures to construction, refurbishment and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. No 6 The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. No 1 Based on the counterparty's turnover KPI. 2 Based on the counterparty's capex KPI , except for lending activities where for general lending turnover KPI is used. 3 % of assets covered by the KPI over bank's total assets. 4 Based on the counterparty's turnover KPI. 5 Based on the counterparty's capex KPI , except for lending activities where for general lending turnover KPI is used. 6 For credit institutions that do not meet the conditions of Article 94(1) of the CRR or the conditions set out in Article 325a(1) of the CRR. 7 Fees and commissions income from services other than lending and AuM. Sustainability statement 69 EU taxonomy The official templates from the EU Taxonomy Regulation are published below. Fees and commissions and trading book KPIs will only apply to Van Lanschot Kempen as of 2026. Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation Total environmentally sustainable assets (turnover) Total environmentally sustainable assets (capex) KPI 1 KPI 2 % coverage (over total assets) 3 % of assets excluded from the numerator of the GAR (Article 7(2) and (3) and Section 1.1.2. of Annex V) % of assets excluded from the denominator of the GAR (Article 7(1) and Section 1.2.4 of Annex V) Main KPI Green asset ratio (GAR) stock 1,320 1,323 9.8% 9.8% 81.5% 26.5% 18.5% Total environmentally sustainable assets (turnover) Total environmentally sustainable assets (capex) KPI 4 KPI 5 % coverage (over total assets) % of assets excluded from the numerator of the GAR (Article 7(2) and (3) and Section 1.1.2. of Annex V) % of assets excluded from the denominator of the GAR (Article 7(1) and Section 1.2.4 of Annex V) Additional KPIs GAR (flow) 137 137 8.0% 8.0% 42.6% 19.9% 57.4% Trading book 6 Financial guarantees — — — — Assets under management 1,644 2,440 1.4% 2.1% Fees and commissions income 7 Sustainability statement 70 1. Assets for the calculation of GAR FY 2024 turnover Million EUR a b c d e f g h i j k l m n o p q r Disclosure reference date 31/12/2024 Total [gross] carrying amount Climate change mitigation (CCM) Climate change adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which use of proceeds Of which transitional Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling GAR - Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 9,078 7,529 1,320 — 8 — — — — — — — — — — — — — 2 Financial undertakings 2,336 788 50 — 1 — — — — — — — — — — — — — 3 Credit institutions 1,669 240 21 — 1 — — — — — — — — — — — — — 4 Loans and advances 37 — — — — — — — — — — — — — — — — — 5 Debt securities, including UoP 1,618 240 21 — 1 — — — — — — — — — — — — — 6 Equity instruments 15 — — — — — — — — — — — — — 7 Other financial corporations 667 549 28 — — — — — — — — — — — — — — — 8 of which investment firms 1 — — — — — — — — — — — — — — — — — 9 Loans and advances 1 — — — — — — — — — — — — — — — — — 10 Debt securities, including UoP — — — — — — — — — — — — — — — — — — 11 Equity instruments — — — — — — — — — — — — — — 12 of which management companies 299 293 28 — — — — — — — — — — — — — — — 13 Loans and advances 299 293 28 — — — — — — — — — — — — — — — 14 Debt securities, including UoP — — — — — — — — — — — — — — — — — — 15 Equity instruments — — — — — — — — — — — — — — 16 of which insurance undertakings — — — — — — — — — — — — — — — — — — 17 Loans and advances — — — — — — — — — — — — — — — — — — 18 Debt securities, including UoP — — — — — — — — — — — — — — — — — — 19 Equity instruments — — — — — — — — — — — — — — 20 Non-financial undertakings 2 — — — — — — — — — — — — — — — — — 21 Loans and advances — — — — — — — — — — — — — — — — — — 22 Debt securities, including UoP 1 — — — — — — — — — — — — — — — — — 23 Equity instruments 1 — — — — — — — — — — — — — — 24 Households 6,741 6,741 1,271 — 7 — — — — — — — — — 25 of which loans collateralised by residential immovable property 6,691 6,691 1,264 — — — — — — — — — — — 26 of which building renovation loans 50 50 7 — 7 — — — — — — — — — 27 of which motor vehicle loans — — — — — — 28 Local governments financing — — — — — — — — — — — — — — — — — — 29 Housing financing — — — — — — — — — — — — — — — — — — 30 Other local government financing — — — — — — — — — — — — — — — — — — 31 Collateral obtained by taking possession: residential and commercial immovable properties — — — — — — — — — — — — — — — — — — Sustainability statement 71 Continuation of 1. Assets for the calculation of GAR FY 2024 turnover Million EUR a b c d e f g h i j k l m n o p q r Disclosure reference date 31/12/2024 Total [gross] carrying amount Climate change mitigation (CCM) Climate change adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which use of proceeds Of which transitional Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling 32 Assets excluded from the numerator for GAR calculation (covered in the denominator) 4,381 — — — — — — — — — — — — — — — — — 33 Financial and Non-financial undertakings 4,014 34 SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations 3,160 35 Loans and advances 2,486 36 of which loans collateralised by commercial immovable property 3 37 of which building renovation loans — 38 Debt securities 554 39 Equity instruments 120 40 Non-EU country counterparties not subject to NFRD disclosure obligations 854 41 Loans and advances 14 42 Debt securities 840 43 Equity instruments — 44 Derivatives 294 45 On demand interbank loans 74 46 Cash and cash-related assets — 47 Other categories of assets (e.g. goodwill and commodities) — 48 Total GAR assets 13,460 7,529 1,320 — 8 — — — — — — — — — 49 Assets not covered for GAR calculation 3,058 50 Central governments and Supranational issuers 1,058 51 Central banks exposure 1,991 52 Trading book 9 53 Total assets 16,517 7,529 1,320 — 8 — — — — — — — — — — — — — Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations 54 Financial guarantees — — — — — — — — — — — — — — — — — — 55 Assets under management 117,066 3,837 1,501 — 123 838 180 66 — 33 14 6 — 4 613 49 — 12 56 of which debt securities 57 of which equity instruments Sustainability statement 72 Continuation of 1. Assets for the calculation of GAR FY 2024 turnover Million EUR s t u v w x z aa ab ac ad ae af Disclosure reference date 31/12/2024 Pollution (PPC) Biodiversity and ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which transitional Of which enabling GAR - Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation – – – – – – — – 7,529 1,320 — 8 — 2 Financial undertakings – – – – – – – – 788 50 — 1 — 3 Credit institutions – – – – – – – – 240 21 — 1 — 4 Loans and advances – – – – – – – – — — — — — 5 Debt securities, including UoP – – – – – – – – 240 21 — 1 — 6 Equity instruments – – – – – – — — — — — 7 Other financial corporations – – – – – – – – 549 28 — — — 8 of which investment firms – – – – – – – – — — — — — 9 Loans and advances – – – – – – – – — — — — — 10 Debt securities, including UoP – – – – – – – – — — — — — 11 Equity instruments – – – – – – — — — — — 12 of which management companies – – – – – – – – 293 28 — — — 13 Loans and advances – – – – – – – – 293 28 — — — 14 Debt securities, including UoP – – – – – – – – — — — — — 15 Equity instruments – – – – – – — — — — — 16 of which insurance undertakings – – – – – – – – — — — — — 17 Loans and advances – – – – – – – – — — — — — 18 Debt securities, including UoP – – – – – – – – — — — — — 19 Equity instruments – – – – – – — — — — — 20 Non-financial undertakings – – – – – – – – — — — — — 21 Loans and advances – – – – – – – – — — — — — 22 Debt securities, including UoP – – – – – – – – — — — — — 23 Equity instruments – – – – – – — — — — — 24 Households 6,741 1,271 — 7 — 25 of which loans collateralised by residential immovable property 6,691 1,264 — — — 26 of which building renovation loans 50 7 — 7 — 27 of which motor vehicle loans — — — — — 28 Local governments financing – – – – – – – – — — — — — 29 Housing financing – – – – – – – – — — — — — 30 Other local government financing – – – – – – – – — — — — — 31 Collateral obtained by taking possession: residential and commercial immovable properties – – – – – – – – — — — — — Sustainability statement 73 Continuation of 1. Assets for the calculation of GAR FY 2024 turnover Million EUR s t u v w x z aa ab ac ad ae af Disclosure reference date 31/12/2024 Pollution (PPC) Biodiversity and ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which transitional Of which enabling 32 Assets excluded from the numerator for GAR calculation (covered in the denominator) — — — — — — — — — — — — — 33 Financial and Non-financial undertakings 34 SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations 35 Loans and advances 36 of which loans collateralised by commercial immovable property 37 of which building renovation loans 38 Debt securities 39 Equity instruments 40 Non-EU country counterparties not subject to NFRD disclosure obligations 41 Loans and advances 42 Debt securities 43 Equity instruments 44 Derivatives 45 On demand interbank loans 46 Cash and cash-related assets 47 Other categories of assets (e.g. goodwill and commodities) 48 Total GAR assets — — — — — — — — 7,529 1,320 — 8 — 49 Assets not covered for GAR calculation 50 Central governments and Supranational issuers 51 Central banks exposure 52 Trading book 53 Total assets — — — — — — — — 7,529 1,320 — 8 — Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations 54 Financial guarantees — — — — — — — — — — — — — 55 Assets under management 209 15 — 1 33 1 — 1 4,965 1,644 — 123 890 56 of which debt securities 57 of which equity instruments Sustainability statement 74 1. Assets for the calculation of GAR FY 2024 capex Million EUR a b c d e f g h i j k l m n o p q r Disclosure reference date 31/12/2024 Total (gross) carrying amount Climate change mitigation (CCM) Climate change adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which use of proceeds Of which transitional Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling GAR - Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 9,078 7,517 1,320 — 8 1 — — — — — — — — — — — — 2 Financial undertakings 2,336 776 50 — 1 1 — — — — — — — — — — — — 3 Credit institutions 1,669 227 21 — 1 1 — — — — — — — — — — — — 4 Loans and advances 37 — — — — — — — — — — — — — — — — — 5 Debt securities, including UoP 1,618 227 21 — 1 1 — — — — — — — — — — — — 6 Equity instruments 15 — — — — — — — — — — — — — 7 Other financial corporations 667 549 28 — — — — — — — — — — — — — — — 8 of which investment firms 1 — — — — — — — — — — — — — — — — — 9 Loans and advances 1 — — — — — — — — — — — — — — — — — 10 Debt securities, including UoP — — — — — — — — — — — — — — — — — — 11 Equity instruments — — — — — — — — — — — — — — 12 of which management companies 299 293 28 — — — — — — — — — — — — — — — 13 Loans and advances 299 293 28 — — — — — — — — — — — — — — — 14 Debt securities, including UoP — — — — — — — — — — — — — — — — — — 15 Equity instruments — — — — — — — — — — — — — — 16 of which insurance undertakings — — — — — — — — — — — — — — — — — — 17 Loans and advances — — — — — — — — — — — — — — — — — — 18 Debt securities, including UoP — — — — — — — — — — — — — — — — — — 19 Equity instruments — — — — — — — — — — — — — — 20 Non-financial undertakings 2 — — — — — — — — — — — — — — — — — 21 Loans and advances — — — — — — — — — — — — — — — — — — 22 Debt securities, including UoP 1 — — — — — — — — — — — — — — — — — 23 Equity instruments 1 — — — — — — — — — — — — — — 24 Households 6,741 6,741 1,271 — 7 — — — — — — — — — 25 of which loans collateralised by residential immovable property 6,691 6,691 1,264 — — — — — — — — — — — 26 of which building renovation loans 50 50 7 — 7 — — — — — — — — — 27 of which motor vehicle loans — — — — — — 28 Local governments financing — — — — — — — — — — — — — — 29 Housing financing — — — — — — — — — — — — — — 30 Other local government financing — — — — — — — — — — — — — — 31 Collateral obtained by taking possession: residential and commercial immovable properties — — — — — — — — — — — — — — Sustainability statement 75 Continuation of 1. Assets for the calculation of GAR FY 2024 capex Million EUR a b c d e f g h i j k l m n o p q r Disclosure reference date 31/12/2024 Total (gross) carrying amount Climate change mitigation (CCM) Climate change adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which use of proceeds Of which transitional Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling 32 Assets excluded from the numerator for GAR calculation (covered in the denominator) 4,381 — — — — — — — — — — — — — 33 Financial and non-financial undertakings 4,014 34 SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations 3,160 35 Loans and advances 2,486 36 of which loans collateralised by commercial immovable property 3 37 of which building renovation loans — 38 Debt securities 554 39 Equity instruments 120 40 Non-EU country counterparties not subject to NFRD disclosure obligations 854 41 Loans and advances 14 42 Debt securities 840 43 Equity instruments — 44 Derivatives 294 45 On demand interbank loans 74 46 Cash and cash-related assets — 47 Other categories of assets (e.g. goodwill and commodities) — 48 Total GAR assets 13,460 7,517 1,320 — 8 1 — — — — 49 Assets not covered for GAR calculation 3,058 50 Central governments and supranational issuers 1,058 51 Central banks exposure 1,991 52 Trading book 9 53 Total assets 16,517 — — — — — — — — — — — — — Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations 54 Financial guarantees — — — — — — — — — — — — — — — — — 55 Assets under management 117,066 5,219 2,290 — 189 1,094 226 85 — 18 21 10 — 7 279 30 — 11 56 of which debt securities — — — — — — — — — — — — — — — — — 57 of which equity instruments — — — — — — — — — — — — — — — — — Sustainability statement 76 Continuation of 1. Assets for the calculation of GAR FY 2024 capex Million EUR s t u v w x z aa ab ac ad ae af Disclosure reference date 31/12/2024 Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which transitional Of which enabling GAR - Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation — — — — — — — — 7,517 1,323 — 1 1 2 Financial undertakings — — — — — — — — 776 50 — 1 1 3 Credit institutions — — — — — — — — 228 21 — 1 1 4 Loans and advances — — — — — — — — — — — — — 5 Debt securities, including UoP — — — — — — — — 228 21 — 1 1 6 Equity instruments — — — — — — — — — — — 7 Other financial corporations — — — — — — — — 549 28 — — — 8 of which investment firms — — — — — — — — — — — — — 9 Loans and advances — — — — — — — — — — — — — 10 Debt securities, including UoP — — — — — — — — — — — — — 11 Equity instruments — — — — — — — — — — — 12 of which management companies — — — — — — — — 293 28 — — — 13 Loans and advances — — — — — — — — 293 28 — — — 14 Debt securities, including UoP — — — — — — — — — — — — — 15 Equity instruments — — — — — — — — — — — 16 of which insurance undertakings — — — — — — — — — — — — — 17 Loans and advances — — — — — — — — — — — — — 18 Debt securities, including UoP — — — — — — — — — — — — — 19 Equity instruments — — — — — — — — — — — 20 Non-financial undertakings — — — — — — — — — — — — — 21 Loans and advances — — — — — — — — — — — — — 22 Debt securities, including UoP — — — — — — — — — — — — — 23 Equity instruments — — — — — — — — — — — 24 Households 6,741 1,273 — — — 25 of which loans collateralised by residential immovable property 6,691 1,266 — — — 26 of which building renovation loans 50 7 — — — 27 of which motor vehicle loans — — — — — 28 Local governments financing — — — — — 29 Housing financing — — — — — 30 Other local government financing — — — — — 31 Collateral obtained by taking possession: residential and commercial immovable properties — — — — — Sustainability statement 77 Continuation of 1. Assets for the calculation of GAR FY 2024 capex Million EUR s t u v w x z aa ab ac ad ae af Disclosure reference date 31/12/2024 Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which transitional Of which enabling 32 Assets excluded from the numerator for GAR calculation (covered in the denominator) — — — — — 33 Financial and Non-financial undertakings 34 SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations 35 Loans and advances 36 of which loans collateralised by commercial immovable property 37 of which building renovation loans 38 Debt securities 39 Equity instruments 40 Non-EU country counterparties not subject to NFRD disclosure obligations 41 Loans and advances 42 Debt securities 43 Equity instruments 44 Derivatives 45 On demand interbank loans 46 Cash and cash-related assets 47 Other categories of assets (e.g. goodwill and commodities) 48 Total GAR assets 7,517 1,323 — 1 1 49 Assets not covered for GAR calculation 50 Central governments and supranational issuers 51 Central banks exposure 52 Trading book 53 Total assets — — — — — Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations 54 Financial guarantees — — — — — — — — — — — — — 55 Assets under management 188 10 — 7 9 9 — 7 6,016 2,440 — 189 1,143 56 of which debt securities — — — — — — — — — — — — — 57 of which equity instruments — — — — — — — — — — — — — Sustainability statement 78 1. Assets for the calculation of GAR FY 2023 The assets used for the calculation of the green asset ratio (GAR) are published below. Turnover is included in this table, with the exception of households, for which capex is published. Million EUR a b c d e f g h i j k l m n o p q r Disclosure reference date 31/12/2023 Total (gross) carrying amount Climate change mitigation (CCM) Climate change adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which use of proceeds Of which transitional Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling GAR - Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 9,178 7,446 1,368 — 11 — — — — — — — — — — — — — 2 Financial undertakings 2,100 684 27 — — — — — — — — — — — — — — — 3 Credit institutions 1,399 111 — — — — — — — — — — — — — — — — 4 Loans and advances 14 — — — — — — — — — — — — — — — — — 5 Debt securities, including UoP 1,302 110 — — — — — — — — — — — — — — — — 6 Equity instruments 82 — — — — — — — — — — — — — 7 Other financial corporations 701 573 26 — — — — — — — — — — — — — — — 8 of which investment firms — — — — — — — — — — — — — — — — — — 9 Loans and advances — — — — — — — — — — — — — — — — — — 10 Debt securities, including UoP — — — — — — — — — — — — — — — — — — 11 Equity instruments — — — — — — — — — — — — — — 12 of which management companies 322 302 26 — — — — — — — — — — — — — — — 13 Loans and advances 322 302 26 — — — — — — — — — — — — — — — 14 Debt securities, including UoP — — — — — — — — — — — — — — — — — — 15 Equity instruments — — — — — — — — — — — — — — 16 of which insurance undertakings — — — — — — — — — — — — — — — — — — 17 Loans and advances — — — — — — — — — — — — — — — — — — 18 Debt securities, including UoP — — — — — — — — — — — — — — — — — — 19 Equity instruments — — — — — — — — — — — — — — 20 Non-financial undertakings 2 — — — — — — — — — — — — — — — — — 21 Loans and advances — — — — — — — — — — — — — — — — — — 22 Debt securities, including UoP 1 — — — — — — — — — — — — — — — — — 23 Equity instruments — — — — — — — — — — — — — — 24 Households 6,750 6,750 1,342 — 11 — — — — — — — — — 25 of which loans collateralised by residential immovable property 6,699 6,699 1,331 — — — — — — — — — — — 26 of which building renovation loans 51 51 11 — 11 — — — — — — — — — 27 of which motor vehicle loans — — — — — — 28 Local governments financing 327 12 — — — — — — — — — — — — — — — — 29 Housing financing — — — — — — — — — — — — — — — — — — 30 Other local government financing 327 12 — — — — — — — — — — — — — — — — 31 Collateral obtained by taking possession: residential and commercial immovable properties — — — — — — — — — — — — — — — — — — Sustainability statement 79 Continuation of 1. Assets for the calculation of GAR FY 2023 Million EUR a b c d e f g h i j k l m n o p q r Disclosure reference date 31/12/2023 Total (gross) carrying amount Climate change mitigation (CCM) Climate change adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which use of proceeds Of which transitional Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling 32 Assets excluded from the numerator for GAR calculation (covered in the denominator) 3,850 — — — — — — — — — — — — — — — — — 33 Financial and non-financial undertakings 3,430 34 SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations 2,641 35 Loans and advances 2,335 36 of which loans collateralised by commercial immovable property 8 37 of which building renovation loans — 38 Debt securities 189 39 Equity instruments 116 40 Non-EU country counterparties not subject to NFRD disclosure obligations 790 41 Loans and advances 5 42 Debt securities 785 43 Equity instruments — 44 Derivatives 314 45 On demand interbank loans 105 46 Cash and cash-related assets — 47 Other categories of assets (e.g. goodwill and commodities) — 48 Total GAR assets 13,028 7,446 1,368 — 11 — — — — — 49 Assets not covered for GAR calculation 3,423 50 Central governments and supranational issuers 587 51 Central banks exposure 2,821 52 Trading book 15 53 Total assets 16,451 7,446 1,368 — 11 — — — — — — — — — — — — — Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations 54 Financial guarantees — — — — — — — — — — — — — — — — — — 55 Assets under management — — — — — — — — — — — — — — — — — — 56 of which debt securities — — — — — — — — — — — — — — — — — — 57 of which equity instruments — — — — — — — — — — — — — — — — — — Sustainability statement 80 Continuation of 1. Assets for the calculation of GAR FY 2023 Million EUR s t u v w x z aa ab ac ad ae af Disclosure reference date 31/12/2023 Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which transitional Of which enabling GAR - Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation — — — — — — — — 7,446 1,368 — 11 — 2 Financial undertakings — — — — — — — — 684 27 — — — 3 Credit institutions — — — — — — — — 111 — — — — 4 Loans and advances — — — — — — — — — — — — — 5 Debt securities, including UoP — — — — — — — — 110 — — — — 6 Equity instruments — — — — — — — — — — — 7 Other financial corporations — — — — — — — — 573 26 — — — 8 of which investment firms — — — — — — — — — — — — — 9 Loans and advances — — — — — — — — — — — — — 10 Debt securities, including UoP — — — — — — — — — — — — — 11 Equity instruments — — — — — — — — — — — 12 of which management companies — — — — — — — — 302 26 — — — 13 Loans and advances — — — — — — — — 302 26 — — — 14 Debt securities, including UoP — — — — — — — — — — — — — 15 Equity instruments — — — — — — — — — — — 16 of which insurance undertakings — — — — — — — — — — — — — 17 Loans and advances — — — — — — — — — — — — — 18 Debt securities, including UoP — — — — — — — — — — — — — 19 Equity instruments — — — — — — — — — — — 20 Non-financial undertakings — — — — — — — — — — — — — 21 Loans and advances — — — — — — — — — — — — — 22 Debt securities, including UoP — — — — — — — — — — — — — 23 Equity instruments — — — — — — — — — — — 24 Households 6,750 1,342 — 11 — 25 of which loans collateralised by residential immovable property 6,699 1,331 — — — 26 of which building renovation loans 51 11 — 11 — 27 of which motor vehicle loans — — — — — 28 Local governments financing — — — — — — — — 12 — — — — 29 Housing financing — — — — — — — — — — — — — 30 Other local government financing — — — — — — — — 12 — — — — 31 Collateral obtained by taking possession: residential and commercial immovable properties — — — — — — — — — — — — — Sustainability statement 81 Continuation of 1. Assets for the calculation of GAR FY 2023 Million EUR s t u v w x z aa ab ac ad ae af Disclosure reference date 31/12/2023 Pollution (PPC) Biodiversity and ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which towards taxonomy relevant sectors (taxonomy-eligible) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which environmentally sustainable (taxonomy-aligned) Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which transitional Of which enabling 32 Assets excluded from the numerator for GAR calculation (covered in the denominator) — — — — — — — — — — — — — 33 Financial and non-financial undertakings 34 SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations 35 Loans and advances 36 of which loans collateralised by commercial immovable property 37 of which building renovation loans 38 Debt securities 39 Equity instruments 40 Non-EU country counterparties not subject to NFRD disclosure obligations 41 Loans and advances 42 Debt securities 43 Equity instruments 44 Derivatives 45 On demand interbank loans 46 Cash and cash-related assets 47 Other categories of assets (e.g. goodwill and commodities) 48 Total GAR assets 7,446 1,368 — 11 — 49 Assets not covered for GAR calculation 50 Central governments and supranational issuers 51 Central banks exposure 52 Trading book 53 Total assets — — — — — — — — 7,446 1,368 — 11 — Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations 54 Financial guarantees — — — — — — — — — — — — — 55 Assets under management — — — — — — — — — — — — — 56 of which debt securities — — — — — — — — — — — — — 57 of which equity instruments — — — — — — — — — — — — — Sustainability statement 82 3. GAR KPI stock FY 2024 for turnover alignment % (compared to total covered assets in the denominator) a b c d e f g h i j k l m n o p q Disclosure reference date 31/12/2024 Climate change mitigation (CCM) Climate change adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Of which use of proceeds Of which transitional Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling GAR - Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 82.9% 14.5% —% 0.1% —% —% —% —% —% —% —% —% —% —% —% —% —% 2 Financial undertakings 33.7% 2.1% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 3 Credit institutions 14.4% 1.3% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 4 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 5 Debt securities, including UoP 14.8% 1.3% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 6 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% 7 Other financial corporations 82.3% 4.3% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 8 of which investment firms —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 9 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 10 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 11 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% 12 of which management companies 97.9% 9.5% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 13 Loans and advances 97.9% 9.5% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 14 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 15 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% 16 of which insurance undertakings —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 17 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 18 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 19 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% 20 Non-financial undertakings —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 21 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 22 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 23 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% 24 Households 100.0% 18.9% —% 0.1% —% —% —% —% —% —% —% —% —% 25 of which loans collateralised by residential immovable property 100.0% 18.9% —% —% —% —% —% —% —% —% —% —% —% 26 of which building renovation loans 100.0% 14.2% —% 14.2% —% —% —% —% —% —% —% —% —% 27 of which motor vehicle loans —% —% —% —% —% 28 Local government financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 29 Housing financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 30 Other local government financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 31 Collateral obtained by taking possession: residential and commercial immovable properties —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 32 Total GAR Assets 55.9% 9.8% —% 0.1% —% —% —% —% —% —% —% —% —% —% —% —% —% Sustainability statement 83 Continuation of 3. GAR KPI stock FY 2024 for turnover alignment % (compared to total covered assets in the denominator) r s t u v w x z aa ab ac ad ae af Disclosure reference date 31/12/2024 Proportion of total assets covered Pollution (PPC) Biodiversity and ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which transitional Of which enabling GAR - Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation —% —% —% —% —% —% —% —% 82.9% 14.5% —% 0.1% —% 55.0% 2 Financial undertakings —% —% —% —% —% —% —% —% 33.8% 2.1% —% —% —% 14.1% 3 Credit institutions —% —% —% —% —% —% —% —% 14.4% 1.3% —% —% —% 10.1% 4 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% 0.2% 5 Debt securities, including UoP —% —% —% —% —% —% —% —% 14.8% 1.3% —% —% —% 9.8% 6 Equity instruments —% —% —% —% —% —% —% —% —% —% 0.1% 7 Other financial corporations —% —% —% —% —% —% —% —% 82.3% 4.3% —% —% —% 4.0% 8 of which investment firms —% —% —% —% —% —% —% —% —% —% —% —% —% —% 9 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% 10 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% 11 Equity instruments —% —% —% —% —% —% —% —% —% —% —% 12 of which management companies —% —% —% —% —% —% —% —% 97.9% 9.5% —% —% —% 1.8% 13 Loans and advances —% —% —% —% —% —% —% —% 97.9% 9.5% —% —% —% 1.8% 14 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% 15 Equity instruments —% —% —% —% —% —% —% —% —% —% —% 16 of which insurance undertakings —% —% —% —% —% —% —% —% —% —% —% —% —% —% 17 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% 18 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% 19 Equity instruments —% —% —% —% —% —% —% —% —% —% —% 20 Non-financial undertakings —% —% —% —% —% —% —% —% —% —% —% —% —% —% 21 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% 22 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% 23 Equity instruments —% —% —% —% —% —% —% —% —% —% —% 24 Households 100.0% 18.9% —% 0.1% —% 40.8% 25 of which loans collateralised by residential immovable property 100.0% 18.9% —% —% —% 40.5% 26 of which building renovation loans 100.0% 14.2% —% 14.2% —% 0.3% 27 of which motor vehicle loans 28 Local governments financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% 29 Housing financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% 30 Other local government financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% 31 Collateral obtained by taking possession: residential and commercial immovable properties —% —% —% —% —% —% —% —% —% —% —% —% —% —% 32 Total GAR assets —% —% —% —% —% —% —% —% 55.9% 9.8% —% 0.1% —% 81.5% Sustainability statement 84 3. GAR KPI stock FY 2023 for turnover alignment % (compared to total covered assets in the denominator) a b c d e f g h i j k l m n o p q Disclosure reference date 31/12/2023 Climate change mitigation (CCM) Climate change adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Of which use of proceeds Of which transitional Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling GAR - Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 7.6% 0.3% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 2 Financial undertakings 32.6% 1.3% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 3 Credit institutions 7.9% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 4 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 5 Debt securities, including UoP 8.5% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 6 Equity instruments 0.4% 0.4% —% 0.2% —% —% —% —% —% —% —% —% —% 7 Other financial corporations 81.8% 3.7% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 8 of which investment firms —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 9 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 10 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 11 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% 12 of which management companies 93.7% 8.1% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 13 Loans and advances 93.7% 8.1% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 14 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 15 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% 16 of which insurance undertakings —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 17 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 18 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 19 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% 20 Non-financial undertakings —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 21 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 22 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 23 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% 24 Households —% —% —% —% —% —% —% —% —% —% —% —% —% 25 of which loans collateralised by residential immovable property —% —% —% —% —% —% —% —% —% —% —% —% —% 26 of which building renovation loans —% —% —% —% —% —% —% —% —% —% —% —% —% 27 of which motor vehicle loans —% —% —% —% —% 28 Local government financing 3.6% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 29 Housing financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 30 Other local government financing 3.6% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 31 Collateral obtained by taking possession: residential and commercial immovable properties —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 32 Total GAR assets 5.3% 0.2% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% Sustainability statement 85 3. GAR KPI stock FY 2023 for turnover alignment % (compared to total covered assets in the denominator) r s t u v w x z aa ab ac ad ae af Disclosure reference date 31/12/2023 Proportion of total assets covered Pollution (PPC) Biodiversity and ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which transitional Of which enabling GAR - Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation —% —% —% —% —% —% —% —% 7.6% 0.3% —% 0.1% —% 14.8% 2 Financial undertakings —% —% —% —% —% —% —% —% 32.6% 1.3% —% —% —% 12.8% 3 Credit institutions —% —% —% —% —% —% —% —% 7.9% —% —% —% —% 8.5% 4 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% 0.1% 5 Debt securities, including UoP —% —% —% —% —% —% —% —% 8.5% —% —% —% —% 7.9% 6 Equity instruments —% —% —% —% —% —% 0.4% 0.4% —% 0.2% 0.5% 7 Other financial corporations —% —% —% —% —% —% —% —% 81.8% 3.7% —% —% —% 4.3% 8 of which investment firms —% —% —% —% —% —% —% —% —% —% —% —% —% —% 9 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% 10 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% 11 Equity instruments —% —% —% —% —% —% —% —% —% —% —% 12 of which management companies —% —% —% —% —% —% —% —% 93.7% 8.1% —% —% —% 2.0% 13 Loans and advances —% —% —% —% —% —% —% —% 93.7% 8.1% —% —% —% 2.0% 14 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% 15 Equity instruments —% —% —% —% —% —% —% —% —% —% —% 16 of which insurance undertakings —% —% —% —% —% —% —% —% —% —% —% —% —% —% 17 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% 18 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% 19 Equity instruments —% —% —% —% —% —% —% —% —% —% —% 20 Non-financial undertakings —% —% —% —% —% —% —% —% —% —% —% —% —% —% 21 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% 22 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% 23 Equity instruments —% —% —% —% —% —% —% —% —% —% —% 24 Households —% —% —% —% —% —% 25 of which loans collateralised by residential immovable property —% —% —% —% —% —% 26 of which building renovation loans —% —% —% —% —% —% 27 of which motor vehicle loans —% —% —% —% —% —% 28 Local governments financing —% —% —% —% —% —% —% —% 3.6% —% —% —% —% 2.0% 29 Housing financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% 30 Other local government financing —% —% —% —% —% —% —% —% 3.6% —% —% —% —% —% 31 Collateral obtained by taking possession: residential and commercial immovable properties —% —% —% —% —% —% —% —% —% —% —% —% —% 2.0% 32 Total GAR assets —% —% —% —% —% —% —% —% 5.3% 0.2% —% —% —% 38.2% Sustainability statement 86 3. GAR KPI stock FY 2024 for capex alignment % (compared to total covered assets in the denominator) a b c d e f g h i j k l m n o p q Disclosure reference date 31/12/2024 Climate change mitigation (CCM) Climate change adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Of which use of proceeds Of which transitional Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling GAR - Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 82.8% 14.5% —% 0.1% —% —% —% —% —% —% —% —% —% —% —% —% —% 2 Financial undertakings 33.2% 2.1% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 3 Credit institutions 13.6% 1.3% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 4 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 5 Debt securities, including UoP 14.0% 1.3% —% 0.1% —% —% —% —% —% —% —% —% —% —% —% —% —% 6 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% 7 Other financial corporations 82.3% 4.3% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 8 of which investment firms —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 9 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 10 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 11 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% 12 of which management companies 97.9% 9.5% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 13 Loans and advances 97.9% 9.5% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 14 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 15 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% 16 of which insurance undertakings —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 17 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 18 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 19 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% —% 20 Non-financial undertakings —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 21 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 22 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 23 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% —% 24 Households 100.0% 18.9% —% 0.1% —% —% —% —% —% —% —% —% —% 25 of which loans collateralised by residential immovable property 100.0% 18.9% —% —% —% —% —% —% —% —% —% —% —% 26 of which building renovation loans 100.0% 14.2% —% 14.2% —% —% —% —% —% —% —% —% —% 27 of which motor vehicle loans —% —% —% —% —% 28 Local government financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 29 Housing financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 30 Other local government financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 31 Collateral obtained by taking possession: residential and commercial immovable properties —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 32 Total GAR assets 55.8% 9.8% —% 0.1% —% —% —% —% —% —% —% —% —% —% —% —% —% Sustainability statement 87 Continuation of 3. GAR KPI stock FY 2024 for capex alignment % (compared to total covered assets in the denominator) r s t u v w x z aa ab ac ad ae af Disclosure reference date 31/12/2024 Proportion of total assets covered Pollution (PPC) Biodiversity and ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which transitional Of which enabling GAR - Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation —% —% —% —% —% —% —% —% 82.8% 14.6% —% —% —% 55.0% 2 Financial undertakings —% —% —% —% —% —% —% —% 33.2% 2.1% —% —% —% 14.1% 3 Credit institutions —% —% —% —% —% —% —% —% 13.6% 1.3% —% —% —% 10.1% 4 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% 0.2% 5 Debt securities, including UoP —% —% —% —% —% —% —% —% 14.1% 1.3% —% 0.1% —% 9.8% 6 Equity instruments —% —% —% —% —% —% —% —% —% —% 0.1% 7 Other financial corporations —% —% —% —% —% —% —% —% 82.3% 4.3% —% —% —% 4.0% 8 of which investment firms —% —% —% —% —% —% —% —% —% —% —% —% —% —% 9 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% 10 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% 11 Equity instruments —% —% —% —% —% —% —% —% —% —% —% 12 of which management companies —% —% —% —% —% —% —% —% 97.9% 9.5% —% —% —% 1.8% 13 Loans and advances —% —% —% —% —% —% —% —% 97.9% 9.5% —% —% —% 1.8% 14 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% 15 Equity instruments —% —% —% —% —% —% —% —% —% —% —% 16 of which insurance undertakings —% —% —% —% —% —% —% —% —% —% —% —% —% —% 17 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% 18 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% 19 Equity instruments —% —% —% —% —% —% —% —% —% —% —% 20 Non-financial undertakings —% —% —% —% —% —% —% —% —% —% —% —% —% —% 21 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% 22 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% 23 Equity instruments —% —% —% —% —% —% —% —% —% —% —% 24 Households 100.0% 18.9% —% —% —% 40.8% 25 of which loans collateralised by residential immovable property 100.0% 18.9% —% —% —% 40.5% 26 of which building renovation loans 100.0% 14.2% —% —% —% 0.3% 27 of which motor vehicle loans —% —% —% —% —% —% 28 Local government financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% 29 Housing financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% 30 Other local government financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% 31 Collateral obtained by taking possession: residential and commercial immovable properties —% —% —% —% —% —% —% —% —% —% —% —% —% —% 32 Total GAR assets —% —% —% —% —% —% —% —% 55.8% 9.8% —% —% —% 81.5% Sustainability statement 88 3. GAR KPI stock FY 2023 for capex alignment % (compared to total covered assets in the denominator) a b c d e f g h i j k l m n o p q Disclosure reference date 31/12/2023 Climate change mitigation (CCM) Climate change adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy -aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy -aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy -aligned) Of which use of proceeds Of which transitional Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling GAR - Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 81.1% 14.9% —% 0.1% —% —% —% —% —% —% —% —% —% —% —% —% —% 2 Financial undertakings 32.6% 1.3% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 3 Credit institutions 7.9% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 4 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 5 Debt securities, including UoP 8.5% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 6 Equity instruments 0.6% 0.6% —% 0.2% 0.1% 0.1% —% —% —% —% —% —% —% —% —% 7 Other financial corporations 81.8% 3.7% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 8 of which investment firms —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 9 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 10 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 11 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 12 of which management companies 93.7% 8.1% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 13 Loans and advances 93.7% 8.1% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 14 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 15 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 16 of which insurance undertakings —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 17 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 18 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 19 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 20 Non-financial undertakings —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 21 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 22 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 23 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% —% 24 Households 100.0% 19.9% —% 0.2% —% —% —% —% —% —% —% —% —% 25 of which loans collateralised by residential immovable property 100.0% 19.9% —% —% —% —% —% —% —% —% —% —% —% 26 of which building renovation loans 1001.0% 21.4% —% 21.4% —% —% —% —% —% —% —% —% —% 27 of which motor vehicle loans —% —% —% —% —% 28 Local government financing 3.6% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 29 Housing financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 30 Other local government financing 3.6% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 31 Collateral obtained by taking possession: residential and commercial immovable properties —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 32 Total GAR assets 57.2% 10.5% —% 0.1% —% —% —% —% —% —% —% —% —% —% —% —% —% Sustainability statement 89 Continuation of 3. GAR KPI stock FY 2023 for capex alignment % (compared to total covered assets in the denominator) r s t u v w x z aa ab ac ad ae af Disclosure reference date 31/12/2023 Proportion of total assets covered Pollution (PPC) Biodiversity and ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which transitional Of which enabling GAR - Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation —% —% —% —% —% —% —% —% 81.1% 14.9% —% 0.1% —% 55.8% 2 Financial undertakings —% —% —% —% —% —% —% —% 32.6% 1.3% —% —% —% 12.8% 3 Credit institutions —% —% —% —% —% —% —% —% 7.9% —% —% —% —% 8.5% 4 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% 0.1% 5 Debt securities, including UoP —% —% —% —% —% —% —% —% 8.5% —% —% —% —% 7.9% 6 Equity instruments —% —% —% —% —% —% 0.7% 0.7% —% —% 0.5% 7 Other financial corporations —% —% —% —% —% —% —% —% 81.8% 3.7% —% —% —% 4.3% 8 of which investment firms —% —% —% —% —% —% —% —% —% —% —% —% —% —% 9 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% 10 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% 11 Equity instruments —% —% —% —% —% —% —% —% —% —% —% 12 of which management companies —% —% —% —% —% —% —% —% 93.7% 8.1% —% —% —% 2.0% 13 Loans and advances —% —% —% —% —% —% —% —% 93.7% 8.1% —% —% —% 2.0% 14 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% 15 Equity instruments —% —% —% —% —% —% —% —% —% —% —% 16 of which insurance undertakings —% —% —% —% —% —% —% —% —% —% —% —% —% —% 17 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% 18 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% 19 Equity instruments —% —% —% —% —% —% —% —% —% —% —% 20 Non-financial undertakings —% —% —% —% —% —% —% —% —% —% —% —% —% —% 21 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% 22 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% 23 Equity instruments —% —% —% —% —% —% —% —% —% —% —% 24 Households 100.0% 19.9% —% 0.2% —% 41.0% 25 of which loans collateralised by residential immovable property 100.0% 19.9% —% —% —% 40.7% 26 of which building renovation loans 100.0% 21.4% —% 21.4% —% 0.3% 27 of which motor vehicle loans —% —% —% —% —% —% 28 Local government financing —% —% —% —% —% —% —% —% 3.6% —% —% —% —% 2.0% 29 Housing financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% 30 Other local government financing —% —% —% —% —% —% —% —% 3.6% —% —% —% —% 2.0% 31 Collateral obtained by taking possession: residential and commercial immovable properties —% —% —% —% —% —% —% —% —% —% —% —% —% —% 32 Total GAR assets —% —% —% —% —% —% —% —% 57.2% 10.5% —% 0.1% —% 79.2% Sustainability statement 90 4. GAR KPI flow FY 2024 turnover % (compared to flow of total eligible assets) a b c d e f g h i j k l m n o p q Disclosure reference date 31/12/2024 Climate change mitigation (CCM) Climate change adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (txonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Of which use of proceeds Of which transitional Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling GAR - Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 65.0% 15.1% —% 0.1% —% —% —% —% —% —% —% —% —% —% —% —% —% 2 Financial undertakings 31.3% 3.0% —% 0.1% —% —% —% —% —% —% —% —% —% —% —% —% —% 3 Credit institutions 19.4% 2.3% —% 0.1% —% —% —% —% —% —% —% —% —% —% —% —% —% 4 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 5 Debt securities, including UoP 20.0% 2.3% —% 0.1% —% —% —% —% —% —% —% —% —% —% —% —% —% 6 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% 7 Other financial corporations 100.0% 6.9% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 8 of which investment firms —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 9 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 10 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 11 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% 12 of which management companies 100.0% 23.2% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 13 Loans and advances 100.0% 23.2% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 14 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 15 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% 16 of which insurance undertakings —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 17 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 18 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 19 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% 20 Non-financial undertakings —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 21 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 22 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 23 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% 24 Households 100.0% 27.7% —% —% —% —% —% —% —% —% —% —% —% 25 of which loans collateralised by residential immovable property 100.0% 27.8% —% —% —% —% —% —% —% —% —% —% —% 26 of which building renovation loans 100.0% 16.6% —% 16.6% —% —% —% —% —% —% —% —% —% 27 of which motor vehicle loans —% —% —% —% —% 28 Local government financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 29 Housing financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 30 Other local government financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 31 Collateral obtained by taking possession: residential and commercial immovable properties —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 32 Total GAR assets 34.6% 8.0% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% Sustainability statement 91 Continuation 4. GAR KPI flow FY 2024 turnover % (compared to flow of total eligible assets) r s t u v w x z aa ab ac ad ae af Disclosure reference date 31/12/2024 Proportion of total new assets covered Pollution (PPC) Biodiversity and ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which transitional Of which enabling GAR - Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation —% —% —% —% —% —% —% —% 65.0% 15.1% —% 0.1% —% 22.7% 2 Financial undertakings —% —% —% —% —% —% —% —% 31.3% 3.0% —% 0.1% —% 11.5% 3 Credit institutions —% —% —% —% —% —% —% —% 19.4% 2.3% —% 0.1% —% 9.8% 4 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% 5 Debt securities, including UoP —% —% —% —% —% —% —% —% 20.0% 2.3% —% 0.1% —% 9.6% 6 Equity instruments —% —% —% —% —% —% —% —% —% —% 0.3% 7 Other financial corporations —% —% —% —% —% —% —% —% 100.0% 6.9% —% —% —% 1.7% 8 of which investment firms —% —% —% —% —% —% —% —% —% —% —% —% —% —% 9 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% 10 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% 11 Equity instruments —% —% —% —% —% —% —% —% —% —% —% 12 of which management companies —% —% —% —% —% —% —% —% 100.0% 23.2% —% —% —% 0.5% 13 Loans and advances —% —% —% —% —% —% —% —% 100.0% 23.2% —% —% —% 0.5% 14 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% 15 Equity instruments —% —% —% —% —% —% —% —% —% —% —% 16 of which insurance undertakings —% —% —% —% —% —% —% —% —% —% —% —% —% —% 17 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% 18 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% 19 Equity instruments —% —% —% —% —% —% —% —% —% —% —% 20 Non-financial undertakings —% —% —% —% —% —% —% —% —% —% —% —% —% —% 21 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% 22 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% 23 Equity instruments —% —% —% —% —% —% —% —% —% —% —% 24 Households 100.0% 27.7% —% —% —% 11.1% 25 of which loans collateralised by residential immovable property 100.0% 27.8% —% —% —% 11.1% 26 of which building renovation loans 100.0% 16.6% —% 16.6% —% —% 27 of which motor vehicle loans —% —% —% —% —% —% 28 Local government financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% 29 Housing financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% 30 Other local government financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% 31 Collateral obtained by taking possession: residential and commercial immovable properties —% —% —% —% —% —% —% —% —% —% —% —% —% —% 32 Total GAR assets —% —% —% —% —% —% —% —% 34.6% 8.0% —% —% —% 42.6% Sustainability statement 92 4. GAR KPI flow FY 2024 capex % (compared to flow of total eligible assets) a b c d e f g h i j k l m n o p q Disclosure reference date 31/12/2024 Climate change mitigation (CCM) Climate change adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Of which use of proceeds Of which transitional Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling GAR - Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 64.3% 15.1% —% 0.1% —% —% —% —% —% —% —% —% —% —% —% —% —% 2 Financial undertakings 30.0% 2.9% —% 0.1% —% —% —% —% —% —% —% —% —% —% —% —% —% 3 Credit institutions 17.9% 2.2% —% 0.1% —% —% —% —% —% —% —% —% —% —% —% —% —% 4 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 5 Debt securities, including UoP 18.5% 2.3% —% 0.1% —% —% —% —% —% —% —% —% —% —% —% —% —% 6 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% 7 Other financial corporations 100.0% 6.9% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 8 of which investment firms —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 9 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 10 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 11 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% 12 of which management companies 100.0% 23.2% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 13 Loans and advances 100.0% 23.2% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 14 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 15 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% 16 of which insurance undertakings —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 17 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 18 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 19 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% 20 Non-financial undertakings —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 21 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 22 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 23 Equity instruments —% —% —% —% —% —% —% —% —% —% —% —% —% 24 Households 100.0% 27.7% —% —% —% —% —% —% —% —% —% —% —% 25 of which loans collateralised by residential immovable property 100.0% 27.8% —% —% —% —% —% —% —% —% —% —% —% 26 of which building renovation loans 100.0% 16.6% —% 16.6% —% —% —% —% —% —% —% —% —% 27 of which motor vehicle loans —% —% —% —% —% 28 Local government financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 29 Housing financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 30 Other local government financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 31 Collateral obtained by taking possession: residential and commercial immovable properties —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 32 Total GAR assets 34.2% 8.0% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% Sustainability statement 93 Continuation 4. GAR KPI flow FY 2024 capex % (compared to flow of total eligible assets) r s t u v w x z aa ab ac ad ae af Disclosure reference date 31/12/2024 Proportion of total new assets covered Pollution (PPC) Biodiversity and ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which transitional Of which enabling GAR - Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation —% —% —% —% —% —% —% —% 64.3% 15.1% —% —% —% 22.7% 2 Financial undertakings —% —% —% —% —% —% —% —% 30.0% 2.9% —% 0.1% —% 11.5% 3 Credit institutions —% —% —% —% —% —% —% —% 17.9% 2.2% —% 0.1% —% 9.8% 4 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% 5 Debt securities, including UoP —% —% —% —% —% —% —% —% 18.5% 2.3% —% 0.1% —% 9.6% 6 Equity instruments —% —% —% —% —% —% —% —% —% —% 0.3% 7 Other financial corporations —% —% —% —% —% —% —% —% 100.0% 6.9% —% —% —% 1.7% 8 of which investment firms —% —% —% —% —% —% —% —% —% —% —% —% —% —% 9 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% 10 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% 11 Equity instruments —% —% —% —% —% —% —% —% —% —% —% 12 of which management companies —% —% —% —% —% —% —% —% 100.0% 23.2% —% —% —% 0.5% 13 Loans and advances —% —% —% —% —% —% —% —% 100.0% 23.2% —% —% —% 0.5% 14 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% 15 Equity instruments —% —% —% —% —% —% —% —% —% —% —% 16 of which insurance undertakings —% —% —% —% —% —% —% —% —% —% —% —% —% —% 17 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% 18 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% 19 Equity instruments —% —% —% —% —% —% —% —% —% —% —% 20 Non-financial undertakings —% —% —% —% —% —% —% —% —% —% —% —% —% —% 21 Loans and advances —% —% —% —% —% —% —% —% —% —% —% —% —% —% 22 Debt securities, including UoP —% —% —% —% —% —% —% —% —% —% —% —% —% —% 23 Equity instruments —% —% —% —% —% —% —% —% —% —% —% 24 Households 100.0% 27.7% —% —% —% 11.1% 25 of which loans collateralised by residential immovable property 100.0% 27.8% —% —% —% 11.1% 26 of which building renovation loans 100.0% 16.6% —% —% —% —% 27 of which motor vehicle loans —% —% —% —% —% —% 28 Local government financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% 29 Housing financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% 30 Other local government financing —% —% —% —% —% —% —% —% —% —% —% —% —% —% 31 Collateral obtained by taking possession: residential and commercial immovable properties —% —% —% —% —% —% —% —% —% —% —% —% —% —% 32 Total GAR assets —% —% —% —% —% —% —% —% 34.2% 8.0% —% —% —% 42.6% Sustainability statement 94 5. KPI off-balance sheet exposures stock: turnover % (compared to total eligible off- balance sheet assets) a b c d e f g h i j k l m n o p q Disclosure reference date 31/12/2024 Climate change mitigation (CCM) Climate change adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy- eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Of which use of proceeds Of which transitional Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling 1 Financial guarantees (FinGuar KPI) —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 2 Assets under management (AuM KPI) 3.3% 1.3% —% 0.1% 0.7% 0.2% 0.1% —% —% —% —% —% —% 0.5% —% —% —% % (compared to total eligible off- balance sheet assets) r s t u v w x z aa ab ac ad ae Disclosure reference date 31/12/2024 Pollution (PPC) Biodiversity and ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy- eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which transitional Of which enabling 1 Financial guarantees (FinGuar KPI) —% —% —% —% —% —% —% —% —% —% —% —% —% 2 Assets under management (AuM KPI) 0.2% —% —% —% —% —% —% —% 4.2% 1.4% —% 0.1% 0.8% Sustainability statement 95 5. KPI off-balance sheet exposures stock: capex % (compared to total eligible off- balance sheet assets) a b c d e f g h i j k l m n o p q Disclosure reference date 31/12/2024 Climate change mitigation (CCM) Climate change adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy- eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Of which use of proceeds Of which transitional Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling 1 Financial guarantees (FinGuar KPI) —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 2 Assets under management (AuM KPI) 4.5% 2.0% —% 0.2% 0.9% 0.2% 0.1% —% —% —% —% —% —% 0.2% —% —% —% % (compared to total eligible off- balance sheet assets) r s t u v w x z aa ab ac ad ae Disclosure reference date 31/12/2024 Pollution (PPC) Biodiversity and ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy- eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which transitional Of which enabling 1 Financial guarantees (FinGuar KPI) —% —% —% —% —% —% —% —% —% —% —% —% —% 2 Assets under management (AuM KPI) 0.2% —% —% —% —% —% —% —% 5.1% 2.1% —% 0.2% 1.0% Sustainability statement 96 5. KPI off-balance sheet exposures flow: turnover The calculation for the flow is based on stock 2024 minus stock 2023. In 2023 annual report, we disclosed our Assets under Management (AuM) for Van Lanschot Kempen in accordance with the reporting requirements for asset managers as outlined in Annex III of the Delegated Regulation. As not all metrics in Annex III and 5. KPI off- balance sheet exposures flow align, along with the new environmental objectives reporting criteria for financials in 2024, we are unable to provide complete flow data for all metrics in the 5. KPI off-balance sheet exposures flow for the full year 2024. % (compared to total eligible off- balance sheet assets) a b c d e f g h i j k l m n o p q Disclosure reference date 31/12/2024 Climate change mitigation (CCM) Climate change adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy- eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Of which use of proceeds Of which transitional Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling 1 Financial guarantees (FinGuar KPI) —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 2 Assets under management (AuM KPI) —% 0.4% —% 0.1% 0.3% —% —% —% —% —% —% —% —% —% —% —% —% % (compared to total eligible off- balance sheet assets) r s t u v w x z aa ab ac ad ae Disclosure reference date 31/12/2024 Pollution (PPC) Biodiversity and ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy- eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which transitional Of which enabling 1 Financial guarantees (FinGuar KPI) —% —% —% —% —% —% —% —% —% —% —% —% —% 2 Assets under management (AuM KPI) —% —% —% —% —% —% —% —% —% 0.6% —% —% —% Sustainability statement 97 5. KPI off-balance sheet exposures flow: capex The calculation for the flow is based on stock 2024 minus stock 2023. In 2023 annual report, we disclosed our Assets under Management (AuM) for Van Lanschot Kempen in accordance with the reporting requirements for asset managers as outlined in Annex III of the Delegated Regulation. As not all metrics in Annex III and 5. KPI off- balance sheet exposures flow align, along with the new environmental objectives reporting criteria for financials in 2024, we are unable to provide complete flow data for all metrics in the 5. KPI off-balance sheet exposures flow for the full year 2024. % (compared to total eligible off- balance sheet assets) a b c d e f g h i j k l m n o p q Disclosure reference date 31/12/2024 Climate change mitigation (CCM) Climate change adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy- eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Of which use of proceeds Of which transitional Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling 1 Financial guarantees (FinGuar KPI) —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% —% 2 Assets under management (AuM KPI) —% 0.6% —% 0.1% 0.3% —% 0.1% —% —% —% —% —% —% —% —% —% —% % (compared to total eligible off- balance sheet assets) r s t u v w x z aa ab ac ad ae Disclosure reference date 31/12/2024 Pollution (PPC) Biodiversity and ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy- eligible) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (taxonomy-aligned) Of which use of proceeds Of which enabling Of which use of proceeds Of which enabling Of which use of proceeds Of which transitional Of which enabling 1 Financial guarantees (FinGuar KPI) —% —% —% —% —% —% —% —% —% —% —% —% —% 2 Assets under management (AuM KPI) —% —% —% —% —% —% —% —% —% 0.7% —% —% —% 1 Full-year 2024 and 2023 including retained earnings; half-year 2024 excluding retained earnings. 2 Based on Van Lanschot Kempen’s interpretation of Basel IV at the time of reporting. 3 Return on CET 1 capital and Return on Equity are calculated based on underlying (annualised) net result. Financial performance 99 Financial performance Key financial data Statement of income (€ million) 2024 2023 H2 2024 H1 2024 Net result 141.9 125.2 13% 67.4 74.5 Underlying net result 150.5 130.5 15% 72.1 78.4 Cost/income ratio (%) 70.1 71.6 71.3 69.0 Client assets (€ billion) 31/12/2024 31/12/2023 30/06/2024 Client assets 167.6 144.8 16% 156.8 7% – Assets under management (AuM) 149.3 127.3 17% 139.3 7% – Assets under administration (AuA) 5.5 4.9 13% 5.2 5% – Savings and deposits 12.8 12.6 2% 12.2 4% Financial position and capital management (€ million) 31/12/2024 31/12/2023 30/06/2024 Equity attributable to shareholders 1,275 1,247 2% 1,216 5% Equity attributable to AT1 capital securities 102 102 1% 102 0% Savings and deposits 12,767 12,574 2% 12,234 4% Loans and advances to clients 9,331 9,161 2% 9,146 2% Total assets 16,983 16,836 1% 16,448 3% Loan-to-deposit ratio (%) 73.1 72.9 74.8 Total risk exposure amount 4,466 4,409 1% 4,509 -1% Common Equity Tier 1 (CET 1) ratio (%) 1 19.4 19.6 18.8 CET 1 ratio (Basel IV fully loaded) (%)1, 2 19.3 c. 18.5 18.5 Tier 1 ratio (%)1 21.7 21.9 21.0 Total capital ratio (%)1 25.2 25.3 24.3 Leverage ratio (%) 5.7 5.8 5.8 Liquidity coverage ratio (%) 220.7 224.7 216.4 Net stable funding ratio (%) 160.2 156.4 155.9 Key figures 2024 2023 H1 2024 Weighted average outstanding shares (x1,000) 42,386 41,969 1% 42,409 0% Earnings per ordinary share (€) 3.11 2.82 10% 1.62 92% Return on CET 1 capital (%) 3 16.2 14.2 17.0 Return on equity (%)3 11.1 9.8 11.8 Number of FTEs (at period end) 2,018 1,904 6% 1,937 4% Results 2024 was a strong financial year, which resulted in a net profit of € 141.9 million and an underlying net result of €150.5 million. We propose a dividend of €2.75 per share for 2024 (2023: €2.00 per share), representing a pay-out ratio of 88%. We are well on track to reach our 2027 financial targets by executing our “Growing further together” strategy. Core to this strategy is generating sustainable and profitable growth while maintaining our capital-light and scalable business model, with the target to grow AuM by 10% on average per year. We maintained our strong commercial momentum in 2024, achieving 17.2% growth in AuM. Our cost/income ratio improved to 70.1%, just outside our target range of 67-70%. We will continue our focus on scalable growth and cost discipline to further improve our cost/income ratio. Return on CET 1 came in at 16.2%, which is ahead of our growth path of improving by 1 percentage point per year towards our target of >18%, to be achieved in 2027. Lastly, the CET 1 ratio Basel IV fully loaded2 worked out at 19.3%, allowing for a proposed excess capital return of €1.40 per share. The excess capital return will total €59.3 million and is expected to impact our CET 1 ratio by -1.3%. The increase in net result compared with 2023 was driven by multiple factors. Securities commissions rose by 20% in 2024 thanks to strong growth in AuM, while other commissions were up by 12%, mainly due to higher commissions from our investment banking activities. In addition, result on financial transactions grew to €13.9 million (2023: €1.0 million). At the same time, interest income fell by 11%, mainly due to lower interest margins driven by lower European Central Bank (ECB) rates and changes in the composition of our liabilities, while income from securities and associates decreased due to the sale in 2023 of our participating interest in Movares. Financial performance 100 This resulted in a book profit of €23.1 million, and there were no sales of participating interests in 2024. Our costs were higher in 2024, mainly due to higher staff costs including a rise in fixed salary expenses and investments in additional FTEs and digital solutions to support our growth strategy. Our costs also rose due to the integration of Robeco's online investment platform and Accuro. Client assets grew by 16% to €167.6 billion (2023: €144.8 billion), mainly driven by net AuM inflows of €9.2 billion and a positive market performance by AuM of €12.1 billion. Financial results Financial results (€ million) 2024 2023 H2 2024 H1 2024 Commission 511.2 427.2 20% 259.7 251.5 – of which securities commissions 469.3 389.8 20% 242.0 227.4 – of which other commissions 41.9 37.4 12% 17.8 24.1 Interest 175.4 196.5 -11% 83.2 92.2 Income from securities and associates 16.3 38.1 -57% 9.4 6.9 Result on financial transactions 13.9 1.0 4.8 9.1 Income from operating activities 716.8 662.8 8% 357.1 359.6 Staff costs 334.5 317.3 5% 169.1 165.4 Other administrative expenses 150.3 139.7 8% 76.3 74.0 Depreciation and amortisation 18.0 17.7 1% 9.1 8.8 Operating expenses 502.8 474.8 6% 254.5 248.2 Gross result 214.0 188.0 14% 102.6 111.4 Addition to loan loss provisions -1.4 2.0 -3.2 1.7 Other impairments — — — — Impairments -1.4 2.0 -3.2 1.7 Operating profit before tax of non-strategic investments 3.9 0.1 — 3.9 Operating profit before special items and tax 219.3 186.1 18% 105.8 113.5 Amortisation of intangible assets arising from acquisitions 16.3 15.2 7% 8.1 8.1 Expenses related to accounting treatment of acquisitions 5.8 1.2 2.7 3.2 Restructuring charges 3.7 5.9 -37% 2.7 1.0 Release of provision for revolving consumer credit — -0.3 — — Operating profit before tax 193.5 164.2 18% 92.3 101.2 Income tax 51.6 39.0 32% 24.9 26.7 Net result 141.9 125.2 13% 67.4 74.5 Share of non-controlling interests -0.2 0.0 0.0 -0.2 Share of AT1 capital securities holders -9.9 -6.8 -47% -4.4 -5.5 Net result attributable to shareholders 131.9 118.4 11% 63.0 68.8 Underlying net result (€ million) 2024 2023 H2 2024 H1 2024 Net result 141.9 125.2 13% 67.4 74.5 Expenses related to accounting treatment of acquisitions 5.8 1.2 2.7 3.2 Release of provision for revolving consumer credit — -0.3 — — Restructuring charges 3.7 5.9 -37% 2.7 1.0 Tax effects -1.0 -1.4 33% -0.7 -0.3 Underlying net result 150.5 130.5 15% 72.1 78.4 Financial performance 101 Segment results Operating segments in 2024 (€ million) Private Clients Netherlands Private Clients Belgium Investment Management Clients Investment Banking Clients Other Total Commission 234.2 105.8 127.2 40.2 3.8 511.2 Interest 156.9 9.3 0.9 -0.4 8.6 175.4 Other income 1.3 0.5 0.1 5.8 22.5 30.1 Income from operating activities 392.4 115.6 128.2 45.7 34.9 716.8 Operating expenses 250.3 63.2 102.9 41.8 44.7 502.8 Gross result 142.1 52.4 25.3 3.9 -9.7 214.0 Impairments -2.4 0.1 -0.0 — 0.9 -1.4 Operating result before tax of non-strategic investments — — — — 3.9 3.9 Operating result before special items and tax 144.5 52.3 25.3 3.9 -6.7 219.3 Special items 9.6 14.5 0.4 — 1.4 25.8 Operating profit before tax 134.9 37.8 24.9 3.9 -8.1 193.5 Underlying profit before tax 137.5 44.2 24.9 3.9 -7.5 203.1 Operating segments in 2023 (€ million) Private Clients Netherlands Private Clients Belgium Investment Management Clients Investment Banking Clients Other Total Commission 193.8 80.0 111.8 36.5 5.0 427.2 Interest 172.1 12.6 0.4 -0.3 11.7 196.5 Other income 0.8 0.5 0.1 2.1 35.6 39.1 Income from operating activities 366.8 93.1 112.3 38.4 52.3 662.8 Operating expenses 229.8 57.7 100.5 42.8 44.0 474.8 Gross result 137.0 35.4 11.7 -4.4 8.3 188.0 Impairments 3.5 -1.9 -0.0 — 0.4 2.0 Operating result before tax of non-strategic investments — — — — 0.1 0.1 Operating result before special items and tax 133.4 37.3 11.7 -4.4 8.0 186.1 Special items 9.6 9.4 1.6 — 1.3 21.9 Operating profit before tax 123.9 27.8 10.1 -4.4 6.7 164.2 Underlying profit before tax 127.2 29.6 11.3 -4.4 7.3 170.9 Key figures in 2024 Private Clients Netherlands Private Clients Belgium Investment Management Clients Investment Banking Clients Other Total Cost/income ratio (%) 64 55 80 91 128 70 AuM growth (%) 19 38 14 — — 17 FTEs 548 188 327 105 851 2,018 Client assets 2024 (€ billion) Private Clients Netherlands Private Clients Belgium Investment Management Clients Other Total At 31 December 58.0 16.5 92.1 1.0 167.6 – AuM 43.7 15.1 90.5 — 149.3 – AuA 3.3 0.1 1.5 0.6 5.5 – Savings and deposits 11.0 1.3 0.1 0.4 12.8 Financial performance 102 Client assets 2024 (€ billion) Private Clients Netherlands Private Clients Belgium Investment Management Clients Other Total At 1 January 50.9 12.2 80.3 1.5 144.8 AuM net in/outflow 2.1 2.2 4.9 — 9.2 Acquisition of AuM — 0.7 — — 0.7 Market performance of AuM 4.8 1.2 6.1 — 12.1 Change in AuA 0.4 -0.0 0.8 -0.5 0.6 Savings and deposits in/outflow -0.1 0.2 0.1 0.0 0.2 At 31 December 58.0 16.5 92.1 1.0 167.6 Private Clients Netherlands This segment includes our private banking activities in the Netherlands and Switzerland, as well as our online investment platform Evi. The segment achieved a strong operating profit before tax of €134.9 million (2023: €123.9 million), supported by a rise in commission income. This growth in commission income stemmed from higher AuM on the back of continuing net inflows and positive market performance. In 2024, Private Clients Netherlands achieved a €2.1 billion net inflow in AuM. We gained market share in the Dutch private banking market, with new clients entrusting their wealth to us and existing clients investing more. These inflows were driven by developments such as the growing wealth management market, company sales, rising stock markets and continued client satisfaction. The latter was reflected in the high Net Promoter Score (NPS) of 45 (2023: 34). Private Clients Netherlands' total commission income came in at €234.2 million. Its margin on AuM, including Evi, decreased to 55 bps in 2024 (2023: 60 bps). The underlying margins per product remained stable. During 2023, we added the acquired assets of Robeco's online investment platform, which have lower margins. There was also greater growth in AuM for non-discretionary management, where margins are lower than in discretionary portfolio management. Operating expenses rose by 9%, partly due to costs related to the addition and integration of Robeco's online investment platform. Excluding this effect, costs are well under control and grew only modestly compared with 2023 (+4%). We continue to maintain a focus on cost levels while investing in our workforce. Financial results (€ million) 2024 2023 H2 2024 H1 2024 Commission 234.2 193.8 21% 121.1 113.1 Interest 156.9 172.1 -9% 70.7 86.2 Other income 1.3 0.8 54% 0.8 0.5 Income from operating activities 392.4 366.8 7% 192.6 199.8 Operating expenses 250.3 229.8 9% 127.7 122.6 Gross result 142.1 137.0 4% 64.9 77.2 Impairments -2.4 3.5 -3.4 0.9 Operating profit before special items and tax 144.5 133.4 8% 68.2 76.3 Special items 9.6 9.6 0% 4.9 4.6 Operating profit before tax 134.9 123.9 9% 63.3 71.6 Underlying profit before tax 137.5 127.2 8% 64.8 72.7 Key figures 31/12/2024 31/12/2023 30/06/2024 Cost/income ratio (%) 64 63 61 FTEs 548 517 6% 541 1% Client assets (€ billion) 31/12/2024 31/12/2023 30/06/2024 Client assets 58.0 50.9 14% 55.2 5% – AuM 43.7 36.8 19% 41.6 5% – AuA 3.3 2.9 12% 3.2 5% – Savings and deposits 11.0 11.1 -1% 10.5 4% Financial performance 103 Client assets at Private Clients Netherlands increased by 14% in 2024 to €58.0 billion as a result of strong net AuM inflows of €2.1 billion, c. 80% of which came from new clients. Positive market performance added €4.8 billion. Our net inflow consisted mostly of non-discretionary management (88%), with 12% in discretionary management. We see increasing demand from our clients for a combination of discretionary management and investment advice, including specific investments such as in private markets. At the end of 2024, assets under discretionary management made up 41% of total AuM (2023: 42%) and non-discretionary management amounted to 59% (2023: 58%). AuM at Private Clients Netherlands (€ billion) Private Clients Belgium This segment includes our private banking activities in Belgium, where we operate under the Mercier Van Lanschot brand. The segment achieved a strong operating result before tax of €37.8 million (2023: €27.8 million), driven by higher commission income. The strong commercial momentum in the attractive Belgium private banking market translated into continued growth, with a high net inflow of €2.2 billion in 2024, as we welcomed new clients and existing clients entrusted a larger share of their assets to us. Along with a positive market performance of €1.2 billion, this AuM growth led to a 32% rise in commission income, which more than compensated for the decline in interest income. Private Clients Belgium's total commission income came in at €105.8 million. Its margin on AuM remained stable at 80 bps in 2024 (2023: 80 bps). In 2024, AuM at Evi climbed 13% to €7.2 billion (2023: €6.4 billion) as a result of positive market performance partially offset by modest net outflows, mainly driven by regular household consumption. Total AuM at Private Clients Switzerland amounted to €2.8 billion (2023: €2.4 billion). Savings and deposits showed an outflow of €0.1 billion. This was driven by two factors. Firstly, savings declined due to clients converting part of their wealth into investments, mainly in the first half of 2024. Secondly, savings within Evi rose throughout the year, by a total of €0.7 billion, due to our improved savings proposition. Client assets (€ billion) Private Clients Netherlands Client assets at 31 December 2023 50.9 AuM net in/outflow 2.1 Market performance of AuM 4.8 Change in AuA 0.4 Savings and deposits in/outflow -0.1 Client assets at 31 December 2024 58.0 Operating expenses rose by 10%, mainly due to a 15% increase in FTEs. We grew our organisation to accommodate the client growth by establishing a scalable operating model, which is reflected in an improved cost/income ratio of 55% (2023: 62%). Given our ambition for scalable growth, we continue to focus on cost management and the composition of our workforce while delivering the impeccable client service that underpins our commercial success. The latter was reflected in our NPS of 62 (2023: n/a). We completed the acquisition of the Belgian investment adviser Accuro on 29 April 2024, which has broadened our offering and expertise for our clients, especially in the field of investment advice. The costs related to the migration of clients, the amortisation of intangible assets and the accounting treatment of this acquisition are reported in "Special items", which accounts for the increase in this line item compared with 2023. Financial results (€ million) 2024 2023 H2 2024 H1 2024 Commission 105.8 80.0 32% 56.0 49.8 Interest 9.3 12.6 -26% 5.0 4.4 Other income 0.5 0.5 -1% 0.2 0.3 Income from operating activities 115.6 93.1 24% 61.2 54.4 Operating expenses 63.2 57.7 10% 32.6 30.6 Gross result 52.4 35.4 48% 28.6 23.9 Impairments 0.1 -1.9 0.1 0.0 Operating profit before one-off charges and tax 52.3 37.3 40% 28.5 23.8 Special items 14.5 9.4 53% 7.3 7.1 Operating profit before tax 37.8 27.8 36% 21.1 16.7 Underlying profit before tax 44.2 29.6 50% 24.4 19.9 Financial performance 104 Key figures 31/12/2024 31/12/2023 30/06/2024 Cost/income ratio (%) 55 62 56 FTEs 188 163 15% 172 9% Client assets (€ billion) 31/12/2024 31/12/2023 30/06/2024 Client assets 16.5 12.2 36% 15.0 10% – AuM 15.1 11.0 38% 13.7 10% – AuA 0.1 0.1 -7% 0.1 -11% – Savings and deposits 1.3 1.1 19% 1.3 5% Client assets at Private Clients Belgium increased by 36% in 2024 to €16.5 billion, mainly as a result of strong net AuM inflows of €2.2 billion. In addition, market performance was positive at €1.2 billion and the acquisition of Accuro added €0.7 billion. AuM at Private Clients Belgium (€ billion) Investment Management Clients This client segment includes our investment management activities in Western Europe. Investment Management Clients is an active management boutique with expertise in small caps, credits and private equity, serving clients with focused strategies and fiduciary management services. Investment Management Clients serves our private banking clients in the Netherlands, Belgium and Switzerland, fiduciary clients in the Netherlands and the UK, and wholesale clients in Western Europe. Our offering was further strengthened by the successful launch of the Kempen North American Private Equity Fund in October 2023, with capital raised in three funding rounds in 2024. This client segment's operating profit before tax more than doubled in 2024 to €24.9 million (2023: €10.1 million). Growth in commission income was derived from higher AuM on the back of net inflows, in combination with positive market performance. We also focused on growing our small- cap strategies and realising net revenue growth within fiduciary management services both in the Netherlands and UK. This, in combination with successfully on-boarding new clients and increasing asset allocations from our existing clients, resulted in an operating income of €128.2 million, up by 14% compared with 2023. At the end of 2024, assets under discretionary management made up 77% of our total AuM (2023:78%) and non- discretionary management amounted to 23% (2023: 22%). Client assets (€ billion) Private Clients Belgium Client assets at 31 December 2023 12.2 AuM net in/outflow 2.2 Acquisition of AuM 0.7 Market performance of AuM 1.2 Change in AuA -0.0 Savings and deposits in/outflow 0.2 Client assets at 31 December 2024 16.5 Investment Management Clients' 2024 commission income rose to €127.2 million (2023: €111.8 million). The margin remained stable at 15 bps in 2024 (2023: 15 bps). Operating expenses increased slightly by 2% compared with 2023, partly due to measures taken to further accelerate profitable growth by simplifying our organisational structure and structurally reducing costs. We maintain our focus on cost levels and our team continuously assesses our investment strategies, to ensure a distinctive and future-fit value proposition. Financial performance 105 Financial results (€ million) 2024 2023 H2 2024 H1 2024 Commission 127.2 111.8 14% 64.8 62.4 Interest 0.9 0.4 0.5 0.4 Other income 0.1 0.1 51% -0.0 0.1 Income from operating activities 128.2 112.3 14% 65.3 62.9 Operating expenses 102.9 100.5 2% 53.7 49.2 Gross result 25.3 11.7 11.6 13.7 Impairments -0.0 -0.0 0.0 -0.0 Operating profit before special items and tax 25.3 11.7 11.6 13.7 Special items 0.4 1.6 -75% 0.2 0.2 Operating profit before tax 24.9 10.1 11.4 13.5 Underlying profit before tax 24.9 11.3 11.4 13.5 Key figures 31/12/2024 31/12/2023 30/06/2024 Cost/income ratio (%) 80 90 78 FTEs 327 326 0% 321 2% Client assets (€ billion) 31/12/2024 31/12/2023 30/06/2024 Client assets 92.1 80.3 15% 85.1 8% – AuM 90.5 79.5 14% 84.1 8% – AuA 1.5 0.7 1.0 46% – Savings and deposits 0.1 0.0 0.0 86% Fiduciary management showed net inflows of €3.9 billion, from new clients in the Netherlands and the UK as well as existing clients who entrusted us with more of their assets, in combination with enhanced fiduciary management services and positive market performance of €5.0 billion. Fiduciary management AuM grew by €9.0 billion in 2024. AuM at Investment Management Clients (€ billion) Investment strategies showed net inflows of €0.5 billion, driven by inflows in small caps and credits, and further benefited from a positive market performance of €0.7 billion. Investment strategies AuM rose by €1.1 billion in 2024 to €11.9 billion, including €3.5 billion in AuM from private banking clients. Alternative investment strategies achieved net inflows of €0.5 billion, mainly from private equity, farmland and non- listed real estate, and notched up a positive market performance of €0.4 billion. Alternative investment strategies AuM grew by €0.9 billion in 2024 to €5.2 billion, including €1.5 billion in AuM from private banking clients. Client assets (€ billion) Investment Management Clients Client assets at 31 December 2023 80.3 AuM net in/outflow 4.9 Market performance of AuM 6.1 Change in AuA 0.8 Savings and deposits in/outflow 0.1 Client assets at 31 December 2024 92.1 Financial performance 106 Investment Banking Clients Investment Banking Clients is a specialist investment bank with an international sector-focused approach in European real estate, life sciences & healthcare, tech & fintech and infrastructure. This client segment includes our full suite of investment banking activities in the Netherlands as well as our securities broker-dealer activities in the US. Investment Banking Clients offers our clients across Western Europe and the US expert services including M&A, equity capital markets (ECM) transactions, debt advisory services and equities research and trading. The segment achieved a positive operating profit before tax of €3.9 million (2023: -€4.4 million) supported by increased securities and trading income and stronger commission income. Across M&A and ECM transactions and debt advisory services, we successfully completed transactions for both new and existing clients. Investment Banking Clients' 2024 commission income rose to €40.2 million (2023: €36.5 million). Commission income from corporate finance activities and ECM transactions rose to €29.5 million (2023: €25.7 million). Other income grew to €5.8 million (2023: €2.1 million) due to the earn-out of €3.7 million we received in connection with the sale of 100% of the shares of Global Property Research (GPR), completed in 2021. Operating expenses decreased by 2% compared with 2023, reflecting measures taken to structurally reduce costs. Financial results (€ million) 2024 2023 H2 2024 H1 2024 Commission 40.2 36.5 10% 16.2 24.0 Interest -0.4 -0.3 -31% -0.2 -0.2 Other income 5.8 2.1 4.5 1.3 Income from operating activities 45.7 38.4 19% 20.6 25.1 Operating expenses 41.8 42.8 -2% 19.7 22.1 Gross result 3.9 -4.4 0.9 3.0 Operating profit before special items and tax 3.9 -4.4 0.9 3.0 Operating profit before tax 3.9 -4.4 0.9 3.0 Underlying profit before tax 3.9 -4.4 0.9 3.0 Key figures 31/12/2024 31/12/2023 30/06/2024 Cost/income ratio (%) 91 111 88 FTEs 105 102 3% 105 -1% Other The Other segment comprises activities in the fields of our management book, interest rate and liquidity risk management, structured products and staff departments, as well as the activities of Van Lanschot Participaties and Bolster investment funds and other consolidated investments such as Allshare. This segment includes group function costs that are not allocated to the client segments. The result of valuation gains on our participating interests and own investments did not fully compensate these costs, leading to an operating profit before tax of -€8.1 million (2023: €6.7 million). The decrease compared with 2023 was mainly due to the sale of our 33.3% interest in Movares Group BV in November 2023 at a book profit of €23.1 million. This was partially offset in 2024 by the improved performance of our structured products activities (€2.3 million, up from €0.3 million in 2023) as well as a one-off earn-out on the sale of former AIO II (Medsen) in 2019 of €2.0 million. The limited FTE growth in 2024 of 7% was mainly due to the conversion of external hires into permanent employees, particularly within our IT domain. Financial results (€ million) 2024 2023 H2 2024 H1 2024 Commission 3.8 5.0 -23% 1.7 2.2 Interest 8.6 11.7 -26% 7.1 1.5 Other income 22.5 35.6 -37% 8.7 13.7 Income from operating activities 34.9 52.3 -33% 17.5 17.4 Operating expenses 44.7 44.0 1% 20.9 23.8 Gross result -9.7 8.3 -3.3 -6.4 Impairments 0.9 0.4 0.1 0.7 Operating result before tax of non-strategic investments 3.9 0.1 0.0 3.9 Operating profit before special items and tax -6.7 8.0 -3.4 -3.3 Special items 1.4 1.3 5% 1.0 0.4 Operating profit before tax -8.1 6.7 -4.4 -3.7 Underlying profit before tax -7.5 7.3 -3.8 -3.7 Financial performance 107 Key figures 31/12/2024 31/12/2023 30/06/2024 Cost/income ratio (%) 128 84 137 FTEs 851 796 7% 797 7% Client assets (€ billion) 31/12/2024 31/12/2023 30/06/2024 Client assets 1.0 1.5 -33% 1.4 -25% – AuM — — — – AuA 0.6 1.1 -45% 1.0 -35% – Savings and deposits 0.4 0.4 3% 0.4 2% Financial results Commission Commission (€ million) 2024 2023 H2 2024 H1 2024 Securities commissions 469.3 389.8 20% 242.0 227.4 – of which management fees 443.9 366.5 21% 230.8 213.1 – of which transaction fees 25.4 23.3 9% 11.1 14.3 Other commissions 41.9 37.4 12% 17.8 24.1 Commission 511.2 427.2 20% 259.7 251.5 Commission income grew by 20% compared with 2023 to €511.2 million, and accounted for 71% of our total operating income (2023: 64%). Management fees rose 21%, reflecting the strong growth in AuM. This was a result of net inflows and positive market performance in our Private Clients Netherlands, Private Clients Belgium and Investment Management Clients segments. Transaction fees were up by €2.1 million, driven predominantly by increased activity from our advisory clients. Other commissions increased, mainly as a result of more M&A, ECM and debt advisory activities in our Investment Banking Clients segment. Annualised recurring securities commission income (run rate) rose by 19% compared with year-end 2023 on the back of higher AuM. Annualised recurring fees are determined by multiplying the AuM on the reporting date by the management fee per client to determine the expected annualised management fee, assuming the AuM remains unchanged. The expected annual transaction fees relating to these client portfolios are then added to this number. Annualised run rate of securities commission income (€ million) Interest Interest (€ million) 2024 2023 H2 2024 H1 2024 Clean interest margin 174.4 192.6 -9% 82.8 91.6 Loan commission 1.9 1.9 0% 0.8 1.1 Early redemption fees 1.4 3.5 -60% 0.8 0.6 Miscellaneous interest income and charges -2.2 -1.5 -50% -1.2 -1.1 Interest 175.4 196.5 -11% 83.2 92.2 Interest income in 2024 totalled €175.4 million, down 11% compared with €196.5 million achieved in 2023. Interest income accounted for 24% of our total operating income (2023: 30%).The first half of 2024 saw interest income of €92.2 million, however this dropped to €83.2 million in the second half-year, due to lower interest margins driven by lower ECB rates and changes in the composition of our liabilities. These developments had a dampening impact on the interest margin. In comparison with year-end 2023, the total interest margin (12-month moving average) fell by 18 bps to an average of 106 bps. The clean interest margin stood at 106 bps at year- end 2024, a drop of 16 bps compared with year-end 2023. 4 This includes Bolster Investments Coöperatief UA & Bolster Investments II Coöperatief UA. Financial performance 108 Average total client savings and deposits volumes were higher than in 2023. However, the product mix was different, as current account volume was lower while the average volume in term deposits was higher than in 2023. The growth in savings came mostly via our Evi savings proposition, by offering former Robeco clients an attractive savings rate. Savings and deposits In response to the ECB's rate cuts, we have lowered the interest rates on savings and deposits, albeit at a slower pace. This resulted in lower interest income as net interest margins showed an expected normalisation. Total client savings and deposits increased by €0.2 billion, resulting in a year-end position of €12.8 billion compared with €12.6 billion at the end of 2023. Savings rose by €0.8 billion, primarily driven by the commercial success of the savings proposition for Evi clients. However, we observed a decline in volumes from our private banking clients as they transferred their wealth to investments, effectively turning interest income into commission income. Loans Our total loan portfolio to clients grew €0.2 billion to €9.3 billion, mainly due to higher Lombard loan production. Mortgage loan volumes remained stable. Income from securities and associates Income from securities and associates (€ million) 2024 2023 H2 2024 H1 2024 Dividend 3.1 6.0 -49% 0.9 2.2 Realised capital gains 3.7 23.6 -84% 3.7 — Valuation gains and losses 9.5 8.4 12% 4.8 4.7 Income from securities and associates 16.3 38.1 -57% 9.4 6.9 Income from and book value of securities and associates (€ million) Income 2024 Income 2023 Book value year-end 2024 Book value year-end 2023 Van Lanschot Kempen Participaties (minority interests) 1.7 28.4 34.9 35.0 Bolster investment funds 4 4.9 3.9 83.2 76.3 Co-investments in own investment funds 5.8 5.2 61.7 83.8 Other equity investments 3.9 0.6 2.1 2.1 Total from securities and associates 16.3 38.1 181.9 197.2 Income from securities and associates relates to investments of our equity investment company, Van Lanschot Kempen Participaties, and our investments in Bolster investment funds. We also participate in our own investment funds via our management book, as this allows us to provide seed capital and align our own interests with those of our clients. In 2024, we realised an earn-out of €3.7 million related to the sale of GPR. In 2023, we sold our participating interest in Movares, which resulted in a book profit of €23.1 million. Valuation gains and losses rose by €1.0 million to €9.5 million in 2024, reflecting the positive results in our private equity portfolio and higher results in our own investment funds compared with 2023. We reduced the size of our co-investments in own investment funds due to the increased size of certain funds, as well as for capital optimisation purposes related to Basel IV, lowering the book value by €22.1 million to €61.7 million. The book value of Bolster investment funds grew by €6.9 million due to additional calls on existing commitments. The total result of co-investments in our own investment funds amounted to €4.6 million (2023: €1.8 million), consisting of €5.8 million in income on our own investment funds, driven by market performance, and a -€1.2 million result on hedges. The result on hedges is reported under the results on financial transactions (below). The book value of our management book fell due to several divestments. Financial performance 109 Result on financial transactions Result on financial transactions (€ million) 2024 2023 H2 2024 H1 2024 Result on securities trading 2.3 1.7 42% 1.2 1.2 Result on currency trading 11.0 7.6 45% 5.6 5.4 Result on investment portfolio -1.5 -1.6 10% -1.5 0.0 Result on hedges 2.0 -4.9 -0.4 2.4 Other income 0.0 -1.7 100% -0.2 0.2 Result on financial transactions 13.9 1.0 4.8 9.1 Our currency trading result came in strong at €11.0 million (2023: €7.6 million). Trading activities in currency and securities are the result of client facilitation only – providing liquidity to clients. The €2.0 million positive result on hedges (2023: -€4.9 million) was achieved mainly by hedges applied to our structured products activities, which recorded a result of €2.2 million (2023: -€0.1 million). In addition, hedge accounting ineffectiveness accounted for a positive result of €1.1 million (2023: -€1.8 million). This was partly offset by the result on futures that are used to mitigate risk relating to our investments in our own investment funds, which recorded a negative result of -€1.2 million (2023: -€3.4 million), as noted under income from securities and associates. Total income on structured products activities, including commission income, came in at €5.5 million (2023: €2.8 million). Operating expenses Operating expenses (€ million) 2024 2023 H2 2024 H1 2024 Staff costs 334.5 317.3 5% 169.1 165.4 Other administrative expenses 150.3 139.7 8% 76.3 74.0 Depreciation and amortisation 18.0 17.7 1% 9.1 8.8 Operating expenses 502.8 474.8 6% 254.5 248.2 Staff costs Staff costs grew by €17.2 million in 2024, mainly driven by higher personnel costs due to a rise in fixed salary expenses and an addition of 114 FTEs throughout the year, including 10 FTEs as a result of the acquisition of Accuro and the conversion of external hires into permanent employees, particularly within our IT domain. This is a total increase of 6% in FTEs compared with year-end 2023. In addition, staff costs were up as a result of the acquisition of Robeco's online investment platform – which was only accounted for in the second half of 2023. We also made a one-off end-of- year payment to all employees, amounting to €4.3 million. Other administrative expenses Other administrative expenses rose to €150.3 million (2023: €139.7 million), taking into account the acquisition of Robeco’s online investment platform in the second half of 2023 and Accuro in 2024, which resulted in a combined cost increase of €5.1 million. The other administrative expenses that were higher than in 2023 relate to technology and digitalisation, marketing and communication, and external auditors' fees. Cost/income ratio The cost/income ratio – i.e. the ratio of operating expenses (excluding costs incurred for special items) to income from operating activities – amounted to 70.1% (2023: 71.6%), which is just outside our 2027 cost/income ratio target range of 67-70%. Impairments Impairments (€ million) 2024 2023 H2 2024 H1 2024 Addition of loan loss provisions -1.4 2.0 -3.2 1.7 Other impairments — — — — Impairments -1.4 2.0 -3.2 1.7 Release of loan loss provisions Several years have passed since the onset of the pandemic and the rise in geopolitical tensions, giving any unforeseen risks and consequences time to materialise. Currently, we see no impact that is not already reflected in our reported arrears, the outcome of our models or the forecasts that are used as inputs in our models. Therefore, we see no clear indication that a management overlay is necessary to compensate for current risks that are not already reflected in the outcome of our models. In the fourth quarter of 2024, we decided to no longer apply the management overlay, which resulted in a release of the provision. At year-end 2023, the management overlay amounted to €3.4 million. For more information about the management overlay, see Section 3.8.7, “Model changes”, in the financial statements. In 2024, the total release of our loan loss provisions amounted to €1.4 million (2023: addition of €2.0 million), highlighting the credit quality of our loan book and the benign economic circumstances. Financial performance 110 In 2024, the release of the loan loss provisions relative to average risk-weighted assets resulted in an overall release of 3 bps (2023: addition of 5 bps). Other impairments As in 2023, we had no other impairments in 2024. Non-strategic investments We currently have a majority stake in one non-strategic financial investment, Allshare. The operating result before tax from this stake amounted to €0.1 million in 2024 (2023: €0.1 million). Additionally, €3.7 million of one-off items were realised, including an earn-out of €2.0 million related to the sale of AIO II (Medsen) in 2019. Special items Special items (€ million) 2024 2023 H2 2024 H1 2024 Amortisation of intangible assets arising from acquisitions 16.3 15.2 7% 8.1 8.1 Expenses related to accounting treatment of acquisitions 5.8 1.2 2.7 3.2 Release of provision for revolving consumer credit — -0.3 — — Restructuring charges 3.7 5.9 -37% 2.7 1.0 Special items 25.8 21.9 18% 13.5 12.3 We recognised several special items in 2024, amounting to €25.8 million (2023: €21.9 million). The amortisation of intangible assets arising from acquisitions increased to €16.3 million in 2024, due to the acquisition of Robeco's online investment platform during 2023 and Accuro in 2024. In 2023, we completed the acquisition of Mercier Vanderlinden and in 2024 we acquired Accuro. As a consequence of the agreed transaction structures, certain elements from past transactions must be treated as special items and are thus included in the expenses related to the accounting treatment of acquisitions. This item rose to €5.8 million (2023: €1.2 million) due to the acquisition of Accuro. We recognised €3.7 million in special items in 2024 for restructuring charges, mainly relating to the acquisition and integration of Robeco's online investment platform and Accuro. Income tax Income tax for 2024 amounted to €51.6 million (2023: €39.0 million), which translates to an effective tax rate of 26.7%, compared with 23.8% in 2023. Our effective tax rate is above the general Dutch tax rate of 25.8%, mainly due to several non-deductible expenses. See Note 32 to the consolidated statement of income for more information. Earnings per share Earnings per share (€ million) 2024 2023 H2 2024 H1 2024 Net result 141.9 125.2 13% 67.4 74.5 Share of non-controlling interests -0.2 0.0 0.0 -0.2 Share of holders of AT1 capital securities -9.9 -6.8 -47% -4.4 -5.5 Net result for calculation of earnings per ordinary share 131.9 118.4 11% 63.0 68.8 Earnings per ordinary share (€) 3.11 2.82 10% 1.49 1.62 Weighted average outstanding shares (x 1,000) 42,386 41,969 1% Share of holders of Additional Tier 1 (AT1) capital securities relates to the coupon of €100 million in AT1 notes and includes double interest expenses for two months, due to issuance of new notes on 29 January 2024 and the redemption of notes issued in 2019 on 1 April 2024. These securities count as Tier 1 qualifying capital when determining capital adequacy. We propose a 2024 cash dividend to our shareholders of €2.75 per share, with a pay-out ratio, based on the net result attributable to shareholders, of 88% (2023: €2.00, pay-out ratio of 72%). Statement of financial position Statement of financial position and capital management (€ million) 31/12/2024 31/12/2023 30/06/2024 Equity attributable to shareholders 1,275 1,247 2% 1,216 5% Equity attributable to AT1 capital securities 102 102 1% 102 0% Savings and deposits 12,767 12,574 2% 12,234 4% Loans and advances to clients 9,331 9,161 2% 9,146 2% Total assets 16,983 16,836 1% 16,448 3% Loan-to-deposit ratio (%) 73.1 72.9 74.8 Financial performance 111 Loan portfolio Loan portfolio (€ million) 31/12/2024 31/12/2023 30/06/2024 Mortgages 6,396 6,368 0% 6,251 2% Other loans 2,348 2,182 8% 2,291 2% Loan portfolio 8,744 8,550 2% 8,541 2% Mortgages distributed by third parties 330 348 -5% 341 -3% Other loans covered by residential real estate 293 302 -3% 303 -3% Total 9,366 9,200 2% 9,185 2% Credit impairment allowance -35 -38 8% -39 10% Total loan portfolio 9,331 9,161 2% 9,146 2% Our total loan portfolio grew by €0.2 billion to €9.3 billion, mainly due to higher Lombard loan production. Mortgages Mortgages remained stable at €6.4 billion (2023: €6.4 billion) and make up 68% of our loan portfolio (2023: 69%). These mortgages are primarily granted to high-net-worth individuals. The weighted average loan-to-value ratio is 60% (2023: 64%). Other loans Other loans comprise loans to high-net-worth individuals as well as commercial loans that fit into our private banking relationship model. In 2024, other loans grew to €2.3 billion (year-end 2023: €2.2 billion) mainly due to an increase in Lombard loans. Other loans: type of loan (100% = €2.3 billion) Mortgages distributed by third parties The portfolio of mortgages distributed by third parties consists of regular Dutch mortgages. It accounts for 4% of our total loan portfolio, with a volume of €330 million (2023: €348 million). Other loans covered by residential real estate In 2022, we invested in a fund managed by Aegon Asset Management. The investment is a dedicated tranche for Van Lanschot Kempen that primarily consists of Dutch mortgage receivables with a Dutch national mortgage guarantee (NHG), enabling institutional parties to invest in Dutch mortgages. At year-end 2024, the volume in the fund amounted to €293 million (2023: €302 million). Impaired loans and provisions We take provisions for the impaired loans in our loan book. Impaired loans Stage 3 (IFRS 9) totalled €127 million at year- end 2024, a small increase of 1% compared with 2023 (€126 million), mainly due to one exposure. The total impaired ratio remained stable at 1.4% (year-end 2023: 1.4%). The Stage 3 provisions for these loans amounted to €28 million, resulting in a coverage ratio of 22% (2023: 22%). The relatively low coverage ratio is explained by the good quality and amount of collateral pledged against the loans. Provision at 31 December (€ million) Loan portfolio Impaired loans Provision Impaired ratio 2024 Covered ratio 2024 Impaired ratio 2023 Covered ratio 2023 Mortgages 6,396 36 2 0.6% 6% 0.4% 8% Other loans 2,348 90 26 3.8% 29% 4.5% 26% Loan portfolio 8,744 127 28 1.4% 22% 1.5% 22% Mortgages distributed by third parties 330 — — —% —% 0.2% 0% Other loans covered by residential real estate 293 — — —% —% —% —% Total 9,366 127 28 1.4% 22% 1.4% 22% Provision -35 — Total loan portfolio 9,331 28 ECL Stage 1 and 2 (IFRS 9) 7 Total ECL (IFRS 9) 35 5 Full-year 2024 and 2023 including retained earnings; half-year 2024 excluding retained earnings. 6 Based on Van Lanschot Kempen’s interpretation of Basel IV at time of reporting. 7 Investment portfolio and cash comprises the balance of financial assets at fair value through other comprehensive income, other financial assets at amortised cost, financial assets designated at fair value through profit or loss, cash withdrawable on demand from central banks, and highly liquid (cash) investments. Financial performance 112 Capital and liquidity management Capital and liquidity management (€ million) 31/12/2024 31/12/2023 30/06/2024 Total risk exposure amount 4,466 4,409 1% 4,509 -1% CET 1 ratio (%) 5 19.4 19.6 18.8 CET 1 ratio (Basel IV fully loaded) (%)5, 6 19.3 c. 18.5 18.5 Tier 1 ratio (%)5 21.7 21.9 21.0 Total capital ratio (%)5 25.2 25.3 24.3 Leverage ratio (%) 5.7 5.8 5.8 Our CET 1 ratio stood at 19.4% at year-end 2024 (2023: 19.6%). The ratio benefited from further optimisation of our equity positions and several other smaller factors, but these were offset by events such as the acquisition of Accuro, the conclusion of a lease for our new office in Amsterdam, and an increase in our operational risk due to the higher level of income. Our CET 1 Basel IV fully loaded ratio stood at 19.3%, well above our target of 17.5%, which includes a 2.5% buffer that can be used temporarily for M&A. CET 1 ratio (%) Our total risk exposure amount was up to €4.5 billion in 2024 (year-end 2023: €4.4 billion), driven by the conclusion of the lease for our new office in Amsterdam and an increase in our operational risk due to the higher level of income. The latter reflects that a growing organisation with higher income from operating activities entails higher operational risk. Regulatory capital (€1,000) 31/12/2024 31/12/2023 Total risk exposure amount 4,466,360 4,409,184 CET 1 865,016 864,873 Required CET 1 528,204 473,729 Tier 1 967,258 964,873 Required Tier 1 639,584 581,698 Total capital 1,124,504 1,114,873 Required total capital 788,090 725,658 Investment portfolio and cash The total investment portfolio and cash7 amounted to €6.3 billion at the end of 2024 (2023: €6.3 billion). Cash held with central banks stood at €1.9 billion. The investment portfolio is primarily held for asset and liability management purposes, and mainly comprises low-risk and highly liquid instruments. Investment portfolio and cash by country at 31 December 2024 (100% = €6.3 billion) The "Other" category in the graph above consists of country exposures of 2% or less, and includes Sweden and Norway, each accounting for 2%, and New Zealand, Denmark and Luxembourg, each accounting for 1% of the total portfolio. Loan-to-deposit ratio We aim for a balanced funding mix with sufficient diversification, through retail and wholesale markets, products and maturities. By the end of 2024, our loan-to- deposit ratio had increased by 0.2 percentage points to 73.1% (2023: 72.9%). At year-end 2024, our liquidity buffer was substantial, leading to a liquidity coverage ratio of 220.7% (2023: 224.7%) and a net stable funding ratio of 160.2% (2023: 156.4%). Events after the reporting period We propose to return €1.40 per share in June 2025 and this has been approved by De Nederlandsche Bank (DNB). We will convene an extraordinary general meeting (EGM) on 10 April 2025 to confirm this proposal. The expected impact of this capital return is approximately -€59 million on our equity and -1.3% on our CET 1 ratio. Risk and capital management 114 Risk and capital management Key risk themes for Van Lanschot Kempen Rapid decline of markets A significant amount of our profit is generated by commission income. A major part of this commission income is dependent on the level of assets under management (AuM). If AuM declines, our commission income also declines. Response By looking at the composition of our AuM, we can analyse the possible impact of a decline. Some fees are fixed, while other fees are dependent on the level of AuM. Furthermore, some AuM consists of equities and some of bonds. During a decline in equity markets, interest rates tend to drop, causing the value of bonds to rise, which makes up for the decline in equity. Although declining interest rates are the general pattern during recessions, there are scenarios under which interest rates increase during recessions (stagflation), which we also take into account. Besides scenario analyses, we look for possible response measures for equity market decline, such as cost reductions. Given the sharp rise in US equity markets and stable European equity markets, no measures were required in 2024. Interest rate decline Over the course of 2024, the European Central Bank (ECB) cut the deposit facility rate from 4.0% to 3.0%, while long-term interest rates remained unchanged. During 2024, we saw a volatile trajectory of changes in market expectations of the timing and speed of ECB interest rate cuts for 2024 and 2025. As was the case when interest rates were rising, interest rates on non-maturing deposits follow changes in market rates with a delay, depending on market circumstances and competition. This results in smaller margins in relation to the lower ECB deposit facility rate, compared with rising margins when ECB rates rise. Response We kept a close eye on developments in client deposit volumes and client loan demand, and adjusted our interest rates regularly to adjust to client behaviour, actions of other banks and financial market developments. We enhanced our interest rate risk management during the year by implementing new models used for hedging interest rate risk. Active steering with derivatives complemented these actions, which enabled us to quickly adjust our balance sheet to changing market circumstances. Operational and digital resilience Operational and digital resilience are increasingly vital for financial institutions due to their interconnected and complex nature, making them susceptible to disruptions. Regulations such as the Digital Operational Resilience Act (DORA) mandate enhanced resilience to withstand and recover from such disruptions. The pandemic highlighted the need for adaptable operational frameworks as institutions shifted to remote working and digital transactions. Client expectations for seamless digital banking services further underline the importance of resilience to avoid reputational damage and business loss. Rapid technological advances necessitate continuous innovation and adaptation, integrating technologies such as AI and cloud computing, which require resilient frameworks to manage new risks and ensure long-term success. Response We conducted a DORA project to ensure compliance with the regulatory requirements. The project delivered an improved resilience framework that includes revised policies and procedures with respect to information security, incident management and business continuity management. Critical and important third-party IT service providers were contacted to amend current contracts and to include the relevant requirements. Other actions to address the growing importance of operational and digital resilience included the increased training of crisis team members. We also invested in new ways to quantify operational risk by executing scenario analysis on severe but plausible events. Cyber risk Cyber risk continues to be a critical risk type for financial institutions. The financial sector is a prime target for cybercriminals due to the valuable and sensitive nature of their assets, including client data. Cyberattacks have become more sophisticated and frequent. Threats from ransomware, attacks on and through third parties and exploitation of zero-day vulnerabilities remain a primary focus, necessitating robust security measures to prevent financial losses and client impact. Response We are aware of the risks concerning information security and cybercrime and have invested further in technological and process- related measures to mitigate them, such as mandatory cyber risk and security risk training. We continue to strengthen our security measures to keep pace with increasing cyberthreats and apply a zero-trust approach. By significantly limiting the accessibility of sensitive data and systems, we ensure risks are mitigated within the appetite of the organisation. Data management The digital transformation of the financial sector has increased the volume and complexity of data we handle. As a result of this transformation, financial institutions need strong data management practices to mitigate the associated risks, such as poor data quality and unavailability of data. Response Our structured data management governance includes a risk and control framework to effectively mitigate the associated risks. Effective data management enables us to leverage data for strategic decision- making, improve client experiences and maintain regulatory compliance. Compliance risk: risk-based client due diligence and integrating sustainability regulation into our products and services We aim to continuously improve the efficiency of our client due diligence processes to prevent financial crime risks, while maintaining a personal, client-focused approach and supporting our bankers in their responsibilities towards clients. Furthermore, we are trusted to safeguard our clients' interests and provide fair, clear and non- misleading disclosures and relevant marketing materials. This includes offering products and services that align with our clients' needs, objectives, risk appetite and sustainability preferences. Response Through our "ongoing due diligence" project, we are developing an integrated, risk-based and data-driven method for our client due diligence processes. Our goal is to effectively balance risks with appropriate mitigating measures. We have also worked on the integration of sustainability risks into our compliance risk framework and continued to implement sustainability regulations. Due to rapid developments in this arena, regulatory priority setting and strong link to client protection, we emphasise the use of accurate and transparent sustainability claims in relation to our products and services. Risk and capital management 115 Risk management Risk profile and risk appetite We seek to achieve a solid risk profile, expressed in transparent risk levels coupled with a robust liquidity and capital position. The risks we face are outlined in the following sections. More detailed descriptions are available in the financial statements, where these risks are also quantified in terms of their impact on our balance sheet. We evaluate our risk appetite each year and this is communicated in a risk appetite statement, which contains both qualitative and quantitative elements. Our risk appetite represents our willingness to accept the risk of particular losses, decreasing buffers and reputational risks, and as such sets our operating boundaries. The statement is prepared by the Group Risk Committee, approved by the Management Board and is also subject to the Supervisory Board’s approval. Our key risk principles underline the risk appetite statement and create the framework within which we operate, as follows: – As an organisation, we manage risks within our risk appetite. The aim is not to eliminate risks, because taking risks is part of the nature of doing business. – Our risk appetite should be considered in all material decisions taken by the organisation. – We only take risks that we understand and can explain. – The risks we take – directly or indirectly – serve our business model and strategic objectives, and are the result of a careful process to balance risk and reward. – After determining how much risk we can potentially absorb, we determine how much risk we are willing to take. The sum of all risks taken should not exceed our risk appetite. – We actively avoid certain risks, because they pose an existential threat to Van Lanschot Kempen. However, risks in the tail will remain, which we have to accept. – We avoid risks that could lead to legal or regulatory breaches. This includes not getting involved in activities that result in aiding or abetting clients with illegal activities. – When taking risks, we take the requirements and expectations of all stakeholders into account. Targets and risk limits are more dynamic and are reviewed at least once per year. Risk management governance We operate our risk management framework in accordance with the three lines of defence model. The management teams of individual departments (the first line) are responsible for managing their specific risks. When serving our clients, they must also assess client- and portfolio- related risks, adhere to all Van Lanschot Kempen policies, limits and procedures, and put processes and controls in place to remain in control of their operations. The second line of defence is formed by Financial Risk Management, Non-Financial Risk Management and Compliance. They report to and advise the Management Board on risk-related matters. The second line also prepares policies and provides guidelines on risk-taking activities, monitors adherence to these policies and guidelines, and challenges the first line on the management of their risks. Finally, the second line supports the Management Board by facilitating and challenging risk assessments and by providing relevant advice and assistance on applicable regulatory requirements and the design of controls and mitigating actions. The third line of defence is the Internal Audit department, which monitors and gives assurance on whether the activities of the first and second lines are effectively mitigating the risks identified. We use insurance to cover certain remaining risks. Furthermore, we are challenged by supervisors – for example in the Netherlands by De Nederlandsche Bank (DNB) and the Dutch Authority for the Financial Markets (AFM) – in our interpretation and adherence to laws and regulations and on whether we are in control of our organisation. To manage our risks, we have risk and compliance policies and frameworks in place as well as a governance structure. The Management Board has mandated the Group Risk Committee to take certain decisions with regard to risk management. The Committee has mandated certain risk management decisions to specialised committees: the Compliance & Operational Risk Committee, Credit Risk Committee and Market Risk Committee. Risk appetite and risk profile in 2024 Our risk dashboard and progress report are discussed by the Group Risk Committee every quarter, as well as by the Supervisory Board's Risk and Compliance Committee. Risk- taking is inherent to our business model; low risks are not a means to an end. For a number of reasons, it may be appropriate to accept a higher risk – either temporarily or for a prolonged period. We always consider both gross and net – i.e. after mitigating measures – risk positions, paying extra attention to medium and high net risks. The risk appetite and risk profile in 2024 for each individual risk type are shown in this simplified version of the risk dashboard: Risk dashboard Low Limited Medium High Strategic risk • • Non-financial risks Operational risk •• Compliance risk • • Sustainability risk •• Financial risks Credit risk • • Market risk •• Interest rate risk •• Liquidity risk •• • Risk appetite in 2024 • Risk profile in 2024 Clients entrust us with their funds on the basis that they have no doubt about the financial and operational stability of our organisation. This means that we can only operate at limited risk levels. However, certain risks are unavoidable and can only be mitigated to a certain extent. The appetite for strategic risk and operational risk is classified in the dashboard as medium. Our strategic risk appetite is medium, since competition in private banking, investment management and investment banking is strong. Risk and capital management 116 These risks can only be managed by actively steering towards further growth, both organic and inorganic, as well as maintaining a strong relationship with our clients. Our strategic risks can be managed by generating organic and inorganic growth to maintain the necessary scale for the future and to retain solid performance. Inorganic growth was achieved in 2024 through the integration of Accuro and of Robeco's online investment platform. Our existing clients are very satisfied with our service, as reflected in our high Net Promoter Scores (NPS) and the award of Best Private Bank in the Netherlands 2024. Finally, coupled with strong organic growth in AuM and strong financial results, no noteworthy issues arose in relation to strategic risk – hence the limited score of this risk category in 2024. Our increasing AuM, the complex nature of our business and the continuing innovation in our investment management activities result in a medium level of operational risk appetite. Nevertheless, we strive to continuously reduce operational risks by improving processes, procedures and our overall organisation. We experienced some operational incidents (including external fraud attempts) and went through several major change projects in the reporting year. We carried out root cause assessments on larger operational incidents (leading to a loss of >€25,000), which resulted in actions to strengthen our internal control environment. Our compliance risk appetite was limited, while our actual compliance risk profile in 2024 was medium. The regulatory landscape of the financial sector is both dynamic and complex, requiring significant resources to maintain compliance and stay updated with emerging trends. Implementing regulatory requirements in a timely manner is challenging given the dynamic business environment and increasing regulatory demands on our business activities. We expect ongoing scrutiny from supervisory authorities. Our sustainability risks remained limited in 2024. The stress tests we performed did not show significant expected impact on profitability, balance sheet levels or key financial ratios. All financial risk indicators (credit risk, market risk, interest rate risk and liquidity risk) also scored well. We continue to operate within a tight limit framework, resulting in a limited appetite for both credit risk and market risk in 2024. A release of loan loss provisions and low impaired ratios reflect our low credit risk for 2024. We observed a limited number of market risk breaches. We use many models to manage financial risks and findings with elevated severity, resulting from testing against these models, are resolved within the allotted timeframe. Our interest rate risk profile did not change significantly, but large interest movements and greater volatility called for heightened attention. Liquidity risk in 2024 remained low, due to our strong liquidity buffers. Liquidity buffers did show some movement during the year, but stayed at a high level. Strategic risk Strategic risk is defined as the risk to our performance as a result of failure to respond adequately to changes in external factors or from poor strategic decisions. External factors include the actions of competitors, clients, potential market entrants and public authorities, as well as public opinion. Keeping up with technological developments, such as AI, is also a key topic. In a challenging external environment we must keep improving and expanding our organisation, so our strategic risk appetite is set at a medium level. It is managed in several ways. Firstly, we manage our strategic risk by diversifying our sources of income through our private banking, investment management and investment banking activities – thereby ensuring that the three activities are complementary and support each other. Moreover, our lending activities focus primarily on residential mortgages and our clients typically have sufficient buffers, thereby limiting our strategic risks in terms of credit and risks of forced AuM liquidation. All our client segments contributed positively to our results without any major operational or financial losses in 2024. The further development of our presence in Belgium reduced our dependence on the Netherlands. Finally, net interest income offers a good means of diversifying our income model, a significant part of which comprises a commission income model. To manage our strategic risk in 2025, we will remain focused on our core activities and areas of expertise. Secondly, we use a range of performance indicators – such as growth in AuM, net result, cost/income ratio, NPS and employee engagement scores – together with a qualitative assessment to monitor and control strategic risk. Furthermore, through acquisitions, we are playing an active role in the consolidation trend in the financial sector and thereby improving our economies of scale. Thirdly, the technological improvements we have made for our clients and to our internal processes in recent years, such as in AI, show that we are continuously aware of industry developments and acting to address these challenges. Finally, we must maintain the capacity to meet all relevant regulatory requirements. This is demanding when operating various activities in multiple markets with different regulatory requirements. In the future, scalability of our operating model will be essential: we need to build and maintain a growth model that ensures regulatory costs do not grow intrinsically with our business volumes. Non-financial risks Non-financial risks comprise operational, compliance and sustainability risks. We have defined a non-financial risk appetite. Our current non-financial risk exposure related to this non-financial risk appetite is discussed each quarter with members of the Management Board and senior management in the Compliance & Operational Risk Committee. Our non- financial risk taxonomy is largely based on the operational risk reference taxonomy published by the Operational Riskdata eXchange Association and forms the basis of our 2024 risk appetite framework for non-financial risk. Risk and capital management 117 We raise risk awareness within the company via increased capabilities within the first line of defence and through challenges and advice from the second line of defence. In 2024, we launched a "CRO Academy" to provide bespoke online learning for risk and compliance staff. In addition, we started the "risk management in a day" training for senior management. We put increased focus on continuous monitoring of controls and behavioural controls, while paying attention to effective and efficient action management. The Compliance, Non-Financial Risk Management and Internal Audit teams work together on this. Operational risk Operational risk is the probability of sustaining direct or indirect damage as a consequence of inadequate or failing internal processes, products, people, systems or external events. To identify and manage operational and IT risks, we have created a group-wide operational risk management framework. Part of this framework is a set of key controls on the part of our value chains where inherent risks are considered elevated. These controls are tested regularly, allowing us to assess their effectiveness in our processes and systems. In 2024, we improved our scenario analysis capabilities by applying a more quantitative approach to loss estimations and using external loss data. Information security risk Preventing cybercrime remains one of our key risk focus areas. Van Lanschot Kempen is aware of the risks concerning information security and cybercrime, and has further invested in technological and process-related measures to mitigate them. We continue to strengthen our security measures to keep pace with increasing cyberthreats and external fraud attempts, such as help desk fraud. Our dedicated team monitors security incidents in the organisation to ensure we have sufficient coverage to mitigate potential threats. We have teams that simulate cyberattacks and conduct penetration testing for security purposes, including periodic phishing awareness tests. We monitor the risks involved in cybercrime using risk dashboards that include key performance and risk indicators. The metrics in the dashboard are overseen by the interdepartmental Corporate Information Security Board. Major issues related to cybercrime are reported directly to the Management Board. Cybercrime risks such as ransomware, attacks through third parties and "zero day" attacks are an ongoing matter of importance to Van Lanschot Kempen. We apply a zero-trust approach; by significantly limiting the accessibility of sensitive data and systems, we ensure risks are mitigated within the organisation's appetite. Internal fraud Internal fraud occurs when fraud is committed as an intentional action by one or more employees using deception or management override of controls, with the intent of gaining unlawful advantage for themselves or a personal acquaintance at the expense of others. Employees also include management, temporary workers, contractors, trainees and interns. Internal fraud conflicts with our code of conduct, which provides guidelines to protect our reputation and integrity. It is crucial for us to maintain our reputation as a trustworthy financial institution. As a result, preventing and mitigating internal fraud risks is a high priority, as these risks can lead to financial impact on our clients and our business. In addition, internal fraud can damage the public's trust in our reputation and integrity as a firm. The guidelines and processes for reporting and handling integrity incidents are set out in our internal investigations policy. Furthermore, 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, as well as adequate follow-up to prevent reoccurrence. In 2024, no internal fraud, nor attempt to commit internal fraud, was identified. As a result, no investigation of a person regarding internal fraud was required. Assessing and mitigating internal fraud risk is an integral part of our risk and control framework. Internal fraud risk is assessed through risk control self-assessments on processes and through the Systematic Integrity Risk Analysis (SIRA). The 2024 SIRA included scenarios such as the risk of employees stealing financial assets, physical assets or client data. The risk of employees executing unauthorised payments or credit transactions (as a result of insufficient segregation of duties or collusion) is also part of the risk assessment. The inherent risk of internal fraud in our overall risk assessment was evaluated as high: internal fraud can lead to substantial financial and reputational damage. However, effective control measures are in place to significantly reduce the risk. These control measures include the four eyes principle, access authentications, system- enforced checks on manual payments and automated segregation of duties for payment systems. Our operating effectiveness is reviewed periodically by the first line of defence, with independent monitoring by the second line. Our Internal Audit department provides independent assurance on the quality of the risk control framework by applying a risk-based audit calendar. We have several initiatives in place to maintain awareness of internal fraud risk. Actions and priorities for continuous staff awareness and improvement are identified in the business- as-usual cycle. Staff training, which includes on-boarding for new employees that covers the code of conduct (including incident management), as well as periodic updates, are part of our fraud mitigation measures. Based on the assessments conducted, our residual risk rating for internal fraud risk was categorised as limited, which is within our risk appetite. For more information about operational risk and internal fraud, see Section 12, “Operational risk”, in the financial statements. Investment compliance risk As Van Lanschot Kempen Investment Management manages our clients' AuM, the risks resulting from these activities are reported as operational risks, as major errors could lead to potential claims from clients. We apply a uniform risk management approach and procedures across all activities. The risk management framework combines all relevant regulatory requirements for our business. These include specific requirements for Van Lanschot Kempen Investment Management: the Investment Firms Regulation, Alternative Investment Fund Managers Directive and Undertakings for the Collective Investment in Transferable Securities. Risk and capital management 118 The risk management framework describes how we identify, measure, manage and monitor all relevant risks to which our AuM is exposed. Quantitative and qualitative risk limits are set where possible on market, counterparty, liquidity and sustainability risks, and are described in our various risk policies. All client portfolios are monitored against regulatory and investment guidelines (e.g. fund prospectuses and investment management agreements) on a daily basis. These guidelines set restrictions on the main risk categories, being market risk, counterparty risk, liquidity risk and sustainability risk. When the Financial Risk Management department deems it necessary, additional restrictions and/ or more stringent restrictions are applied. There were no material findings from the investment compliance programme in 2024. Overall, our investment funds remained within the set risk limits throughout the year. In addition to the investment compliance programme, Financial Risk Management performs periodic deep dives for portfolios managed by Van Lanschot Kempen Investment Management. These consist of an in-depth analysis to assess whether the investment team is managing the portfolio in line with the investment strategy, investment philosophy and client expectations. We take a holistic approach to portfolio risk management, meaning that we assess a broad range of metrics – including scenario analysis as well as consistency and alignment with sustainability targets, such as those set by the Paris Agreement. Results are discussed within investment teams and reported to the relevant stakeholders. Compliance risk When operating in financial markets, it is important that we conduct our business activities in accordance with the expectations of our clients, employees, shareholders and supervisory authorities. We follow high ethical standards, in alignment with our values, code of conduct and risk appetite, and within the boundaries of applicable laws, regulations, internal policies, procedures and industry standards relevant to our business. Compliance goes beyond following laws and regulations: it involves fostering an ethical and responsible organisational culture that protects client interests, financial integrity and the interests of our stakeholders. We have established a compliance framework to effectively manage compliance risks across the organisation, including international locations, which enables effective oversight of subsidiaries and branches. This framework is designed to maintain adherence of our business operations to applicable laws, regulations, internal policies and industry standards, and ensure that we act in the best interests of our clients. The compliance risk and control framework is established based on risk assessments (the SIRA), which are conducted for all business activities and are monitored and included in group compliance reporting. In 2024, our compliance risk appetite was limited, while our actual compliance risk profile was medium. Implementing new regulatory requirements is challenging due to the dynamic business environment and growing regulatory demands. Our compliance risk profile improved during the year through the focused implementation of mitigating actions and continuous improvements in our policies, systems, processes, and training and awareness programme, increasingly supported by IT tools and data analytics. Compliance training and awareness programme We believe that providing our employees with training is important to maintaining compliance risk awareness across our organisation. With the appropriate training, colleagues also gain the relevant knowledge, skills and expertise to best serve our clients. In 2024, we focused on enhancing our group-wide learning and development governance, as well as further aligning our mandatory compliance training and awareness programme internationally. Supporting strategic change and growth initiatives Our Compliance department serves as a trusted business partner by offering advice and support for strategic and business initiatives, facilitating change and growth within the organisation. In 2024, our Compliance department supported several strategic projects, including the integration of Accuro, the launch of Mercier Van Lanschot and the migration of former Robeco clients to Evi. We also contributed to various business initiatives focusing on financial crime risk and business conduct risk. Financial crime risks As a gatekeeper of the financial system, we face the potential risk of unintentional involvement in activities related to money laundering, terrorism financing, sanctions, client tax integrity and bribery and corruption. Financial crime risks are managed by implementing proper policies and processes, by offering anti-financial crime training to all employees, and providing specialised training to employees who interact with clients or are involved in detecting financial crime. Risk-based client due diligence In 2024, we continued to improve the efficiency of our client due diligence processes by starting the "ongoing due diligence" project to effectively balance risks with appropriate mitigating measures. The aim of this project is to introduce continuous monitoring of clients for financial crime risks using an integrated, risk-based and data-driven method (ongoing due diligence), while maintaining our personal, client-focused approach and supporting our bankers in their responsibilities towards clients. In addition, the regulatory landscape for financial crime is expected to change with the introduction of the new EU anti-money laundering package. We have already started assessing and planning for its potential impact. Client protection risks Client protection risks involve the potential for unfair treatment of clients and offering products that do not align with their needs, objectives, sustainability preferences or risk appetite. As a wealth manager, we commit to safeguarding our clients' interests and providing fair, clear and non-misleading disclosures and marketing materials. Integrating sustainability regulation In 2024, we made improvements to safeguard our clients' interests and inform them appropriately about our products and services. Our marketing policy framework was updated to include new tools and to embed sustainability aspects. Moreover, the factsheet template for Van Lanschot Kempen Investment Management funds was updated to include sustainability information, such as performance reporting, ESG data and relevant disclosures based on EU guidelines. Risk and capital management 119 Our Compliance department plays an active role in safeguarding adherence to sustainability regulations. For more information, see "Regulatory sustainability risk" in the "Sustainability risk" section. Mortgages We made considerable progress in streamlining and updating our mortgage acceptance policy in order to further adhere to the AFM guidance on the quality of mortgage advice (Kwaliteit Hypotheekadvies 2024), as well as to streamline the mortgage process. For more information about mortgages and the interest-only mortgages project, see "Mortgage loans" in the "Financial risks" section. Business conduct risks We are committed to upholding the integrity of the financial markets. We therefore manage business conduct risks via the compliance framework. Business conduct risks relate to conflicts of interest, market conduct, market abuse and employee integrity topics, such as secondary positions and personal account dealing by employees. In 2024, we initiated several projects to further improve our existing processes to manage business conduct risks. Market abuse In the area of market abuse prevention, we updated our personal account dealing policy to better align restrictions with the specific functions and activities of employees. We also initiated the selection of a new platform for market abuse surveillance and updated our framework for safeguarding non-public information. Cross border activities The provision of cross-border financial services is subject to a complex regulatory environment. We have a governance and internal control framework to ensure compliance with country-specific regulations related to financial products, services and tax obligations. Furthermore, in 2024 we introduced a new business process for Investment Management Clients to assess and approve cross-border activities in jurisdictions where Van Lanschot Kempen Investment Management operates. This process safeguards the viability and regulatory compliance of our ongoing business activities. Data privacy risks "We act with discretion" is one of the ethical principles underpinning our code of conduct: our adherence to the General Data Protection Regulation (GDPR) and the general discretion of employees is an ongoing priority and is integral to the service we offer as a wealth manager. Data privacy risks relate to processing personal data, data retention and adherence to GDPR and the AI Act. We operate a data privacy programme to protect the data of clients and employees, to support the organisation in its obligations, advise on data privacy matters and monitor compliance. The Data Protection Officer holds an independent position within the organisation and reports directly to the Management and Supervisory Boards. Data privacy is crucial in the context of emerging technological developments. Compliance and the Data Protection Officer participate in our AI centre of excellence by providing ongoing advice on the behavioural and data privacy aspects of AI. This guidance facilitates the responsible adoption of AI within the company, which aims to drive efficiency and productivity in the short term, and scalable growth in the longer term. In 2024, we updated our data privacy policy with guidelines on the use of AI and refined our approach to managing purpose limitation risks. We also worked to enhance our data processing register and data loss prevention processes. For more information about compliance risk, see Section 13, "Compliance risk", in the financial statements. Sustainability risk The management of sustainability risks is an integral part of our risk management framework and is incorporated in our regular risk management processes. We consider sustainability risk as an additional overarching risk type that could potentially impact our own operations, the valuation of our balance sheet and our AuM activities. We also see that regulators are increasingly focused on reporting and managing sustainability risks. Our main sustainability risks that affect our business cover both climate change-related risks – via either physical or transition risks (see table on the following page) – and biodiversity risk. Currently, social, labour and governance- related risks mostly manifest themselves through our AuM, where they are managed based on exclusion criteria. The wealth that we manage for our clients is inevitably exposed to risks associated with climate change and biodiversity to some extent, with the two being strongly interlinked. Our risk management and control system is designed to manage internal and external risks, including sustainability risk. In 2024, we further increased our focus on nature-related dependencies, impacts and associated risks. This resulted, for example, in an update to our biodiversity policy and a biodiversity-related materiality assessment. Sustainability risk is a rapidly evolving and complex focus area in the wealth management sector, which affects our entire organisation. Going forward, we will continue to strengthen the way we manage sustainability risks, for example through data availability and management as well as the impact of changing approaches to sustainability and how they impact our investment universe. Risk and capital management 120 Climate risks Physical risks Transition risks Market risk Damage due to extreme weather events may lead to a decrease in open market positions in companies affected by climate events. New internal ESG policies or regulatory requirements may result in (partially) impaired assets. Credit risk Diminishing of collateral value, for example due to flooding, may lead to an increase in required regulatory capital and/or credit losses. New policies, for example regarding energy labels, may require significant client investment and reduce credit scores. Liquidity risk There may be disruption to funding market access and client fund withdrawal due to severe climate-related events. New policies may impose higher haircuts for climate- sensitive assets or required regulatory climate liquidity stress tests. Operational risk Increased severity of climate-related events could impact our office locations and disrupt our systems, people and processes. There may be adverse impacts from the burden caused by changes and disclosures that need to be made to operate now and in the future. Reputational risk Extreme weather might lead to increased stakeholder and societal pressure, which in turn might lead to a rise in reputational risks. New policies and market sentiment may increase reputational and/or liability risks, for example related to greenwashing. Compliance risk Not complying with regulations in relation to physical risks (risk assessments of our activities, disclosures, etc.) may pose a risk. Not complying with regulations in relation to transition risks (risk assessment, limit settings, disclosure, etc.) may pose a risk. Business model and strategic risk Declining AuM as a result of materialising physical climate risks may lead to a reduction in commission income. Not adjusting our business offering sufficiently to meet client demand for sustainable products may lead to a reduction in commission income. Risks to our operations The most probable physical climate risk for our operations is the potential threat of flooding in certain parts of the Netherlands and Belgium, due to prolonged and heavy rainfall. Within our internal capital adequacy assessment process framework, natural disasters such as flooding are included as a potential scenario. Nineteen of our 28 Dutch offices and 10 out of our 11 Belgian offices are located well above sea level and are not exposed to riverine and sea flooding, while the rest of the offices have a small to extremely small probability of flooding. From both a scenario analysis perspective and considering the risk of local offices flooding, the organisation can continue to function with most employees working from home or from another office location, given the number of office locations and employees not exposed to flood risks. Moreover, from experience over the past few years (since the pandemic), it is possible for the majority of colleagues to work from home without major disruption to business operations. Employees have been, and will continue to be, able to carry out their work with the required information and systems in such a scenario. We test this scenario once every three years. Both of our data centres are located well above sea level in the south of the Netherlands (in Eindhoven and 's-Hertogenbosch) and have low exposure to flood risk. In 's-Hertogenbosch, we have limited exposure to river flooding (expected once in 1,000 years), while our primary external data centre in Eindhoven has virtually no flood risk. To ensure we are able to operate if a data centre does fail, we perform an annual data centre fallback test, during which we assess whether the business can be operational within an acceptable timeframe in the event of a primary data centre failure. Combined with the ability to operate from home offices, the very low probability of both data centres failing simultaneously, and the low risks of riverine and sea flooding for all our offices or both our data centres, riverine and sea floods are considered to be immaterial from a business continuity perspective. A second external data centre – responsible for the automation, hosting and development platform of our main office applications – is located below sea level. A back-up location for this third-party facility is based in Ireland. In the event of a failure at the primary data centre, we are able to switch to the back-up data centre immediately. The other categories of physical climate risks to our own operations are heatwaves, wildfires, storms, hail and hurricanes. The impact of these extreme weather events on our operations has been very limited in the past and is expected to remain limited going forward, especially compared with floods. Both likelihood and impact are therefore considered to be low. Risk to our balance sheet We calculate and report our balance sheet-related carbon emissions, mainly for mortgage loans, other loans and our investment portfolio. Our most significant lending portfolio is our residential mortgage portfolio. In 2024, we further improved our methods to estimate possible financial impact stemming from sustainability risks and to determine materiality over multiple time horizons. We created additional property-specific models to estimate heat stress and precipitation-related climate impacts for our residential mortgage portfolio, and increased our quantitative analysis scope to include our covered bond and residential mortgage-backed securities positions within our liquidity investment portfolio. Based on an assessment of our balance sheet items, we conclude that there are no material climate risks to our business at present. There is currently no reason to apply a management overlay for this risk to the IFRS 9 models (Stages 1 and 2) as these risks are not considered to be material. In addition, the IFRS 9 provision for Stage 3 is calculated per individual credit file by the Financial Restructuring & Recovery department, so if there are significant climate risks these will be incorporated in the calculation. We encourage our clients to improve the energy efficiency of their homes and other types of property we finance to reduce transition risks. For example, in our mortgage offering, we offer our clients lower interest rates if the energy label of their property is C or better. We also provide additional lending capacity for clients who are looking to make their homes more sustainable and energy-efficient. Risk and capital management 121 We believe that, in the future, less energy-efficient homes will decrease in value, posing a potential risk for Van Lanschot Kempen and our clients, though at present this is immaterial. Our responsible lending policy takes environmental and social impact into consideration. This policy covers periodic sustainability screening (due diligence), via a risk filter, of all existing and new business loans, and includes factors such as human rights, social and labour issues, environment, anti- corruption and bribery. The number of potentially high-risk borrowers (clients active in sectors associated with a higher risk of human/labour rights violations or environmental pollution) totalled two at year-end 2024 (2023: one). We engage with the remaining high-risk borrowers about specific sustainability risks and how they could be mitigated. For more information on how we handle responsible lending, see the policy on our website: vanlanschotkempen.com/ sustainability-policies-and-resources. Each year, we assess financial institutions with which we have a banking relationship. This assessment aims to prevent the risk that client assets are exposed – through interbank loans or investments, for example – to institutions with weak or non-existent sustainability policies. At a minimum, we check whether financial institutions have committed to more than 50% of four well-known international sustainability initiatives. If they have not, we start an engagement process with them. In 2024, we reviewed 39 financial institution counterparts and there was no need to engage with any financial institution in our portfolio. To support our own investment funds, we provide seed capital and manage these funds in our management book. At year-end 2024, we had investments to the tune of €54 million in our funds. An internally developed stress test showed that climate risks in these positions are limited and well within our regular limits. We also continued to enhance our dataset and monitoring activities relating to the sustainability objectives of our own organisation, balance sheet and AuM, in order to establish a more accurate and dynamic overview of the (potential) impact of our actions on the environment. We implemented a new dataset on physical climate risk, which allows us to uniformly report on the flood risk of non-Dutch offices and to benchmark our existing physical risk data sources in terms of accuracy and completeness. Finally, we have been working to further embed and integrate sustainability elements in all our core processes, controls, product development, policies and reporting. Regulatory sustainability risk In November 2020, the ECB set out its expectations on mitigating climate-related and environmental risks by financial institutions. We take an active approach to complying with these expectations and are on track for implementation via our multi-year programme. Sustainability regulation In 2024, we worked on the integration of sustainability risks into our compliance risk framework and continued implementing sustainability regulations. The Sustainable Finance Disclosure Regulation (SFDR) aims to provide greater transparency to investors about the sustainability claims and performance of investment products. Due to its rapid development, regulatory priority setting and strong link to client protection, we take special care to use accurate and transparent sustainability claims in relation to our products and services. A notable development was the publication of the European Securities and Markets Authority's guidelines on fund names using ESG or sustainability-related terms in May 2024. These guidelines require that funds with sustainability- related terms in their names accurately represent their underlying investment strategies and objectives. This is important because the fund name significantly influences investment decisions, especially for retail investors. We are currently working on implementing the guidelines and the new exclusion criteria. We also focused on complying with the updated version of the European Supervisory Authority's consolidated Q&A on the SFDR, which was published on 25 July 2024. We expect ongoing attention from supervisory authorities on sustainability and impact claims, with stricter guidance on fund names and fund communication. More changes to the SFDR are expected to unfold over the next several years, following the outstanding consultations. We aim to stay on top of sustainable finance regulation and use it as a driver of positive impact. Risks to our assets under management In our AuM activities, climate- and nature-related risks are taken into account when investments are made or investment managers are selected. Climate As part of our responsible and sustainable investing approach, we have a climate change policy that we have improved over the years. In line with the Paris Agreement, we have set targets on reducing the carbon emissions of our investment funds to be met by 2025, 2030 and 2050 – enabling us to cope with the transition risks related to climate change. This also enhances resilience to physical climate change risks, as the companies in these investment funds will take climate change into account. As physical risks will likely materialise more in certain regions and sectors (with physical assets) than others, we gather physical climate data down to asset level for our real estate portfolios from a specialist climate data provider. We use climate scenarios for most of our managed global and European listed portfolios to assess their climate resilience compared with the benchmark. We have integrated climate change mitigation into our current asset allocation scenarios via GDP assumptions (i.e. scenarios ranging from 1.5°C to 4.0°C of global heating), and have incorporated DNB's climate stress test for the equity market into our risk system. In 2024, we further expanded our risk analytics to provide insights into the sustainability profile of our managed listed portfolios. We fine-tuned our ESG and carbon emissions monitoring tools, which allow us to challenge portfolio managers on whether their investment decisions are in line with the investment strategy and whether the portfolio is on track to meet our annual targets to reduce carbon emissions. We monitor the contribution to the weighted average carbon intensity per holding, which we use to challenge the portfolio managers on the biggest emitters in their portfolios. 1 We have changed the calculation of loan concentrations to align with our risk appetite statement. Comparative figures have been adjusted accordingly. Risk and capital management 122 Nature Risks resulting from nature-related dependencies are especially relevant to our AuM. As part of our investment process, we consider biodiversity dependencies, impact, risks and opportunities through four instruments: exclusion, ESG integration, active ownership and impact. Through these four instruments, we aim to cease (via exclusion and active ownership), prevent or mitigate our adverse biodiversity impact (via ESG integration and active ownership) and contribute to positive solutions (via impact). For more information on our approach to help limit and reverse biodiversity loss, see our biodiversity policy on our website: vanlanschotkempen.com/sustainability-policies- and-resources, the "Biodiversity" section of our sustainability statement (page 40) and our Taskforce on Nature-related Financial Disclosures-aligned disclosure document accompanying this annual report. Financial risks Financial risks comprise credit, market, model, interest rate and liquidity risks. These risks are managed by various committees: the Credit Risk Committee, Market Risk Committee, Asset & Liability Committee and Group Risk Committee. These committees approve our policies, which outline the main boundaries for the financial risks we accept. Credit risk Our credit risk is considered to be limited. Our loan portfolio, excluding provision, amounts to €9.4 billion and has a low risk profile. We aim to keep the size of this portfolio at least constant by generating enough new business to offset repayments and prepayments. We primarily provide new mortgages to private banking clients who already entrust us with their assets. In 2024, the origination of new loans increased by 5% compared with 2023. Credit quality remained stable in 2024, while loan losses were still limited. There has been no direct impact from the war in Ukraine or the conflict in the Middle East. To monitor and measure credit risks for most of our loan portfolios, we use sophisticated risk models: an internal ratings-based (IRB) approach. For regulatory reporting, we use only our residential mortgages IRB model. Our loan portfolio and credit risks are concentrated in the Netherlands (91%); lending in Belgium and Switzerland is limited, and mainly consists of Lombard loans with low risk profiles. Loan portfolio, excluding provision (100% = €9.4 billion) Although our exposure to the Dutch housing market is fairly significant, the concentration risk on single line items in the overall loan portfolio is relatively limited. The ten largest loans to individual counterparties, other than financial institutions, totalled €176 million at year-end 2024 (year-end 2023: €179 million). 1 In 2024, the credit risk limits on the ten largest loans to individual counterparties decreased, as well as the use of credit by those. At year-end 2024, 97.9% of the Dutch loan portfolio consisted of loans of less than €10 million (year-end 2023: 97.7%). Our policy is to keep credit risk limits on any single debtor at an acceptable level to contain concentration risk and to mitigate its potential impact on our results. For more information, see Section 3.5, "Concentration within the loan portfolio", in the financial statements. Mortgage loans At year-end 2024, 68% of our loan portfolio consisted of the Private Clients Netherlands segment's residential mortgages. Our portfolio differs from that of other Dutch mortgage lenders in that the average loan (approximately €583,000) is larger. This makes the portfolio a little more sensitive as more expensive properties tend to be more difficult to sell in uncertain circumstances. However, the majority of our exposure is in urban areas, which is generally a more liquid segment of the housing market. In 2024, house prices in the Netherlands increased, and the portfolio’s weighted average loan-to-value (LTV) ratio – based on indexed foreclosure value – decreased to 60% at year-end (year-end 2023: 64%). New issuances are, in general, issued for LTV between 50% and 90%. Interest-only mortgages We are in the process of analysing the exposure of clients with interest-only mortgages. Our approach involves proactively advising clients to help them make informed decisions about their loans. For instance, we assist clients who may face declining incomes, such as those approaching retirement, to mitigate the risk of being unable to repay their loans at maturity. This initiative has raised awareness among clients and aims to prevent potential financial difficulties. We have also begun a comprehensive analysis of our broader portfolio to identify possible long-term risks, including the clustering of redemption dates for interest- only mortgages. This analysis will include simulations of clients' financial capacity to repay at maturity. Moreover, we are actively working on incorporating the best practices shared by DNB in their recent letter to the sector. These suggestions will be integrated into our risk management framework in 2025. Energy labels of homes with residential mortgages At year-end 2024, 50.0% of homes for which we provide mortgages had an A, B or C energy label (year-end 2023: 48.5%). Due to the nature of our client base, a substantial percentage of homes still have D, E, F or G energy labels. For homes without a registered energy label, we derive a proxy label from the construction year of the property. Homes with a G label have the largest number of proxy energy labels, representing 84.9% of G-label homes. Home improvements such as increasing insulation have a positive effect on the energy label, but this is not accounted for in the proxy estimation. For this reason, it is expected that a proportion of the estimated energy labels will improve if an actual energy label is requested. We encourage clients to request an official energy label. For homes with an energy label of A, B or C, we offer clients a lower interest rate. Risk and capital management 123 Mortgage loans: outstanding volumes (€ million) and number of loans by size Mortgage loans: new production by type (%) Mortgage loan-to-value (%) Energy labels: number of homes per label Mortgage loans: remaining amount outstanding per year (€ million) compared with house price trend Risk and capital management 124 Other loans This part of the loan portfolio comprises loans to high-net- worth individuals, for example as overdraft facilities or funding for a second home. In the same category are commercial activities that fit into our private relationship model, such as funding investments for family businesses, business professionals, healthcare professionals and entrepreneurs. These kinds of loans are supplementary to our wealth management strategy and typically involve our clients bringing in AuM. Our aim is to keep the size of this portfolio at least constant. In 2021, we also began reporting our corporate banking loan portfolio in this category. The winding down of this portfolio continued in 2024, and it now amounts to €57 million (2023: €70 million). Other loans: type of loan (100% = €2.3 billion) Real estate loans Our real estate loans, both those provided to private banking clients and corporate banking's legacy portfolio, amount to €378 million (2023: €325 million). These loans are provided primarily on the basis of a total quality assessment of the borrowers. We also take into account the quality and sustainability of the property, and the diversification and stability of the rental flows. The debt service coverage ratio (DSCR) is calculated so that we can determine the extent to which a client will be able to make interest and principal payments from the rental income generated by their commercial real estate. At year-end 2024, 95% of our real estate loans generated sufficient rental income to cover interest and principal payments – i.e. had a DSCR of over 1 (year-end 2023: 91%). Clients with a DSCR of less than 1 often have other income-generating assets they can use to service their loan obligations. Finally, the LTV of real estate loans improved over the year as a result of regular redemptions. Half of the portfolio consists of residential real estate loans; this market is very stable. Approximately 20% of the portfolio consists of real estate loans collateralised by offices; this market is still cooling down and average prices decreased further in 2024. However, thanks to strict credit management and adherence to our credit policy, the credit quality of our real estate loans portfolio remained stable. Other mortgage exposure We provide mortgages through a network of intermediaries, branded as Hypotrust and with Quion as our service provider for our white-label mortgages. We have built up a white-label portfolio with good risk characteristics and with very few loan losses. The size of the portfolio amounted to €329 million by year- end 2024 (year-end 2023: €348 million) and makes up 4% of the total loan portfolio. This portfolio is no longer open to new borrowers. We have invested in a separate mortgage fund managed by AEGON Asset Management (formerly ASR Vermogensbeheer NV). The underlying mortgages in the fund are provided by ASR Levensverzekering NV. The purpose of the fund is to make it possible for institutional parties to invest in Dutch mortgages. The investment amounted to €293 million at year-end 2024 (year-end 2023: €302 million) and is a dedicated tranche for Van Lanschot Kempen, which consists primarily of Dutch mortgage receivables with a Dutch national mortgage guarantee (NHG). The credit risks are limited due to the NHG. We only run a small amount of credit and operational risk if the NHG claim procedures are not completed correctly by ASR Levensverzekering. Impaired loans Impaired loans Stage 3 (IFRS 9) are defaulted loans in IFRS 9 credit quality Stage 3. Impaired loans Stage 3 (IFRS 9) totalled €127 million at year-end 2024, an increase of 0.6% compared with 2023 (€126 million). Impaired loans Stage 3 (IFRS 9) accounted for 1.4% of the loan portfolio at year-end 2024 (year-end 2023: 1.4%). In 2024, a provision equal to 22% of impaired loans Stage 3 (IFRS 9) was taken (2023: 22%), resulting in specific provisions totalling €28.1 million. Loan loss provisions In 2024, we released €0.4 million in Stage 3 provisions (in 2023, we added €0.8 million). At year-end, Stage 3 provisions amounted to €28.1 million. Over the course of 2024, we saw an increase in exposures in Stage 1, a decrease in exposures in Stage 2, and a slight rise in exposures in Stage 3. The changes in Stage 1 and Stage 2 exposures can be explained as follows. From 2020 onwards, a management overlay was applied to the ECL to incorporate risks generated by the pandemic and later the rise in geopolitical tensions, which were not captured by the models used earlier. In 2024, we decided to no longer apply this management overlay, because the only significant effect (in the credit domain) had been the sharp rise in interest rates in response to inflation. However, this has not led to higher credit losses in our portfolio, though it has changed clients' repayment behaviour. To incorporate this change in behaviour in our models, our prepayment and maturity models have been recalibrated. For more information on this subject, see Section 3.8.7, "Model changes", in the financial statements. For more information about credit risk, see Section 3, "Credit risk", in the financial statements. Market risk We are exposed to market risk through client-facilitating transactions. Our Treasury department performs equity, foreign currency and interest rate structured products transactions for clients. Investment Banking Clients performs equity transactions for clients and provides market liquidity, which may result in trading positions. These activities may also result in trading positions. Temporary positions may arise from our efforts to facilitate our clients’ requests. We also invest in our own funds to align our interests with those of our clients and to support our investment management activities via seed capital in newly launched funds. Risk and capital management 125 Financial markets were challenging and volatile in 2024 due to more persistent inflation, which was anticipated by policymakers, as well as multiple market events that resulted in equity valuation corrections. Over time, policy rates were lowered as headline inflation came down, yet uncertainty in the policy rate going forward remained, which created a volatile interest rate curve. Equity markets were generally strong but volatile at times due to market events, such as the Japan carry trade unwind, the tensions in the Middle East and the US elections. Whereas EU and US interest rates and equity valuations moved in tandem, the US election outcomes resulted in a disconnect between the two continents as the outlook changed. For further information on market risk, see Section 4, "Market risk", in the financial statements. Model risk Van Lanschot Kempen uses models for a variety of purposes, ranging from quantification of the various risk types to supporting decision-making in the business. The use of models exposes our company to model risk, as models are a simplification of reality and are based on assumptions. Further sources of model risk can be found in model choice appropriateness, model implementation and the use of model outcomes. To mitigate model risk, we apply the three lines of defence model. The first line of defence is formed by the model owners, whose primary role is to identify, assess and manage the risks associated with models throughout their lifecycle. The second line of defence is model risk management, carried out by the Model Validation department, which is responsible for performing independent validations and maintaining the model risk management framework (MRMF) and related policies in line with regulatory requirements. Model Validation reports to various committees, including the Group Risk Committee, on the status of model risk and the outcomes of model validations. The Internal Audit department acts as the third line of defence, providing an independent evaluation of the adequacy of the model risk management process. A risk-based approach is adopted in line with the MRMF by assigning a tier to each model. The model tier is a reflection of the model risk associated with a model, and is determined on the basis of model complexity and the materiality of potential model errors. We have made a complete inventory of all models within our organisation. Models containing more model risk will be validated more frequently and in more depth than models containing less model risk. The use of models within our organisation is steadily increasing, which is reflected in our expanding model inventory. Interest rate risk in the banking book The main source of interest rate risk in the banking book is the timing mismatch between the interest rate repricing tenor of our client deposits, on average about two years, and that of client assets such as mortgages, which reprice on average after five years. We hedge this mismatch using interest rate derivatives as part of our macro fair value hedging programme. After hedging, some residual risks remain, in particular uncertainties around client behaviour. For example, our hedging strategy relies on model estimates for how many clients will prepay their mortgage loans, and differences in client behaviour compared with the model estimates may require us to adjust our hedging derivatives. Over the course of 2024, the ECB cut the deposit facility rate from 4.0% to 3.0%, while longer-term interest rates remained unchanged. During the year, we observed a volatile trajectory of changes in market expectations of the timing and speed of ECB interest rate cuts for 2024 and 2025. In this environment, a subset of clients have continued to roll over short-dated fixed term deposits instead of investing in non-maturity products such as savings accounts. At 31 December 2024, 23% of our deposits were fixed-term, stable relative to 25% at 31 December 2023, but significantly higher than the 8% figure at 31 December 2022. As was the case when interest rates were rising, interest rates on non-maturing deposits follow changes in market rates with a timing lag, depending on market circumstances and competition. Our interest rate on savings balances below €100,000 stood at 2.0% on 31 December 2023, and remained at 2.0% on 31 December 2024. This resulted in smaller margins compared with the lower ECB deposit facility rate. In response, we kept a close eye on the in- and outflows of client assets and adjusted our interest rates on savings and term deposits regularly to adjust to client behaviour, actions of other banks and financial market developments. On the lending side, we continue to observe low levels of prepayments on mortgages as a result of increased market rates. For the vast majority of our mortgage book, clients' current interest rates are lower than the prevailing interest rates for new mortgages. This greatly reduces clients' incentive to prepay on their mortgages. We also observed an increase in clients using the option to retain their current mortgage interest rates when moving house. During 2024, we enhanced our interest rate risk management by implementing new models used for hedging interest rate risk. These include models for mortgage loan prepayment risks, models for estimating repricing maturities of non-maturing deposits and models for interest rate risk capital. In addition to client driven positions, we continue to invest our equity capital at an average tenor of two to six years. On 31 December 2024, we were well within all interest rate risk limits. For more information on interest rate risk, see Section 8, "Interest rate risk", in the financial statements. Liquidity and funding risk A key element of our private banking proposition is to offer clients core banking services such as current accounts and instant access savings accounts. This exposes us to short- term liquidity risks, as these funds have no contractual restrictions on clients' ability to withdraw them. Risk and capital management 126 We are also exposed to longer term funding risks as we require long-term funding for our client lending, such as mortgages, while clients' preferences to hold part of their portfolio in cash savings products may vary over time. In 2024, our client deposit base grew to €12.8 billion from €12.6 billion in 2023. This was mainly driven by growth in the Evi savings product, partially balanced by conversion of client deposits into AuM, in particular from current accounts and cash balances on securities accounts. In the last two months of the reporting year, some clients also transferred part of their AuM back to bank deposit products. Our December 2024 loan-to-deposit ratio amounted to 73.1% (2023: 72.9%), which demonstrates that our client deposit base well exceeds our client loan book volume. Funding mix (100% = €17.0 billion) As a result, our reliance on other funding sources is limited and our liquidity risk profile is mostly driven by the potential occurrence of unanticipated deposit outflows. Although our deposit base has proven to be sticky over time, there is always a risk of unexpected outflows, particularly for balances not covered by the deposit guarantee scheme. As our appetite for liquidity risk is low, we aim to hold solid liquidity buffers that would allow us to absorb severe unexpected liquidity stress situations. Due to our strong liquidity buffer, stress test outcomes and other liquidity indicators such as the liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) remained strong. At year-end 2024, our liquidity buffer was substantial, as the LCR and NSFR stood at 220.7% and 160.2% respectively (2023: 224.7% and 156.4%). Although our loan-to-deposit ratio is well below 100%, we aim to keep a degree of diversification in our funding mix in terms of funding type and maturity, by supplementing the client deposit base with covered bonds. Total outstanding volume under the covered bond programme was €1.5 billion by December 2024. Moreover, outstanding volume in the retained covered bond programme was €500 million. In addition, we have around €465 million in structured debt instruments. We do not have any benchmark-size unsecured debt issuances placed with investors. The redemption profile of our capital markets debt and capital instruments is outlined on the top right of the page. Funding and capital instruments redemption profile (€ million) Liquidity and investment portfolio composition Our liquidity buffer (excluding retained own debt instruments) totalled €6.3 billion at year-end 2024, compared with €6.3 billion at year-end 2023. We held €1.7 billion at the ECB deposit facility. Our investment portfolio (liquidity buffer minus central bank deposits) is maintained primarily for liquidity purposes, and consists mainly of liquid, low-risk instruments, in line with our investment policy. In 2024, the composition of the portfolio shifted to include more bond than cash investments due to market conditions becoming more favourable in the fixed income markets compared with cash. We maintain strict limits on instrument types, counterparties, countries, ratings and credit spread risk. We hold part of our investment portfolio in a book that is classified at amortised cost (hold to collect). In the unforeseen event that we have to liquidate this book, the expected impact on our result would be around €3.7 million negative (at 31 December 2024). In addition to day-to-day portfolio management, we regularly review and report annually on our investment portfolio to ensure it meets our ESG criteria. We have not encountered any material sustainability issues in our investment portfolio to date. Investment portfolio and liquidity by counterparty (100% = €6.3 billion) Risk and capital management 127 Investment portfolio and liquidity by credit rating (100% = €6.3 billion) For further information on our liquidity risk profile, see Section 9, "Liquidity risk", in the financial statements. Capital management Over the last decade, we generated substantial amounts of excess equity capital by winding down the corporate banking loan book. Excess equity capital has been used for acquisitions and distributed to shareholders via equity capital returns. Our Common Equity Tier (CET) 1 ratio target is 17.5% Basel IV fully loaded and we allow for a temporary undershoot of up to 2.5% for acquisitions. Our intention to return capital above our target to our shareholders going forward, subject to regulatory approval, remains unchanged. Our CET 1 target ratio is well above the CET 1 requirement that stems from the supervisory review evaluation process (SREP). The latest SREP, which was concluded in July 2024, and overall capital requirements are outlined in the table below. Required CET 1 capital is 7.48% for Pillar 1 and 2 risks. Relative to the previous SREP, Pillar 2 guidance has decreased from 1.06% to 0.06%, which reflects the corresponding increase in the countercyclical capital buffer from 0.91% to 1.81%. The impact of stress scenarios on our solvency has not changed materially. Combined buffer requirements (countercyclical and capital conservation buffers) currently require 4.3% CET 1 capital. Our year-end capital ratios well exceed overall capital requirements and our own targets. SREP and overall capital requirements at 31 December 2024 (%) CET 1 Tier 1 Total capital Pillar 1 4.50 6.00 8.00 Pillar 2 2.98 3.98 5.30 Total SREP capital requirement 7.48 9.98 13.30 Capital conservation buffer 2.50 2.50 2.50 Countercyclical capital buffer 1.85 1.85 1.85 Overall capital requirement 11.83 14.32 17.65 Pillar 2 guidance 0.06 0.06 0.06 Overall capital requirement + P2G 11.89 14.38 17.71 Capital ratios 19.4 21.7 25.2 Since we are not classified as a "resolution institution", loss absorption requirements (minimum required eligible liabilities or MREL) are not applicable. As DNB is concerned about systemic risk in the Dutch housing market, it has implemented a risk weight floor for residential mortgages. This floor applies to mortgages not guaranteed by the NHG that are capitalised based on the IRB approach, and came into effect on 1 January 2022. Due to our solid mortgage portfolio, which results in low IRB risk weights, the impact of this floor is relatively large (-2.4 percentage points of the CET 1 ratio at 31 December 2024). On 17 October 2024, DNB announced the risk weight floor will be extended until December 2026. Regulation (EU) 2024/1623 (also known as "CRR3" and "Basel IV" in the EU legal framework) applies from 1 January 2025. CRR3 implements the 2017 finalisation of post-2008 financial crisis reforms to the Basel framework on banking supervision into the EU legal framework. Basel IV affects three key aspects of measuring capital requirements for credit risk. The first is the revision of the standardised approach, which will change standardised risk weights for certain loan categories. The second relates to the maximum capital benefit banks can obtain from IRB credit risk models. By imposing an overall risk weight floor equal to 72.5% of risk weights based on the standardised approach, the maximum benefits from using internal credit risk models are effectively limited. The risk weight floor is effective from 1 January 2025 at 50%, and will be phased in over a five-year period up to 72.5% by 1 January 2030. The third aspect of Basel IV, which is particularly relevant for Van Lanschot Kempen, is a phased-in increase in the risk weighting of equity exposures, of which we have a relatively large amount (including investments in Bolster private equity funds and Van Lanschot Kempen Investment Management funds). For capital planning purposes, we assumed Basel IV would come into effect on a fully loaded basis straight away, starting in January 2025. The main non-credit risk-related element of Basel IV is the fundamental review of the trading book (FRTB). FRTB better reflects our hedging strategy when calculating the net market risk position, and will entail a structurally lower capital requirement. The date at which the FRTB will be applied has been changed by the European Commission as part of CRR3, to 1 January 2026. 1 The figures relate to AFM filings up to 31/12/2024, with the exception of "Management & employees", which has been sourced from internal records. 2 MVDP NV is the Belgian holding company of the former owners of Mercier Vanderlinden. 3 Based on employees in the Netherlands only. Van Lanschot Kempen shares 129 Van Lanschot Kempen shares Depositary receipts for Van Lanschot Kempen’s Class A ordinary shares have been traded on the Euronext Amsterdam stock market since 29 June 1999 (ISIN Code: NL0000302636; ticker: VLK.AS). Van Lanschot Kempen’s market capitalisation stood at €1,846 million at year- end 2024. The issued share capital of Van Lanschot Kempen at 31 December 2024 consisted of 43,039,938 Class A ordinary shares (“shares”), each having a nominal value of €1. We held 662,748 treasury shares at year-end 2024. Van Lanschot Kempen is included in the AMX Index, the AEX ESG Index and in the MSCI World Small Cap Index. Shareholders and depositary receipt holders Pursuant to Chapter 5.3 of the Financial Supervision Act, the disclosures below have been entered in the Register of Substantial Holdings as maintained by the Dutch Authority for the Financial Markets (AFM). The percentages reflect the number of shares or depositary receipts on the register on the disclosure dates. Disclosure is required once a shareholder’s interest reaches, exceeds or falls below a threshold value. The current interest of a shareholder or holder of depositary receipts may consequently differ from the interest reported on the disclosure date. On 31 December 2024, Stichting Administratiekantoor van gewone aandelen A Van Lanschot Kempen held over 99.99% of Van Lanschot Kempen shares. For more information on Stichting Administratiekantoor van gewone aandelen A Van Lanschot Kempen, see “Depositary receipts for shares” on page 154. In 2024, J.B. Meulman sold his stake of 3.0% in Van Lanschot Kempen. In addition, Romij notified the AFM in June 2024 that it had crossed the 15% threshold, holding in total 16.9%. On 18 February 2025, Janus Henderson notified the AFM it had fallen below the 5% threshold. Reported depositary receipt holders at 31 December 2024 1 Employee participation plans Management and employees, excluding MVDP 2, jointly owned 5.5% of our issued share capital at year-end 2024 (year-end 2023: 4.7%). In 2024, we continued the matching share plan in the Netherlands: the investment in Van Lanschot Kempen shares that an employee makes – up to a maximum value of €3,500 – is matched by Van Lanschot Kempen one year later. Through programmes such as this, around 70% of our employees are shareholders. 3 Employees had the opportunity to buy shares at a discount of 18.5%, up to a total value of €15,000. All shares purchased under the employee share plan are subject to a five-year lock-up period. We intend to continue this employee share plan in 2025. The 2024 reporting year was the third year for the Van Lanschot Kempen Partnership: a long-term participation plan for key senior employees. Its purpose is to anchor leadership more deeply in the organisation, further promote ownership and entrepreneurial spirit and create more long-term alignment with our shareholders and clients. At year-end 2024, partners jointly owned 1.1% of our issued share capital. As the partnership is a participation plan, partners are asked to make a minimum individual contribution of at least €50,000 in year one and to increase their total contribution to a minimum of €150,000 and a maximum of €500,000 over the course of five years (with a minimum contribution of €25,000 per year). Contributions can be made either in cash or through conversion of a participant's (net) fixed remuneration in shares in the respective year. Shares in this plan also have a lock-up period of five years, allowing Van Lanschot Kempen to provide a discount of 18.5% on the shares bought. The individual contributions are collected in a so-called fonds voor gemene rekening (FGR – fund for joint account). Partners' contributions remain in this fund during their full tenure as a partner. We selected this structure to combine the shares as one voting block and to reflect the collective and collaborative nature of the partnership. In return for their contribution, partners receive FGR units, each corresponding to a share in Van Lanschot Kempen. When votes are cast on the shares held by the FGR, voting instructions are obtained from the partners. In the absence of such instructions, the FGR will either abstain or allow individual partners to vote at their own discretion. The partnership does not affect the governance and management structure of the company. Credit ratings Our creditworthiness is periodically assessed by Standard & Poor’s (S&P) and Fitch Ratings (Fitch). We maintain a high level of creditworthiness by deploying our assets for the benefit of our clients and by taking on only such risks as can be understood and controlled. This supports solid risk management processes as well as a strong capital and liquidity position. Our current credit ratings reflect our healthy capital and funding position along with our low risk profile. 4 Before 2024, our dividend policy and dividend distribution was based on underlying net result attributable to shareholders. 5 Based on the weighted number of outstanding ordinary shares. 6 Based on Van Lanschot Kempen’s interpretation of Basel IV at the time of reporting. 7 Calculated as: closing price x (issued share capital minus treasury shares). Van Lanschot Kempen shares 130 In May 2024, Fitch upgraded the rating of Van Lanschot Kempen to an A- long-term credit rating with a stable outlook. Van Lanschot Kempen has had a BBB+ long-term credit rating from S&P since 2021. Credit ratings S&P Fitch Long-term credit rating BBB+ A- Long-term credit rating outlook Stable outlook Stable outlook Short-term credit rating A-2 F2 Date of latest report 26 September 2024 10 December 2024 Date of latest press release 24 June 2021 22 May 2024 Research coverage Sell-side analysts from ABN AMRO – ODDO BHF, ING and Kepler Cheuvreux actively track Van Lanschot Kempen and regularly publish equity research reports. For more information, see our website: vanlanschotkempen.com/en- nl/about-us/investor-relations/share-information. Dividend policy and dividend for 2024 Our aim is to distribute between 70% and 90% of our net result attributable to shareholders. 4 This is the net result adjusted for minority interests and the share of holders of AT1 capital securities. In 2024, the net result available for distribution to shareholders amounted to €131.9 million, amounting to earnings per share of €3.11. 5 Our strong results and solid capital position enable us to propose a dividend distribution of €2.75 per share to our shareholders (2023: €2.00 per share). The shareholders at the annual general meeting (AGM), to be held on 22 May 2025, will be invited to adopt the dividend proposal. Based on the number of shares in issue at 31 December 2024 (excluding treasury shares), the proposed dividend payments will total €116.5 million. This corresponds to a pay-out ratio of 88.4% of the net result attributable to shareholders. The proportion of net result attributable to shareholders that won't be paid out (i.e. €15.3 million) will be added to reserves. Capital management policy At year-end 2024, our CET 1 ratio was 19.4% and our CET 1 ratio according to Basel IV fully loaded was 19.3% 6, which is above our target of 17.5%. We intend to distribute additional capital above a CET 1 ratio of 17.5% to our shareholders, subject to regulatory approval. As our CET 1 ratio according to Basel IV fully loaded was 19.3%6 at year-end 2024, we propose to return €1.40 per share to our shareholders in June 2025, for which we have received approval from De Nederlandsche Bank (DNB) and for which we will convene an extraordinary general meeting (EGM) on 10 April 2025. The proposed capital return will total €59.3 million. Since 2016, we have paid out a total of over €800 million – excluding the 2024 proposed dividend and envisaged 2025 capital return – to our shareholders in the form of both dividends and capital returns. Key figures per ordinary share 2024 2023 2022 2021 2020 Share price (€): High 45.10 31.65 26.90 26.95 21.90 Low 26.25 22.25 19.14 20.35 9.23 Closing 43.55 28.15 21.90 22.00 21.00 Average daily trading volume in depositary receipts 67,059 93,977 53,959 51,184 87,525 Market capitalisation (€ million) (year-end) 7 1,845.53 1,195.73 891.71 898.64 862.51 Net asset value per share (€) 30.09 29.36 31.45 32.01 30.54 Price-earnings ratio 14.00 9.98 11.53 6.57 20.00 Information on dividend per ordinary share 2024 2023 2022 2021 2020 Earnings per ordinary share (€)5 3.11 2.82 1.90 3.35 1.05 Dividend per ordinary share (€) 2.75 2.00 1.75 2.00 0.70 Dividend yield (%) 6.3 7.1 8.0 9.1 3.3 Pay-out ratio (%) 88.4 71.7 95.8 59.6 66.8 Total return for holders of ordinary shares (%) 61.8 45.7 15.5 15.0 4.7 Van Lanschot Kempen shares 131 Movements in Van Lanschot Kempen's share price compared with industry indices Sustainability ratings Van Lanschot Kempen is periodically assessed by various organisations, including: – MSCI ESG: a rating designed to measure a company’s resilience to long-term, industry-material ESG risks. In 2023 (the most recent measurement), we received an AA rating (on a scale from AAA to CCC), the same as in 2022. – ISS ESG: the responsible investment arm of Institutional Shareholder Services Inc. We received a B– rating (on a scale from A+ to D–). – Principles for Responsible Investment (PRI): our responsible investment process was rated 4 and 5 stars (out of 5) by PRI for the policy, governance and strategy module, the confidence-building measures module, five indirect modules (listed equity – passive, listed equity – active, fixed income – passive, fixed income – active, and real estate) and two direct modules (listed equity – active fundamental and fixed income – corporate). – Sustainalytics: 15th position out of 446 companies active in asset management (2024). For a complete list of our sustainability ratings, see our website: vanlanschotkempen.com/en-nl/about-us/ sustainability/rankings-and-ratings. Investor relations policy It is our policy to provide current and potential shareholders and bondholders, rating agencies and research analysts with accurate and timely information on developments within our business. We engage in active dialogue with all our financial stakeholders, by publishing press releases and our annual report, and by organising meetings and one-to-one discussions with existing and potential investors. If a shareholder enters into a dialogue with us outside the context of a general meeting, we may ask the shareholder to disclose their full share position. We observe a “silent” period of three weeks prior to the publication of our annual and half-year results, during which no meetings are held with shareholders or analysts. There are four "open" periods each year, during which employees can buy or sell Van Lanschot Kempen shares. The open periods run for the ten working days after publication of the full-year figures, the Q1 trading update, the half-year figures and the Q3 trading update. More information Investors and analysts with questions about Van Lanschot Kempen are welcome to contact our Investor Relations department by phone on +31 20 354 45 90 or by emailing [email protected]. If you would like to receive Van Lanschot Kempen’s press releases by email, you can subscribe to our news service via: newsroom.vanlanschotkempen.com/en. Key dates 2025 EGM 10 April 2025 Publication of 2025 Q1 trading update 7 May 2025 AGM 22 May 2025 Ex-dividend date 26 May 2025 Record date 27 May 2025 2024 dividend made payable 3 June 2025 Ex-capital return date 24 June 2025 Capital return payment date 26 June 2025 Publication of 2025 half-year results 28 August 2025 Publication of 2025 Q3 trading update 28 October 2025 Report of the Supervisory Board 133 Report of the Supervisory Board This report gives an overview of the activities of the Supervisory Board and its committees in 2024. For a description of the composition and operation of the Supervisory Board, see "Corporate governance", starting on page 152. The Supervisory Board supervises and advises the Management Board on performing its management tasks and setting the direction for Van Lanschot Kempen. In its activities, the Supervisory Board focuses on long-term, sustainable value creation for our clients, for our shareholders and for society. The members of the Supervisory Board are fully independent. This report includes information about the achievement of corporate targets, the relationship with stakeholders and the relevant aspects of sustainability. It also covers the internal organisation, the meetings of the Supervisory Board and its committees, and the annual evaluation of the performance of the Supervisory Board, its committees and individual members. Report of the Supervisory Board 134 Supervision Structure and functioning of risk management The Risk and Compliance Committee discusses Van Lanschot Kempen’s principal risks, as well as the structure and effectiveness of its risk management and control systems. Over the course of 2024, the Chair of the Risk and Compliance Committee reported its main conclusions and recommendations to the Supervisory Board. Van Lanschot Kempen’s risk appetite statement is subject to the Supervisory Board’s annual approval. The risk appetite statement for 2025 was discussed and approved at the Supervisory Board’s December meeting. Financial reporting Financial reporting is discussed regularly at the Audit Committee’s meetings, which are also attended by the external auditors. After each meeting, the chair of the committee reports on committee discussions to the full Supervisory Board. All members of the Supervisory Board attended Audit Committee meetings where the 2023 annual figures and the 2024 first half-year figures were discussed. The Supervisory Board approved the financial statements for 2023 on 21 February 2024. PricewaterhouseCoopers Accountants NV (PwC) were reappointed as external auditors for the 2024 financial year at the annual general meeting (AGM) held on 25 May 2023. In view of the mandatory audit firm rotation obligations, KPMG Accountants NV (KPMG) were appointed as the company's new external auditors, effective from the start of the 2025 financial year. Legal and regulatory compliance The Supervisory Board is regularly provided with information on developments regarding the compliance framework such as projects to strengthen compliance policies and processes, and progress made in the area of client due diligence processes. The Supervisory Board values the continuous efforts to improve our compliance framework to manage compliance risks, ensure that the company adheres to laws and regulations, and make sure that we act in the best interest of clients. The Supervisory Board is also kept informed of interactions with supervisory authorities regarding compliance with regulations. During 2024, the Supervisory Board was informed periodically about the ongoing implementation of new legislation and regulations, such as Basel IV and the Digital Operation Resilience Act (DORA), and the preparation for corporate sustainability reporting under the Corporate Sustainability Reporting Directive (CSRD). Relationship with stakeholders In 2024, the Supervisory Board regularly discussed Van Lanschot Kempen’s relationship with its stakeholders. At the Investor Day on 20 June 2024, the updated wealth management strategy and revision of Van Lanschot Kempen's financial targets were presented. Other topics discussed with stakeholders included the general development of Van Lanschot Kempen, progress on the company's wealth management strategy, organic and inorganic growth opportunities, the company's capital base, the revised remuneration policies for the Management and Supervisory Boards in preparation of the AGM, and Van Lanschot Kempen's sustainability profile and approach. The Supervisory Board regularly devotes attention to client interests, client experience and client feedback. The Supervisory Board is pleased that Van Lanschot Kempen continually strives to improve its products and further enhance the client experience. Members of the Supervisory Board also participated in regular meetings with De Nederlandsche Bank (DNB) and the Dutch Authority for the Financial Markets (AFM), such as the annual meeting with DNB on the supervisory review and evaluation process (SREP). The Supervisory Board values its constructive relationship with the Works Council. Elizabeth Nolan and Karin Bergstein attended meetings with the Works Council in May and October 2024. They also attended two meetings of the Works Council with the Management Board, to discuss the general course of business and exchange views on developments at Van Lanschot Kempen. In 2024, the Supervisory Board also visited the offices in Zurich and Rotterdam. Such visits give the Supervisory Board the opportunity to meet with local management and employees and offer the Supervisory Board valuable insights into their business challenges. Relevant aspects of sustainability In 2024, the Supervisory Board discussed the update of the climate strategy and action plan, the 2025–26 sustainability roadmap, the double materiality assessment (DMA) and other topics around CSRD implementation, impact investing and active ownership investments, and a regulatory update. The Audit Committee discussed the quarterly sustainability management reports, an EU taxonomy comparison with peers, and the CSRD control framework. In addition, the Risk and Compliance Committee was informed about the sustainability risk policy and report, and received regular updates about sustainability risk. Sustainability is an important topic for the Supervisory Board that requires continuous attention. The Supervisory Board supports further integrating all relevant aspects of sustainability into the business and risk management processes of Van Lanschot Kempen and its client solutions. Internal organisation Composition of the Management Board On 1 June 2024, Richard Bruens stepped down as a member of the Management Board. He was responsible for Private Clients Netherlands, Private Clients Belgium and Investment Banking Clients. The Supervisory Board is sincerely grateful for Richard's major contribution to the development and success of private banking and investment banking, and his dedication to Van Lanschot Kempen over the past 11 years. Richard always thought about the interests of our clients and how to best serve them. Wendy Winkelhuijzen took over the responsibilities of Richard Bruens for Private Clients Netherlands and Investment Banking Clients, while Maarten Edixhoven became responsible for Private Clients Belgium. Damla Hendriks was appointed as a member of the Management Board and Chief Risk Officer on 1 June 2024. She succeeded Wendy Winkelhuijzen, who was Chief Risk Officer before succeeding Richard Bruens. Report of the Supervisory Board 135 The Management Board currently consists of Maarten Edixhoven (Chair), Jeroen Kroes, Damla Hendriks, Arjan Huisman, Wendy Winkelhuijzen and Erik van Houwelingen. Erik van Houwelingen's term of office expires after the AGM that will be held in May 2025, and we intend to reappoint him after this AGM. Composition of the Supervisory Board The Supervisory Board regularly discusses its profile and composition to maintain an appropriate balance. The composition of the Supervisory Board changed in 2024. Lex van Overmeire, who sadly passed away in April 2023, was succeeded by Else Bos. She was appointed as a member of the Supervisory Board at the extraordinary general meeting (EGM) on 21 October 2024 until the end of the AGM in 2029. According to schedule, Karin Bergstein's first term of appointment expired in May 2024. She was reappointed as a member of the Supervisory Board at the AGM on 23 May 2024 until the end of the AGM in 2028. Manfred Schepers' second term of appointment will expire after the AGM in 2025 and he is not available for reappointment. The recruitment process for a new Supervisory Board member has started. For further information and background on the members of the Supervisory Board, see page 160. Supervisory Board meetings The Supervisory Board held 13 meetings in 2024. The Management Board attends the formal meetings of the Supervisory Board and prepares detailed information. Regular items on the agenda of these meetings include the company’s strategy, financial results, annual budget, developments within the various business segments, developments regarding client experience and client interests, IT and information security, risk management, compliance, audit and HR topics. In addition, the Supervisory Board discussed a wide range of other topics, including: – Business plans of the client segments; – M&A opportunities; – Acquisition of Belgian investment adviser Accuro; – Integration of Robeco's online investment platform with Evi; – Client interests; – IT roadmap of investment management activities; – Azure migration; – Sustainability strategy and roadmap; – Annual report, sustainability reports and tax transparency report; – Revision of the financial targets and preparation for the Investor Day; – Succession planning; – The group's tax policy and most important tax developments; – Business continuity management; – Brand positioning of Investment Management Clients; – Proposal for a capital return to shareholders. The Supervisory Board held eight meetings with Supervisory Board members only. These meetings gave the Supervisory Board the opportunity to reflect on agenda items, identify possible items requiring attention from the Supervisory Board, and discuss the composition and effectiveness of the Management and Supervisory Boards. The Chair of the Management Board was invited to attend these meetings. At the meeting in February 2024, the Supervisory Board discussed the performance of the Management Board members in 2023. The Supervisory Board received the information needed to perform its tasks from the Management Board. Information was also provided by our external auditors. Employees from within the organisation regularly attended meetings to provide additional information on specific topics within their respective fields. This also gave the Supervisory Board the opportunity to get acquainted with senior employees, which is helpful for the Supervisory Board's talent management and succession planning activities. In addition, the Supervisory Board discussed the outcome of the evaluation of the effectiveness of the Supervisory Board and its committees. For further information on the evaluation of the Supervisory Board, see page 139. The members of the Supervisory Board discussed their views on long-term strategic themes for Van Lanschot Kempen at an off-site meeting in October 2024. The agendas for Supervisory Board meetings were drawn up by the Company Secretary, in consultation with the Chair of the Supervisory Board. Between meetings, the Chair of the Supervisory Board maintained regular contact with the Chair of the Management Board. Supervisory Board members also held meetings with members of the Management Board and employees, relating to their membership of specific Supervisory Board committees and particular topics. The table on the following page shows the composition of Supervisory Board committees, and the attendance rate of each member of the Supervisory Board at the Board and committee meetings. Supervisory Board committees Composition of Supervisory Board committees The Supervisory Board has appointed four committees from among its members: the Audit Committee, Risk and Compliance Committee, Selection and Nomination Committee and Remuneration Committee. Each committee advises the Supervisory Board and prepares decision- making by the Board in its designated area of interest. These committees meet separately throughout the year. The main considerations and conclusions of the committees are reported by the chairs of the committees at Supervisory Board meetings. In addition, the minutes of the committee meetings are shared with the Supervisory Board. The Supervisory Board remains fully responsible for its decisions. 1 As of 21 October 2024. 2 As of 12 December 2024. 3 As of 23 May 2024. Report of the Supervisory Board 136 Composition and attendance rate Supervisory Board Audit Committee Risk and Compliance Committee Selection and Nomination Committee Remuneration Committee Frans Blom 100% (Chair) 100% 100% (Chair) 100% Manfred Schepers 81% 100% 100% (Chair) Karin Bergstein 95% 100% (Chair) 100% 100% Brigitte Boone 100% 100% 100% Else Bos 1 100% n/a 2 n/a2 Maarten Muller 100% 83% 100% 100% (Chair) Elizabeth Nolan 95% 100% 100% 3 100% Audit Committee The Audit Committee held four meetings in 2024. The Chair of the Management Board, CFO and CRO attended these meetings, while some meetings were attended by the other members of the Supervisory and Management Boards. The external auditors and the heads of Internal Audit and Finance, Reporting & Control were also present at the meetings to discuss financial performance and audit matters. The Audit Committee also met with the internal and external auditors without the members of the Management Board being present, to discuss the course of affairs during the financial year. In December, the external auditors from KPMG were present at the meeting of the Audit Committee to share their transition plan related to the rotation of the external audit firms. The Audit Committee carried out a detailed assessment of the annual and half-year figures. Particular attention was paid to significant financial items in relation to the company’s (interim) financial statements and disclosures, which are shown in the table below. Key items for discussion Audit Committee review and conclusion Impairments of loans and advances to the public and private sectors Impairments for individually identifiable loans are based on IFRS 9. Van Lanschot Kempen recognises a loss allowance for expected credit losses on all loans. This is calculated by using purpose-built IFRS 9 models. For credit-impaired loans, the Credit Approval and Financial Restructuring & Recovery team provides input in determining the level of credit loss allowances. Determining the appropriateness of the individual items involves elements of judgement and requires management to make assumptions. In these judgements and assumptions, the uncertainties relating to market volatility, interest rates, increased cost of living and current geopolitical developments need to be taken into account. On the basis of periodic management reports and the outcome of the audit procedures performed by the external auditors, we challenged the completeness and accuracy of the impairments recognised. We discussed the changes in loss allowances during the year as well as the loss allowances recognised in the income statement. We discussed the growth of the economy in 2024 and the substantiation for releasing the management overlay. We discussed the potential impact of climate change on our loan portfolio and agreed with management that no credit loss allowances in Stages 1 and 2, and no impairments in Stage 3, are currently needed. Based on our discussions and considering the acceptable range in the context of estimation uncertainty, we agree with the methodology applied by management in determining the provisions for impairments of loans and advances to the public and private sectors, and with the corresponding results. The disclosures relating to this item are set out in Note 6 to the financial statements. Measurement of goodwill Van Lanschot Kempen conducts an annual goodwill impairment test regarding the valuation of goodwill on its balance sheet. This process is complex and subjective by nature as it is based on assumptions of future market and economic conditions. The assumptions used include future cash flow projections and, for each cash-generating unit, a cost of equity used as a discount rate. We were informed about the method used for, and the outcome of, the goodwill impairment test. We also discussed the reallocation of goodwill as a result of the revised client segments. The methodology used was consistent compared with 2023, and was deemed to be adequate and in sufficient detail. Appointment of new external auditors In view of the mandatory audit firm rotation obligations, KPMG were appointed as the company's new external auditors, effective from the start of the 2025 financial year. KPMG started its transition activities in the last quarter of 2024. KPMG's transition plan for the 2025 financial year was discussed at the Audit Committee's meeting on 4 December 2024. Report of the Supervisory Board 137 Key items for discussion Audit Committee review and conclusion Sustainability In line with 2023, sustainability reporting was a specific area of focus for the Audit Committee. The topic was presented regularly by the colleagues responsible for sustainability in the Strategy, Sustainability & Corporate Development department and the Finance, Reporting & Control department. The committee was informed about sustainability topics through quarterly sustainability reports. In addition, the committee discussed the 2023 sustainability supplement and concept Global Reporting Initiative content index, an EU taxonomy comparison, and the DMA, including the progress on CSRD reporting and the impact on the 2024 annual report. In December, the proposal to the Supervisory Board to assign PwC to perform the assurance engagement for Van Lanschot Kempen's sustainability reporting for the 2024 financial year was discussed with the committee. The committee gave a positive recommendation for this proposal to the Supervisory Board. 2027 financial targets The financial targets are based on the long-term forecast model and also serve as the basis for the 2025 budget. As the long-term forecast model is sensitive to the assumptions and scenario used, several sensitivity analyses and other scenarios have been presented. Based on the long-term forecast model, the committee discussed the new financial targets and wording of the targets in great detail. This included detailed discussions about peer comparison, scenario analysis (including sensitivities), deep dives into the four client segments and the impact of potential future M&A transactions. The discussion also included the presentation of the new financial targets at the Investor Day in June 2024. In addition, the committee discussed the external auditors' reports, and updates on tax developments and data management. The committee discussed the external auditors’ audit plan, audit reports and the board report prior to their consideration by the full Supervisory Board. The main topics discussed were the audit scope, materiality, key audit matters, audit risk assessment and approach, findings and hard-close activities. In addition, the committee monitored the actions taken in response to these findings. The Audit Committee works closely with the Risk and Compliance Committee on monitoring the quarterly non- financial risk reports and on key audit matters, such as reliability and continuity of the IT environment and the fair value measurement of specific financial instruments. The committee reviews the external auditors’ independence, audit quality, communication and fees every year. On 30 January 2025, the performance of PwC in 2024 was evaluated. At the AGM held on 25 May 2023, KPMG were appointed as external auditors for the 2025 financial year, to comply with mandatory audit firm rotation obligations. The Audit Committee monitored the work of the Internal Audit department throughout the year. The annual plan and quarterly reports from the Internal Audit department were discussed as part of the committee's evaluation of the quality and effectiveness of Van Lanschot Kempen's governance, policy framework, risk management and internal control systems. The committee discussed the annual evaluation of the audit charter, progress against the annual plan and the quality of Internal Audit's operation. Each quarter, the committee discussed the Internal Audit focus topics: sustainability and ESG, third party management, information security and cybersecurity, as well as the 2024 themes: informal controls, culture and behaviour, client protection/client interests and data management (quality and security). In addition, Internal Audit reports presented the results of assessments of the risk & control framework and operation, the implementation and operation of IT systems, business continuity management, project management, logical access control, cyberattack simulation results, implementation of DORA, governance structure of product management at Mercier Van Lanschot, preparation of the statement on risk management (Verklaring omtrent Risicobeheersing, VoR) and illiquid and less liquid proposition governance. Based on the reports by both internal and external auditors, the Audit Committee concluded that the internal control environment is adequate for external financial reporting purposes. Risk and Compliance Committee Elizabeth Nolan was appointed as a new member of the Risk and Compliance Committee as of May 2024. As of 12 December 2024, Else Bos was also appointed as a new member of the committee. The committee currently comprises six members. The Risk and Compliance Committee met six times in 2024. Its meetings were also attended by the Chair of the Management Board, CFO, CRO and the heads of Financial Risk Management, Non-Financial Risk Management, Credit Approval and Financial Restructuring & Recovery, Compliance and Internal Audit. The quarterly risk appetite reports were discussed by the Risk and Compliance Committee. In all meetings, specific attention was paid to reviewing whether Van Lanschot Kempen’s risk profile was within the limits set by the company’s risk appetite. Specific forward-looking themes and topics influencing the entire organisation were also discussed. The committee discussed the company's risk appetite statement at their December meeting. The risk appetite statement was submitted to the Supervisory Board with a positive recommendation. For the principles on which Van Lanschot Kempen’s risk appetite is based, see our website: vanlanschotkempen.com/en-nl/about-us/who-we- are/governance (“Dutch Banking Code”). The Risk and Compliance Committee followed developments on compliance in the organisation and the monitoring activities of the Compliance department throughout the year. The quarterly compliance reports, compliance risks and progress on compliance projects were discussed by the Risk and Compliance Committee. Report of the Supervisory Board 138 Quarterly compliance reports elaborated on the compliance risk profile of Van Lanschot Kempen, including its foreign entities. The anti-money laundering and combating the financing of terrorism (AML/CFT) activity report 2023 was also discussed with the committee. This report describes the steering and oversight of all AML/CFT risks of Van Lanschot Kempen and its subsidiaries and branches, In addition, the committee discussed specific compliance-related initiatives in 2024, such as the review of the personal account dealing policy, the implementation of the European Banking Authority guidelines on policies and procedures in relation to compliance management and the role and responsibilities of the AML/CFT Compliance Officer, and the AFM self- assessment of the Compliance function. The compliance reports also incorporated information from the Data Protection Officer on personal data integrity and adherence to the General Data Protection Regulation (GDPR). In February 2025, the Risk and Compliance Committee discussed the outcome of the 2024 Systematic Integrity Risk Analysis (SIRA). In addition, reports from Compliance provided information about interactions and communication with supervisory authorities. The 2025 annual plan for the Compliance department was discussed at the committee's December meeting. Over the course of 2024, the Risk and Compliance Committee followed developments in Van Lanschot Kempen’s core operational processes and specific projects, focusing on change execution risk among other topics. Other non-financial risk topics that gained prominence included data integrity and reporting, IT security and cybercrime. The assessment of fraud risk was also discussed. The Risk and Compliance Committee discussed risk mitigation measures implemented for various non-financial risks. The committee discussed the 2025 annual plan for the Non-Financial Risk Management department in December. The Risk and Compliance Committee followed financial risks at its meetings throughout the year. The committee also discussed Van Lanschot Kempen's investment policy, the status of its internal ratings-based (IRB) project, its internal capital adequacy assessment process (ICAAP) and internal liquidity adequacy assessment process (ILAAP), its 2024 SREP letter and its recovery plan. The 2025 annual plan for the Financial Risk Management department was discussed in December. The committee discussed sustainability risks, such as the impact that physical and transitional risks could have on the various risk types as well as the short-, medium- and long- term impact of climate change and the landscape of sustainability regulation in which the company operates. In 2024, the Risk and Compliance Committee paid special attention to the topics detailed in the table below. Key items for discussion Risk and Compliance Committee review and conclusion Interest rate risk Over the course of 2024, the European Central Bank (ECB) decreased its deposit facility rate in several steps. This had a substantial impact on depositor clients' preferences and changed client behaviour. The Risk and Compliance Committee was informed about interest rate developments, the changes in client behaviour and the actions taken by the Asset & Liability Committee. Moreover, the increase and subsequent decrease of interest rates between 2022 and 2024 made it necessary to update our interest rate models predicting clients' behaviour. The progress on the remodelling project was frequently discussed with the committee. Credit risk Credit risk remains one of the financial risks facing Van Lanschot Kempen, although the wind-down of the corporate portfolio means that credit risk is much more contained. The main risks for Van Lanschot Kempen are a major decline in the economy coupled with falling house prices. The Risk and Compliance Committee was informed about credit risk developments in the loan portfolio based on several indicators (loans 30 days past due, amount of defaults, loan-to-value ratio, etc.). Based on these indicators and the IFRS 9 and IRB models, the credit quality of the loan portfolio remained stable in 2024. The various scenarios under which we would expect a deterioration in the quality of the loan portfolio were highlighted. Non-financial risks Cybercrime is and will remain one of the main threats facing the financial services industry. We follow a risk-based approach and aim to develop intelligent solutions. In this rapidly changing and complex world, organisations only survive if they continuously adapt to new circumstances. However, working on various major projects simultaneously inherently leads to an increase in operational risks. Regular updates on developments in Van Lanschot Kempen’s cybersecurity and (IT) risk control framework were received and discussed by the Risk and Compliance Committee. The level of security is continuously being increased, and we concluded that sufficient resources and attention are being dedicated to this important topic. We also discussed the rapid developments in AI and the deployment of innovative solutions in the organisation. We reached the conclusion that adequate attention is being paid to these topics. Outsourcing is a standard practice in the financial sector that brings many advantages, but also results in a new form of risk: third-party risk. The management of this risk in terms of policies and actual risk management were discussed with the Risk and Compliance Committee. Management informed the Risk and Compliance Committee about the status of ongoing organisational change projects and risks to the organisation regarding the number of simultaneous changes and pressure on employees. Report of the Supervisory Board 139 Key items for discussion Risk and Compliance Committee review and conclusion Compliance risk Managing compliance risk is crucial for overall risk management and plays a vital role in maintaining integrity, protecting the interests of key stakeholders and maintaining operational efficiency. In addition to further enhancements to the compliance framework for financial crime prevention, in 2024 we focused on the area of client and investor protection, supporting the growth in serving retail clients, and the conduct of business, such as trade and transaction reporting and personal account dealing. The Risk and Compliance Committee received the quarterly compliance reports, which include an analysis of the group’s compliance risk profile; the activities of the Compliance department, including compliance risk assessments and advisory, independent monitoring, training and awareness, and relevant supervisory developments. The Risk and Compliance Committee was informed about ongoing compliance-related projects. Examples of these include continuous efforts to improve the efficiency and quality of client due diligence processes. Given the commercial success and inflow of new private banking clients, we ensured sufficient resources were available to perform client due diligence. The committee was informed about the ambition to move to a more risk-based, data-driven and possibly automated approach to performing client due diligence (ongoing due diligence). It is expected that this will contribute to increased process efficiency from 2026. Sustainability risk Sustainability risks are becoming increasingly important. The Risk and Compliance Committee discussed the various forms of sustainability risks: risks to the balance sheet, risks in regulatory reporting, risks in assets under management and risks of not correctly classifying sustainability-related products. The Risk and Compliance Committee discussed the various initiatives to measure, analyse and (if necessary) mitigate sustainability risks. The committee also tracked progress of the adherence to the ECB sustainability expectations. The committee concluded that significant progress has been made in several areas, and shared the Management Board’s conclusion that the current sustainability risks are either well managed or not considered significant. The committee also recognised that continued effort is necessary to incorporate all new sustainability legislation and requirements from supervisors, while the evolving interpretation of legislation presents a challenge. Selection and Nomination Committee As of 12 December 2024, Else Bos was appointed as a new member of the Selection and Nomination Committee. The committee has five members and they met five times in 2024. The Chair of the Management Board is regularly invited to attend the meetings of the committee. In 2024, the Selection and Nomination Committee discussed the changes to the composition of the Management Board and advised the Supervisory Board on the appointment of Damla Hendriks. The committee also reviewed the succession planning for the Management Board. The committee advised the Supervisory Board on the nomination to reappoint Karin Bergstein as a member of the Supervisory Board in 2024. The committee discussed the recruitment of a new member of the Supervisory Board to succeed Lex van Overmeire, which resulted in the appointment of Else Bos. The committee also started preparations for the succession of Manfred Schepers, whose second term of appointment will end after the AGM in May 2025. Remuneration Committee The Remuneration Committee held four meetings in 2024. The Chair of the Management Board, CFO and representatives from the HR department also attended the Remuneration Committee meetings. At the committee's January meeting, the 2023 variable remuneration paid to Van Lanschot Kempen employees was discussed. At its February meeting, the committee discussed the Management Board's 2024 key performance indicators (KPIs) and the 2023 remuneration report. The total amount available for variable remuneration of Van Lanschot Kempen employees for 2024 was among the topics discussed at the December meeting. The committee also discussed the harmonisation of the employment conditions and reward principles of Mercier Van Lanschot, the evaluation of the remuneration policies for Management and Supervisory Board members, and the proposal for the new remuneration policies of the Management and Supervisory Boards. For more information, see "Remuneration report" on page 143. Ensuring governance quality Evaluation of the Supervisory Board The Supervisory Board values the structural evaluation process of its own functioning to ensure continuous improvement in its way of working. Each year, the Supervisory Board evaluates the composition and effectiveness of the Supervisory Board, its committees and individual members. The evaluation is carried out under the guidance of an external adviser once every three years. In 2023, the evaluation took place with an external adviser. In 2024, the evaluation was carried out via self-assessment, using a questionnaire completed by each Supervisory Board member. The evaluation includes the participation and contribution of each member of the Supervisory Board, the collective knowledge and experience of the Supervisory Board, the conduct and culture of its members, the interaction and dynamics within the Supervisory Board, the effectiveness of the chairs of the Supervisory Board and its committees, the communication and provision of information, the decision- making process and quality of the information provided for Supervisory Board meetings, the independence of mind of the individual members, whether members are able to commit sufficient time to fulfil their role within the Supervisory Board, and the relationship with the Management Board. The outcomes of the evaluation were discussed by the Supervisory Board at a meeting in January 2025, and recommendations will be implemented as a result. Report of the Supervisory Board 140 The Supervisory Board concluded that the Board and its committees are operating very well and that its composition is in line with the required profile in terms of suitability, expertise and diversity, and also complies with Principle 2.1 of the Dutch Corporate Governance Code. The Supervisory Board identified a number of action items, such as arranging in-depth AI training for Supervisory Board members, continuing their office visits, and arranging further discussions on client interests. The relationship with the Management Board is open and constructive, while remaining sufficiently critical. Conclusions and recommendations relevant to the Management Board are shared with them. Evaluation of the Management Board In February 2025, the Supervisory Board evaluated the performance of the Management Board, both as a whole and that of its individual members based on the KPIs for 2024. The Supervisory Board sets the KPIs for the Management Board every year, which consist of Van Lanschot Kempen's external financial and non-financial KPIs and additional KPIs on financial and non-financial topics. The achievement of the KPIs by the Management Board is monitored during the year. The assessment of these KPIs forms the basis for the collective assessment of the Management Board and the individual assessment of its members for 2024. For further information on company performance against these KPIs, see page 12. At the beginning of 2025, a delegation from the Supervisory Board (with input from its members) held meetings with each Management Board member to review their individual performance, the performance of the entire Management Board and that of the company over the past year. During these meetings, self-assessments by the individual Board members were further elucidated and discussed. Topics typically included personal performance and goals, cooperation within the Management Board, execution of the company strategy and any lessons learned. The company had another good year and the performance of the members of the Management Board was judged to be good. It was also noted that the Management Board works very well as a team. These conclusions were shared with the members of the Management Board. The 2025 KPIs for the Management Board are in line with Van Lanschot Kempen’s financial and non-financial KPIs for 2025. The Management Board evaluates its own effectiveness each year. This evaluation is externally facilitated every third year. The Management Board carried out a self-assessment, supported by structured 360-degree feedback and facilitated by an external adviser in 2024. The 360-degree feedback resulted in positive ratings and comments about team energy, risk awareness, sustainability focus, inclusion and diversity, and client focus. Based on the outcome of the evaluation, more attention will be paid to initiative completion and people management. The outcomes of the evaluation were discussed with the Supervisory Board in December 2024. On-boarding programme All new members of the Management and Supervisory Boards complete a comprehensive on-boarding programme when appointed. The programme is tailor-made for each newly appointed Board member, as their knowledge and experience varies. The aim of the on-boarding programme is to provide new Board members with thorough knowledge of Van Lanschot Kempen, its strategy, business activities and key risks to fulfil their role within the Management and Supervisory Boards. Depending on the individual role and needs of the Board members, in-depth meetings with senior managers of relevant departments are incorporated into the on-boarding programme. Education As ongoing education is an important part of good governance, the members of the Supervisory and Management Boards take part in a continuous education programme. In 2024, four educational sessions were organised, covering the following topics: – Reform of the Dutch pension system; – Basel IV; – Anti-money laundering; – ICAAP, ILAAP and ICARAP. An additional educational meeting about the Shell climate court case was also held. These educational sessions were rated positively by the members of the Supervisory and Management Boards and contributed to more in-depth knowledge of the topics discussed. The members of the Management Board have completed all mandatory internal e-learning modules. Independence The Supervisory Board attaches great importance to the independence of its members. All members of the Supervisory Board perform their duties independently and critically. The independence requirements described in best practice provisions 2.1.7 to 2.1.9 of the Dutch Corporate Governance Code have been fulfilled. Currently, there are no dependent members on the Supervisory Board. In the event of a potential conflict of interest relating to a particular topic, the Supervisory Board member concerned is not allowed to participate in discussions or decision-making on that topic. Best practice provisions 2.7.3 to 2.7.4 of the Dutch Corporate Governance Code were observed as far as applicable. In 2024, there were no conflicts of interest of material significance for members of the Supervisory or Management Boards. Financial statements The Supervisory Board has reviewed and approved the 2024 annual report and the 2024 financial statements. The 2024 financial statements have been audited by the external auditors, PwC. The independent auditors’ report can be found on page 278. The external auditors have also issued a limited assurance report on the sustainability information in this annual report, which is available on page 296. We invite the AGM to adopt the 2024 financial statements as submitted, and to discharge the members of the Management Board for their management of Van Lanschot Kempen and the members of the Supervisory Board for their supervision. Report of the Supervisory Board 141 Acknowledgements The Supervisory Board would like to thank all stakeholders for their trust and confidence in Van Lanschot Kempen. Finally, we wish to express our appreciation to the members of the Management Board and all employees for their continued loyalty and commitment to achieving Van Lanschot Kempen's strategic goals and realising real impact in the interest of our clients. ‘s-Hertogenbosch, the Netherlands, 26 February 2025 Supervisory Board Frans Blom, Chair Manfred Schepers, Vice-Chair Karin Bergstein Brigitte Boone Else Bos Maarten Muller Elizabeth Nolan 1 More than 50% of fixed remuneration. Remuneration report 143 Remuneration report Remuneration Committee Key objectives To advise on the Management Board remuneration policy and its execution, and to prepare the Supervisory Board's decision-making. Composition Chair Maarten Muller Responsibilities The responsibilities of the Remuneration Committee include: – Providing advice to the Supervisory Board on: – the determination of the policy on remuneration of the Management Board; – the total remuneration packages for the members of the Management Board; – the remuneration of the members of the Supervisory Board; – Preparing the annual remuneration report; – Overseeing remuneration policies and practices, including total variable remuneration paid to Van Lanschot Kempen employees, significant¹ individual variable remuneration, and individual variable remuneration to all identified staff. The committee held four meetings in 2024. Members Karin Bergstein, Frans Blom Letter from the Chair of the Remuneration Committee 1 Dear shareholder, As Chair of the Remuneration Committee, I’m pleased to present Van Lanschot Kempen’s remuneration report. This report is guided by requirements originating from the Shareholder Rights Directive (SRD II). This report includes both a summary of our Management Board and Supervisory Board remuneration policies and our annual report on remuneration, which sets out how our policy was applied during 2024 and how it will be applied in 2025. On 23 May 2024, the annual general meeting (AGM) approved the remuneration policies for the Management Board with a majority of 99.63% of the votes cast, and for the Supervisory Board with 99.94% of the votes cast. The remuneration policies were approved for four years and will be reviewed again in 2027. The 2023 remuneration report was approved by the AGM (advisory vote) with a majority of 99.51% of the votes cast. There was no specific follow-up given the outcome of this vote, and we did not receive any substantive comments on the 2023 remuneration report. The 2024 remuneration report will be subject to an advisory vote at our AGM on 22 May 2025. Alignment with our strategic framework Van Lanschot Kempen is a specialist, independent wealth manager with a banking licence. This leads to specific challenges from a remuneration perspective, especially within the Dutch regulatory context. We are a leader in private banking in the Benelux region, and in investment management and investment banking in Western Europe, competing with larger financial institutions in our sectors. We strongly believe that our future success requires a robust Management Board with a proven track record in wealth management and related investment banking activities, and with knowledge of the risk and compliance challenges associated with this. Experience in digitalisation and advanced analytics is also key. As a consequence, the remuneration of the Management Board members should be such that Van Lanschot Kempen is able to attract and retain the necessary talent, which includes future board members from the financial sector as a whole and particularly from highly specialist wealth management and technology firms. Moreover, the Management Board's remuneration package must be structured to fit properly within the Dutch context. Remuneration policy adjustments in 2024 We believe in rewarding long-term sustainable performance that contributes to our long-term strategy. This is reflected in our Management Board remuneration policy. Since 2015, the remuneration of the Management Board consists of fixed remuneration only (no variable remuneration) and includes a large proportion in depositary receipts for shares (hereinafter: shares), with a five-year lock-up period, in combination with share ownership guidelines. This creates a strong focus on sustainable long-term value creation. The remuneration policies for the Management and Supervisory Boards were reviewed in 2023, approved by the AGM and the new policies were applicable as of 2024. Management Board remuneration policy – The reference group for remuneration benchmarking was adjusted to focus further on key markets and address past feedback, particularly regarding the size of certain reference companies. The new reference group includes Dutch and Belgian financial institutions and independent, specialist Western European asset managers. We added an additional reference group, consisting of all companies that are part of the AMX, to ensure compliance with the Banking Code and alignment with the broader Dutch market. Remuneration report 144 – A consistent balance between fixed remuneration in cash and shares is important to align the remuneration of the Management Board with shareholder interests. The share of remuneration in shares will always be 40% of the total fixed remuneration. The shareholding guidelines for the Management Board were extended from twice the cash portion of the gross salary to twice the full gross salary. Members must build up their shareholding to this level before they are permitted to sell shares, and a five-year lock-up period applies to all newly granted shares. – In line with current market practice, a specific derogation clause was added that gives the Supervisory Board the opportunity to temporarily deviate from the policy in predefined exceptional circumstances, when necessary to ensure the viability of the company or to serve its long-term interests and sustainability. Supervisory Board remuneration policy – The reference group used for benchmarking remuneration was aligned with the revised reference group used for the Management Board. Companies from the revised reference group with a "one-tier board" were not included in the reference group for the Supervisory Board due to the difference in their governance structure. – The remuneration levels for the Supervisory Board were last adjusted in 2018. To remain competitive and to be able to attract and retain the right talent for the Supervisory Board, we adjusted the remuneration levels and added an indexation clause to the remuneration policy for the Supervisory Board. With this, we ensured that the remuneration policy for the Supervisory Board is future-proof. The level of indexation is the same as the indexation for the Management Board. During these developments, we consulted shareholders, voting advisers, various client groups and the Works Council to gather their insights into the proposed remuneration policies. The feedback received has led to adjustments in the proposed policy, as explained in the agenda of the AGM. Total remuneration in 2024 We review total remuneration for the Management Board periodically, taking into account internal and external perspectives. When adopting the Management Board remuneration package, we consider pay ratios within the company and remuneration policies in place across the wider workforce (governed by collective employment conditions). Moreover, the Remuneration Committee takes note of individual Management Board members’ views on the amount and structure of their own remuneration. In line with the Management Board remuneration policy approved by shareholders, the Supervisory Board indexed the fixed remuneration of the members of the Management Board. For more information about the Management Board's remuneration package and pay ratios, see "Remuneration of the Management Board in 2024" on page 145. Performance management The Supervisory Board assesses the performance of the Management Board based on a set of financial and non- financial key performance indicators (KPIs). These KPIs are strongly aligned with the KPIs for the rest of the organisation, and reflect both the interests of its stakeholders and its ambitions as a wealth manager. In assessing the performance of the Management Board, great value is attached to their performance as a team. This is the starting point of the performance assessment, given the company’s integrated wealth management model. If the performance of a Management Board member is below par, the Supervisory Board will discuss this with the relevant member, and may also decide not to apply any indexation. If the performance is consistently below par, the Supervisory Board may dismiss the responsible Board member (after consulting the general meeting). Looking ahead to 2025 The current remuneration structure for the Management Board and Supervisory Board will stay in place until 2028 due to the approval of the new remuneration policy by the AGM in 2024. Stakeholder engagement We take stakeholders’ views very seriously and welcome an open dialogue on all aspects of remuneration. In preparation for the 2024 AGM, a delegation from the Remuneration Committee of the Supervisory Board consulted with a large cross-section of the company's shareholder base, proxy advisers, the Works Council and various client groups. At these meetings, we gave explanations on SRD II; the Management and Supervisory Board remuneration policies; the Supervisory Board’s view on rewarding long-term sustainable performance; and the Dutch context, such as the Dutch law on remuneration of financial undertakings, the Dutch Corporate Governance Code and the Dutch Banking Code. The dialogue with our stakeholders was very constructive. Gaining their views on executive pay in general, and Van Lanschot Kempen’s remuneration policy in particular, was of great value. The Supervisory Board received detailed feedback from each of the meetings, and appreciates that it is important for stakeholders to have a clear understanding of the decisions made around remuneration. We would like to thank all the stakeholders for their valuable input. The feedback was very constructive, and the Supervisory Board will take it into account going forward. Van Lanschot Kempen will continue this broader stakeholder engagement. Indexation of Management Board remuneration The 2025 indexation of the fixed remuneration of the Management Board was discussed by the Supervisory Board, in line with the remuneration policy. For the wider workforce – governed by collective employment conditions – an indexation amounting to 3.5% was applied on 1 January 2025. The Supervisory Board decided to increase the remuneration of the Management Board by 2.6%. The Supervisory Board concluded that the performance of all Management Board members was above target, and that indexation can be justified by the company's overall performance. ‘s-Hertogenbosch, the Netherlands, 26 February 2025 Remuneration Committee Maarten Muller Chair Remuneration report 145 Our remuneration policy at a glance Our purpose is to preserve and create wealth for our clients and for society in a sustainable way. We build close relationships with our clients so that we can guide them in their financial decisions. Only by putting ourselves in their shoes can we use our collective expertise to present them with fitting solutions and products in support of their long- term goals. This view is reflected in our approach to remuneration, which rewards long-term sustainable performance against a set of KPIs, builds a sense of ownership through personal share holdings, and includes regular performance discussions. Our remuneration policy aims to ensure a balanced, sustainable and competitive remuneration package. The key features of our remuneration policy are as follows: Purpose Operation Fixed salary – cash To reflect the scale and complexity of our company, enabling us to attract and retain the highest-calibre talent Fixed salary in cash, paid during the year in 12 instalments, taking into account the following factors: – Scope of responsibilities; – Business performance, scarcity of talent, economic climate and market conditions; – Developments elsewhere within Van Lanschot Kempen, including pay ratios; – Developments in our external peer groups (which are used for reference purposes only). Fixed salary – shares To reflect the scale and complexity of our company, enabling us to attract and retain the highest-calibre talent; to align rewards with long-term sustainable performance; and to align the interests of the Management Board with shareholders Fixed salary in shares, paid in one instalment: – The proportion of remuneration in shares will consist of 40% of the total fixed remuneration. This balance is to be maintained over time; – A lock-up period of five years applies to these shares. Indexation Pay for performance, labour market developments and to compensate for inflationary pressures The remuneration of the Management Board can be increased annually at the discretion of the Supervisory Board. The indexation is maximised by the general increase granted to the wider workforce and the derived consumer price index applicable over the previous year. It will only be applied if the overall performance of the individual Management Board member is (at least) on target and it can be justified by the financial performance of the company. Share ownership guidelines To align the interests of the Management Board with those of shareholders Management Board members must hold Van Lanschot Kempen shares with a value equal to or above two years’ gross salary (for as long as they remain in office). They can gradually meet this requirement over the years. If the share price is not performing well, the Management Board members must keep increasing their holdings. Pension and disability insurance To secure income after retirement or in case of disability – The members of the Management Board are responsible for their own pension provision, towards which they receive a fixed cash payment of 30% of their fixed remuneration. This percentage is in line with our reference market. – They also receive a payment of 2.59% of their fixed remuneration for taking out disability insurance. – There are no early retirement schemes for Management Board members. – We monitor external developments regarding alignment between executive pensions and broader employee pension arrangements. Remuneration of the Management Board in 2024 The remuneration of the Management Board consists of fixed remuneration only, including a large proportion in Van Lanschot Kempen shares (with a five-year lock-up period), creating a strong focus on the long-term continuity of the company and subsequent strong client relations. The Supervisory Board indexed the fixed remuneration of the members of the Management Board in 2024. For the wider workforce, we applied a general increase amounting to 3.15% on 1 January 2024. This relatively high percentage was a result of the high-inflation environment. The Supervisory Board believed it was appropriate to apply a lower indexation percentage to the Management Board. The decision was therefore made to index the fixed remuneration of the Management Board at 1% on 1 January 2024. This was granted fully in cash, in accordance with the Management Board remuneration policy. The remuneration policy for members of Van Lanschot Kempen’s Management Board was approved and adopted by the AGM on 23 May 2024, and applied from that date. The remuneration paid to the Management Board in 2024 and 2023 is presented in the table on the following page. 2 To be able to make a comparison between 2024 and 2023, the same definition of total remuneration has been used (total fixed salary plus pension and disability insurance). Business expenses have not been included. 3 A proportion of fixed salary is paid in the form of Van Lanschot Kempen shares. Maarten Edixhoven received 13,788 shares (2023: 17,206), Damla Hendriks received 6,481 shares, Richard Bruens received 7,407 shares, while the other members of the Management Board each received 11,110 shares (2023: 13,865). The number of shares granted is based on the average share price for the first four trading days in January. For 2024 the average share price amounted to €28.10 in January (2023: €22.52); in June for Damla Hendriks €37.29. IFRS Accounting Standards take the share price at grant date as the basis for recognition. This price also amounted to €28.10 in 2024 (2023: €22.54). 4 Share-based payments have a lock-up period of five years, allowing Van Lanschot Kempen to provide a discount of 18.5% on the shares. 5 The extraordinary item of €34,000 in 2023 relates to deferred compensation for lapsed rights to variable remuneration at Maarten Edixhoven's previous employer. 6 Damla Hendriks was appointed as member of the Management Board on 1 June 2024. 7 Richard Bruens stepped down as member of the Management Board on 1 June 2024. 8 The average employee remuneration is calculated by dividing total employee costs (excluding costs for external hiring, redundancy, mobility, training and other employee costs) by the average number of FTEs working for Van Lanschot Kempen. Remuneration report 146 Total remuneration of the individual members of the Management Board (€1.000) 2 Management Board member Year Fixed salary in cash Fixed salary in shares 3 Total fixed salaries Extra- ordinary items Pension and disability insurance Total remuneration Share- based payment expenses 4 Total employee costs Maarten Edixhoven 5 2024 891 388 1,279 — 417 1,696 78 1,774 2023 875 388 1,263 34 412 1,709 78 1,787 Jeroen Kroes 2024 514 313 827 — 270 1,097 35 1,132 2023 504 312 816 — 267 1,083 35 1,118 Damla Hendriks 6 2024 300 183 483 — 158 641 20 661 2023 — — — — — — — — Arjan Huisman 2024 514 313 827 — 270 1,097 35 1,132 2023 504 312 816 — 267 1,083 35 1,118 Wendy Winkelhuijzen 2024 514 313 827 — 270 1,097 35 1,132 2023 504 312 816 — 267 1,083 35 1,118 Erik van Houwelingen 2024 514 313 827 — 270 1,097 35 1,132 2023 504 312 816 — 267 1,083 35 1,118 Richard Bruens 7 2024 342 209 551 — 180 731 46 777 2023 504 312 816 — 267 1,083 35 1,118 Total 2024 7,456 284 7,740 Total 2023 7,124 253 7,377 Compliance with our remuneration policy We have continued to make decisions on Management Board remuneration in accordance with our policy, as approved by our shareholders and in the context of developments inside and outside Van Lanschot Kempen. The remuneration policy contains a derogation clause. Total remuneration of the Management Board We review total remuneration for the Management Board periodically, taking into account internal and external considerations. Internal pay ratios, fairness and wider workforce considerations When adopting the Management Board remuneration package, we consider pay ratios within the company – attaching importance to the need for a sound pay ratio. The development of the pay ratio is discussed annually with the Works Council. A comparison of the CEO's remuneration package and the average remuneration 8 of an employee within Van Lanschot Kempen results in a pay ratio of 11:1, the same as in 2023. As part of the review of Management Board remuneration, we take into account the alignment with remuneration policies in place across the wider workforce. This includes considering the structure of remuneration packages at each level of the business to ensure there is a strong rationale for how these evolve across the different levels of the organisation. For more detailed information on Management Board remuneration versus remuneration for the wider workforce and company performance, see “Supplementary disclosure related to Management Board remuneration” on page 147. External considerations To assess the remuneration levels of the Management Board versus external market levels, we use a well-balanced, focused group of companies, which reflects our talent market for Management Board positions. This serves as one of many checks in the determination of remuneration levels. We believe that market capitalisation is not the deciding factor for attracting talent. Our talent market is much broader than that of our direct competitors, which is evidenced by the recent hire of our CRO and three of our current Management Board members, who joined us from top-notch larger firms. The relevant market includes both financial services companies and non-financial industry companies, both Dutch and international, and companies that are similar to and larger in size than Van Lanschot Kempen. The relative size of the company versus our competitors drives the need to attract better people than the competition. Prompted by our business strategy, we are willing to pay for the best people in the market. Typically, this talent comes from companies that are larger than ours. 9 The Dutch implementation of SRD II requires disclosure of the compensation of the Supervisory Board members in a way that allows comparison. The members of the Supervisory Board received fixed remuneration during the years covered by the table above, ranging from €76,000 (lowest full-time amount in 2019) to €130,000 (highest full-time amount in 2024). They are not entitled to any variable remuneration. For more information, see "Remuneration of the Supervisory Board in 2024". 10 Total remuneration awarded. For the 2022 figures: from 1 September, Jeroen Kroes's remuneration and Wendy Winkelhuijzen's remuneration are reported. 11 In response to the pandemic, the members of the Management Board decided to take a 10% pay cut on the cash component of their 2020 compensation on a voluntary basis, from 1 May until the end of 2020. Remuneration report 147 Our external reference market consists of the following types of companies: – Dutch and Belgian financial institutions: Although other banks and specialist wealth management companies are important from a talent market perspective, our talent pool does not only consist of financial services companies but a broader scope of financial institutions. For example, in pursuing our wealth management strategy, professional qualifications are key – including the ability to adapt to technological changes. Because of this, our reference market also consists of other, non- financial Dutch and Belgian companies – for example, in the technology sector. These companies are larger than ours, reflecting our experience that talent suitable for our Management Board is likely to be attracted from (and lost to) larger companies. – Specialist Western European wealth managers: We are a specialist company and need to be able to attract experts to further grow the business. As there are no other standalone specialist wealth management companies of comparable size in the Netherlands, we look at companies active in Western Europe. We take into account standalone companies, broadly comparable in terms of number of employees and type of professional setting. – An additional peer group: Consisting of all Dutch and foreign companies (cross-industry) on the index that includes Van Lanschot Kempen (currently the AMX), this will be added to ensure compliance with the Banking Code of the Dutch Banking Association and a link with the broader Dutch market. The peer group is in line with requirements as laid down in the Dutch Banking Code. This code prescribes that the peer group should be composed of comparable positions both inside and outside the financial industry, including the relevant international context. The composition of the current peer group is set out in the following table. Management Board peer group in 2024 Dutch and Belgian financial institutions Specialist Western European wealth managers ABN AMRO Bank EFG International Achmea Julius Bär Ageas Ninety One ASR Nederland Rathbones Group De Volksbank Vontobel Holding Delen Private Bank NN Group Rabobank Robeco As for the Management Board’s overall total remuneration level, the objective is to remain competitive and to occupy a position below the median of the peer group. When establishing more specific positioning against market data, we take into account that some of the companies are substantially larger than ours. As a result, the current remuneration packages of our Management Board members occupy a position well below the median of the peer group. Management Board performance As indicated in our approach to remuneration, the performance of the Management Board is assessed based on financial and non-financial KPIs. For a comprehensive overview of the Management Board KPIs, see page 12. In addition to the Management Board KPIs, Management Board members' performance is evaluated against KPIs regarding, amongst others, the level of operating expenses, run-rate revenue per client segment, active involvement in relevant M&A opportunities and risk appetite. Supplementary disclosure related to Management Board remuneration Annual change in Management Board remuneration versus wider workforce and company performance 9 2024 2023 2022 2021 2020 CEO remuneration (€1,000) 10 1,696 1,709 1,684 1,576 1,49911 Other Management Board members’ remuneration (€1,000)10 1,097 1,083 1,043 1,019 973 11 Average employee remuneration (€1,000) 154 149 148 149 140 Pay ratio 11:1 11:1 11:1 11:1 11:1 Remuneration report 148 Number of shares held by Management Board members in 2024 At 1 January Bought/awarded Sold/post- employment At 31 December Maarten Edixhoven 44,669 17,327 — 61,996 Jeroen Kroes 27,616 6,884 — 34,500 Damla Hendriks (as of 1 June 2024) — 3,026 — 3,026 Arjan Huisman 80,617 6,884 — 87,501 Wendy Winkelhuijzen 19,333 6,884 — 26,217 Erik van Houwelingen 45,118 6,884 — 52,002 Richard Bruens (until 1 June 2024) 96,966 8,586 — n/a Total 314,319 56,475 — 265,242 At 31 December 2024, the members of the Management Board held no options for shares. Loans to Management Board members are only granted within the scope of normal operations and in keeping with conditions laid down in the financial services regulations for directors of Van Lanschot Kempen, subject to the approval of the Remuneration Committee. 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. Loans to Management Board members in 2024 (€1,000) At 31 December Repaid in the year Interest range Type Maarten Edixhoven — — — Jeroen Kroes 320 12 1.35% Mortgage Damla Hendriks — — — — Arjan Huisman — — — — Wendy Winkelhuijzen 1,052 409 1.65 - 4.31% Mortgage — 680 5.60% Bridge loan Erik van Houwelingen 2,151 24 1.25 - 4.91% Mortgage Total 3,523 1,125 Remuneration of the Supervisory Board in 2024 The remuneration policy for members of the Supervisory Board was adopted by the AGM on 23 May 2024 and applied from that date. The remuneration of the Supervisory Board is summarised in the tables below. Remuneration of the Supervisory Board Chair Vice-chair Member Supervisory Board €95,000 €75,000 €65,000 Audit Committee €17,000 €12,000 Risk and Compliance Committee €17,000 €12,000 Remuneration Committee €13,000 €10,000 Selection and Nomination Committee €13,000 €10,000 Remuneration of the Supervisory Board (€1,000) 2024 2023 Frans Blom 130 117 Manfred Schepers 104 95 Karin Bergstein 104 92 Brigitte Boone 87 76 Else Bos (from 21 October 2024) 11 — Maarten Muller 100 82 Elizabeth Nolan (from 25 May 2023) 94 44 Bernadette Langius (until 25 May 2023) — 33 Lex van Overmeire (deceased 4 April 2023) — 28 No share-based remuneration, loans, advances or guarantees have been granted to the members of the Supervisory Board. The Supervisory Board peer group is composed of Dutch financial institutions that operate a two-tier board structure. As a specialist wealth manager in the financial sector, Van Lanschot Kempen wants to be able to appoint and retain high-quality Supervisory Board members. The composition of the current peer group is set out in the following table. Supervisory Board peer group in 2024 ABN AMRO Bank NN Group Achmea Rabobank ASR Nederland Robeco De Volksbank Remuneration report 149 Remuneration of other employees We aim to provide a remuneration package for all employees that is competitive, performance-related and fair. Our remuneration policy for other employees is in line with our strategy and purpose, and contributes to sustainable long- term value creation. Fixed remuneration Employees’ fixed remuneration reflects their relevant work experience and organisational responsibilities. Our job and career framework consistently links the weight of each job to a pay line. The pay lines are based on external market data and are differentiated to ensure we pay competitive salaries across the organisation. The pay lines are fully transparent, promote better pay-for-performance focus, and have been set up with clear guidelines on pay-related decisions and governance. Variable remuneration Our variable remuneration policy covers all employees. Each individual variable remuneration grant is subject to meeting the criteria as described in this section. Our variable remuneration policies comply with all relevant laws and regulations. The average variable remuneration of all Van Lanschot Kempen employees who work (mostly) in the Netherlands may not and does not exceed 20% of their fixed remuneration. For a small number of employees who are not directly engaged in providing financial services to clients, we may grant variable remuneration of up to 100% of fixed remuneration. These deviations require separate approval from the Supervisory Board. Variable remuneration funding Each year, the Management Board establishes a variable remuneration pool, from which individual variable remuneration awards are made. The pool funding depends on the achievement of financial and non-financial KPIs and is subject to Supervisory Board approval. Once the size of the variable remuneration pool has been established, the Management Board decides how the pool will be allocated in line with the industry benchmark principles applicable in the Netherlands. Variable remuneration allocation The individual allocation of variable remuneration depends on team and individual performance on financial and non- financial KPIs, market competitiveness and special factors. Individual performance is measured by assessing the achievement of KPIs, as set at the beginning of the year. These indicators can be financial and non-financial, with some departments applying only non-financial criteria. For the departments that use both financial and non-financial indicators, at least 50% of the allocation of any variable remuneration is based on non-financial criteria, such as showing the desired professional behaviour, improving client satisfaction, developing new products or solutions for clients, and improving internal processes, policies or systems. The financial performance indicators include nothing that might encourage irresponsible risk-taking. Variable remuneration is only awarded if: – Van Lanschot Kempen’s financial position allows; – It is justified by Van Lanschot Kempen's performance, the relevant client segment and the individual employee; – Van Lanschot Kempen meets the prevailing buffer requirements under the Capital Requirements Regulation, the Financial Supervision Act (Wet op het financieel toezicht) and its implementing legislation; – The risks taken have been reassessed and no material risks have occurred that were not expected or factored in; – The employee has received a good performance assessment, has met compliance targets, as a rule has not been subject to disciplinary measures and has not taken any risks that fall outside Van Lanschot Kempen’s accepted risk appetite. Variable remuneration pay-out Variable remuneration up to €50,000 gross is paid out in cash directly. Above this amount, 50% of any variable remuneration is paid out directly, whereas the other 50% is deferred for a period of four years. Pay-out of the deferral is conditional on Van Lanschot Kempen meeting the prevailing buffer requirements (as mentioned above). The Management Board may, with the approval of the Supervisory Board, hold or claw back all or part of the pay- out if pay-outs have taken place on the basis of incorrect information, or have been made in conflict with the variable remuneration policy and/or applicable legislation and regulations: – Deferred, conditional, variable remuneration previously awarded to an employee (or former employee), if payment of the variable remuneration would be considered unfair or unreasonable (hold back); – Unconditional variable remuneration previously paid to an employee (or former employee). This might occur if, for instance, payment was based on incorrect information about performance or about the conditions on which the variable remuneration depended (claw back). Remuneration in 2024 Variable remuneration totalling €20.5 million was awarded to employees (including identified staff) over 2024 (2023: €18.6 million). Five people received total annual remuneration of over €1 million in 2024 (2023: six people). Equal pay Van Lanschot Kempen operates a merit-based remuneration policy, striving not to discriminate on the basis of gender, age, nationality, social status or cultural background. We periodically investigate this and, if necessary, make adjustments to equalise pay. In 2024, we further analysed the gender pay gap at different levels in the organisation to determine whether there are any unexplained differences. Our corrected gender pay declined to 1.4% in 2024 and is below our target of <2.0%. For more information on our pay practices, see our sustainability statement on page 47. Matching Share Plan Our employee participation plan, also known as the Matching Share Plan, offers an attractive investment opportunity in Van Lanschot Kempen, as well as the chance to share in the company's successes. More than 70% of our employees participates in the plan. For more information on the plan, see "Van Lanschot Kempen shares" on page 129. 12 Based on the Alternative Investment Fund Managers Directive and Undertakings for the Collective Investment in Transferable Securities guidelines on sound remuneration policies. 13 More than 50% of fixed remuneration. Remuneration report 150 Partnership for leadership The reporting year was the third for the Van Lanschot Kempen Partnership: a long-term participation plan for key senior employees. More information is also available in "Van Lanschot Kempen shares" on page 129. Pensions Since 2020, all of our employees have participated in Van Lanschot Kempen's collective defined contribution pension plan. Management Board members do not participate in this plan as they receive an individual pension contribution. Remuneration policy for identified staff Identified staff are employees whose activities have a material impact on the risk profile of the business. For these employees, performance measurement is the same as for other employees, but additional rules apply for the pay-out of variable remuneration to align the interests and risks of the employee with those of the company. The selection of identified staff is reviewed and approved by the Management and Supervisory Boards on an annual basis. As a general rule, any pay-out to identified staff is made 50% in cash and 50% in Van Lanschot Kempen shares. As an exception 12 to this, the variable remuneration of identified staff working at Van Lanschot Kempen Investment Management is paid 50% in cash and 50% in a flexible mix of Van Lanschot Kempen shares and investments in funds managed. A lock-up period of one year applies to the shares that have become unconditional. In all cases, 60% of the award is paid out unconditionally (both the cash part and the non-cash part), whereas 40% is conditionally deferred for a period of four years. Pay-out of the deferral is conditional on a reassessment of the five conditions mentioned for any award of regular variable remuneration. If this reassessment leads to an adjustment of the deferred remuneration, the hold- and/or claw-back system applies. Remuneration policy governance The Management Board sets the remuneration policy for employees, based on the advice of several departments: Human Resource Management, Finance, Reporting & Control, Financial and Non-Financial Risk Management and Compliance. These, together with the Internal Audit department, have an important part to play in setting up, adjusting, implementing and reviewing our variable remuneration policy. They advise the Management and Supervisory Boards and report to them on their conclusions. The Management Board is responsible for implementing the remuneration policy. The Supervisory Board approves the variable remuneration policy, including its general principles, and oversees its implementation. Approval by the Supervisory Board is also required for the variable remuneration pools, any significant 13 individual variable remuneration, and for individual variable remuneration proposed for employees designated as identified staff. The Supervisory Board’s Remuneration Committee prepares the Supervisory Board’s decision-making on remuneration and advises it in this area. More information about the remuneration policy for identified staff can be found in our 2024 Pillar 3 disclosures, available on our website from 13 March 2025: vanlanschotkempen.com/results. Corporate governance 152 Corporate governance Van Lanschot Kempen NV is a listed public limited company under Dutch law, governed by a two-tier board. The Management Board is responsible for managing the company, while the Supervisory Board oversees the policies pursued by the Management Board and the general conduct of affairs at the company and its associated business. The Supervisory Board advises the Management Board on the performance of its duties. Corporate governance structure Van Lanschot Kempen is a structuurvennootschap. Under Dutch corporate law this means that in addition to the tasks already mentioned, the Supervisory Board is responsible for appointing and dismissing the Management Board and for approving some of its decisions. Both the Management Board and the Supervisory Board report to Van Lanschot Kempen’s general meeting. For the Articles of Association and various other regulations and documents relating to corporate governance, see: vanlanschotkempen.com/ management-structure and vanlanschotkempen.com/en-nl/ about-us/who-we-are/governance. Management Board The Management Board of Van Lanschot Kempen is responsible for the continuity of the company. It focuses on long-term value creation for the company and takes relevant stakeholders’ interests in this context into account. The Management Board is responsible for the management of the company, including drawing up and achieving Van Lanschot Kempen’s purpose, its strategy and related risk profile, its goals and the pattern of its results, while also attending to the environmental and social aspects of doing business that are relevant to the company. In strategic decisions, the Management Board takes all material environmental and social factors into account. Periodically, with the approval of the Supervisory Board, it determines the financial and non-financial key performance indicators (KPIs) for Van Lanschot Kempen. The Supervisory Board notifies the general meeting of any proposed appointment of a member of the Management Board. Appointment of a member of the Management Board is subject to the approval of De Nederlandsche Bank (DNB). A member is appointed by the Supervisory Board. The maximum term for appointment or reappointment is four years. The Supervisory Board may dismiss a member of the Management Board at any time, but only after consulting the general meeting. The Management Board must consist of at least three members, with the actual number set by the Supervisory Board. The composition of the Management Board changed in 2024. On 1 June 2024, Richard Bruens stepped down as a member of the Management Board and Damla Hendriks was appointed as a member of the Management Board and CRO. Wendy Winkelhuijzen took over the responsibilities from Richard Bruens for Private Clients Netherlands and Investment Banking Clients, and Maarten Edixhoven became responsible for Private Clients Belgium. The Management Board currently comprises Maarten Edixhoven (Chair and responsible for Private Clients Belgium), Jeroen Kroes (CFO), Damla Hendriks (CRO), Arjan Huisman (COO), Wendy Winkelhuijzen (responsible for Private Clients Netherlands and Investment Banking Clients) and Erik van Houwelingen (responsible for Investment Management Clients). The Management Board evaluates its functioning as a whole and that of its members at least once a year. The Supervisory Board discusses, at least once a year, the performance of the Management Board as a whole and its members' performance individually. For more information about the evaluation of the Management Board's performance by the Supervisory Board and the remuneration of the Management Board, see "Report of the Supervisory Board" on page 133, and "Remuneration report", on page 143. Supervisory Board In performing its duties, the Supervisory Board focuses on long-term sustainable value creation for clients, shareholders and society. The members of Van Lanschot Kempen’s Supervisory Board are appointed by the general meeting, in accordance with the provisions set out in Article 23 of Van Lanschot Kempen’s Articles of Association. Appointment of a member of the Supervisory Board is subject to the approval of DNB. Members of the Supervisory Board are appointed for a term of four years and may be reappointed for one further four-year period. A member of the Supervisory Board may subsequently be reappointed for two years, and this appointment may be extended by another two years. In the event of reappointment after eight years, the reasons for reappointment should be given in the report of the Supervisory Board. A member of the Supervisory Board may only be dismissed by the Enterprise Chamber of the Amsterdam Court of Appeal with due observance of Article 161(2) of Book 2 of the Dutch Civil Code. In addition, the general meeting may pass a motion of no confidence in the Supervisory Board as a whole, in accordance with Article 161(a) of Book 2 of the Dutch Civil Code. Such a resolution results in the immediate dismissal of all members of the Supervisory Board. The Supervisory Board must have between three and nine members. The Supervisory Board currently has seven members: Frans Blom (Chair), Manfred Schepers (Vice- Chair), Karin Bergstein, Brigitte Boone, Else Bos, Maarten Muller and Elizabeth Nolan. At the AGM held on 23 May 2024, Karin Bergstein was reappointed as a member of the Supervisory Board until the closure of the 2028 annual general meeting (AGM). At an extraordinary general meeting (EGM) held on 21 October 2024, Else Bos was appointed as a member of the Supervisory Board until the closure of the 2029 AGM. The Supervisory Board has appointed four committees from among its members to prepare the Board's decision-making: the Audit Committee, the Risk and Compliance Committee, the Remuneration Committee, and the Selection and Nomination Committee. These committees advise the Supervisory Board on matters relating to their respective areas of interest. For more information about the committees and their composition, see "Report of the Supervisory Board" on page 133. 1 The profile can be viewed at vanlanschotkempen.com/management-structure. 2 The 2022 Dutch Corporate Governance Code can be downloaded from mccg.nl/documenten/2022/12/20/dutch-corporate-governance-code-2022. Corporate governance 153 The Supervisory Board has drawn up a profile 1 for its size and composition, taking into account the nature and activities of the business associated with Van Lanschot Kempen and its subsidiaries, and the required expertise and background of the members of the Supervisory Board. The Supervisory Board appraises its own performance, that of its committees and that of individual Supervisory Board members, at least once a year without members of the Management Board being present. The Supervisory Board appraises its own performance with independent support once every three years. One of the conclusions from the Supervisory Board's self-assessment is that the composition of the Board complies with the requirements set out in the Board's profile. For more information about the conclusions of the Supervisory Board's self-assessment of its performance in 2024, see "Report of the Supervisory Board" on page 133 Inclusion and diversity policy Van Lanschot Kempen has drawn up an inclusion and diversity policy, which is available on our website: vanlanschotkempen.com/en-nl/about-us/who-we-are/ purpose-values-and-strategy/inclusion-and-diversity. You can also read more about the policy in the sustainability statement on page 45. Unlocking the potential of diversity first and foremost requires the creation of an inclusive environment, where the distinctive qualities of each individual are welcomed and valued. We aim for diversity not only in terms of gender, nationality, age, educational background, sexual orientation, gender identity, religion, ethnic background, disability or distance to the labour market, but also across personal experiences, characteristics, socioeconomic backgrounds and the different skills that people bring. We recognise the true value of having diverse perspectives at the table, and also realise it takes time to learn and adapt to get there. We intend to increase the number of people working with us with a disability, a distance to the labour market or an international background each year. We have set specific targets with respect to gender diversity based on the Act to achieve a more balanced male/female ratio on management and supervisory boards. We aim for at least one-third women and one-third men in both our Management and Supervisory Boards, and for at least 30% women and 30% men in senior staff positions. For more information about gender diversity in senior staff positions, the action plan and the inclusion and diversity policy for employees, see "Inclusion and diversity" in our sustainability statement. With regard to the composition of our Management and Supervisory Boards, we aim for a reasonable balance across multiple forms of diversity, but do not find it appropriate to set specific diversity targets across all dimensions. That said, we aim to ensure that the combined profiles of the respective Board members enable them to collectively execute their range of responsibilities and duties towards Van Lanschot Kempen to the best of their abilities, taking into account the nature of the business and its activities. In implementing our inclusion and diversity policy for the Management and Supervisory Boards, the individual profiles drawn up for vacancies on these Boards take into account the Boards' profiles and the relevant inclusion and diversity criteria and objectives. These profiles form the basis for the recruitment and selection of new members of the Supervisory and Management Boards. These criteria and objectives are also taken into account when evaluating the performance of the Supervisory and Management Boards. The Supervisory Board meets the objectives of our inclusion and diversity policy, with its diverse composition in terms of gender, age, nationality, characteristics, educational background, personal experiences and the skills that each member brings. This composition enables the Supervisory Board as a group to carry out its responsibilities and duties effectively. The following areas of expertise are represented in the Supervisory Board: executive experience, strategy formulation and execution, banking and finance, asset management, clients and markets, audit, financial reporting, risk management, IT, digitalisation, transformation, sustainability (social and environmental), legal, compliance and remuneration. The Supervisory Board currently has seven members, of which three are men and four are women. This means that 43% of the positions on the Supervisory Board are currently held by men and 57% of the positions are held by women and that the target for at least one-third of its members to be female/male, as included in the inclusion and diversity policy, has been met. The Supervisory Board has concluded that the composition of the Management Board meets the objectives of our inclusion and diversity policy. The composition is complementary and there is a sufficient degree of diversity in terms of gender, age, educational background, personal experiences and skills. In terms of gender diversity, the Management Board currently consists of four men and two women. This means that the composition of the Management Board currently meets the gender diversity target. Dutch Corporate Governance Code On 20 December 2022, the revised Dutch Corporate Governance Code 2022 2 (the Code) was published. It came into force as of the 2023 financial year, and contains principles and best practice provisions that regulate relations between the management board, supervisory board and general meeting/shareholders. The Code aims to define responsibilities for sustainable long-term value creation, risk control, effective management and supervision, remuneration and the relationship with shareholders and other stakeholders. In 2023, we carried out an extensive analysis of the impact of the Code. The by-laws of the Management and Supervisory Boards as well as the terms of reference of the Supervisory Board committees were amended in 2023 to comply with the revised Code. In the 2024 reporting year, we fully complied with the Code. 3 The Banking Code can be downloaded from nvb.nl. Corporate governance 154 Dutch Banking Code The Dutch Banking Code 3 contains principles on sound and ethical business operations, governance, risk policy, audit and remuneration policy. The Banking Code applies to activities performed in, and aimed at, the Netherlands by banks with registered offices in the Netherlands and which hold a banking licence issued by DNB. It therefore applies to Van Lanschot Kempen because we hold a banking licence in the Netherlands. Van Lanschot Kempen complied with the Banking Code in 2024. An explanation (in Dutch) of how Van Lanschot Kempen applied the Banking Code during the reporting year is provided on our website: vanlanschotkempen.com/en-nl/about-us/who-we-are/ governance. Capital structure and shares Van Lanschot Kempen’s authorised share capital consists of 150 million shares with a nominal value of €1 each, divided into 75 million Class A ordinary shares and 75 million Class C preference shares. Our outstanding capital did not change during 2024 and consisted entirely of Class A ordinary shares at 31 December 2024; a total of 43,039,938 Class A ordinary shares had been issued. There were no outstanding Class C preference shares in 2024. Depositary receipts for shares Over 99.99% of Class A ordinary shares in issue are held by Stichting Administratiekantoor van gewone aandelen A Van Lanschot Kempen (“Stichting Administratiekantoor”), which has issued depositary receipts for these shares. The receipts have been listed on the official market of the Euronext Amsterdam stock market since 1999. A depositary receipt can be converted into its underlying share without any restrictions, although administrative costs may be charged. Stichting Administratiekantoor fully complies with Principle 4.5 of the Code, which specifies that “Depositary receipts for shares can be a means of preventing a majority (including a chance majority) of shareholders from controlling the decision-making process as a result of absenteeism at a general meeting. Depositary receipts for shares should not be issued as an anti-takeover protective measure.” Stichting Administratiekantoor grants proxies so that holders of depositary receipts can always exercise their voting rights. In the case of shares for which Stichting Administratiekantoor has not granted proxies to the holders of depositary receipts and for which no voting instructions have been received, Stichting Administratiekantoor’s Board decides how the votes are to be cast. Stichting Administratiekantoor exercises the voting rights in the interest of the holders of depositary receipts for shares, taking into account the interest of Van Lanschot Kempen, its associated business and all parties concerned. Its Board has three members and is independent of Van Lanschot Kempen. It appoints its own members, without requiring the approval of Van Lanschot Kempen. Before appointing a member, the Board allows the holders of depositary receipts for shares the opportunity to recommend candidates for appointment as members of the Board. A meeting of holders of depositary receipts takes place at least once every two years. At this meeting, the Board reports on its activities, vacancies in the Board, and candidates the Board intends to appoint as members of the Board. Once every two years, the Board requests the holders of depositary receipts at this meeting to confirm their confidence in the Board. At the meeting held on 20 November 2024, holders of depositary receipts confirmed this. The Board reports on its activities annually. This report can be found on page 303. Stichting preferente aandelen C Van Lanschot Kempen A call option contract has been agreed between Stichting preferente aandelen C Van Lanschot Kempen (“Stichting preferente aandelen”) and Van Lanschot Kempen, under which Stichting preferente aandelen was granted the right to acquire Class C preference shares up to 100% of the value of Van Lanschot Kempen’s share capital in issue before the exercise of the call option, less one share. A general meeting, at which a proposal to redeem the preference shares will be placed on the agenda, is to be convened within 12 months. The following circumstances may lead to the issuance of Class C preference shares: – A concentration of shares or depositary receipts for shares in Van Lanschot Kempen as a result of purchases on the stock market or the purchase of blocks of shares, other than as a pure investment; – Merger talks that do not lead to an agreement; – The announcement of a public bid, whether or not in combination with the above circumstances; – A proposal by a shareholder or holder of depositary receipts for shares to place an item on the agenda that represents a potential threat to Van Lanschot Kempen’s continuity, identity and/or independence. Interests in Van Lanschot Kempen notifiable under Chapter 5.3 of the Financial Supervision Act Pursuant to the Financial Supervision Act, shareholders and holders of depositary receipts of Van Lanschot Kempen are required to provide information on their holdings once they cross threshold levels of 3%, 5%, 10%, 15%, 20%, 25%, 30%, 40%, 50%, 60%, 75% and 95%. As of the publication date of this report, Van Lanschot Kempen is not aware of any shareholders or holders of depositary receipts with an interest of 3% or more in Van Lanschot Kempen other than Stichting Administratiekantoor, Romij BV, LDDM Holding BV, Janus Henderson Group plc, FMR LLC and MVDP NV. For more information on Van Lanschot Kempen’s shareholders, see "Van Lanschot Kempen shares" on page 129. Stichting preferente aandelen has reported a potential interest of 100% in Van Lanschot Kempen under the call option agreement between Stichting preferente aandelen and Van Lanschot Kempen. In 2024, no transactions took place between Van Lanschot Kempen and any natural person or legal entity holding at least 10% of the shares in Van Lanschot Kempen, and which would be material to Van Lanschot Kempen and/or the person/entity involved. Rights of shareholders Since there are exclusively Class A ordinary shares in issue at present, this section only describes the rights of holders of Class A ordinary shares and depositary receipts for Class A ordinary shares. Corporate governance 155 Dividend The portion of the profit remaining after addition to the reserves is at the disposal of the general meeting. In the event that a loss is incurred over a year, which cannot be covered by a reserve or by some other means, no profit distribution will occur in subsequent years until such time as this loss has been absorbed. A dividend on ordinary shares can only be paid out when the dividend proposal has been approved by the general meeting. Van Lanschot Kempen checks whether the proposed dividend satisfies the European Central Bank’s recommendation on dividend payment policies. For more information on our dividend policy, see "Van Lanschot Kempen shares" on page 129. Pre-emption rights When ordinary shares are issued, each existing holder of ordinary shares has a pre-emption right proportionate to the aggregate nominal amount of the existing holding of ordinary shares. Class A ordinary shares are issued to holders of Class A ordinary shares. The same applies to the grant of rights to acquire ordinary shares. Pre-emption rights can be limited or excluded by resolution of the Management Board, any such resolution being subject to the approval of the Supervisory Board. The relevant authority of the Management Board ends as soon as its authority to issue shares expires (see "Share issues"). Shareholders do not have any pre-emption rights on shares issued in exchange for a non-cash contribution. Nor do shareholders have any pre-emption rights on shares or depositary receipts for those shares issued to employees of Van Lanschot Kempen or another group company. Special rights of shareholders There are no special statutory control rights attached to shares in Van Lanschot Kempen. Van Lanschot Kempen signed a shareholder agreement with LDDM Holding BV in 2011, in which LDDM Holding affirms that it will respect Van Lanschot Kempen’s independence. LDDM Holding will not cooperate with the acquisition by a third party of a shareholding in Van Lanschot Kempen exceeding 25% of the issued share capital without the approval of the Management and Supervisory Boards. In the event of any future share issues, Van Lanschot Kempen will give LDDM Holding the opportunity, subject to certain conditions, to keep its relative shareholding in Van Lanschot Kempen at the same level. As long as LDDM Holding retains an interest of at least 7.5% in Van Lanschot Kempen, it has the right to recommend one person for appointment as a member of the Supervisory Board of Van Lanschot Kempen. Maarten Muller currently serves on the Supervisory Board on LDDM Holding’s recommendation. Restrictions on voting rights and deadlines for exercising voting rights Van Lanschot Kempen has not imposed any restrictions on the exercise of voting rights. In principle, voting rights are exercised at the general meeting by the shareholder or the person authorised by the shareholder to that end. A shareholder is entitled to vote at the general meeting if the shares in question are registered in the shareholder’s name on the registration date (see “General meeting”). Holders of depositary receipts for Class A ordinary shares who register on time to attend the general meeting are granted a proxy by Stichting Administratiekantoor. They can use this proxy at the general meeting to exercise the voting rights on the shares held by Stichting Administratiekantoor, and in exchange for which depositary receipts were issued. Proxies will be provided when the depositary receipt holders sign the attendance list prior to the start of the meeting or, in the case of a hybrid meeting, at the moment they log in to the designated platform to attend the virtual meeting. If the depositary receipt holder’s right to attend the meeting is to be exercised by a representative authorised in writing, Stichting Administratiekantoor will grant a proxy to the representative. Shareholders and holders of depositary receipts for shares are also offered the opportunity to issue a voting instruction to an independent third party prior to the general meeting. The notice convening the relevant general meeting will state to whom this voting instruction should be sent and what the deadline is for submission. Share issues The extent of the Management Board’s authority to decide on a share issue (subject to the approval of the Supervisory Board) is determined by a resolution of the general meeting. The duration and granting of this authority are also determined by resolution of the general meeting and may not exceed five years. The Management Board’s authority to issue ordinary shares, including the granting of rights to acquire these shares, was extended at the AGM held on 23 May 2024 for a period of 18 months from the date of that meeting. The authority to issue these shares is limited to 10% of the issued capital. Repurchase of shares Repurchases of paid-up shares in the company or depositary receipts for such shares, other than for no consideration, may take place if the general meeting has authorised the Management Board to this effect. This authorisation applies for up to a maximum of 18 months. Repurchase occurs pursuant to a decision by the Management Board, subject to Supervisory Board and DNB approval. The Management Board was authorised at the AGM held on 23 May 2024 to repurchase paid-up ordinary shares in the company or depositary receipts for these shares, by buying such shares on the stock market or otherwise, up to a maximum of 10% of the issued capital at the date of authorisation, subject to Supervisory Board approval. This authority has been granted for a period of 18 months from the date of the meeting. Transfer of shares and depositary receipts The Articles of Association and the conditions of administration do not contain any restrictions on the transfer of Class A ordinary shares or depositary receipts for Class A ordinary shares. Amendment to the Articles of Association A resolution to amend the Articles of Association of Van Lanschot Kempen may only be adopted based on a proposal by the Management Board that has been approved by the Supervisory Board. If a proposal to amend the Articles of Association is presented to the general meeting, a copy of the proposal will be made available to the shareholders and holders of depositary receipts prior to the meeting. General meeting Each voting shareholder and depositary receipt holder is authorised, either in person or through a representative authorised in writing, to attend the general meeting, to address the meeting and to exercise their voting rights. Corporate governance 156 A registration date applies to each general meeting, which is the 28th day prior to that meeting. The registration date determines who qualifies as a voting shareholder or depositary receipt holder for the relevant general meeting. The notice convening the meeting states the registration date, the way in which shareholders and depositary receipt holders can register and how they can exercise their rights, either in person or through a representative authorised in writing. Shareholders and depositary receipt holders or their representatives are only admitted to the meeting if they have informed Van Lanschot Kempen in writing of their intention to attend, and if this has been done in the manner described in the notice convening the meeting. Access to the meeting is only possible if the relevant shares or depositary receipts are registered in the name of the shareholder or the depositary receipt holder on the registration date. Representatives must also present a written proxy. A written proxy may be sent electronically. Each share entitles the holder to cast one vote at the general meeting. The powers of the general meeting include the following: – Approving decisions of the Management Board to make important changes to the identity or nature of the company or the business; – Appointing members of the Supervisory Board on the Supervisory Board’s recommendation; – Setting the remuneration policy for the Supervisory Board; – Passing a motion of no confidence in the Supervisory Board; – Setting the remuneration policy for the Management Board; – Approving schemes in the form of shares and/or rights to acquire shares for the Management Board; – Adopting the financial statements; – Disposing of the profit remaining after dividend has been distributed to any outstanding Class C preference shares, and after the decision has been made to add all or part of the profit to the reserves; – Discharging the Management Board; – Discharging the Supervisory Board; – Granting the Management Board the authority to issue shares and to limit or exclude pre-emption rights on the issue of shares; – Granting the Management Board the authority to repurchase the company’s own shares; – Resolving to amend the Articles of Association of Van Lanschot Kempen, to dissolve Van Lanschot Kempen, or to effect a legal merger or demerger of Van Lanschot Kempen, following a proposal to that effect by the Management Board which has been approved by the Supervisory Board. In addition, the general meeting has an advisory vote with regard to the remuneration report. Main features of Van Lanschot Kempen’s management and control system Van Lanschot Kempen’s management and control system is designed to manage internal and external risks. As part of this management and control system, financial and non- financial reporting risks are managed to ensure reliable reporting. In addition, this system contains controls to ensure that the financial statements are prepared in accordance with generally accepted accounting principles and comply with the prevailing legislation and regulations. Van Lanschot Kempen applies the three lines of defence model for the management of risks. The first line of defence is operational management, responsible for day-to-day risk management. The second line of defence is provided by departments such as Financial Risk Management, Non- Financial Risk Management and Compliance, which oversee the first line's risk management activities. The Internal Audit department acts as the third line of defence, providing an independent evaluation of the adequacy of the internal risk management and control systems. The three lines of defence model provides the Management Board with a reasonable degree of certainty as to how the internal risk management and control system is functioning, including the effectiveness of the risk management activities of both the first and second lines. A risk and control framework is in use, which contains key controls and business controls that are periodically tested to monitor the correct functioning of key processes. This enables operational management to manage the main risks in a structured way. Our specialised Internal Control department, which is part of the first line of defence, ensures a consistent use of this framework. The risk and control framework's effectiveness is evaluated by the Financial Risk Management, Non-Financial Risk Management and Compliance departments, while the Internal Audit department assesses its quality and effectiveness through audit engagements. In case of deviations, actions are agreed upon to mitigate and solve the identified issues. The departments Financial Risk Management, Non-Financial Risk Management, Compliance and Internal Audit report the results of their respective monitoring and evaluations in quarterly reports. Management ensures adequate follow-up and prioritisation of actions to improve the internal risk management and control system. The Financial Risk Management, Non- Financial Risk Management, Compliance and Internal Audit departments monitor the timely follow-up of these actions, and validate the adequacy of the resolutions implemented. If necessary, supplementary control measures are defined to mitigate risks sufficiently. For more detailed information on risk management at Van Lanschot Kempen, see "Risk and capital management" on page 114. The financial statements also include a more detailed explanation of risk management at Van Lanschot Kempen: see "Risk management" on page 183. Financial and non-financial reporting risk The Management Board is responsible for the design and operation of an adequate system of internal control for Van Lanschot Kempen's financial reporting. This system is designed to provide reasonable assurance on the reliability of our financial reporting. The financial statements must be prepared in accordance with generally accepted accounting principles and must comply with the prevailing legislation and regulations. Van Lanschot Kempen has processes and tools in place to manage financial reporting risks: – The accounting manual, which sets out our principles regarding financial accounting; – A risk & control framework describing processes and procedures, and setting out primary controls such as authorisations and segregation of duties; Corporate governance 157 – Periodic management reports and KPI dashboards, accompanied by analysis of financial and non-financial figures and trends; – Evaluation of the functioning of the internal risk management and control system by the Internal Audit department. The main findings are discussed with the Management Board, the Audit Committee and the Supervisory Board; – Assessment and approval of the annual report by the Management Board, and discussion of the annual report by the Audit Committee and the Supervisory Board. In-control statements are provided by the management of the relevant departments. These are based on the risks reported on a quarterly basis, the results of testing procedures for the risk & control framework, the follow-up of the test results and reported risks, and the incidents reported. Risk Management and Compliance evaluated the 2024 in-control statements. In 2024, the main findings of the Internal Audit department's quarterly reports were discussed with the Management Board and the Audit Committee. The conclusions of the Audit Committee were subsequently shared with the Supervisory Board. The Supervisory Board was informed about the Management Board’s internal control of the organisation, and how it safeguards the integrity of financial information. The topics considered by the Supervisory Board when assessing the financial statements include the board report and the audit report prepared by the external auditors. The key audit findings and other observations cited in the independent external auditors' report were discussed with the Management Board and the Audit Committee, and formed part of the organisation's risk management and control. Non-financial information is subject to internal controls and reviews, whereas the sustainability reporting is drawn up in accordance with the Corporate Sustainability Reporting Directive and Sustainable Finance Disclosure Regulation requirements, and is subject to a limited assurance engagement performed by the independent external auditors. Statement by the Management Board In accordance with best practice provision 1.4.3 of the Dutch Corporate Governance Code, the Management Board states that: – The management report provides sufficient insights into any failings in the effectiveness of the internal risk management and control systems related to strategic risks, operational risks, compliance risks and financial reporting risks; – The aforementioned systems provide reasonable assurance that the financial reporting does not contain any material inaccuracies; – Based on the current state of affairs, it is justified that the financial reporting is prepared on a "going concern" basis; – The management report states those material risks related to the aforementioned risk types and uncertainties that are relevant to the expectation of the company’s continuity for the period of 12 months after the preparation of this report; – Based on the analysis of in-control statements and the quarterly reports from the Financial Risk Management, Non-Financial Risk Management, Compliance and Internal Audit departments, it is justified to state that the financial statements are free of any material misstatements caused by fraud. External auditors KPMG Accountants NV (KPMG) were appointed as Van Lanschot Kempen's external auditors for the 2025 financial year at the AGM held on 25 May 2023. KPMG commenced transition activities in the last quarter of 2024. For the 2024 financial year, PricewaterhouseCoopers Accountants NV (PwC) were reappointed as Van Lanschot Kempen's external auditors at the 2023 AGM. PwC’s audit plan for 2024, of which the audit risk assessment is an integral part, was discussed in June 2024 at meetings of the Management Board and the Audit Committee. PwC issued a board report for 2024 in February 2025, outlining their main observations regarding their audit of the 2024 financial statements. The external auditors may be questioned at the AGM in relation to their audit, and will be attending the meeting for this reason. The Management Board and the Audit Committee evaluated the effectiveness of PwC in January 2025. Statement by the Management Board As required by Article 5:25c (2c) of the Financial Supervision Act, each of the undersigned hereby confirms that to the best of their knowledge: – The 2024 financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of Van Lanschot Kempen and its consolidated entities; – The 2024 report of the Management Board of Van Lanschot Kempen gives a true and fair view of the position of the company and its consolidated entities on balance sheet date, and of the course of their affairs during the 2024 financial year, and describes the material risks that Van Lanschot Kempen faces; – The sustainability reporting in the 2024 report of the Management Board of Van Lanschot Kempen has been prepared in accordance with the European Sustainability Reporting Standards (ESRS) and with the specifications in the Disclosures Delegated Act, as adopted under Article 8(4) of the Taxonomy Regulation. ’s-Hertogenbosch, the Netherlands, 26 February 2025 Management Board Maarten Edixhoven, Chair Jeroen Kroes Damla Hendriks Arjan Huisman Wendy Winkelhuijzen Erik van Houwelingen Our Management Board 158 Management Board members From left to right: Jeroen Kroes, Damla Hendriks, Erik van Houwelingen, Maarten Edixhoven, Wendy Winkelhuijzen en Arjan Huisman. Maarten Edixhoven Chair, responsible for Private Clients Belgium Born 1971, male Nationality Dutch Appointed 1 October 2021 Total number of board and/or supervisory positions within the meaning of the Capital Requirements Regulation (CRR) One Significant supervisory board memberships and/or (board) positions Women in Financial Services: member of advisory board Stichting Het Rijksmuseum: member of supervisory board Background 2017–21: Aegon: CEO of Aegon Netherlands and member of management board of Aegon NV 2014–16: Aegon: Director Pension and member of management board of Aegon Netherlands 2010–14: Zwitserleven: CEO and member of management committee of SNS Reaal NV 1995–2010: ING Group: various positions Jeroen Kroes Chief Financial Officer Born 1973, male Nationality Dutch Appointed 1 September 2022 Total number of board and/or supervisory positions within the meaning of the CRR One Significant supervisory board memberships and/or (board) positions Amsterdams Klimaat & Energiefonds: member of investment committee Background 2013–22: Van Lanschot Kempen: Managing Director of Finance, Reporting & Control 2013: Van Lanschot: project leader on strategic review project 2009–12: Kempen & Co: Managing Director of Corporate Finance 2006–08: Kempen & Co: Director of Corporate Finance 1996–2005: Kempen & Co: various positions in corporate finance Damla Hendriks Chief Risk Officer Born 1985, female Nationality Dutch and Turkish Appointed 1 June 2024 Total number of board and/or supervisory positions within the meaning of the CRR Four Significant supervisory board memberships and/or (board) positions Van Lanschot Kempen Investment Management: member of the management board Background 2021–24: Achmea Non-life Türkiye (Eureko Sigorta): Chief Financial Officer and statutory executive board member 2020–21: BeFrank: key risk function holder (dual role with role at NN Life and Pensions) 2018–21: NN Life and Pensions: Head of Enterprise Risk Management & DNB Affairs 2012–18: Aegon: various positions 2008–12: Robeco: Risk Manager Client Portfolios Our Management Board 159 Arjan Huisman Chief Operating Officer Born 1971, male Nationality Dutch Appointed 6 May 2010 Total number of board and/or supervisory positions within the meaning of the CRR Two Background 2008–10: BCG Amsterdam office: Partner and Managing Director 2004–08: BCG Prague office: Partner and Managing Director 1995–2004: BCG Amsterdam and Boston offices: various consulting positions, with a strong focus on financial services Wendy Winkelhuijzen Responsible for Private Clients Netherlands (including Private Clients Switzerland and Evi) and Investment Banking Clients Born 1978, female Nationality Dutch Appointed 1 September 2022 Total number of board and/or supervisory positions within the meaning of the CRR One Background 2022–24: Van Lanschot Kempen: Member of the Management Board, Chief Risk Officer 2017–22: Van Lanschot Kempen: Managing Director of Strategy & Corporate Development 2014–17: Van Lanschot Kempen: Investor Relations Manager 2014: Van Lanschot Kempen: Project Manager Treasury/ Financial Control/Financial Risk Management 2013: Van Lanschot: senior member of strategic review project 2010: Van Lanschot: member of Private & Business Banking management team 2001–09: Kempen & Co: various positions in corporate finance Erik van Houwelingen Responsible for Investment Management Clients Born 1965, male Nationality Dutch Appointed 27 May 2021 Total number of board and/or supervisory positions within the meaning of the CRR Four Significant supervisory board memberships and/or (board) positions Van Lanschot Kempen Investment Management: Chair of management board DUFAS: Vice-Chair Background 2018–20: Dimensional Fund Advisors: Head of Client Group Europe 2012–18: ABP: member of board of trustees, Chair of investment committee and member of risk & balance sheet committee 2015–18: Achmea Investment Management: Chair of supervisory board 2008–10: Aegon Asset Management: CEO 1993–2010: Aegon: various positions Our Supervisory Board 160 Supervisory Board members From left to right: Brigitte Boone, Elizabeth Nolan, Karin Bergstein, Manfred Schepers, Else Bos, Frans Blom, Maarten Muller Frans Blom Chair of the Supervisory Board Supervisory Board committees: Audit, Remuneration, Selection and Nomination (Chair) Born 1962, male Nationality Dutch Appointed 5 October 2018; second term of office expires in 2027 Total number of supervisory board memberships and/or board positions within the meaning of the Capital Requirements Regulation (CRR) Two Significant other positions Boston Consulting Group: Senior Adviser American European Community Association (AECA-NL): Chair INSEAD: Member of board of directors INSEAD Alumni Association: President Previous positions held Boston Consulting Group: Member of global executive committee Manfred Schepers Vice-Chair of the Supervisory Board Supervisory Board committees: Audit, Risk and Compliance Born 1960, male Nationality Dutch Appointed 18 May 2017; second term of office expires in 2025 Total number of supervisory board memberships and/or board positions within the meaning of the CRR One Principal position ILX Management: CEO Previous positions held European Bank for Reconstruction and Development: Vice President and Chief Financial Officer Our Supervisory Board 161 Karin Bergstein Member of the Supervisory Board Supervisory Board committees: Audit (Chair), Remuneration, Risk and Compliance Born 1967, female Nationality Dutch Appointed 28 May 2020; second term of office expires in 2028 Total number of supervisory board memberships and/or board positions within the meaning of the CRR Five Significant other positions BNG Bank: Member of supervisory board UMC Groningen: Member of supervisory board Chesnara: Non-executive Director Stichting Continuïteit NN Group: Board member Foundation for the holding of preference shares Wereldhave: Board member Previous positions held a.s.r.: Member of board of directors/COO ING Bank Nederland: Member of managing board Brigitte Boone Member of the Supervisory Board Supervisory Board committees: Risk and Compliance, Selection and Nomination Born 1960, female Nationality Belgian Appointed 22 September 2021; first term of office expires in 2026 Total number of supervisory board memberships and/or board positions within the meaning of the CRR Eight Significant other positions NN Group Belgium: Non-executive Director Wereldhave Belgium: Non-executive Director SD Worx: Non-executive Director WorxInvest: Executive Director GIMV: Non-executive Director Imec VZW, Fidimec: Non-executive Director Previous positions held Fortis Bank: CEO Commercial and Investment Banking, member of management board Else Bos Member of the Supervisory Board Supervisory Board committees: Risk and Compliance, Selection and Nomination Born 1959, female Nationality Dutch Appointed 21 October 2024; first term of office expires in 2029 Total number of supervisory board memberships and/or board positions within the meaning of the CRR Three Significant other positions IFM Investors: Member of supervisory board Ortec Finance: Non-executive Director Previous positions held De Nederlandsche Bank.: Executive board member and Chair of Prudential Supervision PGGM NV: CEO and Chair of the Executive Committee PGGM Investments: Chief Executive Officer Investments Maarten Muller Member of the Supervisory Board Supervisory Board committees: Risk and Compliance, Remuneration (Chair), Selection and Nomination Born 1954, male Nationality Dutch Appointed 31 May 2018; second term of office expires in 2026 Total number of supervisory board memberships and/or board positions within the meaning of the CRR One Significant other positions Stichting Continuïteit TomTom: Chair Stichting Vopak: Chair Previous positions held Allen & Overy LLP: Partner Our Supervisory Board 162 Elizabeth Nolan Member of the Supervisory Board Supervisory Board committees: Audit, Risk and Compliance (Chair), Selection and Nomination Born 1962, female Nationality British Appointed 25 May 2023; first term of office expires in 2027 Total number of supervisory board memberships and/or board positions within the meaning of the CRR Two Significant other positions State Street Bank International: Vice-Chair of supervisory board Previous positions held State Street Bank & Trust Co.: CEO EMEA, Global Head of Operations JPMorgan: Head of Worldwide Securities Services EMEA & APAC Reconciliation of IFRS and management reporting 163 Reconciliation of IFRS and management reporting Reconciliation of IFRS and management reporting (€ million) IFRS Non- strategic invest- ments Amorti- sation of intangible assets arising from acquisi- tions Expenses related to accoun- ting treatment acquisitions Restruc- turing charges Other adjust- ments Managerial Commission 511.1 — — — 0.3 -0.1 511.2 Interest 175.5 0.0 — — — 0.0 175.4 Income from securities and associates 18.4 -2.1 — — — — 16.3 Result on financial transactions 13.4 — — 0.5 — — 13.9 Other income 6.3 -6.3 — — — — — Income from operating activities 724.6 -8.4 — 0.5 0.3 -0.1 716.8 Staff costs 345.6 -5.5 — -5.4 -0.3 0.0 334.5 Other administrative expenses 152.7 1.0 — — -3.2 -0.1 150.3 Depreciation and amortisation 34.3 0.0 -16.3 — — — 18.0 Operating expenses 532.5 -4.5 -16.3 -5.4 -3.5 -0.1 502.8 Gross result 192.1 -3.9 16.3 5.8 3.7 — 214.0 Impairments -1.4 — — — — — -1.0 Operating profit before tax of non- strategic investments — 3.9 — — — — 3.9 Operating profit before special items and tax 193.5 — 16.3 5.8 3.7 — 219.3 Amortisation of intangible assets arising from acquisitions — — 16.3 — — — 16.3 Expenses related to accounting treatment of acquisitions — — — 5.8 — — 5.8 Restructuring charges — — — — 3.7 — 3.7 Operating profit before tax 193.5 — — — — — 193.5 Income tax 51.6 — — — — — 51.6 Net result 141.9 — — — — — 141.9 Consolidated statement of financial position 165 Consolidated statement of financial position (€1,000) Consolidated statement of financial position at 31 December 2024 2023 Assets Cash and cash equivalents and balances at central banks 1 2,064,818 2,925,317 Due from banks 2 84,225 77,501 Derivatives 3 317,897 342,526 Financial assets at fair value through profit or loss 4 272,494 234,593 Financial assets at fair value through other comprehensive income 5 2,991,140 2,208,514 Loans and advances to the public and private sectors 6 9,331,093 9,161,433 Other financial assets at amortised cost 7 1,201,542 1,201,134 Investments in associates using the equity method 8 117,556 110,889 Property and equipment 9 71,462 65,159 Goodwill and other intangible assets 10 308,880 313,049 Current tax assets 11 1,329 634 Deferred tax assets 11 16,763 10,708 Other assets 12 204,132 184,427 Total assets 16,983,332 16,835,885 Equity and liabilities Due to banks 13 164,804 250,504 Public and private sector liabilities 14 12,766,921 12,573,814 Derivatives 3 254,566 245,578 Financial liabilities at fair value through profit or loss 15 464,891 466,672 Issued debt securities 16 1,491,254 1,473,639 Provisions 17 29,515 32,650 Current tax liabilities 18 11,367 2,246 Deferred tax liabilities 18 21,288 21,435 Other liabilities 19 247,596 250,333 Subordinated loans 20 153,825 170,238 Total liabilities 15,606,027 15,487,108 Issued share capital 43,040 43,040 Treasury shares -19,928 -14,243 Share premium reserve 211,725 211,725 Other reserves 908,316 888,029 Undistributed profit attributable to shareholders 131,855 118,446 Equity attributable to shareholders 1,275,008 1,246,996 AT1 capital securities 100,000 100,000 Undistributed profit attributable to holders of AT1 capital securities 2,242 1,688 Equity attributable to AT1 capital securities 102,242 101,688 Other non-controlling interests -135 134 Undistributed profit attributable to other non-controlling interests 189 -40 Equity attributable to other non-controlling interests 54 93 Total equity 21 1,377,304 1,348,777 Total equity and liabilities 16,983,332 16,835,885 The number beside each item refers to the Notes to the consolidated statement of financial position. Consolidated statement of income 166 Consolidated statement of income (€1,000) Consolidated statement of income 2024 2023 Income from operating activities Interest income calculated using the effective interest method 405,532 347,237 Other interest income 260,990 179,415 Interest expense calculated using the effective interest method 276,789 183,730 Other interest expense 214,274 146,117 Net interest income 22 175,460 196,805 Income from associates using the equity method 6,413 32,238 Other income from securities and associates 11,938 5,875 Income from securities and associates 23 18,352 38,113 Commission income 520,780 434,208 Commission expense 9,690 6,895 Net commission income 24 511,089 427,313 Result on financial transactions 25 13,383 1,040 Net sales 9,058 8,475 Cost of sales 2,736 2,374 Other income 26 6,321 6,101 Total income from operating activities 724,606 669,372 Expenses Staff costs 27 345,591 328,073 Other administrative expenses 28 152,669 142,112 Staff costs and other administrative expenses 498,260 470,185 Depreciation and amortisation 29 34,273 32,987 Operating expenses 532,533 503,172 Impairments of financial instruments -1,439 2,027 Impairments 30 -1,439 2,027 Total expenses 531,093 505,199 Operating profit before tax 193,512 164,173 Income tax 31 51,572 39,017 Net result 141,940 125,156 Of which attributable to shareholders 131,855 118,446 Of which attributable to holders of AT1 capital securities 9,896 6,750 Of which attributable to other non-controlling interests 189 -40 Earnings per ordinary share (€) 32 3.11 2.82 Diluted earnings per ordinary share (€) 33 3.10 2.78 Proposed dividend per ordinary share (€) 33 2.75 2.00 The number beside each item refers to the Notes to the consolidated statement of income. Consolidated statement of comprehensive income 167 Consolidated statement of comprehensive income (€1,000) Consolidated statement of comprehensive income 2024 2023 Net result (as per consolidated statement of income) 141,940 125,156 Other comprehensive income to be reclassified to profit or loss in subsequent periods Other comprehensive income through revaluation reserve Revaluation of financial assets at fair value through other comprehensive income -14,250 11,312 Realised gains/losses on financial assets at fair value through other comprehensive income 820 1,629 Changes in loss allowance of financial assets at fair value through other comprehensive income -481 -232 Income tax effect 3,589 -3,279 Total other comprehensive income through revaluation reserve 21 -10,322 9,430 Other comprehensive income from value changes of derivatives (cash flow hedges) Reclassification from cash flow hedge reserve to profit or loss 878 878 Income tax effect -227 -227 Total other comprehensive income from value changes of derivatives (cash flow hedges) 21 651 651 Other comprehensive income from currency translation differences Other comprehensive income from currency translation differences -258 39 Income tax effect — — Total other comprehensive income from currency translation differences 21 -258 39 Total other comprehensive income to be reclassified in subsequent periods to profit or loss -9,929 10,121 Other comprehensive income not to be reclassified in subsequent periods to profit or loss Change in fair value attributable to change in credit risk of financial liabilities at fair value through profit or loss Change in fair value attributable to change in credit risk of financial liabilities at fair value through profit or loss -5,331 -8,036 Income tax effect 1,375 2,073 Total change in fair value attributable to change in credit risk of financial liabilities at fair value through profit or loss 21 -3,956 -5,963 Remeasurement of defined benefit plans Remeasurement of defined benefit plans 248 3,666 Income tax effect -73 -902 Total remeasurement of defined benefit plans 21 175 2,764 Total other comprehensive income not to be reclassified in subsequent periods to profit or loss -3,780 -3,199 Total other comprehensive income -13,709 6,922 Total comprehensive income 128,231 132,078 Of which attributable to shareholders 118,146 125,368 Of which attributable to holders of AT1 capital securities 9,896 6,750 Of which attributable to other non-controlling interests 189 -40 The number beside each item refers to the Notes to the consolidated statement of financial position. Consolidated statement of changes in equity 168 Consolidated statement of changes in equity (€1,000) Consolidated statement of changes in equity in 2024 Issued share capital Treasury shares1 Share premium reserve1 Other reserves1 Undistri- buted profit Total equity attributable to shareholders Equity attribut- able to AT1 capital securities Equity attribut- able to other non- controlling interests Total equity At 1 January 43,040 -14,243 211,725 888,029 118,446 1,246,996 101,688 93 1,348,777 Net result (as per consolidated statement of income) — — — — 131,855 131,855 9,896 189 141,940 Total other comprehensive income — — — -13,709 — -13,709 — — -13,709 Total comprehensive income — — — -13,709 131,855 118,146 9,896 189 128,231 Share plans — 16,979 — 1,140 — 18,119 — — 18,119 Profit appropriation — — — 118,446 -118,446 — — — — Repurchased treasury shares — -22,664 — — — -22,664 — — -22,664 Dividends — — — -84,731 — -84,731 -9,341 -228 -94,300 Other changes — — — -860 — -860 — — -860 Change in non-controlling interests — — — — — — — — — At 31 December 43,040 -19,928 211,725 908,316 131,855 1,275,008 102,242 54 1,377,304 Consolidated statement of changes in equity in 2023 Issued share capital Treasury shares1 Share premium reserve1 Other reserves1 Undistri- buted profit Total equity attributable to shareholders Equity attribut- able to AT1 capital securities Equity attribut- able to other non- controlling interests Total equity At 1 January 41,362 -15,109 262,658 914,223 77,405 1,280,539 101,688 146 1,382,372 Net result (as per consolidated statement of income) — — — — 118,446 118,446 6,750 -40 125,156 Total other comprehensive income — — — 6,922 — 6,922 — — 6,922 Total comprehensive income — — — 6,922 118,446 125,368 6,750 -40 132,078 Issue of share capital 1,678 — 34,022 — — 35,700 — — 35,700 Share plans — 10,498 — 902 — 11,400 — — 11,400 Shares to be issued — — — -35,700 — -35,700 — — -35,700 Profit appropriation — — — 77,405 -77,405 — — — — Repurchased treasury shares — -9,632 — — — -9,632 — — -9,632 Dividends / capital return -84,954 — — -74,324 — -159,278 -6,750 — -166,028 To share capital 84,954 — -84,954 — — — — — — Other changes — — — -1,400 — -1,400 — — -1,400 Change in non-controlling interests — — — — — — — -12 -12 At 31 December 43,040 -14,243 211,725 888,029 118,446 1,246,996 101,688 93 1,348,777 1 For additional information on the nature and composition of treasury shares, the share premium reserve and other reserves, see Note 21. Consolidated statement of cash flows 169 Consolidated statement of cash flows (€1,000) Consolidated statement of cash flows 2024 2023 Cash flow from operating activities Operating profit before tax 193,512 164,173 Adjustments for – Depreciation and amortisation 29 34,277 32,456 – Costs of share plans 5,233 4,895 – Results on associates using the equity method 8 -6,334 -32,214 – Valuation results on financial assets at fair value through profit or loss -6,380 -6,889 – Valuation results on financial liabilities at fair value through profit or loss 14,868 28,413 – Valuation results on derivatives -61,355 40,809 – Impairments 30 -1,439 2,027 – Other changes in debt instruments -14,492 — – Changes in provisions 4,804 16,194 Cash flow from operating activities 162,694 249,863 Net change in operating assets and liabilities – Financial assets/liabilities from trading activities 5,775 4,607 – Due from/to banks -112,593 -109,913 – Loans and advances to public and private sectors & Public and private sector liabilities 48,121 136,552 – Derivatives 47,598 40,819 – Provisions -7,691 -12,171 – Other assets and liabilities -11,398 19,955 – Income taxes paid -46,595 -45,481 – Dividends received — 6,016 Total net change in operating assets and liabilities -76,785 40,384 Net cash flow from operating activities 85,910 290,246 Cash flow from investing activities Investments and acquisitions – Debt instruments -1,290,898 -1,581,831 – Equity instruments -5,853 -7,024 – Associates using the equity method 8 -5,060 -16,110 – Property and equipment 9 -26,762 -17,366 – Other intangible assets 10 — -1,597 – Payment of cash for acquisition of subsidiary, net of cash acquired -8,251 -20,000 Divestments, redemptions and sales – Debt instruments 484,745 1,188,368 – Equity investments 32,434 44,896 – Associates using the equity method 8 3,334 36,231 – Property and equipment 9 2,538 4,400 Dividends received on associates using the equity method 8 1,393 4,469 Other dividends received 1,696 — Net cash flow from investing activities of continuing operations -810,686 -365,564 The number beside each item refers to the Notes to the consolidated statement of financial position and the Notes to the consolidated statement of income. Consolidated statement of cash flows 170 Consolidated statement of cash flows (continued) 2024 2023 Cash flow from financing activities Share plans 12,886 6,505 Repurchased treasury shares -22,664 -9,632 Change in non-controlling interests — -12 Redemption of subordinated loans 20 -15,996 -113 Receipts of issued debt securities — 691,561 Redemption of issued debt securities — -610,029 Receipts on financial liabilities at fair value through profit or loss 177,113 138,006 Redemption of financial liabilities at fair value through profit or loss -198,753 -182,119 Payment of lease liabilities -14,180 -13,326 Dividends & Capital return -94,300 -166,028 Net cash flow from financing activities of continuing operations -155,894 -145,188 Net change in cash and cash equivalents and balances at central banks -880,670 -220,506 Cash and cash equivalents and balances at central banks at 1 January1 2,919,277 3,139,784 Cash and cash equivalents and balances at central banks at 31 December1 2,038,607 2,919,277 Additional disclosure Cash flows from interest received 652,055 507,013 Cash flows from interest paid 489,191 286,238 The table below provides a reconciliation of changes in liabilities arising from financing activities. Reconciliation of liabilities arising from financing activities in 2024 Subordinated loans Issued debt securities Financial liabilities at fair value through profit or loss Total At 1 January 170,238 1,473,639 466,217 2,110,093 Cash flows -15,996 — -21,640 -37,636 Non-cash changes -417 17,615 20,199 37,397 At 31 December 153,825 1,491,254 464,776 2,109,854 Reconciliation of liabilities arising from financing activities in 2023 Subordinated loans Issued debt securities Financial liabilities at fair value through profit or loss Total At 1 January 170,882 1,342,131 473,881 1,986,894 Cash flows -113 81,532 -44,113 37,305 Non-cash changes -531 49,976 36,449 85,895 At 31 December 170,238 1,473,639 466,217 2,110,093 1 Cash and cash equivalents and balances at central banks also includes amounts due from/to banks available on demand; see Note 1. Notes to the consolidated financial statements 171 Notes to the consolidated financial statements Accounting policies General Van Lanschot Kempen NV ("Van Lanschot Kempen") is an independent specialist wealth manager. Our purpose is to preserve and create wealth for our clients and for society in a sustainable way. Van Lanschot Kempen has its registered office at Hooge Steenweg 29, 5211 JN ´s 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 2024 were prepared by the Management Board and approved by the Supervisory Board on 26 February 2025, and will be submitted to the annual general meeting of shareholders (AGM) for adoption on 22 May 2025. Basis of preparation The consolidated financial statements of Van Lanschot Kempen and its subsidiaries have been prepared in accordance with IFRS Accounting Standards as adopted by the 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 assessed the ability of Van Lanschot 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 – i.e. Van Lanschot Kempen's – ability to continue as a going concern. The consolidated financial statements have been prepared on this basis. Economic context After a slight decline in 2023, the Dutch economy saw growth resume in the second and third quarters of 2024. Inflation, while down from its peak in 2022, remained more persistent in 2024 than anticipated, with the Dutch consumer price index (CPI) nearing 4%. This trend contrasts with the broader European trend of consistently falling inflation, allowing the European Central Bank (ECB) to cut interest rates. In the Netherlands, relatively high inflation was offset for many citizens by substantial pay rises in collective labour agreements (CLAs) in 2024. Current economic circumstances have had a limited impact on Van Lanschot Kempen. The growing economy has generated stable profits across most businesses, and most of our clients have either been compensated for the higher cost of living or have adequate buffers to absorb these costs. Consequently, our loan portfolio saw a minor fall in the loss allowance for expected credit losses (ECL) in 2024 compared with 2023. Additionally, economic conditions have enabled us to release our management overlay, which was no longer deemed necessary. For more information, see "Risk management", under 3.8, Loss allowance for expected credit losses. Finally, strong US economic growth and a stable European economy, combined with somewhat lower interest rates, led to a surge in US stock markets and a moderate increase in their European counterparts, which significantly boosted our commission income. Overall, Van Lanschot Kempen's capital and liquidity positions remain robust, with a net result of €141.9 million in 2024 (2023: €125.2 million). 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. Presentation of off-balance commitments To improve transparency, reduce duplication and present related information in one place, all off-balance sheet items are included in the "Commitments and contingent liabilities" section of the Notes to the consolidated financial statements and the "Commitments not recognised in the statement of financial position" section of the Notes to the company financial statements. As a result, the contingent liabilities and irrevocable commitments are no longer presented on the face of the statement of financial position. Changes in accounting policies The accounting policies adopted in the preparation of our consolidated financial statements for the year ended 31 December 2024 remain unchanged from the prior year, except for the adoption of new standards and interpretations effective from 1 January 2024 and the early adoption of the Annual Improvements to IFRS Accounting Standards – Volume 11. Changes in published IFRS Accounting Standards and interpretations The IFRS Accounting Standards listed below became effective from 1 January 2024 and have been applied to our financial statements for 2024. The application of these standards had no material impact on Van Lanschot Kempen’s equity or result. Application of the amended standards generally entails amendment or expansion of notes. Lease Liability in a Sale and Leaseback – Amendments to IFRS 16 The amendments specify the requirements that a seller- lessee uses in measuring the lease liability arising in a sale- and-leaseback transaction, to ensure the seller-lessee does not recognise any amount of the gain or loss that relates to the right of use it retains. Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants – Amendments to IAS 1 The amendments clarify the requirements for classifying liabilities as current or non-current. Entities need to consider whether some of the amendments may impact their current practice and covenant testing. Notes to the consolidated financial statements 172 We currently apply the exception provided by IAS1.60 and no distinction is made between current and non-current liabilities in the financial statements. Published IFRS Accounting Standards and interpretations not yet effective In addition to the IFRS Accounting Standards and interpretations referred to above, a number of IFRS Accounting Standards and interpretations are new or have been amended, and apply to financial statements for periods beginning on or after 1 January 2025 . We have not applied the standards outlined below in the 2024 financial statements. Unless stated otherwise, standards will be applied as soon as they become effective and have been endorsed by the EU. Lack of exchangeability – Amendments to IAS 21 The amendments specify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. Based on our analysis, the amendment is not expected to have a material impact on the results or equity of the company. Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7 The amendments clarify the requirements for derecognition of a financial liability on the settlement date using an electronic payment system. They clarify how to assess contractual cash flow characteristics of financial assets, including those with ESG-linked features and other similar contingent features. Additional disclosures are required for financial assets and liabilities with contractual terms that reference a contingent event (including those that are ESG- linked), and equity instruments designated at fair value through other comprehensive income. Finally, the amendments clarify the treatment of non-recourse assets and contractually linked instruments. The amendments are effective for annual periods beginning on or after 1 January 2026. Entities can early adopt the amendments that relate to the classification of financial assets plus the related disclosures and apply the other amendments later. The amendments are not expected to have a material impact on the results or equity of the company. Presentation and Disclosure in Financial Statements – IFRS 18 IFRS 18 replaces IAS 1 and responds to investor demand for better information about an entity’s financial performance. The standard sets out the general and specific requirements for the presentation of financial statements and for disclosures in the notes. This includes the requirement to classify all income and expenses in the statement of profit or loss into one of five categories (three being new) and to present three mandatory subtotals (two being new). The standard requires disclosure on management-defined performance measures in one single note to the primary financial statements. Enhanced guidance is provided on the aggregation and disaggregation of information across the financial statements. IFRS 18 results in amendments to other standards, among others IAS 7, Statement of Cash Flows. The amendments are effective for annual periods beginning on or after 1 January 2027. Earlier application is permitted. The amendments are expected to impact presentation and disclosure requirements for the financial statements, including the statement of income, but will not materially impact our results. Annual improvements to IFRS Accounting Standards – Volume 11 The amendments described below are part of the Annual improvements to IFRS Accounting Standards – Volume 11 and are effective for annual periods beginning on or after 1 January 2026. We decided to early adopt these amendments. Based on our analysis, the application of these standards had no material impact on Van Lanschot Kempen’s equity or result. Gain or Loss on Derecognition – Amendments to IFRS 7 The amendments update the language on unobservable inputs in paragraph B38 of IFRS 7 and include a cross reference to paragraphs 72 and 73 of IFRS 13 Fair Value Measurement. Introduction – Amendments to Guidance on implementing IFRS 7 The amendments to paragraph IG1 clarify that the guidance does not necessarily illustrate all the requirements in the referenced paragraphs of IFRS 7, nor does it create additional requirements. Disclosure of Deferred Difference between Fair Value and Transaction Price – Amendments to Guidance on implementing IFRS 7 Paragraph IG14 has been amended mainly to make the wording consistent with the requirements in paragraph 28 of IFRS 7 and with the concepts and terminology used in IFRS 9 and IFRS 13. Credit Risk Disclosures – Amendments to Guidance on implementing IFRS 7 Paragraph IG20B has been amended to simplify the explanation of which aspects of the IFRS requirements are not illustrated in the example. Lessee Derecognition of Lease Liabilities – Amendments to IFRS 9 Paragraph 2.1 has been amended to clarify that, when a lessee has determined that a lease liability has been terminated in accordance with IFRS 9, the lessee is required to apply paragraph 3.3.3 and recognise any resulting gain or loss in profit or loss. Transaction Price – Amendments to IFRS 9 Paragraph 5.1.3 has been amended to replace the reference to "transaction price as defined by IFRS 15 Revenue from Contracts with Customers" with "the amount determined by applying IFRS 15". The term has also been deleted from Appendix A of IFRS 9 to address potential confusion. Determination of a "De Facto Agent" – Amendments to IFRS 10 Consolidated Financial Statements Paragraph B74 has been amended to clarify that the relationship described in paragraph B74 is just one example of various relationships that might exist between the investor and other parties acting as de facto agents for the investor. Cost method – Amendments to IAS 7 Statement of Cash Flows Paragraph 37 has been amended to replace the term "cost method" with "at cost", following the prior deletion of the definition of "cost method". Notes to the consolidated financial statements 173 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 global unrest among other factors. Actual amounts may differ in the future. Where applicable, the impact of the uncertain economic circumstances on our assumptions 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, and impairments of goodwill and other 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 associates 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 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 “Risk management”, under 15. 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 control changes and thus the moment of consolidation of an acquired entity. Impairments of financial assets We recognise a loss allowance for ECL on financial assets measured at amortised cost or fair value through other comprehensive income (OCI), 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 “Risk management”, under 3.8, Loss allowance for expected credit losses. Impairments of goodwill and other intangible assets We calculate the recoverable amount for each cash- generating unit (CGU) or group of CGUs as the higher of the fair value of the asset less costs of disposal and its value in use. If either of these amounts exceeds the carrying amount, an impairment is not necessary and the other value does not have to be calculated. The value-in-use calculation reflects an estimate of future cash flows, baseline scenario analysis and discount rates. The fair value less costs of disposal calculation uses price-earnings multiples of our peer group and future cash flows. 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. We carried out an annual impairment test on goodwill arising from acquisitions in prior years. For more information on the assumptions used, see Note 10, Goodwill and other intangible assets. In addition, an annual test is carried out for indications of impairment of other intangible assets with a finite useful life. 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 of disposal 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 (CGUs). 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 for 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 and obligations. In determining these provisions, where applicable, we take into consideration the opinion of legal experts. Notes to the consolidated financial statements 174 Summary of material accounting policies Basis of consolidation Subsidiaries Our consolidated financial statements comprise the financial statements of Van Lanschot Kempen and its subsidiaries. These have been prepared at 31 December 2024 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 we exercise 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’s income. The assessment of control is based on the actual relationship between Van Lanschot 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. We have power over an entity if its existing and potential voting rights amount to more than 50%. If these rights amount to less than 50%, we determine whether we have power over the entity pursuant to contractual agreements. In making this assessment, a distinction is drawn 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 us 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 us decisive control over an entity. When acquiring non-controlling interests, we in principle include only protective rights in the contractual agreement. These are rights of approval which enable us to protect our minority position without acquiring decision- making power. Examples of protective rights are rights of approval in respect of the issue of shares and 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 Lanschot 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. We take into account our interest for our own account and our own role, or that of one of our group companies, as fund manager. In the case of subsidiaries not fully controlled by Van Lanschot 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. Notes to the consolidated financial statements 175 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: – Assets and liabilities are translated using the closing exchange rate at the reporting date; – Income and expenses are translated using the rate prevailing on the transaction date; – Remaining 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 other comprehensive income 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 The following financial assets are recognised on the transaction date, i.e the date on which we undertake to purchase or sell the asset concerned, and are settled according to standard market conventions: – Purchases of financial assets designated at fair value through profit or loss whose value is subject to change; – Financial assets at fair value through other comprehensive income; – Other financial assets at amortised cost. 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: – Our rights to the cash flows from the asset expire; – We 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; – We have transferred our rights to the cash flows from the asset and have transferred substantially all the risks and rewards; – We 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’s 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: – The contractual rights to receive the cash flows from that financial asset are transferred; or – The 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 interest rate 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. Notes to the consolidated financial statements 176 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’s 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 We apply 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 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 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: – The economic characteristics are not closely related to those of the host contract; – A separate instrument with the same terms would meet the definition of a derivative; – The 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 minimum reserve requirement amount is included in this item, along with the cash collateral for irrevocable payment commitments to the SRF. Notes to the consolidated financial statements 177 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: – The 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; – Economic hedges Economic hedges are derivatives used to manage risks without applying hedge accounting; – Structured product derivatives Structured product derivatives are instruments to hedge structured products sold to clients, without application of hedge accounting; – Derivatives 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 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 changes in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and currency gains and losses on the instrument’s amortised cost, which are recognised in the statement of income. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to the statement of income 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 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’s individual receivables and payables occurring after the acquisition, measured using the policies applied by Van Lanschot Kempen. Notes to the consolidated financial statements 178 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 shareholdings. 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’s 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 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’s 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 IT, communication and safety equipment, renovation & refurbishment, and furniture & 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: – The amount of the initial measurement of the lease liability; – Any lease payments made at or before the commencement date less any lease incentives received; – Any initial direct costs; – Restoration 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 value-in-use method is used to determine the recoverable amount of the CGU to which the asset belongs, unless the asset no longer generates any cash flows at all. In that case, the fair value less costs to sell is determined by an independent surveyor. If the recoverable amount is 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) Buildings 25-40 Right-of-use assets 1-10 Operating system software and IT 3-5 Communication equipment 5 Safety equipment 15 Renovation & refurbishment 10-15 Furniture & fixtures 5-10 Operating system software expenses are capitalised if they are identifiable, if there is a likelihood that future economic benefits will flow to Van Lanschot Kempen and if costs can be measured reliably. 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’s recoverable amount is the higher of its fair value less costs of disposal and its value in use. If either of these amounts exceeds the carrying amount, an impairment is not necessary. The fair value less costs of disposal uses price-earnings multiples for our peer group and estimated future cash flows. 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. Other intangible assets with a finite useful life, such as client relationships, brand names and application software, are capitalised at cost and amortised on a straight-line basis over their respective useful lives. For acquired intangible assets, an annual useful life test is conducted to assess indications of impairment. For client relationships, volume changes in assets under management (AuM) are assessed. Notes to the consolidated financial statements 179 For acquired brand names and application software, the future continuation of these intangible assets is evaluated. Estimated useful life of intangible assets (years) Client relationships 5-20 Brand names 5-20 Application software 3-5 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 tax positions and if the tax positions 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 change in value. Other assets Other assets comprise interest receivables, commission receivables and other receivables, and are carried at the lower of cost or the recoverable amount. This recoverable amount is the estimated selling or settlement 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 if applicable. 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: – Designation 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 – The 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, Total equity. The remaining amount of change in the fair value of the financial liabilities at fair value is recognised in Result on financial transactions and Net interest income for the interest charges on medium- term notes. 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 and/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. Notes to the consolidated financial statements 180 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 statement of income on a straight-line basis over the term of the lease. 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’s 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. 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. 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. This line item also includes results realised on the sale of associates using the equity method, which are recognised upon closing of the transaction. 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. Notes to the consolidated financial statements 181 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 with the exception of the interest charges on medium- term notes, which are recognised under Net interest income. 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. 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’s performance criteria are fulfilled, ending on the date on which the employee becomes fully entitled to the award (the vesting date). Partnership plan and partnership investment incentive The partnership plan is a participation plan that allows 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 during their full tenure as a partner. Partners receive a discount of 18.5% as their interest is subject to a lock-up period of five years. This discount is accounted for as an equity-settled share-based payment, and it is recognised immediately as an expense, with a corresponding increase in equity. The purpose of the partnership investment incentive is to enhance return perspectives. 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 years in accordance with the partnership investment incentive formula. Since the entitlement to the partnership investment incentive for a financial year is subject to continued service until the end of the financial year and the actual performance achieved, the estimated cost is recognised over the relevant vesting period. The partnership investment incentive will be paid to partners in two components: 70% in Van Lanschot Kempen shares and 30% in cash. The portion settled in shares is accounted for as an equity-settled share-based payment and the portion settled in cash is accounted for as a long-term employee benefit. Other administrative expenses Other administrative expenses are allocated to the period in which the products and services are delivered. 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 property and equipment, and on goodwill and other intangible assets. 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 (ignoring treasury shares). 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. Notes to the consolidated financial statements 182 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, public and private sector liabilities, and dividends received from investments in equity instruments. Investing activities include acquisition, redemption and sales of debt instruments, equity investments, associates using the equity method, property and equipment, goodwill and other intangible assets, and dividend received from investments in associates using the equity method. Financing activities include issues and repayments of share plans, debt instruments and issued debt securities, and dividends and capital returns paid to shareholders. 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. Commitments not recognised in the statement of financial position This includes contingent liabilities that 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 leases not yet commenced, irrevocable commitments for SRF and all other obligations resulting from irrevocable commitments that could give rise to loans or other assets. Other commitments represent a potential credit risk, but of a type for which it is either not probable that this will lead to an outflow of resources or for which no reliable estimate can be made. For the commitments not recognised in the statement of financial position, see “Commitments and contingent liabilities” in the supplementary notes. 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’s length). Notes to the consolidated financial statements 183 Risk management 1. Risk, capital management and compliance Our front-office functions are essential in delivering services and products to our clients. The risk management function – which comprises Compliance, Financial Risk Management and Non-Financial 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, model risk, settlement risk, credit valuation adjustment (CVA) risk, strategic risk, interest rate risk, liquidity risk, securitisation risk, sustainability risk, operational risk, compliance risk, financial reporting risk and financial instruments at fair value. 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 covering all significant risks of our company. 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 monitoring instruments 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 management and control lies with the front office and/or operational departments (the first line of defence), including Internal Control and Finance, Reporting & Control. Compliance, Financial Risk Management and Non-Financial 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 risks and controls within Van Lanschot Kempen. Internal Audit forms the third line of defence and is responsible for performing independent audits on activities of the first and second lines. The department reports to the Chair of the Management Board and to the Chair of the Audit Committee. The three lines of defence 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. Financial Risk Management and Asset & Liability Management stand at the core of capital and liquidity 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 capital and liquidity requirements. Both external and internal capital and liquidity adequacy targets are taken into account, and the central focus is on safeguarding our financial solidity and stability. A capital and funding plan is prepared annually for capital and liquidity management purposes. Table 1.2 Risk, capital management and compliance framework Supervision 1.2.1 Supervisory Board – Risk and Compliance Committee – Audit Committee Risk, capital management and compliance 1.2.2 Management Board – Group Risk Committee – Credit Risk Committee – Market Risk Committee – Asset & Liability Committee – Sustainability Board – Compliance & Operational Risk Committee Implementation and review 1.2.3 Asset & Liability Management Finance, Reporting & Control Financial and Non-Financial Risk Management and Compliance Internal Audit Execution 1.2.4 Private Clients Netherlands and Belgium, Investment Management Clients and Investment Banking Clients Treasury Credit Approval and Financial Restructuring & Recovery Notes to the consolidated financial statements 184 1.2.1 Supervision The Supervisory Board oversees the risks and capital requirements in relation to the group’s operations and balance sheet composition. The Risk and Compliance Committee focuses on all identified risks in the group’s business activities, as well as the risk management framework. Compliance risks and other matters including duty of care are discussed in this committee, which prepares decision-making by the Supervisory Board on risk matters. The Audit Committee is tasked with advising the Supervisory Board on financial and non-financial reporting, internal and external audits. 1.2.2 Risk, capital management and compliance The Management Board is responsible for developing and executing Van Lanschot Kempen's strategy. This includes our capital and funding plan, internal capital adequacy assessment process (ICAAP) and internal liquidity adequacy assessment process (ILAAP), based on extensive analyses of all risks run by Van Lanschot Kempen. The primary objective of our capital management is to ensure that we comply with external and internal capital requirements 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 profit we distribute to shareholders in dividend payments, 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 the European Central Bank (ECB) and new regulation can also influence capital management. The Management Board also bears responsibility for ensuring the proper operation of the processes that safeguard the group’s liquidity 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 discusses group-wide risk management themes. The committee brings together, discusses and monitors the various risk types on an integrated level. The committee sets 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. The committee includes all members of the Management Board and is chaired by the CRO. Other members represent Financial Risk Management, Non-Financial Risk Management and Compliance. Credit Risk Committee The Credit Risk Committee sets and adjusts the group’s 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 committee is also responsible for all IFRS and internal ratings- based (IRB) models. This committee includes the CRO and the Management Board member whose responsibilities include Private Clients Netherlands. The CRO chairs this committee; other members represent Financial Risk Management, Private Clients and Credit Approval and Financial Restructuring & Recovery. Market Risk Committee The Market Risk Committee focuses on all market risks within Van Lanschot Kempen. 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 through the Treasury department. Risks are limited as transactions are offset in the market within very tight limits. Van Lanschot Kempen is also exposed to market risk as a result of management book investments. This committee includes the CRO and the CFO. The CRO chairs the committee; other members represent Financial Risk Management, Investment Banking, Trading & Sales and Treasury. Asset & Liability Committee The Asset & Liability Committee is responsible for managing risks that result from mismatches between assets and liabilities (interest rate and liquidity risks), as well as our capital position. The committee’s main task is to oversee the asset and liability management process. The committee sets policies on interest rate risk in the banking book1, liquidity and funding risk, funds transfer pricing and capitalisation, and it monitors the development of the balance sheet and balance-sheet projections. This committee includes the Chair of the Management Board, the CRO, the CFO and the Management Board member responsible for Private Clients Netherlands and Investment Banking Clients. The CFO chairs the committee, with other members representing Asset & Liability Management, Treasury, Financial Risk Management and Finance Reporting & Control. 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. Among other matters, the root causes of major operational risk incidents are discussed in this committee. 1 The banking book comprises all assets not held for trading under the regulatory definition. Notes to the consolidated financial statements 185 This committee includes the Chair of the Management Board, the CRO, the Management Board member responsible for Private Clients Netherlands and Investment Banking Clients, the Board member responsible for Investment Management Clients, and the General Counsel/Company Secretary. The CRO chairs this committee, with other members representing Non-Financial Risk Management, Compliance and Financial Risk Management. Sustainability Board The Sustainability Board is responsible for driving and implementing Van Lanschot Kempen's sustainability strategy and is responsible for embedding sustainability-related goals in our own organisation, our balance sheet and our investments. In addition, the Sustainability Board is the risk owner for all sustainability-related risks within Van Lanschot Kempen and responsible for all sustainability-related policies, setting of key performance indicators (KPIs), risk appetite setting and sustainability monitoring. This committee includes the Chair of the Management Board and the Management Board member responsible for Investment Management Clients. The Chair of the Management Board chairs this committee with other members representing Private Clients, Financial Risk Management, Compliance, Strategy, Sustainability & Corporate Development, IT and Procurement & Facility Management. The Head of Internal Audit has a standing invitation to attend all committee meetings. Second-line departments take the lead in preparing the meetings of the committees described above, with the exception of the Asset & Liability Committee, where Asset & Liability Management is in charge, and the Sustainability Board, where the Corporate Sustainability team 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 the Product Approval & Review Committees. 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 Financial Risk Management, Non- Financial Risk Management, Asset & Liability Management, and Finance, Reporting & Control. In addition, Compliance oversees the implementation and carries out the monitoring and/or review of compliance policies. Financial Risk Management is responsible for: – Second-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; – The risk appetite process; – Preparing, developing and maintaining policy documents; – Issuing daily market risk reports; – Proactively and reactively providing advice on managing risks; – Raising risk awareness among staff to improve their ability to strike a sound balance between risk and return. Non-Financial Risk Management is responsible for: – Business continuity management; – Information security (second-line monitoring); – Preparing, developing and maintaining policy documents; – Proactively and reactively providing advice on managing risks; – Raising risk awareness among staff to improve their ability to strike a sound balance between risk and return. Financial Risk Management and Asset & Liability Management are responsible for: – Preparing 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, regulations, internal policies and industry standards relevant for Van Lanschot Kempen. It is also responsible for preparing, developing and maintaining internal policies. 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 data privacy, financial crime, business conduct and client protection risks. Internal Audit periodically reviews parts of 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 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 Private Clients Netherlands and Private Clients Belgium, Investment Management Clients and Investment Banking Clients 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, translated into law and regulations (CRR, CRD and Wft), apply to all Dutch banks, including Van Lanschot Kempen. The Basel framework consists of three pillars: – Pillar 1 stipulates capital requirements for credit, market and operational risk. – Pillar 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. – Pillar 3 sets out requirements for disclosure of information about the institution’s risk profile to external stakeholders. For Pillar 3 disclosures (unaudited), including a detailed breakdown of our portfolio of loans to companies and institutions, see vanlanschotkempen.com/en-nl/about-us/ investor-relations/annual-reports. Meanwhile, our remuneration policy is explained on page 145 of this annual report. Notes to the consolidated financial statements 186 1.4 Individual 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: – Strategic risk (Section 2); – Credit risk (Section 3); – Market risk (Section 4); – Model risk (Section 5); – Settlement risk (Section 6); – CVA risk (Section 7); – Interest rate risk (Section 8); – Liquidity risk (Section 9); – Securitisation risk (Section 10); – Sustainability risks (Section 11); – Operational risk (Section 12); – Compliance risk (Section 13); – Financial reporting risk (Section 14). 2. Strategic risk Strategic risk can be defined as the threat to our results or our equity arising from a failure to (adequately) respond 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 organic and inorganic growth to profit from economies of scale. 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 banking 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. Apart from lending activities, credit risk also arises from: – Investment activities; – International payment transactions and cash management; – Currency and hedging activities; – Settlement 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, currency 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. Limits on financial institutions and countries are determined using a number of hard criteria such as external ratings, Bank for International Settlements (BIS) ratios, capital ratios, country of origin and GDP (for countries). Limits can also be adjusted and withdrawn on a daily basis. 3.1 Loans and advances 3.1.1 Credit acceptance Our loan approval policy focuses on maintaining a high- quality loan portfolio. The credit risk concentration mainly lies within our private banking activities in the Netherlands. Loan reviews and the authority to approve loans are 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 departments as well as members of the Management Board. The mid- and back-office for nearly all residential mortgage loans is run 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 – 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. New loan requests are assessed to determine if they are in line with our strategy and policies, and we adopt a conservative approach to granting them. 3.1.2 Credit management – policy and processes To achieve 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 proportion 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’s risk profile and are carried out at least annually for the main exposures. In addition to financial analyses, reviews take account of future developments in a client’s situation (partly in the light of relevant macroeconomic trends). A deterioration in a client’s 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 Credit Approval and Financial Restructuring & Recovery or a combination of these measures. It may also lead to a stage transfer under IFRS 9 – see Section 3.8. Notes to the consolidated financial statements 187 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 closely. If the review, risk check, payment arrears or external signals point to an increased risk of discontinuity, the Financial Restructuring & Recovery team is involved in the credit management process. An estimate is made of the probability of discontinuity. Depending on the seriousness and magnitude of the problem, either monitoring or intensive supervision is applied. If there are objective indicators of impairment, the Financial Restructuring & Recovery team 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 Financial Restructuring & Recovery team will supervise the client. Increased credit risk occurs in situations including the following: – If clients fail to meet their payment obligations; – If clients report difficulties in meeting future payments, e.g. because of a divorce, unemployment; – In the event of a default (see Section 3.1.3); – For business clients, in the event of e.g. a significant decrease in turnover, breach of one or more covenants, a debt service coverage ratio below 1. The primary goal of the Financial Restructuring & Recovery team is to migrate clients back to accounts with regular status (i.e. not under the supervision of Financial 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 SA 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. Meanwhile, the A-IRB approach allows banks to use own estimates for probability of default (PD), exposure at default (EAD) and loss given default (LGD). PD is defined as the likelihood that a client will default within one year, the EAD is defined as our 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. Our models are captured by our model governance framework. As part of this, the performance of our A-IRB 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 loan 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 Lanschot 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 Treasury (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 European Banking Authority guidelines. Most notably, the materiality threshold complies with the uniform EU 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: – A breach of contract such as a more than 90 days past due event with a materiality of more than €100 and more than 1% of total credit obligation for retail exposures or more than €500 and more than 1% of total credit obligation for non-retail exposures; – Significant financial difficulty of the issuer or the borrower and an inability to meet future payments; – Concession(s) granted to the borrower that the lender would not otherwise consider, relating to the borrower’s financial difficulties (forbearance); – A growing likelihood that the borrower will enter bankruptcy or other financial restructuring; – The disappearance of an active market for the financial asset because of financial market difficulties; – The purchase or origination of a financial asset at a deep discount that reflects the incurred credit loss. Notes to the consolidated financial statements 188 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 Lanschot Kempen under CRR rules. Van Lanschot Kempen has implemented one definition that serves for all its different purposes. 3.2 Forborne exposures A loan is considered forborne if the borrower is structurally unable to meet their contractual obligations towards us and we decide 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: – Amendment 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’s payment capacity; – Full 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’s 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 Financial Restructuring & Recovery team, 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 Financial Restructuring & Recovery team 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’s review frequency and the size of any loan loss provision. 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 exposure is classified as non-performing. In practice, forbearance measures do not always have the desired effect – i.e. the recovery of the client’s 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’s financial circumstances or the failure of those circumstances to improve as expected. Such cases are reanalysed and a new repayment strategy is agreed. However, the principle is explicitly maintained that the forbearance measure must be appropriate, enduring 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 Financial Restructuring & Recovery team. 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 Financial Restructuring & Recovery team until the forbearance situation has ended. Table 3.2.A Types of forborne exposure 31/12/2024 31/12/2023 Total 17,211 26,210 Refinancing or new loans 3,116 1,881 Reduction of repayments 1,661 7,619 Deferred payment of financing costs 1,282 741 Extension of loan term 2,641 2,548 Reduction in interest rate 508 3,747 Sale by agreement/assisted sale 437 1,041 Rescheduled payments 9 — Other alteration of contract conditions/covenants 7,521 8,364 Partial or total debt forgiveness 37 268 Notes to the consolidated financial statements 189 Tables 3.2.B and 3.2.C provide an insight into the underlying collateral of forborne loans. This breakdown is based on the collateral used under Basel regulations, with the exception of commercial real estate, for which collateral is based on market values. The value in the Total primary collateral column is the lower of the subscription value or the value of the collateral. Table 3.2.B Forborne exposures by collateral at 31 December 2024 Balance outstanding Mortgage collateral Commercial real estate Financial collateral Total primary collateral Secondary collateral and unsecured loans Total 17,181 2,499 9,343 1,634 13,476 3,705 Mortgage loans 2,499 2,499 — — 2,499 — Current accounts 4,991 — — 1,634 1,634 3,357 Loans 9,691 — 9,343 — 9,343 348 Table 3.2.C Forborne exposures by collateral at 31 December 2023 Balance outstanding Mortgage collateral Commercial real estate Financial collateral Total primary collateral Secondary collateral and unsecured loans Total 26,210 2,368 16,596 2,044 21,008 5,202 Mortgage loans 2,368 2,368 — — 2,368 — Current accounts 5,550 — — 2,044 2,044 3,505 Loans 18,293 — 16,596 — 16,596 1,697 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 banking 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 ground leases (erfpacht), made by Kempen Dutch Inflation Fund. Table 3.3 Breakdown of loan portfolio by entity excluding impairments 31/12/2024 31/12/2023 Limit Utilisation Limit Utilisation Total 9,730,708 9,366,177 9,672,400 9,199,580 Van Lanschot Kempen 9,199,624 8,954,847 9,136,786 8,810,598 Kempen Dutch Inflation Fund 127,289 127,289 132,786 132,786 Other 403,795 284,041 402,828 256,196 3.4 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 December 2024 Balance outstanding Mortgage collateral Commercial real estate Financial collateral Other Total collateralised loans Unsecured loans Total 9,450,267 7,058,144 491,103 867,780 248,874 8,665,901 784,366 Mortgage loans 6,841,316 6,724,729 46,478 3,402 1,562 6,776,171 65,146 Loans 1,911,899 237,402 417,973 481,092 246,161 1,382,628 529,271 Current accounts 402,491 61,279 26,653 218,719 1,151 307,802 94,689 Securities-backed loans and settlement receivables 291,082 34,734 — 164,567 — 199,300 91,782 Subordinated loans 3,479 — — — — — 3,479 Notes to the consolidated financial statements 190 Table 3.4.B Loans and advances to the public and private sectors by collateral at 31 December 2023 Balance outstanding Mortgage collateral Commercial real estate Financial collateral Other Total collateralised loans Unsecured loans Total 9,303,365 7,401,403 109,032 631,503 273,668 8,415,607 887,758 Mortgage loans 6,851,876 6,760,199 7,310 842 1,929 6,770,280 81,596 Loans 1,790,128 537,152 95,411 361,308 268,136 1,262,007 528,121 Current accounts 409,293 67,725 6,311 134,203 3,604 211,843 197,450 Securities-backed loans and settlement receivables 248,976 36,327 — 135,150 — 171,477 77,499 Subordinated loans 3,092 — — — — — 3,092 Tables 3.4.A and 3.4.B have been drawn up on the basis of the definitions contained in the Basel regulations. Additional data fields unlocked in 2024 for Basel IV purposes have resulted in some movements, mainly from Mortgage collateral to Commercial real estate. The balance outstanding is the carrying amount excluding value adjustments for fair value hedge accounting. 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 weighted average LTV at year-end 2024 was 60% (2023: 64%). 3.5 Concentration within the loan portfolio The vast majority of our loan portfolio consists of loans to our private banking clients. For the credit risk in this portfolio, see Section 3.8, Loss allowance for expected credit losses. 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 €176 million at year-end 2024, compared with a total loan portfolio of €7.8 billion (2023: €179 million; total loan portfolio €7.8 billion). In this calculation, Lombard loans secured by non-single stock are excluded. 3.5.2 Geographical concentrations The bulk of our lending takes place in the Netherlands. The geographical breakdown reflects client locations. Table 3.5.2 Loans and advances to the public and private sectors by geographical area 31/12/2024 31/12/2023 Total 9,331,093 9,161,433 Netherlands 8,547,476 8,486,270 Belgium 558,597 464,301 Other 225,019 210,862 3.6 Encumbered and unencumbered assets Certain items in the statement of financial position are classified as encumbered. Tables 3.6.A and 3.6.B provide insight into the financial assets treated as encumbered. These tables have been drawn up on the basis of carrying value. Encumbered assets Pledged as collateral: – Cash pledged to a counterparty bank or central clearing party as security for obligations stemming from derivatives (CSA contracts); – Investments in debt instruments pledged to DNB or counterparty banks in the context of payments, repo transactions or securities and derivatives clearing purposes; – Mortgage loans and receivables that act as a guarantee for debt instruments which have been placed with institutional investors in the form of covered bonds or have been pledged as collateral to DNB, e.g. for transaction settlements. Other: – Statutory reserve deposits with central banks; – Reserve accounts of the covered bond entities to which we have no access. Unencumbered assets Eligible as collateral: – Investments in debt instruments which appear on the ECB eligible list of marketable assets but are not classified as encumbered at the reporting date; – Mortgage loans and advances on underlying debt instruments which are held by us and which appear on the ECB eligible list of marketable assets but are not classified as encumbered at the reporting date. Notes to the consolidated financial statements 191 Table 3.6.A Encumbered and unencumbered assets Encumbered assets Unencumbered assets 31/12/2024 Pledged as collateral Other Eligible as collateral Not eligible as collateral Total Total 2,138,444 134,287 4,414,692 9,257,888 15,945,312 Cash and cash equivalents and balances at central banks — 129,665 — 1,935,153 2,064,818 Due from banks 63,323 4,622 — 16,280 84,225 Financial assets at fair value through profit or loss — — 180,734 91,760 272,494 Financial assets at fair value through other comprehensive income 30,006 — 2,788,606 172,528 2,991,140 Loans and advances to the public and private sectors 1,830,000 — 525,000 6,976,093 9,331,093 Other financial assets at amortised cost 215,115 — 920,352 66,074 1,201,542 Table 3.6.B Encumbered and unencumbered assets Encumbered assets Unencumbered assets 31/12/2023 Pledged as collateral Other Eligible as collateral Not eligible as collateral Total Total 2,081,098 129,779 3,237,799 10,359,817 15,808,493 Cash and cash equivalents and balances at central banks — 123,637 — 2,801,681 2,925,318 Due from banks 41,948 6,142 — 29,411 77,501 Financial assets at fair value through profit or loss — — 130,245 104,348 234,593 Financial assets at fair value through other comprehensive income 20,428 — 1,785,096 402,990 2,208,514 Loans and advances to the public and private sectors 1,830,000 — 525,000 6,806,433 9,161,433 Other financial assets at amortised cost 188,722 — 797,458 214,954 1,201,134 3.7 Netting of financial assets and liabilities Tables 3.7.A and 3.7.B show the netting of financial assets and liabilities. The right to net derivatives is laid down in a master netting agreement per counterparty. For information about the netting criteria, see “Summary of material accounting policies”. Table 3.7.A Netting of financial assets and liabilities 31/12/2024 Gross Gross in the statement of financial position Net in the statement of financial position Related amounts not netted in the statement of financial position Net Derivatives (assets) 915,087 597,189 317,897 157,037 160,860 Derivatives (liabilities) 851,755 597,189 254,566 157,037 97,529 Table 3.7.B Netting of financial assets and liabilities 31/12/2023 Gross Gross in the statement of financial position Net in the statement of financial position Related amounts not netted in the statement of financial position Net Derivatives (assets) 882,882 540,356 342,526 126,341 216,185 Derivatives (liabilities) 785,934 540,356 245,578 126,341 119,237 3.8 Loss allowance for expected credit losses Under the IFRS 9 Accounting 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 losses (Stage 1). When a significant increase in credit risk has occurred, ECL is recognised based on a lifetime ECL (Stage 2). Likewise, for impaired loans (Stage 3) a lifetime ECL is recognised. Notes to the consolidated financial statements 192 3.8.1 Expected loss measurement We measure ECL 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. Every quarter, the models are subject to performance monitoring. If models are consistently performing outside the agreed threshold, recalibration or ultimately redevelopment will follow. 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: – 12-month ECL for Stage 1; – Lifetime 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 default (LGD). An important part of the LGD is the 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: – A baseline scenario; – An upside scenario; – A 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 Accounting Standards, 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 our in-house economic experts. The reported ECL (12- month or lifetime, depending on the stage) is a weighted ECL average per macroeconomic scenario. The table below shows the macroeconomic variables used for the sophisticated approach. Model Macroeconomic variables PD calibration – GDP – Volume of exports Cure rate – Residential real estate price – Volume of exports LGN – GDP – Residential real estate price – Unemployment EAD n/a 3.8.2 Significant deterioration in credit risk To determine the deterioration in credit risk of a financial instrument since initial recognition, we compare the risk of default at the reporting date with the risk of default on initial recognition. To calculate the lifetime probability of default (LPD) at origination and the LPD at reporting date, we use four PD models: private individuals, SMEs, corporates, and commercial real estate. If the increase in LPD exceeds the designated threshold, the exposure is transferred to Stage 2 and the lifetime ECL is calculated. A backstop is applied and financial instruments that are materially overdrawn and more than 30 days past due are transferred from Stage 1 to Stage 2. If the financial instrument is credit-impaired, it is transferred to Stage 3. 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 losses. This approach uses an umbrella model that combines the following sub-models: – Various models that provide the expected flow of exposures to the default state; – A PD calibration model giving the flow from performing to default; – A full prepayment model and amortisation model giving the outflow from the portfolio of an entire exposure due to prepayment or contract expiration; – A migration model providing flows from performing rating classes to other performing rating classes; – A cure rate model giving the flow from default to performing classes and the non-cure state; – Various product-level models that give the expected exposure at the moment a client goes into default; – An 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; – An EAD model giving the exposure as a function of the limit or outstanding amount just before default; – A product-level model evaluating the part of EAD that may be lost – the loss given loss (LGL) model; – A 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 securities-backed loans issued by Mercier Van Lanschot and Van Lanschot Kempen Switzerland. The alternative approach comprises an investments model and a foreign loan model. Notes to the consolidated financial statements 193 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 Mercier Van Lanschot and Van Lanschot Kempen Switzerland, we have developed a foreign loans model. 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 Model changes As of 2020, a management overlay was applied to the ECL to incorporate risks generated by the pandemic and later the rise in geopolitical tensions, which were not captured by the models used earlier. After several years, the only significant effect within the credit risk domain is a change in customer prepayment behaviour due to higher interest rates introduced in response to increased inflation. In general, repayments have fallen, thus increasing the probability of loss, as exposures remain within the portfolio for a longer time period. To incorporate this change in behaviour in our models, our prepayment and maturity models have been recalibrated, increasing the ECL by €1.3 million. Several years have passed since the onset of the pandemic and the rise in geopolitical tensions, giving any unforeseen risks and consequences time to materialise. Given that the observable gap in the models due to the pandemic and the heightened geopolitical tensions has now been incorporated, maintaining a management overlay is no longer defensible. Future economic developments are expected to be captured by our macroeconomic variables and scenarios. For these reasons, the overlay is no longer applied, leading to an ECL decline of €3.4 million in 2024. 3.8.8 Loss allowances The table below shows the ECL loss allowances and the corresponding book values (including revocable and irrevocable commitments), categorised by balance sheet line item and ECL by stage. Table 3.8.A Loss allowance for expected credit losses 31/12/2024 31/12/2023 Carrying value (excluding impairments) Expected credit losses Carrying value (excluding impairments) Expected credit losses Total 16,867,053 38,146 16,766,183 40,767 Cash and cash equivalents and balances at central banks 2,064,818 0 2,925,318 0 Due from banks 84,225 — 77,501 — Financial assets at fair value through other comprehensive income 2,991,140 762 2,208,514 280 Loans and advances to the public and private sectors 9,610,954 35,084 9,525,767 38,146 Other financial assets at amortised cost 1,201,838 296 1,201,267 133 Financial guarantees and loan commitments 914,078 2,004 827,816 2,207 The table below shows total loss allowances recognised by IFRS 9 stage. The total change in Stage 3 amounted to an increase of €0.4 million (2023: increase of €0.8 million); of this amount, €2.1 million (2023: €5.6 million) is related to write-offs and €2.5 million (2023: releases of €6.4 million) to additions of loss allowances at Stage 3. Table 3.8.B Loss allowance recognised by IFRS 9 stage 31/12/2024 31/12/2023 Write-offs Change in provision Total change Stage 1 4,385 5,701 — -1,316 -1,316 Stage 2 5,662 7,338 — -1,676 -1,676 Stage 3 28,099 27,729 -2,100 2,470 370 Total 38,146 40,767 -2,100 -521 -2,621 Notes to the consolidated financial statements 194 The table below shows the IFRS 9 stage and coverage ratios for loss allowances recognised in the loan portfolio, categorised by ECL stage. Table 3.8.C IFRS 9 stage and coverage ratio by ECL stage (€ million) 31/12/2024 31/12/2023 Loan portfolio Provision Coverage ratio Stage ratio Loan portfolio Provision Coverage ratio Stage ratio Stage 1 8,221 2.7 0.0% 87.8% 7,760 4.3 0.1% 84.4% Stage 2 1,018 4.3 0.4% 10.9% 1,314 6.1 0.5% 14.3% Stage 3 127 28.1 22.1% 1.4% 126 27.7 22.0% 1.4% Total 9,366 35.1 0.4% 9,200 38.1 0.4% Stage 1 Model-based Stage 1 provisions on loans decreased by €1.6 million to €2.7 million, with the Stage 1 exposure adding €461 million. The main driver was the release of the management overlay (€1.1 million). The coverage ratio was down slightly from 2023. Stage 2 Stage 2 provisions on loans went down from €6.1 million to €4.3 million in 2024. The fall in provisions in Stage 2 was mainly caused by the release of the management overlay (€2.3 million) and improved economic conditions. The recalibration of the IFRS 9 models resulted in a higher provision. The coverage ratio narrowed slightly compared with 2023. Stage 3 The baseline for Stage 3 provisions is determined by the Financial Restructuring & Recovery team, with limited IFRS 9 model adjustments. In 2024, Stage 3 provisions rose slightly to €28.1 million. This was due to a release of provisions on the resolution of some specific impaired exposures and write- offs, offset by increased provisioning on existing impaired loans and new defaults. The total impaired exposure remained virtually stable at €127 million, while the coverage ratio rose slightly compared with 2023. Loss allowances for ECL change over time for several reasons: the credit risk of financial instruments may significantly increase or decrease, financial instruments may become credit-impaired, or new financial assets may be purchased. The following tables explain the changes in the loss allowances during the year and the loss allowance recognised in the statement of income. Table 3.8.D Changes in loss allowance for Financial assets at fair value through other comprehensive income Stage 1 Stage 2 Stage 3 Total At 1 January 2024 280 — — 280 Additions or releases without transfer 270 — — 270 Financial assets originated or purchased 212 — — 212 Total balance excluding write-offs 762 — — 762 At 31 December 2024 762 — — 762 Table 3.8.E Changes in loss allowance for Financial assets at fair value through other comprehensive income Stage 1 Stage 2 Stage 3 Total At 1 January 2023 49 — — 49 Additions or releases without transfer -13 — — -13 Financial assets originated or purchased 245 — — 245 Total balance excluding write-offs 280 — — 280 At 31 December 2023 280 — — 280 Table 3.8.F Changes in loss allowance for expected credit losses of Loans and advances to the public and private sectors Stage 1 Stage 2 Stage 3 Total At 1 January 2024 4,346 6,107 27,694 38,146 Additions or releases without transfer -2,231 -1,749 1,245 -2,735 Transfer to Stage 1 247 -4,515 — -4,268 Transfer to Stage 2 -491 4,827 -635 3,701 Transfer to Stage 3 -89 -332 1,851 1,429 Financial assets originated or purchased 911 — — 911 Total balance excluding write-offs 2,693 4,337 30,155 37,185 Amounts written off — — -2,100 -2,100 At 31 December 2024 2,693 4,337 28,055 35,084 Notes to the consolidated financial statements 195 Table 3.8.G Changes in loss allowance for expected credit losses of Loans and advances to the public and private sectors Stage 1 Stage 2 Stage 3 Total At 1 January 2023 6,098 6,974 26,927 39,998 Additions or releases without transfer -2,608 -2,305 -1,517 -6,430 Transfer to Stage 1 260 -4,166 -1,843 -5,749 Transfer to Stage 2 -485 5,870 — 5,385 Transfer to Stage 3 -24 -266 9,745 9,455 Financial assets originated or purchased 1,105 — — 1,105 Total balance excluding write-offs 4,346 6,107 33,312 43,765 Amounts written off — — -5,618 -5,618 At 31 December 2023 4,346 6,107 27,694 38,146 Table 3.8.H Changes in impairments of Other financial assets at amortised cost Stage 1 Stage 2 Stage 3 Total At 1 January 2024 133 — — 133 Additions or releases without transfer 163 — — 163 Financial assets originated or purchased — — — — Total balance excluding write-offs 296 — — 296 At 31 December 2024 296 — — 296 Table 3.8.I Changes in impairments of Other financial assets at amortised cost Stage 1 Stage 2 Stage 3 Total At 1 January 2023 49 — — 49 Additions or releases without transfer 67 — — 67 Financial assets originated or purchased 17 — — 17 Total balance excluding write-offs 133 — — 133 At 31 December 2023 133 — — 133 Table 3.8.J Changes in impairments of Financial guarantees and loan commitments Stage 1 Stage 2 Stage 3 Total At 1 January 2024 942 1,230 35 2,207 Additions or releases without transfer -324 -100 15 -408 Transfer to Stage 1 7 -43 — -37 Transfer to Stage 2 -13 239 -25 202 Transfer to Stage 3 — -2 18 16 Financial assets originated or purchased 23 — — 23 Total balance excluding write-offs 636 1,325 44 2,004 At 31 December 2024 636 1,325 44 2,004 Table 3.8.K Changes in impairments of Financial guarantees and loan commitments Stage 1 Stage 2 Stage 3 Total At 1 January 2023 664 1,761 10 2,435 Additions or releases without transfer 268 -530 10 -253 Transfer to Stage 1 5 -84 — -78 Transfer to Stage 2 -8 85 — 76 Transfer to Stage 3 — -1 15 14 Financial assets originated or purchased 13 — — 13 Total balance excluding write-offs 942 1,230 35 2,207 At 31 December 2023 942 1,230 35 2,207 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. Notes to the consolidated financial statements 196 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. Credit grade Description Investment grade Non-credit-impaired financial assets that are not placed under the supervision of the Financial Restructuring & Recovery team, internal rating pool 1 Standard monitoring Non-credit-impaired financial assets that are not placed under the supervision of the Financial Restructuring & Recovery team, internal rating pools 2 to 4 Special monitoring Non-credit-impaired financial assets that are placed under the supervision of the Financial Restructuring & Recovery team Default Credit-impaired financial assets All financial instruments under the line items Cash and cash equivalents, Due from banks, Debt instruments at amortised cost and Debt instruments at fair value through other comprehensive income are investment grade, which means their external rating is at least BBB-. We use external ratings for these line items. The credit quality of the line items Loans and advances to the public and private sectors and Financial guarantees and loan commitments is shown in the tables below. Assessment of credit quality is based on our internal credit rating system and year-end stage classification. The amounts presented are gross of impairment allowances. Table 3.8.L Credit quality of Loans and advances to the public and private sectors at 31 December 2024 Stage 1 Stage 2 Stage 3 Total Credit grade Investment grade (AAA to BBB-) 6,735,392 — — 6,735,392 Standard monitoring (BB+ to B-) 1,805,831 1,005,730 — 2,811,560 Special monitoring (CCC to C) 1,863 74,533 -423 75,973 Default (DDD to D) — — 107,203 107,203 Gross carrying amount 8,543,086 1,080,262 106,780 9,730,128 Loss allowance 2,691 4,338 28,055 35,084 Carrying amount 8,540,395 1,075,925 78,725 9,695,044 Table 3.8.M Credit quality of Loans and advances to the public and private sectors at 31 December 2023 Stage 1 Stage 2 Stage 3 Total Credit grade Investment grade (AAA to BBB-) 6,337,169 — — 6,337,169 Standard monitoring (BB+ to B-) 1,634,816 1,478,121 — 3,112,937 Special monitoring (CCC to C) — 90,814 20,312 111,126 Default (DDD to D) — — 106,468 106,468 Gross carrying amount 7,971,984 1,568,935 126,779 9,667,699 Loss allowance 4,345 6,108 27,694 38,146 Carrying amount 7,967,640 1,562,828 99,085 9,629,553 Table 3.8.N Credit quality of Financial guarantees and loan commitments at 31 December 2024 Stage 1 Stage 2 Stage 3 Total Credit grade Investment grade (AAA to BBB-) 124,964 — — 124,964 Standard monitoring (BB+ to B-) 20,922 89,630 — 110,552 Special monitoring (CCC to C) — 89 30 119 Default (DDD to D) — — 3,301 3,301 Gross carrying amount 145,887 89,719 3,331 238,937 Loss allowance 636 1,325 44 2,004 Carrying amount 145,251 88,394 3,288 236,933 Notes to the consolidated financial statements 197 Table 3.8.O Credit quality of Financial guarantees and loan commitments at 31 December 2023 Stage 1 Stage 2 Stage 3 Total Credit grade Investment grade (AAA to BBB-) 663,322 — — 663,322 Standard monitoring (BB+ to B-) 27,897 133,083 — 160,980 Special monitoring (CCC to C) — 79 153 232 Default (DDD to D) — — 3,282 3,282 Gross carrying amount 691,219 133,163 3,435 827,816 Loss allowance 942 1,230 35 2,207 Carrying amount 690,277 131,932 3,400 825,609 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 baseline scenario, an upside scenario, and a downside scenario. Our weightings were 70% for the baseline scenario, 10% for the upside scenario and 20% for the downside scenario. The table below shows the macroeconomic variables used for the sophisticated approach. Table 3.8.P Macroeconomic variables 31/12/2024 31/12/2023 2024 2025 2026 2023 2024 2025 Gross domestic product Baseline scenario 0.86% 1.46% 1.46% 0.13% 0.33% 1.03% Upside scenario 3.80% 4.40% 4.40% 2.98% 3.18% 3.88% Downside scenario -1.91% -1.31% -1.31% -2.83% -2.63% -1.93% Volume of exports Baseline scenario 0.32% 2.12% 2.02% -0.85% 0.05% 2.35% Upside scenario 5.53% 7.33% 7.23% 4.35% 5.25% 7.55% Downside scenario -4.59% -2.78% -2.88% -6.25% -5.35% -3.05% Total investments Baseline scenario -3.31% 3.79% 3.79% 2.67% 0.17% 0.17% Upside scenario 4.00% 11.10% 11.10% 9.63% 7.13% 7.13% Downside scenario -10.19% -3.09% -3.09% -4.57% -7.07% -7.07% Private consumption Baseline scenario 0.75% 2.05% 1.75% 0.23% 0.43% 0.93% Upside scenario 4.18% 5.48% 5.18% 3.68% 3.88% 4.38% Downside scenario -2.48% -1.18% -1.48% -3.35% -3.15% -2.65% Residential real estate price Baseline scenario 8.84% 7.44% 4.04% -3.26% 0.44% 2.04% Upside scenario 13.10% 11.70% 8.30% 0.87% 4.57% 6.17% Downside scenario 4.82% 2.43% 0.02% -7.55% -3.85% -2.25% Government consumption Baseline scenario 2.49% 1.69% 2.79% 2.51% 3.11% 2.41% Upside scenario 2.84% 2.04% 3.14% 3.03% 3.63% 2.93% Downside scenario 2.17% 1.37% 2.47% 1.96% 2.56% 1.86% 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 multiple macroeconomic variables as presented above are used to calculate various outcomes for the ECL models. The final ECL figure is the weighted average of the outcomes under the various scenarios. The table below shows ECL per stage and per scenario. Table 3.8.Q Sensitivity analysis at 31 December 2024 Stage 1 Stage 2 Stage 3 Total Change Probability-weighted 4,385 5,662 28,099 38,146 Baseline scenario 4,204 5,549 28,060 37,813 -334 Upside scenario 2,823 4,679 27,559 35,062 -3,084 Downside scenario 5,800 6,549 28,505 40,855 2,709 Notes to the consolidated financial statements 198 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 Financial Restructuring & Recovery team 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 3.9 Collateral for credit-impaired instruments at 31 December 2024 Gross exposure Impairment Carrying amount Value of collateral Loans and advances to public and private sectors 127,883 28,056 99,828 159,290 Financial guarantees and loan commitments 3,301 44 3,258 4,919 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 €42.0 million (2023: €31.7 million). 4. Market risk Market risk is the risk of loss as a result of changes in market variables, including interest rates (except exposure in the banking book), 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. Firstly, the market risk to which Treasury is exposed in respect of its structured products activities (part of the Other activities operating segment) and services to clients. Secondly, market risk stemming from trading activities in institutional securities, which is concentrated in Investment Banking Clients. Lastly, exposure to market risks is also generated by investments in our management book of €56.1 million (2023: €79.1 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, equity derivatives and interest rate derivatives. Equities are concentrated in Investment Banking Clients (equity brokerage) while equity derivatives and interest rate derivatives are concentrated in Treasury (structured products activities). As interest rates fell in 2024, we observed a shift among our clients from simple to more complex structured products as the latter yield a more attractive (expected) return. A governance structure has been created to facilitate effective risk management. This is based on the three lines of defence model, where the first line has direct insights into the live risk exposures and is responsible for staying within the set limits, the second line monitors daily to ensure that limits are respected, and Internal Audit performs periodic audits on the policies and procedures set by Risk Management and evaluates effectiveness and completeness. 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. Other risks relating to derivatives, such as stock market changes and volatility, and interest rate changes (delta, vega and rho respectively) are embedded in our structured notes. These risks 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. The majority 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 the S&P 500 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 limits both on an individual as well as on an aggregate level, and we monitor them at least daily. This highly granular view of limits results in limited basis risks. Table 4.1 Trading activities VaR 2024 2023 Derivatives-related Share-related Derivatives-related Share-related At 31 December 25 137 32 70 Highest VaR 136 369 275 288 Lowest VaR 7 81 9 39 Average VaR 41 186 114 157 Notes to the consolidated financial statements 199 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 euros) 2024 2023 At 31 December 244 245 Highest position 4,916 780 Lowest position -900 -4,646 Average position 55 -126 Table 4.2.B Foreign exchange positions 31/12/2024 31/12/2023 Total 1,905 592 US dollar 987 216 Swiss franc 290 8 Netherlands Antillean guilder 244 -10 Danish krone 235 103 Swedish krona 89 -55 Hong Kong dollar 67 36 Singapore dollar 55 101 Czech koruna 33 29 Norwegian krone -86 -8 Other -10 174 The capital requirement for exchange rate risk was €0.2 million at year-end 2024 (2023: €0.1 million). This amounts to 7% of the net open positions in each currency (2023: 7%). Under the Fundamental Review of the Trading Book regulation, which will take effect as of 2026, our capital requirements for exchange rate risk amounted to €0.5 million at year-end 2024 (2023: €0.3 million). Credit spread risk in the banking book (CSRBB) is the risk of volatility in earnings and/or equity, caused by spread changes in the yield on banking book instruments that are classified at fair value, versus the swap curve. For Van Lanschot Kempen, CSRBB is mainly concentrated in the investment and liquidity portfolios. CSRBB limits have been imposed on these portfolios, which are monitored by the Asset & Liability Committee on a monthly basis. 4.3 Market risk capitalisation We use the maturity method to calculate the capital adequacy requirement in respect of the general risk on debt instruments in the trading portfolio. Share-related instruments are share instruments included under Financial assets from trading activities (see Table 4.3). Table 4.3 Market risk 31/12/2024 31/12/2023 Risk weighting Capital adequacy requirement Risk weighting Capital adequacy requirement Total 155,664 12,453 170,930 13,674 Interest-related instruments 110,530 8,842 120,287 9,623 Share-related instruments 43,045 3,444 49,943 3,995 Currency-related instruments 2,089 167 700 56 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-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. Notes to the consolidated financial statements 200 5. Model risk The use of models exposes Van Lanschot Kempen to model risk. Model-related risks can materialise in different ways. Examples include using inappropriate models, implementing models incorrectly, calibrating models on data with insufficient quality or using model output for an inappropriate purpose. Model risk is mitigated by applying the three lines of defence model. The first line of defence is formed by the model owners, whose primary role is to identify, assess and manage the risks associated with models throughout their lifecycle. The second line of defence is model risk management, carried out by the Model Validation team, which is responsible for performing independent validations and maintaining the model risk management framework and related policies in line with regulatory requirements. The Internal Audit department acts as the third line of defence, providing an independent evaluation of the adequacy of the model risk management process. We apply a risk-based approach to managing model risk, which means that those models containing the most model risk are validated more frequently and in more depth. Furthermore, Van Lanschot Kempen keeps a registry of all models in use. Lastly, model-related risk is quantified and capital is held under Pillar 2. 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 2024, financial transactions totalling €19.2 million (2023: €9.1 million) had to be reported in the context of settlement risk. 7. CVA risk CVA is the price impact on a derivatives transaction (bilateral or centrally cleared) when the creditworthiness of the counterparty deteriorates. We are required to hold capital under the CRR to account for CVA risk. This CVA capital adequacy requirement is additional to requirements applying to the risk-weighted assets in relation to the “regular” 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’s current and/or future earnings, capital and market value. Responsibility for IRRBB management has been delegated by the Management Board to the Asset & Liability Committee. 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 non-maturing deposits such as savings and current accounts. When modelling client behaviour, a risk remains that actually observed client behaviour deviates from the model outcomes. Differences between modelled and observed client behaviour could have a material adverse impact on future results. 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. This involves an analysis of the change in 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 constant rates (delta net interest income, or ΔNII). By year-end 2024, the most adverse scenario was a scenario in which short-term interest rates reduce sharply. The ΔNII for this scenario was -9.2% at the end of 2024 (end of 2023: -6.6%, in a scenario in which interest rates would flatten). The table below shows the interest rate risk metrics. Table 8 Interest rate risk metrics 31/12/2024 31/12/2023 Delta net interest income (ΔNII) -9.2% -6.6% Delta economic value of equity (ΔEVE) -7.1% -5.3% We address long-term interest rate risk by means of the economic value approach, which looks at how changes in interest rates impact the value of our 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 of margins. By year-end 2024, the most adverse scenario was an instant upwards shock of 200 bps. The ΔEVE for this scenario was -7.1% at the end of 2024 (end of 2023: -5.3%). Notes to the consolidated financial statements 201 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 through profit or loss 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 – to the extent that it arises from banking book items – 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 ΔNII 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 or at fair value through other comprehensive income. 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 Van Lanschot Kempen's 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 covered bond programmes in place. To manage liquidity risk, 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 to the Asset & Liability Committee on a monthly basis. In addition to the regular monthly liquidity reporting, the liquidity buffer and client deposit flows are monitored in the weekly liquidity report. This report includes metrics that have been identified as early warning indicators for possible liquidity stress. 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. Every 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 – 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-maturing instruments are presented within the withdrawable on demand category. Due from banks and amounts due to banks include collateral delivered and received related to derivatives transactions. Allocation of this collateral over the maturity buckets is conducted in accordance with the maturity classification of the derivative contracts. Notes to the consolidated financial statements 202 Table 9.1.A Contractual maturity of assets and liabilities at 31 December 2024 Withdraw- able on demand < 3 months 3 to 12 months 1 to 5 years More than 5 years Subtotal Maturity not applicable Total Assets Cash and cash equivalents and balances at central banks 2,064,818 — — — — 2,064,818 — 2,064,818 Due from banks 16,280 — 1,258 66,687 — 84,225 — 84,225 Derivatives — 39,755 13,999 87,489 176,654 317,897 — 317,897 Financial assets at fair value through profit or loss 59,358 — — 196,243 — 255,601 16,893 272,494 Financial assets at fair value through other comprehensive income — 48,794 87,943 1,553,125 1,301,278 2,991,140 — 2,991,140 Loans and advances to the public and private sectors 664,592 69,619 114,086 716,154 7,766,642 9,331,093 — 9,331,093 Other financial assets at amortised cost — 28,952 108,095 1,027,141 37,353 1,201,542 — 1,201,542 Investments in associates using the equity method — — — — — — 117,556 117,556 Other assets1 — 173,257 31,617 49,129 10,516 264,520 338,046 602,566 Total assets 2,805,048 360,377 356,998 3,695,968 9,292,444 16,510,836 472,496 16,983,332 Total assets excluding derivatives 2,805,048 320,622 342,999 3,608,479 9,115,790 16,192,939 472,496 16,665,434 Equity and liabilities Due to banks 42,491 2,397 850 107,647 11,420 164,804 — 164,804 Public and private sector liabilities 9,463,537 2,579,929 429,148 186,520 107,787 12,766,921 — 12,766,921 Derivatives — 24,695 12,897 119,003 97,970 254,566 — 254,566 Financial liabilities at fair value through profit or loss — 32,270 80,831 308,474 43,316 464,891 — 464,891 Issued debt securities — — — 1,491,254 — 1,491,254 — 1,491,254 Lease liabilities — 33 744 32,819 11,561 45,157 — 45,157 Other liabilities2 — 107,158 127,936 — — 235,095 29,515 264,610 Subordinated loans — — — 25,000 128,825 153,825 — 153,825 Equity — — — — — — 1,377,304 1,377,304 Total equity and liabilities 9,506,027 2,746,482 652,407 2,270,717 400,879 15,576,512 1,406,819 16,983,332 Total equity and liabilities excluding derivatives 9,506,027 2,721,787 639,510 2,151,714 302,909 15,321,946 1,406,819 16,728,766 On-balance gap -6,700,979 -2,386,105 -295,409 1,425,251 8,891,565 934,324 -934,324 — 1 Includes Property and equipment, Goodwill and other intangible assets, Current tax assets, Deferred tax assets and Other assets as presented in the consolidated 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. Notes to the consolidated financial statements 203 Table 9.1.B Contractual maturity of assets and liabilities at 31 December 2023 Withdraw- able on demand < 3 months 3 to 12 months 1 to 5 years More than 5 years Subtotal Maturity not applicable Total Assets Cash and cash equivalents and balances at central banks 2,925,317 — — — — 2,925,317 — 2,925,317 Due from banks 23,348 3,849 1,240 43,022 6,043 77,501 — 77,501 Derivatives — 12,213 35,092 77,910 217,311 342,526 — 342,526 Financial assets at fair value through profit or loss 77,167 — — 132,374 — 209,541 25,052 234,593 Financial assets at fair value through other comprehensive income — 95,179 111,667 1,201,120 800,548 2,208,514 — 2,208,514 Loans and advances to the public and private sectors 632,067 61,524 84,642 637,404 7,745,796 9,161,433 — 9,161,433 Other financial assets at amortised cost — — 56,451 1,000,493 144,190 1,201,134 — 1,201,134 Investments in associates using the equity method — — — — — — 110,889 110,889 Other assets1 — 125,436 59,718 41,718 5,002 231,874 342,103 573,977 Total assets 3,657,899 298,202 348,810 3,134,041 8,918,889 16,357,840 478,044 16,835,885 Total assets excluding derivatives 3,657,899 285,988 313,718 3,056,131 8,701,578 16,015,315 478,044 16,493,359 Equity and liabilities Due to banks 29,388 — 102,230 118,046 840 250,504 — 250,504 Public and private sector liabilities 9,136,974 2,447,651 699,545 160,950 128,694 12,573,814 — 12,573,814 Derivatives — 14,860 26,178 144,017 60,522 245,578 — 245,578 Financial liabilities at fair value through profit or loss — 22,414 88,208 331,811 24,239 466,672 — 466,672 Issued debt securities — — — 1,473,639 — 1,473,639 — 1,473,639 Lease liabilities — 24 732 32,558 5,292 38,606 — 38,606 Other liabilities2 — 108,076 127,332 — — 235,408 32,650 268,058 Subordinated loans — 16,034 — — 154,205 170,238 — 170,238 Equity — — — — — — 1,348,777 1,348,777 Total equity and liabilities 9,166,362 2,609,059 1,044,225 2,261,020 373,791 15,454,457 1,381,428 16,835,885 Total equity and liabilities excluding derivatives 9,166,362 2,594,199 1,018,046 2,117,003 313,269 15,208,880 1,381,428 16,590,307 On-balance gap -5,508,463 -2,310,858 -695,415 873,021 8,545,098 903,383 -903,383 — The assets comprise many long-term mortgage loans while the liabilities are made up of many short-term deposits. The latter are predominantly current and savings accounts. 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 – discussed monthly in the Asset & Liability Committee – that test our 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 appropriate term bucket, allowing for our termination options. The same applies to irrevocable commitments. 1 Includes Property and equipment, Goodwill and other intangible assets, Current tax assets, Deferred tax assets and Other assets as presented in the consolidated 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. Notes to the consolidated financial statements 204 9.2 Contractual 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 December 2024 Withdrawable on demand < 3 months 3 to 12 months 1 to 5 years More than 5 years Total Due to banks 16,587 28,301 850 107,647 11,420 164,804 Public and private sector liabilities 9,319,801 2,573,513 447,315 202,335 541,008 13,083,973 Derivatives 88,345 13,593 30,737 94,592 27,300 254,566 Financial liabilities at fair value through profit or loss — 41,379 88,583 351,712 44,911 526,584 Issued debt securities — 16,875 17,500 1,563,750 — 1,598,125 Subordinated loans — 1,000 7,789 106,193 117,680 232,662 Total undiscounted liabilities 9,424,732 2,674,661 592,773 2,426,229 742,320 15,860,715 Table 9.2.B Contractual maturities of undiscounted cash flow of liabilities at 31 December 2023 Withdrawable on demand < 3 months 3 to 12 months 1 to 5 years More than 5 years Total Due to banks 23,269 6,120 106,680 118,046 840 254,954 Public and private sector liabilities 9,153,065 2,442,877 730,461 200,111 143,603 12,670,118 Derivatives 65,705 16,119 37,476 106,247 20,030 245,578 Financial liabilities at fair value through profit or loss — 32,694 98,630 381,615 25,716 538,655 Issued debt securities — 16,875 17,500 1,598,125 — 1,632,500 Subordinated loans — 17,235 6,410 103,641 114,888 242,174 Total undiscounted liabilities 9,242,039 2,531,919 997,158 2,507,784 305,079 15,583,979 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 residential mortgage-backed securities (RMBS). We invest only in the most senior and AAA-rated RMBS tranches. If they comply with the simple, transparent and standardised requirements, these securitisations qualify as high-quality liquid assets. All our RMBS investments are ECB eligible, meaning that they have at least two ratings from an external credit assessment institution. As the investments are part of the liquidity buffer, they can be used as collateral, in repo transactions, or sold if necessary. The holdings in RMBS represent a minor share of the total investment portfolio. 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 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. Notes to the consolidated financial statements 205 11. Sustainability risks Sustainability risks relate to ESG themes. As these are relatively new types of risk, we are still developing policies and frameworks, and are collecting data to manage them. Currently, the most measurable sustainability risks are climate and environmental risks, and these are discussed in more detail in this section. Climate and environmental risk reflects the physical and/or transitional impacts of a change in the climate or environment on our financial position and/or reputation. Based on the factors as discussed below, we conclude that no impairments as a result of sustainability risks are necessary. However, sustainability risks could very well lead to a combination of financial, reputational and legal problems in the long term if not addressed proactively. Our approach to managing sustainability 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 and environmental degradation is periodically assessed. Sustainability risks are addressed and managed via our sustainability risk policy. This policy assures that risks are assessed from an integrated/holistic perspective, taking all risk drivers and activities into account. In 2024, we made improvements to our sustainability risk assessment, particularly in the area of environmental risk (e.g. biodiversity risk). This has resulted in increased granularity of our risk analyses that provide further insight into our risk profile. Sustainability risks could have an effect on our on- and off- balance sheet activities. Table 11 Balance sheet based on sustainability criteria (€ million) 31/12/2024 31/12/2023 1. Cash at central banks 1,991 2,820 2. Sovereign, supranational and agency bonds 2,442 1,584 3. Covered bonds and RMBS 1,941 1,941 4. Corporate bonds — — 5. Residential mortgage exposure 7,019 7,018 6. Family business & entrepreneurs 588 594 7. Lombard loans 869 724 8. Real estate loans 378 325 9. Other loans 478 500 10. Management book 56 79 11. Equity trading activities 9 13 12. Structured product activities 38 37 13. Other items 1,176 1,200 Total assets 16,983 16,836 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, supranational and agency bonds are mainly from EU issuers. Their debt has a minimum credit rating of AA-, making these issuers capable of withstanding major costs as a result of physical or transitional risks. Also, by signing the Paris Agreement, these issuers' countries have committed to build resilience against the consequences of climate change – e.g. rising sea levels – thereby reducing local physical climate risks. 3. Our covered bonds and RMBS holdings are almost exclusively AAA-rated (99.5%). The majority of the financial assets backed by mortgages are located in the Netherlands and France. Currently, no loan level data is available to calculate the specific ESG risks on these positions. For our RMBS instruments – where we have direct exposure to the underlying pool of mortgages – some general analytics are available. 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 3.2% to 65.0%, and the average LTV range from 28.5% to 76.1%. The RMBS instruments in the lower range of the credit enhancement are also in the lower range of LTV. 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 capable of withstanding costs arising from physical and transitional risks. 4. Corporate bonds are potentially significantly prone to climate risks if the issuing corporation is heavily impacted by changes in climate and policies (for example fossil fuel companies). Currently, we do not hold any corporate bonds. 5. Residential mortgage exposure represents our most concentrated position in terms of (potential) sustainability risks. Given the geographical characteristics of the Netherlands, we are mainly exposed to physical risks related to riverine and sea flooding and the effect of drought on the stability of building foundations (pole rot and changes in surface levels). Regarding riverine and sea flooding, we combine highly detailed data on flood risk in the Netherlands (probability of a flood and, if a flood event takes place, the distribution of potential water levels) and specific characteristics of the collateral (house/apartment) to quantify the potential impact on collateral valuations. Using internally defined flood scenarios, we determine our exposure to flood risk. Notes to the consolidated financial statements 206 The limited average LTV increase as a result of flood damage, given the low probability of such an event, implies that actual projected losses are expected to be manageable. At the same time, given our solid capital position, a temporary increase in regulatory capital (as a result of lower collateral valuations after a flood, which directly impact capital under IRB) is also manageable. We have also carried out a similar analysis on the effect of drought on the stability of building foundations, again using highly detailed data on the risk of pole rot and changes in building surfaces to calculate potential economic risk as well as the effect on our capital. Given the limited number of houses on timber supports and the limited impact in terms of changes in foundation stability, these factors are seen as manageable. Our residential mortgage portfolio is also prone to transitional risks which could impact the value of the collateral in the future due to rising energy prices and/or renovation costs to meet future legislation on energy efficiency. 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. We then deducted these renovation costs 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 immaterial. In addition, the provision for defaulted mortgages is determined per individual credit file by the Financial Restructuring & Recovery team. If there are significant climate risks relating to defaulted loans, those risks are taken into consideration when the provision is determined. 6. Family business & entrepreneurial loans mostly comprise niche lending to healthcare specialists and to business professionals such as partners at major audit or law firms. These business professionals have limited direct exposure to climate and environmental risks. The same holds for healthcare specialists, such a pharmacists, general practitioners and veterinarians. Based on the limited exposures and non-impacted sectors, the sustainability risks are immaterial. If loans are in default, the provision is determined per individual credit file by the Financial Restructuring & Recovery team. If there are significant climate risks relating to our Stage 3 loans, those risks are taken into consideration when the provision is determined. 7. For our Lombard loans, there are several general risk protection features in place to limit credit losses. We only allow loans up to a maximum of 80% of the pledged investment portfolio and apply a client-specific threshold based on their portfolio composition. When the applicable threshold is reached, securities will be automatically sold to lower the loan amount and thereby the risk level. In addition, the underlying investment portfolio must be well diversified to limit downside risk. The probability that a climate-related event will have such a severe impact on a well-diversified client portfolio that the LTV increases above 100% is deemed very limited. 8. Our real estate loans comprise both residential and commercial properties and are moderate in size, at €378 million. Van Lanschot Kempen's exposure to commercial mortgages is limited, due to the run-off of our corporate banking activities. Lending policies regarding office buildings and rental properties have been updated to reflect more stringent rules on the energy efficiency of the collateral. For office buildings, a minimum energy label C is required from 2023 onwards and for residential rental properties, a minimum label of D is required for new loans. Given our moderate exposure and acceptance criteria, we conclude that there is no material climate risk to our real estate loan portfolio. 9. Other loans mostly comprise current account assets and the remainder of the corporate banking loans. Given the generally short-term nature of the current account assets and limited size and nature of our corporate banking loans, the climate risk is deemed immaterial. 10. Our management book includes co-investments in our own investment funds, totalling €56.1 million. We invest in accordance with our sustainable investment policies and assess sustainability risks via three defined stress scenarios. Losses resulting from this stress test are immaterial and well within our current trading limits. 11. Equity brokerage is aimed at agency trading with the purpose of client facilitation. In the process of facilitating trades for clients, residual equity positions can be (temporarily) held on our own accounts. If these positions become too large, they will be hedged with financial instruments such as derivatives. Given the nature of the trading book (short holding positions, daily position management), we have limited exposure to sustainability risks. For the equity positions in our trading book, we assess sustainability risks via three defined stress scenarios. Losses resulting from this stress test are limited and well within our current trading limits. We thus deem these risks to be immaterial. 12. The structured products activities revolve around issuing medium-term notes (mostly Van Lanschot Kempen notes) combined with a derivative. In most cases, this derivative is associated with a well-diversified equity index (for example the Euro Stoxx 50 or the S&P 500 index), and this generally results in less exposure to sustainability risk than more concentrated equity positions in specific single stocks. Additionally, nearly all market risk present at the Structured Products desk is hedged (largely back-to-back), resulting in very limited exposures to sustainability risks that could materialise through financial market movements. We conclude that these risks are immaterial. 13. Other items comprise various relatively small items, with no large concentrations, and hence an immaterial risk. Notes to the consolidated financial statements 207 Off-balance sheet activities In our investment management process, the physical and transitional impacts of climate change and environmental degradation 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 related to our investment management activities. All sustainability-related policies for our assets under management (AuM) are defined by the Sustainability Investment Council and approved by the Sustainability Board. Compliance, legal and operational risks associated with climate change and sustainability risks For our own organisation, physical climate risks are defined as the risk of flooding, drought and other natural hazards that could put the regular execution of our operations at risk. This type of risk is included in our business continuity stress- testing methodology among several scenarios that could lead to a prolonged disruption of facility usage. From a transition climate risk perspective, the most prominent risk for our organisation is the risk of non-compliance with regulatory requirements, which could result in regulatory fines or lawsuits due to sustainability misrepresentation ("greenwashing"). The risk is mitigated through the three lines of defence model. 12. Operational risk Operational risks are potential losses that result from inadequate or failed internal processes, systems, inadequate or incorrect human actions or from external events. Operational risk also includes cybercrime and information security risk, which is defined as the risk that the confidentiality, integrity and/or availability of Van Lanschot Kempen's information assets is compromised by internal failure of IT equipment, resulting in financial or reputational damage, and/or regulatory sanctions. 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, assessing, treating, monitoring and reporting operational risks to support Van Lanschot Kempen's management in their roles as risk owners. – Operational risk appetite: This appetite defines the level of – quantitative and qualitative – 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 and when necessary. – Risk identification and assessment via risk and control self-assessments and scenario analyses: – Risk 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 that are assessed as being outside of 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 to reassess and update the existing operational risk level. – Scenario analyses are used to assess low frequency but high-impact risks. The results of these analyses are used, among other things, to provide insight into the adequacy of the Pillar 1 operational risk capital requirement vis-à-vis our operational risk profile. – Risk response: Management is responsible for deciding how to manage risks. A "4T approach" applies: treat, transfer, tolerate or terminate. – Treat: To ensure that the most important risks (key risks) are mitigated sufficiently, key controls have been defined; these are tested for effectiveness on a regular basis. In addition, the second line of defence risk and compliance functions monitor such tests. Action tracking is used to track progress made in the delivery of actions to mitigate risks identified as a result of risk and control self-assessments, failing controls, analysis of incidents or complaints, findings by Internal Audit, external auditors and regulators, and other relevant events. – Transfer: 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’ liability insurance and various other liability and accident insurance policies. – Tolerate: If a risk is assessed to be outside of our risk appetite and it is not possible or economically viable to lower it, the risk can be accepted at Management Board level. Such acceptance is always temporary, as new technological developments may offer new possibilities to reduce our risk profile. – Terminate: If a risk is assessed to be outside our risk appetite, we end the product, process or relationship. – Risk monitoring: – Incident management: Van Lanschot Kempen defines an incident as an (undesirable) event that directly or indirectly harms its services or causes other damage. This includes incidents that qualify as a near miss or have no financial impact. Incidents are registered in our incidents database via the incident management process. For severe incidents, root cause analyses are carried out and reported to the Compliance & Operational Risk Committee. 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 Lanschot Kempen's operational risk management measurement system. A total of 83 incidents (2023: 97 incidents) entailing a loss of more than €1,000 were logged in the database in 2024, resulting in a total loss of €0.6 million (2023: €0.8 million). – Risk measurement: This is based on key risk indicators (early warnings), which highlight trends and/or provide prospective information about operational risks. Key risk indicators are aligned with the Van Lanschot Kempen Risk Appetite Statement. – Risk meetings: Periodic meetings with risk owners are held to monitor the development of the risk profile in relation to the risk appetite. Information security risk Information security risk relates to 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. Notes to the consolidated financial statements 208 Third-party risk In line with our strategy, we outsource certain processes to carefully selected third parties. From an operational risk perspective, this means replacing processing and transaction risks with third-party risk, which is defined as follows: the risk of failing to manage third-party relationships and risk appropriately. A comprehensive risk control framework is in place to handle third-party risk. Contracts containing access and audit rights as well as independent assurance on third- party performance are included in this framework. Fraud risk The main mitigants for fraud risk are strong processes with checks and balances (i.e. the four-eyes principle) and access controls. Internal fraud risk is defined as the risk of unexpected financial, material or reputational loss as the result of the fraudulent actions of people internal to the organisation. 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 2024, 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. External fraud risk is defined as fraud attempted or perpetrated against the organisation by an external party (i.e. a party without a direct relationship to Van Lanschot Kempen) without the involvement of an employee or affiliate of the organisation. We recognise that there is an increasing trend of external fraud risk in terms of both attempts and total impact, and we are continuously improving our capabilities for detecting, stopping or recovering external fraud attempts. Business continuity management Our business continuity management (BCM) framework is carefully designed to ensure the resilience and continuity of our critical operations, in alignment with the Digital Operational Resilience Act (DORA) and other relevant regulations. Our BCM activities begin with comprehensive business impact analyses to identify critical business processes, applications, and required resources. These insights inform the development of robust business continuity plans and detailed IT response and recovery plans, outlining strategies to maintain operations and swiftly restore services in the event of disruptions. Central to our framework is a structured crisis management organisation, comprising dedicated crisis management and support teams trained in crisis management skills. These teams are adept at implementing plans for restoring business operations and ensuring a coordinated and efficient response to various crises and disruptions. Crisis communication protocols are also in place to ensure quick and accurate internal communication, and to maintain transparency and manage stakeholder expectations during incidents. Our framework emphasises regular testing and exercises to validate the effectiveness of our plans, procedures and business continuity arrangement, such as alternative IT infrastructure. We conduct annual tests of the different plans in place and various IT tests, including an annual failover from primary to redundant IT infrastructure. Crisis management exercises are performed annually to ensure our teams are prepared for real-world scenarios. By continuously refining our BCM processes, Van Lanschot Kempen is committed to safeguarding operations, minimising negative impact, and maintaining the trust of our clients. 13. Compliance risk When operating in financial markets, it is important that we conduct our business activities in accordance with the expectations of our clients, employees, shareholders and supervisory authorities. We follow high ethical standards, in alignment with our values, code of conduct and risk appetite. Van Lanschot Kempen has established a compliance framework to effectively manage compliance risks across the organisation, to safeguard that business operations adhere to applicable laws, regulations, internal policies, and industry standards, and that we act in the best interests of our clients. Compliance risk can be described as the threat posed to our organisation’s financial, organisational or reputational standing resulting from violations of regulatory requirements, industry standards or internal policies and procedures. Non-compliance with these requirements could potentially result in reputational damage, claims from clients or other stakeholders, enforcement actions by legal and supervisory authorities, fines and other liabilities, even the potential loss of our licence to operate, which could negatively impact our business, results and profitability, and the financial sector as a whole. In addition, the regulatory landscape governing the financial sector is dynamic and complex. Being compliant with applicable laws and regulations and continuing to stay abreast of new emerging trends is resources-intensive. Financial crime risks As a gatekeeper of the financial system, we face the potential risk of unintentional involvement in activities related to money laundering, terrorism financing, sanctions, client tax integrity, and bribery and corruption. This could result in reputational damage, fines, or other sanctions from regulators, which could significantly impact our organisation. Financial crime risks are managed by implementing proper policies and processes, by offering anti-financial crime training to all employees, and providing specialised training to employees who interact with clients or are involved in detecting financial crime. Client protection risks Client protection risks involve the potential for unfair treatment of clients, and offering products that do not align with their needs, objectives, sustainability preferences or risk appetite. Our organisation is mainly exposed to the risk of claims from clients who might feel treated unfairly because of information or advice received or because products and/or services have not met their expectations. To make sure that we act in the best interest of our clients, a thorough product governance process is in place when offering, developing, or distributing (new) financial products and services. This also relates to marketing and communication materials. Business conduct risks It is crucial that we maintain and safeguard the integrity of the financial system and conduct our business in line with applicable laws and regulations. Business conduct risks refer to the potential of our organisation’s actions to negatively impact the financial markets, clients, or other stakeholders, including society as a whole. Adverse effects on market stability, market abuse or misconduct by employees could negatively impact our organisation and result in reputational Notes to the consolidated financial statements 209 damage, fines or enforcement actions by legal and supervisory authorities. Business conduct risks are managed by having proper policies and processes in place, as well as promoting ethical behaviour and responsible business conduct among employees. Data privacy risks Data privacy risks relate to processing personal data, data retention and adherence to the General Data Protection Regulation (GDPR) and the AI Act. We operate a data privacy programme to protect the data of clients and employees, to support the organisation in its obligations, advise on data privacy matters and monitor compliance. 14. 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. The financial statements are prepared in accordance with generally accepted accounting principles and comply with applicable legislation and regulations. We have the following processes and tools in place to manage financial reporting risks: – Our accounting manual, which sets out the principles regarding financial accounting; – A risk and control framework describing processes and procedures, and setting out primary controls such as authorisations and segregation of duties; – Periodic management reports and KPI dashboards, accompanied by analyses of financial and non-financial figures and trends; – Evaluation of the functioning of the internal risk management and control system by Internal Audit. The main findings are discussed with the Management Board, the Audit Committee and the Supervisory Board; – Assessment and approval of the annual report by the Management Board and discussion of the annual report by the Audit Committee and by the Supervisory Board. The management teams of the relevant departments provide the Management Board with in-control statements. These are based on the risks reported on a quarterly basis, the results of testing procedures for the risk and control framework, the follow-up of the reported risks and the test results, and, the incidents reported. The risk functions evaluate these statements. 15. Fair value 15.1 Financial instruments at fair value through profit or loss Some financial instruments in the statement of financial position are measured at fair value. Tables 15.1.A and 15.1.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 (OTC) 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. This is subsequently discounted to determine the present value. 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’s valuation is not based on observable market data. Valuation techniques used include: – The net asset value method; – Discounted cash flow projections based on reliable estimates of future cash flows; – The option model. A significant effect on the instrument’s valuation is considered to be present when the unobservable input accounts for at least 10% of the total instrument’s fair value and exceeds a threshold of €50,000. The effect of fair value adjustments on the instrument’s valuation is included in the assessment. Notes to the consolidated financial statements 210 Table 15.1.A Financial instruments at fair value at 31 December 2024 Level 1 Level 2 Level 3 Total Assets Derivatives 53,502 255,900 8,495 317,897 Financial assets at fair value through profit or loss 236,566 27,821 8,108 272,494 Financial assets at fair value through other comprehensive income 2,991,140 — — 2,991,140 Total assets 3,281,208 283,721 16,603 3,581,531 Liabilities Derivatives 53,501 192,507 8,557 254,566 Financial liabilities at fair value through profit or loss 116 462,553 2,223 464,891 Total liabilities 53,617 655,060 10,780 719,457 Table 15.1.B Financial instruments at fair value at 31 December 2023 Level 1 Level 2 Level 3 Total Assets Derivatives 36,829 303,097 2,600 342,526 Financial assets at fair value through profit or loss 198,435 28,197 7,960 234,593 Financial assets at fair value through other comprehensive income 2,208,514 — — 2,208,514 Total assets 2,443,778 331,294 10,561 2,785,633 Liabilities Derivatives 36,764 206,013 2,800 245,578 Financial liabilities at fair value through profit or loss 455 466,217 — 466,672 Total liabilities 37,219 672,230 2,800 712,249 Transfers of financial assets or liabilities between levels We have developed a policy document for the fair value hierarchy. This divides the variables used into observable and unobservable market inputs. If the unobservable input variables are significant, the instrument is classified as Level 3. An unobservable input variable is significant if the change in the fair value due to the application of the variable is greater than the threshold values. Our policy is to recognise transfers into and out of fair value hierarchy levels at the end of the reporting period. In 2024, our valuation technique remained unchanged, with non-observable input variables being assessed on significance. As a result of this assessment, some financial instruments included in Derivatives (both assets and liabilities) and in Financial liabilities at fair value through profit or loss have been transferred from Level 2 to Level 3 and vice versa. As a result of the input variables’ correlation and seasonality, some derivatives and financial liabilities at fair value through profit or loss were transferred to Level 2. The shorter remaining term to maturity of these financial instruments meant that these input variables qualified as non-significant, justifying a transfer to Level 2. In the case of Derivatives (assets), this entailed a transfer of €10.1 million from Level 3 to Level 2. For financial assets and liabilities at fair value through profit or loss, there were no transfers from Level 2 to Level 3 and vice versa. The transfer of Derivatives (liabilities) includes a €10.1 million shift from Level 3 to Level 2. Notes to the consolidated financial statements 211 Breakdown of movements in financial assets and liabilities classified under Level 3 Tables 15.1.C and 15.1.D provide a breakdown of the movements in all financial assets and liabilities classified as Level 3 items and recognised at fair value in the statement of financial position. Table 15.1.C Breakdown of changes in financial assets less liabilities classified as Level 3 in 2024 At 1 January To statement of income Issues Settlements Transfers At 31 December Assets Derivatives 2,600 — 8,495 -2,600 — 8,495 Financial assets at fair value through profit or loss 7,960 109 42 -17 14 8,108 Total assets 10,561 109 8,537 -2,618 14 16,603 Liabilities Derivatives 2,800 — 8,557 -2,800 — 8,557 Financial liabilities at fair value through profit or loss — — 2,223 — — 2,223 Total liabilities 2,800 — 10,780 -2,800 — 10,780 Total assets less liabilities 7,761 109 -2,243 182 14 5,823 Table 15.1.D Breakdown of changes in financial assets less liabilities classified as Level 3 in 2023 At 1 January To statement of income Issues Settlements Transfers At 31 December Assets Derivatives 408 — 2,600 -395 -13 2,600 Financial assets at fair value through profit or loss 8,579 26 230 -799 -76 7,960 Total assets 8,987 26 2,830 -1,194 -89 10,561 Liabilities Derivatives 8,241 -1,883 2,541 -2,327 -3,772 2,800 Financial liabilities at fair value through profit or loss 52,559 2,027 — -11,578 -43,008 — Total liabilities 60,801 144 2,541 -13,905 -46,780 2,800 Total assets less liabilities -51,813 -117 289 12,711 46,691 7,761 Table 15.1.E Fair value changes recognised in profit or loss of financial instruments classified as Level 3 2024 2023 Realised Unrealised Total Realised Unrealised Total Income from securities and associates -3 -1 -4 -2 -92 -94 Result on financial transactions — 113 113 — -23 -23 Total -3 112 109 -2 -115 -117 Notes to the consolidated financial statements 212 Table 15.1.F Notes on valuation inputs and relationships to fair value using unobservable market inputs (Level 3) Fair value Significant unobservable inputs Range of inputs (probability- weighted average)3 Relationships of unobservable inputs to fair value4 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Assets Derivatives Structured product derivatives – Equity swaps 8,495 2,600 Volatility 13.2% - 21.4% (15.8%) 15.5% - 21.9% (17.7%) Changed volatility (8.2 percentage points) would decrease fair value by €1.9m Correlation -15.6% - 21.2% (1.8%) -14.4% - 19.4% (1.0%) Changed correlation (36.8 percentage points) would decrease fair value by €0.0m Dividend 0.5% - 6.2% (3.1%) 1.1% - 3.4% (2.3%) Changed dividend (5.6 percentage points) would decrease fair value by €0.4m Financial assets at fair value through profit or loss Debt instruments: company cumprefs (shareholdings) (FVPL mandatory) 1,238 1,124 Interest rates 10% 6% - 10% (8%) Changed interest rate (1.0 percentage points) would decrease the fair value by €0.0m Discount rates 10% 6% - 10% (8%) Changed discount rate (1.0 percentage points) would decrease the fair value by €0.0m Shares, unlisted 6,870 6,836 Most recent published net asset values of the underlying assets n/a n/a n/a Cost or lower market value n/a n/a n/a Multiple analyses of comparable companies less a discount for illiquidity and company size based on EVCA guidelines n/a n/a n/a Most recently known share price n/a n/a n/a EBITA n/a n/a n/a Issue or transfer price n/a n/a n/a Market price on final trading day n/a n/a n/a Face value less provisions n/a n/a n/a Total assets 16,603 10,561 3 When no range of the significant unobservable input used in the valuation of the asset/liability applies, this is indicated by "n/a". 4 When there is no relationship of the unobservable inputs with the fair value of the asset/liability, this is indicated by "n/a". Notes to the consolidated financial statements 213 Table 15.1.F Notes on valuation inputs and relationships to fair value using unobservable market inputs (Level 3) (continued) Fair value Significant unobservable inputs Range of inputs (probability- weighted average) 5 Relationships of unobservable inputs to fair value6 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Liabilities Derivatives Structured product derivatives – Equity swaps 8,557 2,800 Volatility 13.2% - 16.2% (15.2%) 13.8% - 19.6% (17.3%) Changed volatility (3.0 percentage points) would increase fair value by €2.0m Correlation -10.2% - 9.4% (-0.4%) -20.1% - 25.8% (1.9%) Changed correlation (19.7 percentage points) would increase fair value by €0.0m Dividend 2.9% - 6.2% (3.7%) 2.9% - 6.1% (3.5%) Changed dividend (3.3 percentage points) would increase fair value by €0.5m Financial liabilities at fair value through profit or loss Other financial liabilities at fair value through profit or loss 2,223 — Volatility n/a n/a n/a Correlation n/a n/a n/a Total liabilities 10,780 2,800 5 When no range of the significant unobservable input used in the valuation of the asset/liability applies, this is indicated by "n/a". 6 When there is no relationship of the unobservable input with the fair value of the asset/liability, this is indicated by "n/a". Notes to the consolidated financial statements 214 15.2 Financial instruments at amortised cost Table 15.2 shows the carrying amount and fair value of financial instruments at amortised cost, with the exception of line items Cash and cash equivalents and balances at central banks, Other assets and Other liabilities. For these financial instruments the carrying amount is a reasonable approximation of the fair value. The 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 Table 15.2 are estimated on the basis of the present value or using other estimation or valuation methods. Table 15.2 Financial instruments at amortised cost 31/12/2024 31/12/2023 Fair value Carrying amount Fair value Carrying amount Level Valuation method Significant observable and unobservable market inputs Assets Due from banks 84,035 84,225 77,296 77,501 2 Discounted cash flows using applicable money market rates Interest rate and discount rate Loans and advances to the public and private sectors 8,999,733 9,331,093 8,602,008 9,161,433 3 Discounted cash flows using current market fees for comparable loans and taking into account the creditworthiness of the counterparty Interest rate, discount rate and counterparty credit risk Other financial assets at amortised cost 1,205,522 1,201,542 1,198,442 1,201,134 1 Quoted prices in active markets - Total assets 10,289,290 10,616,859 9,877,746 10,440,068 Liabilities Due to banks 164,692 164,804 252,367 250,504 2 Discounted cash flows using applicable money market rates for liabilities Interest rate and discount rate Public and private sector liabilities 12,709,033 12,766,921 12,401,813 12,573,814 3 Discounted cash flows using applicable money market rates for liabilities with a comparable term to maturity7 Interest rate, discount rate and own credit risk Issued debt securities 1,487,180 1,491,254 1,472,220 1,473,639 1 Quoted prices in active markets Interest rate and discount rate Subordinated loans 163,936 153,825 181,194 170,238 3 Discounted cash flows using applicable money market rates for debt instruments with a comparable term to maturity, taking account of own credit risk Interest rate, discount rate and own credit risk Total liabilities 14,524,842 14,576,804 14,307,595 14,468,194 7 The fair values of client deposits without contractual maturities (non-maturing deposits or NMDs) are approximated by the "economic values" that we calculate for these products as part of our interest rate risk management. We gauge their interest rate sensitivity (duration) by means of replicating portfolios, in which NMDs are "invested" in fixed income instruments (swaps) with various interest rate maturities. To arrive at economic values, we discount these replicating portfolio investments’ cash flows at current market interest rates (swap rates). Notes to the consolidated financial statements 215 Notes to the consolidated statement of financial position At 31 December (€1,000) 1. Cash and cash equivalents and balances at central banks Cash and cash equivalents and balances at central banks 2024 2023 Total 2,064,818 2,925,317 Cash 28 29 Balances at central banks 1,861,171 2,696,603 Statutory reserve deposits at central banks 129,665 123,637 Amounts due from banks 73,954 105,050 Impairments 0 0 Statutory reserve deposits comprise balances at central banks within the scope of the minimum reserves requirement. The balances at central banks also include irrevocable payment commitments (IPC) cash collateral regarding the SRF. The IPC cash collateral amounted to €7.1 million at year-end 2024 (2023: €7.1 million). The amount of IPC made in the reporting year was nil (2023: €1.7 million). We cannot use these balances in our day-to- day operations. See “Summary of material accounting policies” for our other accounting policies on cash and cash equivalents and balances at central banks. Reconciliation with consolidated statement of cash flows 2024 2023 Changes Cash and cash equivalents 2,064,818 2,925,317 -860,499 Due from banks, available on demand 16,280 23,348 -7,068 Due to banks, available on demand -42,491 -29,388 -13,103 Due from/to banks, available on demand, net -26,211 -6,041 -20,170 Total 2,038,607 2,919,277 -880,670 2. Due from banks Due from banks 2024 2023 Total 84,225 77,501 Deposits 67,945 48,111 Receivables arising from unsettled securities transactions 16,280 23,348 Loans and advances — 6,043 Deposits include a total of €63.3 million (2023: €41.9 million), serving as collateral for liabilities arising from derivatives transactions. Notes to the consolidated financial statements 216 3. Derivatives Derivatives at 31 December 2024 Asset Liability Contract amount Total 317,897 254,566 9,591,436 Derivatives used for trading purposes Currency derivatives 141 141 13,303 Client option positions 53,361 53,361 592,998 Total derivatives used for trading purposes 53,502 53,501 606,300 Derivatives used for hedge accounting purposes Derivatives: fair value hedge accounting 63,236 116,386 4,209,535 Derivatives: portfolio fair value hedge accounting 155,998 42,320 3,264,750 Total derivatives used for hedge accounting purposes 219,234 158,706 7,474,285 Other derivatives Economic hedges 7,477 7,891 194,500 Structured product derivatives 37,685 34,467 1,316,350 Total other derivatives 45,162 42,358 1,510,850 Derivatives at 31 December 2023 Asset Liability Contract amount Total 342,526 245,578 7,732,684 Derivatives used for trading purposes Currency derivatives 77 71 8,156 Equity derivatives 37 — 3,611 Client option positions 36,751 36,692 493,559 Total derivatives used for trading purposes 36,866 36,764 505,325 Derivatives used for hedge accounting purposes Derivatives: fair value hedge accounting 77,752 90,534 3,323,035 Derivatives: portfolio fair value hedge accounting 189,487 72,718 2,819,250 Total derivatives used for hedge accounting purposes 267,239 163,252 6,142,285 Other derivatives Economic hedges 3,864 9,120 50,000 Structured product derivatives 34,557 36,441 1,035,074 Total other derivatives 38,421 45,561 1,085,074 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: – Interest rate swaps; – Interest rate options. The following types of currency derivatives are used: – Currency options; – Currency forwards. The following types of equity derivatives are used: – Equity forwards; – Futures; – Long and short structured product options; – Equity swaps. We use interest rate swaps as hedging instruments in our hedge accounting. Ineffectiveness of derivatives for hedge accounting purposes 2024 2023 Fair value Ineffective Fair value Ineffective Total 60,527 1,121 103,987 -1,834 Fair value hedge accounting model -53,150 470 -12,782 -1,333 Portfolio fair value hedge accounting model 113,677 651 116,769 -501 The total ineffectiveness of fair value hedges at year-end 2024 was €1.1 million (2023: -€ 1.8 million), comprising €58.2 million in negative value changes in hedging instruments (2023: €160.5 million negative) and positive changes in the value of the hedged items of €59.3 million (2023: €158.6 million positive). Notes to the consolidated financial statements 217 4. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss 2024 2023 Total 272,494 234,593 Debt instruments Financial assets from trading activities (FVPL) Structured debt instruments — 2,129 Financial assets at fair value through profit or loss Government and government-guaranteed bonds 45,621 20,542 Sovereign, supranationals and agencies (SSA) bonds 80,686 39,671 Covered bonds 69,936 70,032 Puttable investment funds 59,358 77,167 Company cumprefs (shareholdings) (FVPL mandatory) 1,238 1,124 Total debt instruments 256,838 210,665 Equity instruments Financial assets from trading activities (FVPL) Shares, listed 8,787 12,769 Shares, unlisted 10 13 Financial assets at fair value through profit or loss Shares, unlisted (FVPL mandatory) 6,859 11,146 Total equity instruments 15,656 23,928 With the exception of company cumulative preference shares (shareholdings) and equity instruments, all financial assets at fair value through profit or loss are designated at fair value through profit or loss, as this significantly reduces inconsistency in measurement or recognition. Company cumprefs (shareholdings) and equity instruments are mandatorily measured at fair value because they do not meet the SPPI test. The maximum credit risk to which we were exposed in the reporting period is equal to the carrying amount. Our investments in covered bonds are collateralised by mortgages. Notes to the consolidated financial statements 218 Changes in financial assets at fair value through profit or loss1 2024 2023 At 1 January 219,681 360,452 Purchases 71,048 188,643 Sales -32,434 -51,531 Redemptions — -285,141 Value changes 4,847 7,023 Amortisation 554 235 At 31 December 263,696 219,681 5. Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income 2024 2023 Fair value Face value Fair value Face value Total 2,991,140 3,047,101 2,208,514 2,260,442 Debt instruments Government and government-guaranteed bonds 746,789 768,800 397,979 406,400 Sovereign, supranationals and agencies (SSA) bonds 1,115,129 1,146,523 726,492 754,723 Banks and financial institutions, listed — — 8,678 9,500 Covered bonds 890,680 893,585 802,136 817,755 Residential mortgage-backed securities 238,543 238,193 273,229 272,064 Total debt instruments 2,991,140 3,047,101 2,208,514 2,260,442 Changes in face value of Financial assets at fair value through other comprehensive income 2024 2023 At 1 January 2,260,442 1,817,086 Additions or releases without transfer -426,941 -791,975 Financial assets originated or purchased 1,213,600 1,235,332 At 31 December 3,047,101 2,260,442 Changes in Financial assets at fair value through other comprehensive income 2024 2023 At 1 January 2,208,514 1,704,938 Purchases 1,174,019 1,183,449 Sales -211,304 -597,510 Redemptions -216,941 -205,098 Value changes 28,300 119,117 Amortisation 8,552 3,619 At 31 December 2,991,140 2,208,514 The change in 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). Notes to the consolidated financial statements 219 6. Loans and advances to the public and private sectors Loans and advances to the public and private sectors 2024 2023 Total 9,331,093 9,161,433 Mortgage loans 6,844,833 6,857,894 Loans 1,926,295 1,806,940 Current accounts 419,662 424,604 Securities-backed loans and settlement claims 291,082 248,981 Subordinated loans 3,479 3,092 Value adjustments fair value hedge accounting -119,174 -141,932 Loss allowance for expected credit losses -35,084 -38,146 Part of our mortgage portfolio and fund of loans managed by AEGON Asset Management, serves as a hedged item for our macro fair value hedging model. Due to falling interest rates, the value adjustments of this portfolio have picked up compared with the previous year. The value adjustments are offset by the decreased value of interest rate swaps. The loans managed by AEGON Asset Management are part of a fund that was set up to facilitate unitholders to hold the investment to the end of the term of the underlying mortgages and provide them with the cash flows (solely contractual repayment of principal amount and interest cash flows) resulting from the underlying investments. Loss allowance for expected credit losses 2024 2023 Total -35,084 -38,146 Mortgage loans -3,516 -6,017 Current accounts -17,171 -15,317 Other loans and advances -14,397 -16,812 For more information, see "Risk management", under 3.8, Loss allowance for expected credit losses. Changes in gross carrying amount of Loans and advances to the public and private sectors Stage 1 Stage 2 Stage 3 Total At 1 January 2024 7,971,984 1,568,936 126,779 9,667,699 Additions or releases without transfer -2,530,827 828,163 -47,638 -1,750,302 Transfer to Stage 1 4,169,441 -4,182,728 -7,387 -20,673 Transfer to Stage 2 -2,917,432 2,888,423 -4,617 -33,625 Transfer to Stage 3 -19,276 -22,532 41,742 -65 Financial assets originated or purchased 1,869,195 — — 1,869,195 Amounts written off — — -2,100 -2,100 At 31 December 2024 8,543,086 1,080,263 106,780 9,730,128 Changes in gross carrying amount of Loans and advances to the public and private sectors Stage 1 Stage 2 Stage 3 Total At 1 January 2023 8,179,087 1,403,325 109,221 9,691,633 Additions or releases without transfer -1,989,748 240,480 -8,680 -1,757,949 Transfer to Stage 1 2,240,625 -2,247,179 -7,030 -13,584 Transfer to Stage 2 -2,192,283 2,193,077 -5,741 -4,947 Transfer to Stage 3 -23,857 -20,767 44,629 4 Financial assets originated or purchased 1,758,160 — — 1,758,160 Amounts written off — — -5,618 -5,618 At 31 December 2023 7,971,984 1,568,936 126,779 9,667,699 See “Risk management”, under 3, Credit risk, for more information about Loans and advances to the public and private sectors. Notes to the consolidated financial statements 220 7. Other financial assets at amortised cost Other financial assets at amortised cost 2024 2023 Carrying amount Face value Carrying amount Face value Total 1,201,542 1,211,331 1,201,134 1,217,831 Debt instruments Government and government-guaranteed bonds 91,748 93,268 91,102 93,268 Sovereign, supranationals and agencies (SSA) bonds 362,013 365,663 308,385 315,663 Banks and financial institutions, listed 5,994 6,000 5,988 6,000 Covered bonds 725,583 729,900 779,291 786,400 Residential mortgage-backed securities 16,500 16,500 16,500 16,500 Impairments -296 — -133 — Changes in face value of Other financial assets at amortised cost 2024 2023 At 1 January 1,217,831 1,110,081 Additions or releases without transfer -56,500 -100,000 Financial assets originated or purchased 50,000 207,750 At 31 December 1,211,331 1,217,831 Changes in Other financial assets at amortised cost 2024 2023 At 1 January 1,201,134 1,088,358 Purchases 51,685 207,031 Redemptions -56,500 -100,000 Impairments -163 -133 Amortisation 5,386 5,878 At 31 December 1,201,542 1,201,134 8. Investments in associates using the equity method Changes in associates using the equity method 2024 2023 At 1 January 110,890 103,265 Acquisitions and contributions 5,060 16,110 Sales and repayments -3,076 -36,153 Income from associates 6,334 32,214 Dividend received -1,393 -4,469 Other changes -258 -78 At 31 December 117,557 110,890 All associates valued using the equity method are unlisted investments. See also Note 23, Income from securities and associates. Notes to the consolidated financial statements 221 9. Property and equipment Property and equipment 2024 2023 Total 71,462 65,159 Buildings 19,707 19,326 Right-of-use – buildings 29,413 30,139 Right-of-use – transport equipment 12,883 5,966 IT, operating system software and communications equipment 3,747 4,573 Other assets 4,104 4,117 Work in progress 1,607 1,038 Lease liabilities amounted to €45.2 million at year-end 2024 (2023: €38.6 million) and are included in Other liabilities. Van Lanschot Kempen Investment Management (UK) Ltd entered into a long-term lease agreement on 25 September 2023, which runs until 31 October 2031. Van Lanschot Kempen co-signed the lease agreement, guaranteeing the obligations arising from it. The total obligation until the end of the contract amounts to €3.1 million (2023: €3.5 million). Changes in property and equipment in 2024 Buildings Right-of-use – buildings Right-of-use – transport equipment IT, operating system software and communica- tions equipment Other assets Work in progress Total At 1 January 19,326 30,139 5,966 4,573 4,117 1,038 65,159 Additions 3,482 8,526 11,140 1,349 1,697 569 26,762 Disposals -1,325 — — — -1,213 — -2,538 Capitalisation of investments — — — — — — — Depreciation -1,776 -9,252 -4,223 -2,175 -497 — -17,922 At 31 December 19,707 29,413 12,883 3,747 4,104 1,607 71,462 Historical cost 38,469 41,579 17,105 14,810 8,063 1,607 121,634 Accumulated depreciation and impairments -18,762 -12,165 -4,223 -11,063 -3,959 — -50,172 Net carrying amount at 31 December 19,707 29,413 12,883 3,747 4,104 1,607 71,462 Changes in property and equipment in 2023 Buildings Right-of-use – buildings Right-of-use – transport equipment IT, operating system software and communica- tions equipment Other assets Work in progress Total At 1 January 22,499 29,405 7,097 4,758 4,037 1,551 69,347 Additions 2,726 9,835 2,668 2,025 626 — 17,879 Disposals -3,935 — -464 — — — -4,400 Capitalisation of investments — — — — — -513 -513 Depreciation -1,963 -9,101 -3,334 -2,209 -546 — -17,154 At 31 December 19,326 30,139 5,966 4,573 4,117 1,038 65,159 Historical cost 36,485 41,820 9,300 17,918 9,014 1,038 115,574 Accumulated depreciation and impairments -17,159 -11,680 -3,334 -13,344 -4,897 — -50,415 Net carrying amount at 31 December 19,326 30,139 5,966 4,573 4,117 1,038 65,159 Notes to the consolidated financial statements 222 10. Goodwill and other intangible assets Goodwill and other intangible assets 2024 2023 Total 308,880 313,049 Goodwill 184,070 179,363 Other intangible assets 124,810 133,685 The carrying amounts of goodwill arising from acquisitions and other intangible assets are presented in the table above. Changes in goodwill and other intangible assets in 2024 Goodwill Client relationships Brand names Carbon credits Application software Total At 1 January 179,363 121,134 6,054 1,557 4,941 313,049 Additions acquired through business combinations 4,707 7,479 — — — 12,186 Amortisation — -13,154 -2,007 -80 -1,114 -16,355 At 31 December 184,070 115,459 4,046 1,477 3,827 308,880 Historical cost 184,070 181,664 21,897 1,597 9,584 398,812 Accumulated amortisation and impairments — -66,205 -17,850 -120 -5,757 -89,932 Net carrying amount at 31 December 184,070 115,459 4,046 1,477 3,827 308,880 The additions to goodwill and client relationships are due to the acquisition of Accuro in the first half of 2024; see “Business combination in 2024”. Changes in goodwill and other intangible assets in 2023 Goodwill Client relationships Brand names Carbon credits Application software Total At 1 January 176,761 122,957 6,901 — 134 306,753 Additions acquired through business combinations 2,603 10,846 1,087 — 5,465 20,000 Additions acquired separately — — — 1,597 — 1,597 Amortisation — -12,669 -1,935 -40 -658 -15,302 At 31 December 179,363 121,134 6,054 1,557 4,941 313,049 Historical cost 179,363 174,185 21,897 1,597 9,584 386,626 Accumulated amortisation and impairments — -53,051 -15,843 -40 -4,643 -73,577 Net carrying amount at 31 December 179,363 121,134 6,054 1,557 4,941 313,049 As of 1 January 2024, we changed our organisational structure with the goal to optimally equip it to respond decisively to commercial developments and regulatory requirements: as close to the client as possible, with effective support and with clear responsibilities and roles. The cash-generating unit (CGU) level at which the goodwill is monitored for internal management purposes has changed accordingly, and the goodwill has been reallocated to the newly determined CGU levels: Private Clients Netherlands, Private Clients Belgium, Investment Management Clients and Investment Banking Clients, based on a relative value approach. Goodwill at former CGU Wholesale & Institutional Clients has been fully reallocated to the new CGU Investment Management Clients. Goodwill arisen from the acquisition of Mercier Vanderlinden has been fully allocated from CGU Private Clients to CGU Private Clients Belgium. Based on the relative value approach, the goodwill related to Kempen & Co at former CGU Private Clients (€33.3 million) has been split into €28.4 million for Private Clients Netherlands and €4.9 million for Investment Management Clients. The remainder of the goodwill at Private Clients has been transferred to CGU Private Clients Netherlands. Our CGUs correspond to our operating segments (see section on segment information) except for Other, which is split between the CGUs Other and Non-strategic investments. Private Clients Netherlands and Private Clients Belgium performed strongly in 2024, mainly due to increased net commission income. Investment Management Clients recorded solid results in 2024, driven by net AuM inflows and positive market performance. Results at Investment Banking Clients picked up compared with 2023. The performances of our segments do not indicate any triggers for impairment. Notes to the consolidated financial statements 223 Allocation of goodwill to CGUs (based on segments) 2024 2023 Total 184,070 179,363 Private Clients Netherlands 40,499 n/a Private Clients Belgium 81,391 n/a Investment Management Clients 20,888 n/a Private Clients (until 1 January 2024) n/a 122,040 Wholesale & Institutional Clients (until 1 January 2024) n/a 16,031 Investment Banking Clients 41,293 41,293 Methodology We carried out our annual impairment test on goodwill. To determine whether an impairment is necessary, the recoverable amount of each CGU or group of CGUs is compared with its carrying amount. In line with IFRS Accounting Standards, the recoverable amount is determined as the higher of the fair value less costs of disposal (FVLCOD) and value in use (ViU). If either of these amounts exceeds the carrying amount, an impairment is not necessary and the other value does not have to be calculated. Value in use The ViU calculation uses equity cash flow projections for each CGU or group of CGUs for a five-year period. These projections are based on 2024 and on the financial estimates for the years 2025 until 2028 used by management in its strategic forecast at the end of 2024. For the period after the explicit projections per CGU, the growth rate is set at the long-term market growth rate of 2.0%. This growth rate applies to all CGUs, as in the long term all CGUs will be impacted by the same economic market developments. The rate is based on our own projections and on wealth management market projections by market experts. The discounted cash flow model uses one base-case scenario. Management has compared the main assumptions with market forecasts and expectations. Cash flow estimates are based on our strategic plans and on potential future trends. Events and factors that could have a significant impact on estimates include stock and bond market developments, effects of mergers and acquisitions, competitive conditions, client behaviour and changes in client relationships, cost structure, trends in inflation, interest rates and risks, and other circumstances specific to the industry and sector. Equity cash flows are discounted using a cost of equity for each CGU that reflects the risk-free interest rate, supplemented with a surcharge for the market risk exposure of the CGU or group of CGUs, and a small-firm premium. Fair value less costs of disposal The FVLCOD method uses the market price at valuation date of our peer group within the segment and their average earnings for a five-year reference period are used to calculate the price-earnings (PE) multiple. The recoverable amount is calculated using the median price-earnings ratio and the average earnings of the CGU over a five-year period, including projections based on management’s strategic forecast. CGU Method used for recoverable amount Discount rate after tax % PE multiple 2024 2023 2024 2023 2024 2023 Private Clients Netherlands ViU ViU 10.7 n/a n/a n/a Private Clients Belgium ViU ViU 10.7 n/a n/a n/a Investment Management Clients ViU ViU 12.2 n/a n/a n/a Private Clients (until 1 January 2024) ViU ViU n/a 11.1 n/a n/a Wholesale & Institutional Clients (until 1 January 2024) ViU ViU n/a 13.2 n/a n/a Investment Banking Clients ViU FVLCOD 11.2 n/a n/a 14.9 The impairment test performed in 2024 did not result in goodwill impairments. Based on the ViU calculation and the headroom for all CGUs with allocated goodwill, we did not see reason to use the FVLCOD calculation for 2024. The sensitivity analysis in the table below supports this conclusion. For the CGUs with allocated goodwill, a sensitivity analysis was carried out on the baseline scenario with particular attention to changes in long-term growth, the discount rate and the long-term EBIT margin. In addition, an annual test is carried out for indications of impairment of other intangible assets with a finite useful life. The acquired brand names are still active and no objective indication for impairment was apparent at year-end 2024 and year-end 2023. For the line item Client relationships, changes in the AuM volume are assessed. The useful life tests carried out in 2024 and 2023 provided no indication of a need for further examination. Consequently, no impairment is recognised for other intangible assets. Sensitivity analysis value in use method Change required in each key assumption for headroom to equal zero, in percentage points Headroom with terminal growth rate at 0% Headroom Net profit margin Cost of equity Private Clients Netherlands 536,185 -18.6% 7.2% 437,356 Private Clients Belgium 416,753 -40.1% 17.1% 348,493 Investment Management Clients 279,122 -30.0% 30.6% 239,174 Investment Banking Clients 46,682 -11.5% 6.3% 38,389 Notes to the consolidated financial statements 224 Expected amortisation of intangible assets 2025 2026 2027 2028 2029 2030–43 Total 14,211 14,209 13,443 12,348 11,253 61,580 11. Tax assets Tax assets 2024 2023 Total 18,092 11,342 Current tax assets 1,329 634 Deferred tax assets 16,763 10,708 Changes in deferred taxes in 2024 At 1 January Through statement of income To equity At 31 December Deferred tax assets Employee benefits 5,553 253 -64 5,742 Property and equipment 2,531 486 — 3,017 Lease liabilities 9,304 1,595 — 10,900 Derivatives 2,439 — -227 2,213 Loss available for set-off 134 1 — 135 Commission 26 4 — 30 Investment portfolio 3,506 — 3,589 7,095 Other -576 -201 1,375 598 Total deferred tax assets before offsetting 22,917 2,138 4,674 29,730 Offsetting deferred tax assets -12,968 Total deferred tax assets after offsetting 16,763 Deferred tax liabilities Right-of-use assets – buildings 6,661 -349 — 6,313 Right-of-use assets – transport equipment 1,530 1,733 — 3,264 Intangible assets 25,291 -784 — 24,507 Other 163 — 9 172 Total deferred tax liabilities before offsetting 33,646 601 9 34,257 Offsetting deferred tax liabilities -12,968 Total deferred tax liabilities after offsetting 21,288 The non-current portion of deferred tax assets that is expected to be recovered or settled after more than 12 months amounted to €29.7 million (2023: €22.9 million). See Note 31, Income tax, for more information. Notes to the consolidated financial statements 225 Changes in deferred taxes in 2023 At 1 January Through statement of income To equity At 31 December Deferred tax assets Employee benefits 5,453 1,002 -902 5,553 Property and equipment 2,512 19 — 2,531 Lease liabilities 9,889 -584 — 9,304 Derivatives 2,666 — -227 2,439 Loss available for set-off 1,140 -1,006 — 134 Commission 68 -43 — 26 Investment portfolio 6,785 — -3,279 3,506 Other -2,225 -424 2,073 -576 Total deferred tax assets before offsetting 26,288 -1,037 -2,334 22,917 Offsetting deferred tax assets -12,211 Total deferred tax assets after offsetting 10,708 Deferred tax liabilities Right-of-use assets – buildings 6,964 -303 — 6,661 Right-of-use assets – transport equipment 1,705 -175 — 1,530 Intangible assets 27,862 -2,570 — 25,291 Other 163 — — 163 Total deferred tax liabilities before offsetting 36,695 -3,048 — 33,646 Offsetting deferred tax liabilities -12,211 Total deferred tax liabilities after offsetting 21,435 Unrecognised losses 2024 2023 Total unrecognised losses 21,374 17,942 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 offset. Unrecognised losses relate to carry-forward losses of Van Lanschot Kempen Investment Management (UK) Ltd, amounting to €16 million (2023: €13 million), and to our non-strategic subsidiary Allshare BV, amounting to €5 million (2023: €5 million). As neither the UK nor the Netherlands observe any time limit for offsetting losses, these tax losses can be carried forward indefinitely. Notes to the consolidated financial statements 226 12. Other assets Other assets 2024 2023 Total 204,132 184,427 Interest receivable 50,621 36,153 Commission receivable 88,397 74,640 Transitory items 34,208 14,619 Other 30,907 59,015 The line item Other comprises amounts receivable such as debtors, short-term receivables related to solicitor escrow accounts and to the investment in the fund managed by AEGON Asset Management, and suspense accounts. 13. Due to banks Due to banks 2024 2023 Total 164,804 250,504 Deposits 122,314 221,116 Payables arising from unsettled securities transactions 25,904 6,120 Loans and advances drawn 16,587 23,269 Deposits mainly refer to cash collateral related to derivatives transactions. 14. Public and private sector liabilities Public and private sector liabilities 2024 2023 Total 12,766,921 12,573,814 Savings 5,846,985 5,056,634 Deposits 3,071,220 3,196,201 Current accounts 3,525,079 3,977,921 Other client assets 324,995 344,334 Value adjustments fair value hedge accounting -1,359 -1,277 15. Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss 2024 2023 Total 464,891 466,672 Debt instruments Financial liabilities at fair value through profit or loss Unstructured debt instruments — 27,911 Structured debt instruments 462,553 438,306 Other financial liabilities at fair value through profit or loss 2,223 — Total debt instruments 464,776 466,217 Equity instruments Financial liabilities from trading activities Shares, listed 116 455 Total equity instruments 116 455 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. Other financial liabilities at fair value through profit or loss of €2.2 million comprise the contingent cash consideration regarding the Accuro acquisition; see "Business combination in 2024". 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. Notes to the consolidated financial statements 227 The cumulative change in the fair value of Financial liabilities at fair value through profit or loss can be attributed to several factors, including changes in the entity's own credit risk, the maturity of all unstructured debt instruments, and the issuance of new structured debt instruments. The change in own credit risk amounted to a total of negative €2.6 million (2023: negative €2.7 million) and is mainly caused by a decline in the credit spread across the entire curve compared with 2023. 16. Issued debt securities Issued debt securities 2024 2023 Total 1,491,254 1,473,639 Covered bonds 1,496,977 1,495,525 Value adjustments fair value hedge accounting -5,724 -21,887 Issued debt securities comprise debt instruments with interest rates that are either fixed or variable, in so far as not subordinated. Of these debt securities no instruments became payable on demand in 2024 (2023: €299.8 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 December 2024 Face value Value adjustments fair value hedge accounting Premium/discount Carrying amount Total 1,500,000 -5,724 -3,023 1,491,254 Covered bond 1,500,000 -5,724 -3,023 1,491,254 Face value versus carrying amount of issued debt securities at 31 December 2023 Face value Value adjustments fair value hedge accounting Premium/discount Carrying amount Total 1,500,000 -21,887 -4,475 1,473,639 Covered bond 1,500,000 -21,887 -4,475 1,473,639 17. Provisions Provisions 2024 2023 Total 29,515 32,650 Provision for pensions 23,023 23,051 Provision for long-service benefits 3,034 3,007 Provision for restructuring — 2,156 Provision for financial guarantees and loan commitments 2,004 2,207 Other provisions 1,454 2,229 We operate a number of employee schemes under which participants receive payments or benefits after they retire. Specifically, there is a pension scheme and a discount scheme for mortgage interest rates, as well as a long-service benefits scheme. The following defined benefit schemes were valued for the purpose of the 2024 financial statements: – The long-service benefits depend on the number of years of service. – Both a defined contribution scheme and a defined benefit scheme are in place for employees working at Mercier Van Lanschot. The defined benefit scheme applies only for pension accrued up to and including 2024. The pensionable salary for the defined benefit scheme is taken as the average basic salary over the last five years of service. The pension capital is insured with UKZT (Uitgesteld Kapitaal Zonder Tegenverzekering). The accompanying term life assurance is funded from risk premiums. The defined contribution pension plans have been set up according to the Belgian approach of defined contributions but do not fulfil all the criteria of a defined contribution pension plan according to IAS 19. – For this reason, the defined contribution pension plans are treated as a defined benefit plan in the consolidated financial statements. – Until year-end 2019, former Kempen operated an average salary scheme under which 1.875% of the pensionable salary – salary less state pension offset, with an annual ceiling of €41,232 – was accrued for each year of service and which was based on a retirement age of 68. The surviving dependants’ pension was insured on a risk basis. – The pension plan of Van Lanschot Kempen Switzerland has been set up according to the Swiss approach of defined contributions but does not fulfil all the criteria of a defined contribution pension plan according to IAS 19. For this reason, the Swiss pension plan is treated as defined benefit plan in the consolidated financial statements. Only within our Kempen pension scheme, plan assets fund the obligations (i.e. the scheme is funded). The other schemes are unfunded; payments in any year are made directly by Van Lanschot Kempen. Notes to the consolidated financial statements 228 The pension schemes have been placed with insurers and a pension institution, which are responsible for the pension administration, risk insurance and communication of legal documents to employees who are scheme members. Decisions on and changes to pension scheme content are taken by an internal pensions committee. Where applicable, in the Netherlands the Works Council is consulted for its advice and/or approval. Our current Van Lanschot Kempen 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. The former Kempen scheme still has an obligation to pay guarantee costs and to provide indexation on the accrued pension benefits, the remainder of the provision (€17.0 million) 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 December 2024 Pensions Employee discounts Long-service benefits Defined benefit obligations 183,854 — 3,034 Fair value of plan assets 160,831 — — Surplus/deficit -23,023 — -3,034 Obligation at year-end -23,023 — -3,034 Obligations/assets included in the statement of financial position by scheme at 31 December 2023 Pensions Employee discounts Long-service benefits Defined benefit obligations1 168,056 53 3,007 Fair value of plan assets 145,005 — — Surplus/deficit -23,051 -53 -3,007 Obligation at year-end -23,051 -53 -3,007 Changes in defined benefit obligations for pension scheme 2024 2023 Defined benefit obligations at 1 January 168,056 162,144 Current service costs 2,462 2,893 Interest costs 5,645 5,869 Members' contributions 495 413 Gross benefits -2,362 -4,672 Transfers -488 -564 Remeasurements arising from changes in financial assumptions 6,631 2,312 Remeasurements arising from changes in demographic assumptions -237 -501 Experience adjustments 3,755 -435 Effect of foreign exchange rates -103 597 Defined benefit obligations at 31 December 183,854 168,056 At 31 December 2024, the weighted average duration of the defined benefit obligation was 18 years (2023: 18 years). Changes in defined benefit obligations for long-service benefits scheme 2024 2023 Defined benefit obligations at 1 January 3,007 2,617 Current service costs 195 158 Interest costs 92 94 Financial assumptions -53 147 Gross benefits -273 -281 Experience adjustments 66 272 Defined benefit obligations at 31 December 3,034 3,007 1 Because of a data inaccuracy in 2023 there is an estimated misstatement at 31 December 2023 of the DBO of c. €3.8 million and a misstatement of the fair value plan of assets of c. €3.5 million. As a result, the net liability was understated by €0.3 million. This was adjusted in the experience adjustments in 2024. Notes to the consolidated financial statements 229 Changes in fair value of pension plan assets 2024 2023 Fair value at 1 January 145,005 139,039 Expected return on plan assets 4,906 5,076 Financial assumptions 10,120 1,125 Employer's contribution 3,533 4,170 Gross benefits -2,150 -4,389 Transfers -488 -564 Effect of foreign exchange rates -95 548 Fair value at 31 December 160,831 145,005 Actual return on plan assets 15,026 6,201 Current service costs of pension scheme included in statement of income 2024 2023 Current service costs 2,462 2,893 Net interest income 5,645 5,869 Expected return on plan assets -4,906 -5,076 Net costs 3,201 3,686 Current service costs of long-service benefits scheme included in statement of income 2024 2023 Current service costs 195 158 Net interest income 92 94 Financial assumptions -53 147 Net costs 234 399 The assets in Van Lanschot Kempen's pension plan are 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’s 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% in fixed income and 27% in 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. Because of our well-diversified strategic asset mix, concentration risk and entity-specific or plan-specific risks are limited. The most significant actuarial assumptions made at the reporting date are as follows: Assumptions 2024 2023 Actuarial interest rate pension 0.90% - 3.50% 1.70% - 3.60% Actuarial interest rate employee discounts 0.0% 0.0% Actuarial interest rate long-service benefits 3.20% 3.00% Expected return on investments 1.20% - 3.50% 1.70% - 3.60% Price inflation 2.25% - 2.00% 2.25% - 2.10% General salary increase 1.00% - 2.10% 1.00% - 2.10% Retirement age 65-68 years 65-68 years The mortality rate is based on publicly available mortality tables for the relevant countries. For the calculations at 31 December 2024, the following mortality tables were used: – Kempen's former pension plans: the mortality tables as published by the Dutch Association of Actuaries (Prognosetafel AG2024); – Mercier Van Lanschot: the mortality table as published by the Institute of Actuaries in Belgium (MR/FR) with an age correction of -3 years; – Van Lanschot Kempen Switzerland: the mortality table as published by BVG (BVG 2020 GT). For Kempen's former pension plans, a rise of ten bps in the actuarial interest rate will lead to a decrease of 1.8% 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 Mercier Van Lanschot, a reduction of 25 bps in the actuarial interest rate will lead to an increase of 1.5% in the pension obligations and a rise of 25 bps in the actuarial interest rate will lead to a decrease of 1.5% in the pension obligations. For Van Lanschot Kempen Switzerland, a reduction of 50 bps in the actuarial interest rate will lead to an increase of 8.2% in the pension obligations and a rise of 50 bps in the actuarial interest rate will lead to a decrease of 7.2% in the pension obligations. Notes to the consolidated financial statements 230 History of changes in pension scheme gains and losses 2024 2023 2022 2021 2020 Defined benefit obligations 183,854 168,056 162,144 248,435 300,791 Fair value of plan assets 160,831 145,005 139,039 209,841 251,792 Surplus/deficit -23,023 -23,051 -23,105 -38,594 -48,999 Actuarial gains/losses on obligations 10,149 1,376 -88,829 -50,011 33,456 Actuarial gains/losses on investments 10,120 1,125 -73,578 -40,351 21,894 Expected contributions for 2025 Pension obligations Employee discounts Long-service benefits scheme Total 3,784 — 197 Expected employer's contributions 3,251 — 197 Expected employees' contributions 533 — — Provision for restructuring 2024 2023 At 1 January 2,156 390 Withdrawals -2,156 -1,802 Additions — 3,568 At 31 December — 2,156 Provision for financial guarantees and loan commitments 2024 2023 At 1 January 2,207 2,435 Withdrawals -203 -228 Additions — — At 31 December 2,004 2,207 Other provisions 2024 2023 At 1 January 2,229 3,746 Withdrawals -750 -1,280 Release -261 -463 Additions 235 226 Other changes 2 — At 31 December 1,454 2,229 Other provisions include provisions made for various legal claims and defined benefit obligations for employee discount schemes. Other provisions include an amount of €1.1 million (2023: €0.4 million) with an expected maturity of one year or longer. All provisions for financial guarantees and loan commitments are short-term. The amount and timing of the outflow of economic benefits regarding provisions are uncertain. 18. Tax liabilities Tax liabilities 2024 2023 Total 32,655 23,681 Current tax liabilities 11,367 2,246 Deferred tax liabilities 21,288 21,435 For changes in deferred tax liabilities, see Note 11, Tax assets. See Note 31, Income tax, for more information. Notes to the consolidated financial statements 231 19. Other liabilities Other liabilities 2024 2023 Total 247,596 250,333 Interest payable 75,398 73,526 Other accruals and deferred income 49,263 43,529 Lease liabilities 45,157 38,606 Other 77,779 94,672 Other liabilities comprise lease liabilities, income received to be credited to future periods and amounts payable such as accrued interest, payables, suspense accounts and unsettled items. Payments not included in lease liability measurement 2024 2023 Total 1,346 1,214 Leases of low-value assets 299 123 Variable lease payments 1,047 1,091 Interest expense on leases amounted to €1.3 million in 2024 (2023: €0.8 million) and is recognised in the statement of income under line item Other interest expense in Note 22, Net interest income. 20. Subordinated loans Subordinated loans 2024 2023 Total 153,825 170,238 Certificates of indebtedness 153,825 154,205 Other subordinated loans — 15,996 Value adjustments fair value hedge accounting — 38 Amortised cost versus carrying amount The value adjustment of subordinated loans used as hedged items is recognised under Subordinated loans. Amortised cost versus carrying amount subordinated loans at 31 December 2024 Amortised cost Value adjustments fair value hedge accounting Premium/ discount Carrying amount Total 150,000 — 3,825 153,825 Inflation-linked subordinated bond 08/33 25,000 — 457 25,457 Inflation-linked subordinated bond 08/38 25,000 — 924 25,924 Inflation-linked subordinated bond 08/43 50,000 — 2,525 52,525 2.000% subordinated bond 03/32 50,000 — -81 49,919 Amortised cost versus carrying amount subordinated loans at 31 December 2023 Amortised cost Value adjustments fair value hedge accounting Premium/ discount Carrying amount Total 165,996 38 4,205 170,238 Inflation-linked subordinated bond 08/33 25,000 — 582 25,582 Inflation-linked subordinated bond 08/38 25,000 — 1,030 26,030 Inflation-linked subordinated bond 08/43 50,000 — 2,710 52,710 2.000% subordinated bond 03/32 50,000 — -117 49,883 Other subordinated loans 15,996 38 — 16,034 All subordinated loans reported as Other subordinated loans expired in 2024. The average coupon on the other subordinated loans in 2023 was 6.03%. Notes to the consolidated financial statements 232 21. Total equity Total equity 31/12/2024 31/12/2023 Total 1,377,304 1,348,777 Equity attributable to shareholders Issued share capital 43,040 43,040 Treasury shares -19,928 -14,243 Share premium reserve 211,725 211,725 Revaluation reserve -20,405 -10,083 Actuarial results on defined benefit schemes -26,584 -26,759 Currency translation reserve 768 1,026 Cash flow hedge reserve -6,363 -7,015 Own credit risk reserve -1,966 1,989 Retained earnings 962,866 928,870 Other reserves 908,316 888,029 Undistributed profit (attributable to shareholders) 131,855 118,446 Total equity attributable to shareholders 1,275,008 1,246,996 Equity attributable to AT1 capital securities AT1 capital securities 100,000 100,000 Undistributed profit attributable to AT1 capital securities 2,242 1,688 Total equity attributable to AT1 capital securities 102,242 101,688 Equity attributable to other non-controlling interests Other non-controlling interests -135 134 Undistributed profit attributable to other non-controlling interests 189 -40 Total equity attributable to other non-controlling interests 54 93 Share capital 31/12/2024 31/12/2023 Number Nominal value Number Nominal value Class A ordinary shares 43,039,938 43,040 43,039,938 43,040 Unissued shares 106,960,062 106,960 106,960,062 106,960 Authorised capital 150,000,000 150,000 150,000,000 150,000 Changes in share capital 2024 2023 Number Nominal value Number Nominal value At 1 January 43,039,938 43,040 41,361,668 41,362 Shares issued — — 1,678,270 1,678 At 31 December 43,039,938 — 43,039,938 43,040 In 2023, 1,678,270 new shares were issued to the amount of €35.7 million, related to the acquisition of the remaining 30% stake in Mercier Vanderlinden by Van Lanschot Kempen. All shares were paid up in cash. During the 2024 financial year, we conditionally granted 27,479 depositary receipts for Class A ordinary shares (2023: 27,191). Van Lanschot Kempen holds 662,748 depositary receipts for Class A ordinary shares to meet open positions (2023: 562,852). For more information on share-based payments, see Note 27, Staff costs. Awards of unconditional shares and depositary receipts to staff are linked to performance and employment contracts. For more information about share schemes for staff and the Management Board, see page 143. Notes to the consolidated financial statements 233 Changes in reserves in 2024 Revaluation reserve financial assets at fair value through other comprehensive income Actuarial results on defined benefit schemes Currency translation reserve Cash flow hedge reserve Own credit risk reserve Retained earnings Total At 1 January -10,083 -26,759 1,026 -7,015 1,989 928,871 888,029 Net changes in fair value -10,322 — — 651 — — -9,670 Value change own credit risk — — — — -3,956 — -3,956 Profit appropriation — — — — — 118,446 118,446 Dividends — — — — — -84,731 -84,731 Share plans — — — — — 1,140 1,140 Actuarial results — 175 — — — — 175 Other changes — — -258 — — -860 -1,119 At 31 December -20,405 -26,584 768 -6,363 -1,966 962,866 908,316 Tax effects 3,589 -73 — -227 1,375 — 4,665 Changes in reserves in 2023 Revaluation reserve financial assets at fair value through other comprehensive income Actuarial results on defined benefit schemes Currency translation reserve Cash flow hedge reserve Own credit risk reserve Retained earnings Total At 1 January -19,513 -29,523 987 -7,666 7,952 961,987 914,223 Net changes in fair value 9,430 — — 651 — — 10,082 Value change own credit risk — — — — -5,963 — -5,963 Profit appropriation — — — — — 77,405 77,405 Dividend — — — — — -74,324 -74,324 Share plans — — — — — 902 902 Actuarial results — 2,764 — — — — 2,764 Other changes — — 39 — — -37,100 -37,061 At 31 December -10,083 -26,759 1,026 -7,015 1,989 928,871 888,029 Tax effects -3,279 -902 — -227 2,073 — -2,334 The proposed dividend for 2024 has been set at €2.75 per ordinary share (2023: €2.00 per ordinary share). At the AGM to be held on 22 May 2025, shareholders will be invited to approve the distribution of the dividend. Nature and purpose of other reserves Treasury shares: This includes the cost price of treasury shares kept by Van Lanschot Kempen for shares awarded to staff under current remuneration and equity schemes. Share premium reserve: This includes amounts paid to Van Lanschot Kempen by shareholders above the nominal value of purchased shares. Revaluation reserve: This includes changes in the fair value of FVOCI investments. Actuarial results on defined benefit schemes: This includes actuarial gains and losses on revaluation of investments and defined benefit obligations. The actuarial gains and losses related to a shortfall in minimum performance on defined contribution plan assets, required under Belgian and Swiss law, are also included. Currency translation reserve: This reserve (which is not available for free distribution) includes currency exchange differences resulting from the valuation of investments in group companies at the prevailing exchange rate in so far as the currency rate risk is not hedged. Cash flow hedge reserve: This includes the share in the gain or loss on hedging instruments in cash flow hedges that have been designated as an effective hedge. Own credit risk reserve: This includes the changes in Van Lanschot Kempen’s own credit risk of financial liabilities at fair value through profit or loss. Retained earnings: This includes past profits added to equity and changes in connection with the share scheme, as well as the settlement of shares related to the Mercier Vanderlinden transaction in 2023. Notes to the consolidated financial statements 234 Notes to the consolidated statement of income (€1,000) 22. Net interest income Net interest income 2024 2023 Total interest income 666,523 526,651 Interest income on cash equivalents 79 2,403 Interest income on balances at central banks 64,317 62,836 Interest income on banks, and public and private sectors 234,482 225,488 Interest income on financial assets at fair value through other comprehensive income 68,491 21,617 Interest income on other financial assets at amortised cost 38,163 34,892 Interest income calculated using the effective interest method 405,532 347,237 Interest income on financial assets at fair value through profit or loss 6,138 3,233 Interest income on derivatives 246,353 162,714 Other interest income 8,499 13,468 Other interest income 260,990 179,415 Total interest expense 491,063 329,847 Interest expense on banks, and public and private sectors 227,226 141,909 Interest expense on issued debt securities 40,302 31,191 Interest expense on subordinated loans 9,261 10,631 Interest expense calculated using the effective interest method 276,789 183,730 Interest expense on derivatives 189,433 119,435 Other interest expense 24,841 26,682 Other interest expense 214,274 146,117 Net interest income 175,460 196,805 In 2024, net intere st income was €21.3 million lower than in 2023. This was mainly driven by two factors. First, the margin between interest rates on client savings accounts and market rates decreased. Second, we saw a further conversion of current accounts into savings. The interest income on balances at central banks consists of the interest received on overnight deposits at DNB. 23. Income from securities and associates Income from securities and associates 2024 2023 Total 18,352 38,113 Income from associates using the equity method 6,334 9,089 Realised result of associates using the equity method 79 23,149 Realised and unrealised gains/losses on investments at fair value through profit or loss 6,208 5,375 Other gains/losses on sales 5,731 500 Income from securities and associates decreased by €19.8 million, mainly due to the sale of our 33.3% interest in Movares Group BV in November 2023 with a gain of €23.1 million. The other gains relate to realisation and revaluation of earn- outs from the sale of former subsidiaries. 24. Net commission income Net commission income 2024 2023 Total 511,089 427,313 Securities commissions 31,532 28,445 Management commissions 437,491 361,256 Cash transactions and funds transfer commissions 6,407 5,929 Corporate Finance and Equity Capital Markets commissions 29,700 25,853 Other commissions 5,960 5,830 Securities and management commissions were up by €79.3 million compared with 2023, mainly due to strong AuM growth on the back of inflows and market performance. Notes to the consolidated financial statements 235 25. Result on financial transactions Result on financial transactions 2024 2023 Total 13,383 1,040 Gains/losses on securities trading 2,347 1,657 Gains/losses on currency trading 10,994 7,600 Gains/losses on derivatives under hedge accounting 1,121 -1,834 Realised gains/losses on financial assets at fair value through other comprehensive income -820 -1,629 Gains/losses on economic hedges/hedge accounting not applied 30,975 31,165 Gains/losses on financial assets and liabilities at fair value through profit or loss -31,234 -35,919 Gains/losses on financial assets and liabilities mandatory at fair value through profit or loss worked out at -€0.5 million. 26. Other income Other income 2024 2023 Total 6,321 6,101 Net sales 9,058 8,475 Cost of sales -2,736 -2,374 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. 27. Staff costs Staff costs 2024 2023 Total 345,591 328,073 Salaries and wages 250,024 242,402 Pension costs for defined contribution schemes 31,940 30,031 Pension costs for defined benefit schemes 2,936 2,582 Other social security costs 30,218 26,905 Share-based payments for variable remuneration 7,467 6,660 Other staff costs 23,005 19,493 In 2024, share-based payments added €4.4 million to equity (2023: €4.0 million). Of the total expenses arising from share-based payments, €2.8 million is included in Salaries and wages (2023: €2.7 million). Share-based payment expenses totalled €9.0 million at year-end 2024 (2023: €8.6 million). Pension costs for defined contribution schemes include €1.8 million for Management Board members (2023: €1.7 million). The number of staff at year-end 2024 was 2,229 (2023: 2,112). The average number of staff in FTEs was 1,990 (2023: 1,901), as shown below: Average number of staff (FTEs) during the year 2024 2023 Total 1,990 1,901 Netherlands 1,736 1,653 Belgium 175 172 Other 78 75 Conditional depositary receipts for shares are granted to staff both under the variable remuneration policy for identified staff and the long-term share plan (LTP). Notes to the consolidated financial statements 236 Conditional depositary receipts for shares granted to staff (excluding Management Board) 2024 2023 At 1 January 88,133 98,040 Granted 27,479 27,191 Vested -26,301 -34,509 Forfeited rights -4,856 -2,589 At 31 December 84,455 88,133 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’s 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 2024 had a weighted average fair value of €20.51 (2023: €18.97). In 2024, 4 ,221 conditional depositary receipts for shares were granted under the LTP to a number of senior managers other than members of the Management Board (2023: 10,472). The part of the variable remuneration that is deferred and conditional is spread evenly over the vesting period of four years, and a one-year retention period applies to the deferred and conditional share certificates after they have become unconditional. 28. Other administrative expenses Other administrative expenses 2024 2023 Total 152,669 142,112 Accommodation expenses 11,030 12,230 Marketing and communication 13,914 12,200 Office expenses 3,824 3,844 IT expenses 53,120 43,062 External independent auditors' fees 5,583 4,749 Consultancy fees 16,091 18,344 Travel and hotel fees 4,348 4,008 Information providers' fees 17,724 17,869 External service provider charges 10,984 11,106 Other 16,052 14,701 Consultancy fees relate to advisory services (business consultancy, tax) and the implementation and maintenance of software and hardware. Fees charged by our external independent auditors and their network of offices are presented including VAT and can be broken down as follows: Fees charged by external independent auditors in 2024 PwC Accountants NV Other PwC network firms Total Total 4,441 995 5,436 Audit of the financial statements 2,931 995 3,926 Other audit services 278 — 278 Limited assurance procedures regarding CSRD 635 — 635 Tax services — — — Other non-audit services 597 — 597 Fees charged by external independent auditors in 2023 PwC Accountants NV Other PwC network firms Total Total 3,586 1,024 4,610 Audit of the financial statements 2,741 1,024 3,765 Other audit services 299 — 299 Tax services — — — Other non-audit services 546 — 546 Notes to the consolidated financial statements 237 This is a summary of the services rendered by our external independent auditor PricewaterhouseCoopers Accountants NV and its network: – Financial statements audit; – Financial statements audit for funds managed by Van Lanschot Kempen Investment Management NV; – Statutory audit of controlled and related entities; – Audit of the regulatory returns to be submitted to De Nederlandsche Bank; – ISAE 3402 type II engagement in respect of institutional and semi-institutional clients administering asset management services of Van Lanschot Kempen NV and Van Lanschot Kempen Investment Management NV; – Non-audit assurance engagements on safeguarding client assets; – Review procedures on the condensed consolidated report in the context of Article 26.2 of Capital Requirements Regulation No. 575/2013 as of 31 December 2024; – Comfort and consent letters issued as part of funding transactions and based on Dutch Accounting Standard 3850N; – DGS ISAE 3402 Type II; – Limited assurance on CSRD. 29. Depreciation and amortisation Depreciation and amortisation 2024 2023 Total 34,273 32,987 Buildings 1,776 1,963 Right-of-use assets – buildings 9,252 9,101 Right-of-use assets – transport equipment 4,223 3,334 IT, operating system software and communications equipment 2,175 2,209 Application software 1,114 658 Intangible assets arising from acquisitions 15,162 14,604 Other depreciation and amortisation 572 1,117 30. Impairments Impairments 2024 2023 Total -1,439 2,027 Cash and cash equivalents and balances at central banks 0 0 Due from banks — -1 Financial assets at fair value through other comprehensive income 481 232 Loans and advances to the public and private sectors -2,079 1,756 Other financial assets at amortised cost 163 84 Financial guarantees and loan commitments -5 -44 Impairments of financial instruments -1,439 2,027 The impairment charges relating to the financial instruments were down on 2023, mainly due to a reduced need for provisioning for new impaired loans and the release of the management overlay. For more information on impairments related to financial instruments, see "Risk management", under 3.8, Loss allowance for expected credit losses. Notes to the consolidated financial statements 238 31. Income tax Income tax 2024 2023 Operating profit before tax 193,512 164,173 Total gross result 193,512 164,173 Prevailing tax rate in the Netherlands (in %) 25.8 25.8 Tax 51,572 39,017 Total tax 51,572 39,017 Expected tax on the basis of the prevailing tax rate in the Netherlands 49,926 42,357 Increase/decrease in tax payable due to: Non-deductible interest 3,273 2,110 Tax-free income from securities and associates -1,711 -8,399 Non-deductible costs 3,243 2,412 Non-deductible losses 141 1,167 Adjustments to taxes for prior financial years 179 -481 Impact of foreign tax rate differences -422 -521 Addition/(release) deferred tax assets -1 6 Other changes -3,056 366 Total increase/decrease 1,646 -3,340 Total tax 51,572 39,017 This tax amount consists of the tax expense for the financial year on the operating result as disclosed in the statement of income, also allowing for any tax relief facilities. Changes in the effective tax rate were mainly due to non-deductible expenses and higher interest expenses, only partially offset by the deductibility of coupon payments on our AT1 capital securities, which is included in Other changes. In December 2022, EU member states adopted the EU Directive on minimum taxation (Pillar 2). Under this directive, multinational companies are subject to a minimum effective tax rate of 15% in every jurisdiction where they have an entity. If the effective tax rate is lower than 15%, a top-up tax is applied to reach a 15% effective tax burden. Companies with a global turnover exceeding €750 million in at least two of the four reporting years immediately preceding the reporting year fall within the scope of Pillar 2. As of 2024, the Minimum Tax Act, in which Pillar 2 is formalised, has been effective in the Netherlands. Our consolidated revenues in the 2020–22 period were below €750 million; in 2023 and 2024 they ended up above that figure. Note that Van Lanschot Kempen will fall within the scope of the Pillar 2 rules from the 2025 financial year if the 2025 consolidated revenues exceed €750 million. However, neither the mandatory recognition and disclosure exception in IAS 12.4A nor the disclosure requirements in IAS 12.88A-88D applied to us in 2024. Key income tax components 2024 2023 Total 51,572 39,016 Income tax 48,590 42,099 Income/expense from foreign tax rate differences 422 521 Income/expense from changes in deferred tax assets 2,138 -1,037 Income/expense from changes in deferred tax liabilities 601 -3,048 Income/expense from prior-year adjustments -179 481 The breakdown of deferred tax assets and liabilities through the statement of income is as follows: Deferred tax assets 2024 2023 Total 2,138 -1,037 Employee benefits 253 1,002 Commissions 4 -43 Property and equipment 486 19 Lease liabilities 1,595 -584 Tax-loss carry-forwards 1 -1,006 Other -201 -424 Deferred tax liabilities 2024 2023 Total 601 -3,048 Property and equipment 1,385 -477 Intangible assets -784 -2,570 Notes to the consolidated financial statements 239 32. Earnings per ordinary share Earnings per ordinary share 2024 2023 Net result 141,940 125,156 Share of AT1 capital securities -9,896 -6,750 Share of other non-controlling interests -189 40 Net result for calculation of earnings per share 131,855 118,446 Weighted average number of ordinary shares in issue 42,385,602 41,969,250 Earnings per ordinary share (€) 3.11 2.82 Proposed dividend per ordinary share (€) 2.75 2.00 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. 33. Diluted earnings per ordinary share Diluted earnings per ordinary share 2024 2023 Net result for calculation of diluted earnings per share 131,855 118,446 Weighted average number of ordinary shares in issue 42,385,602 41,969,250 Potential shares1 165,192 590,989 Weighted average number of ordinary shares in issue, fully diluted 42,550,794 42,560,239 Diluted earnings per ordinary share (€) 3.10 2.78 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. 1 Potential shares include shares issued in the year in which these are entitled to full dividend. Notes to the consolidated financial statements 240 Business combination in 2024 On 21 December 2023, we announced the acquisition of the Belgian investment adviser Accuro NV ("Accuro"). This acquisition was in line with our strategy, enabling us to expand our wealth management activities in Belgium. The assets acquired included Accuro's client relationships, which have been joined with Mercier Van Lanschot. On 29 April 2024, Van Lanschot Kempen announced the completion of this transaction. We consolidated Accuro in our financial statements as of 29 April 2024, as part of our Private Clients Belgium segment. Accuro's operating result before tax since the acquisition date of 29 April 2024 has been included in our consolidated statement of income. For 2024, this amounted to a result of €0.8 million, consisting of total income of €2.1 million and total expenses of €1.3 million. The table below sets out the allocation of the acquisition price to the fair value of the acquired assets (including any identifiable intangible assets) and liabilities at the acquisition date. The identifiable intangible assets reflect the acquired client relationships. The goodwill is attributable to the future profitability of the acquired business in anticipation of synergies achieved from the business combination. The total purchase consideration is composed of a cash and shares component. It includes a contingent amount of €2.6 million related to the earn-out agreement and was initially recognised under Note 15, Financial liabilities at fair value through profit or loss. The deferred contingent liability will be remeasured on reporting dates, based on Accuro's current and projected financial performance. The shares component of the total price consideration is considered to be management compensation and expensed through profit or loss over the period until 1 January 2030. As a consequence, an amount of €4.2 million was recognised under Staff costs in 2024. Accuro (€ million) Fair value of acquisition Carrying amount of acquisition Cash and cash equivalents 0.7 0.7 Property and equipment 0.5 0.3 Intangible assets 7.5 — Financial assets at fair value through profit or loss 1.4 1.4 Other assets 1.2 1.2 Total identifiable assets 11.2 3.6 Other liabilities 0.6 0.6 Deferred tax liabilities 1.9 — Total identifiable liabilities 2.5 0.6 Total net assets 8.7 3.0 Goodwill 4.7 Cash consideration 13.4 Notes to the consolidated financial statements 241 Related parties (€1,000) 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 staff, Supervisory Board members, 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 staff and is responsible for implementing our strategy and managing our activities (see "Management Board members"). Management and Supervisory Board remuneration 2024 2023 Fixed salary, amount in cash 3,589 3,396 Fixed salary, amount in shares 2,032 1,947 Extraordinary items — 34 Fixed payment for pension and disability insurance costs 1,835 1,747 Supervisory Board fee in cash 630 567 Total remuneration 8,086 7,691 Share-based payment expenses 261 253 Total staff cost 8,347 7,944 For transactions with key management staff, see “Remuneration of the Management and Supervisory Boards”. Affiliates 2024 2023 Income Expenses Income Expenses Stichting Pensioenfonds F. van Lanschot 968 — 968 — Parties with significant influence in Van Lanschot Kempen On the basis of regulatory guidelines, entities with a shareholding of at least 5% in Van Lanschot Kempen are parties with significant influence in Van Lanschot Kempen. The table below shows the year-end income and expenses relating to these parties in the statement of income and the statement of financial position. Parties with significant influence in Van Lanschot Kempen in 2024 Income Expenses Amount receivable Amount payable Stichting Administratiekantoor van gewone aandelen A Van Lanschot Kempen — — — 67 Romij BV — — — — LDDM Holding BV 5 8 — 1,720 Janus Henderson Group plc — — — — Van Lanschot Kempen did not grant any loans or guarantees to parties with significant influence in Van Lanschot Kempen in either 2024 or 2023. Parties with significant influence in Van Lanschot Kempen in 2023 Income Expenses Amount receivable Amount payable Stichting Administratiekantoor van gewone aandelen A Van Lanschot Kempen — — — 61 Romij BV — — — — LDDM Holding BV 3 2 — 1,917 Janus Henderson Group plc — — — — Notes to the consolidated financial statements 242 List of shareholders Based on the requirements of Section 5.3 of the Financial Supervision Act, the following notifications have been recorded in the major interests register held by the Dutch Authority for the Financial Markets (AFM). The percentages reflect the number of shares on the register on the dates listed. This list includes the notifications until 31 December 2024. Shareholder Notification date Interest Stichting Administratiekantoor van gewone aandelen A Van Lanschot Kempen 24 May 2013 97.30% Depositary receipt holders Notification date Interest Romij BV 11 June 2024 16.87% LDDM Holding BV 3 June 2014 9.76% Janus Henderson Group plc 17 October 2016 5.60% FMR LCC 7 July 2016 4.99% MVDP NV 5 April 2023 3.90% Disclosure is required once a shareholder’s interest reaches or exceeds certain threshold values, and it should be noted that current stakes of listed shareholders and/or depositary receipt holders may have changed since notification date. Stichting Administratiekantoor van gewone aandelen A Van Lanschot Kempen currently holds more than 99.99% of the Class A ordinary shares. For transactions in associates, see “Disclosures of interest in other entities”. Notes to the consolidated financial statements 243 Disclosure of interests in other entities Key judgements and assumptions We rely on key judgements and assumptions when determining control and significant influence. We have included these under the headings “Basis of consolidation” and “Summary of material accounting policies”. Interests in subsidiaries The consolidated statement of financial position and statement of income comprise subsidiaries and entities in which Van Lanschot Kempen has control, but exclude the names of relatively minor subsidiaries and entities. Subsidiaries (%) 2024 2023 Van Lanschot Kempen (Schweiz) AG 100 100 Kempen Dutch Inflation Fund I NV 100 100 Van Lanschot Kempen Investment Management NV 100 100 Van Lanschot Kempen Bewaarder NV 100 100 Van Lanschot Kempen AM NL BV 100 100 Van Lanschot Kempen (USA) Inc. 100 100 Van Lanschot Kempen Participaties BV 100 100 Beheermaatschappij "Orthenstraat" BV 100 100 Sapphire Investments BV 100 100 Quion 17 BV 100 100 Efima Hypotheken BV 100 100 LansOG Beheer BV 100 100 Hof Hoorneman NV 100 100 St. Custodian Van Lanschot Kempen Partnership1 — — Mercier Vanderlinden Asset Management NV2 — 100 Accuro NV 100 n/a Consolidated structured entities controlled by Van Lanschot Kempen In the consolidated statement of financial position, we consolidate structured entities. These are designed in such a way that the voting rights are not the dominant factor in deciding who controls the entity, and the relevant activities are governed by contractual arrangements. Van Lanschot Kempen is exposed to substantially all of the risk of the structured entity and thereby controls it. Therefore, these structured entities do not qualify as a transfer of financial assets and are not derecognised from our statement of financial position. We consolidate the following structured entities: – Van Lanschot Conditional Pass-Through Covered Bond Company 2 BV; – Van Lanschot Kempen SB Covered Bond Company BV. Retained Conditional Pass-Through (CPT) Covered Bond programme We established a retained CPT programme in July 2019. In September 2019, the first bond of €300 million was issued. This bond was increased by €200 million to €500 million in June 2023. All bonds were retained. In 2024, we restructured the outstanding instrument, extended the maturity date to September 2028, and reset the coupon at 1.3%. Public Soft Bullet Covered Bond (SBCB) programme We established a soft bullet covered bond programme in March 2022. In June 2022, we launched the first bond of €500 million (maturity of five and a half years, coupon of 2.5%). A second €500 million bond was issued in May 2023 (maturity of three years, coupon of 3.5%). Finally, in October 2023 a bond was transferred from the discontinued CPT programme. All bonds were placed with institutional investors. 1 Van Lanschot Kempen can exercise indirect control via its partners participating in the partnership plan. 2 On 1 January 2024, the legal merger between Mercier Vanderlinden Asset Management and Van Lanschot Kempen (the acquiring entity) became effective. As a result of this merger, Mercier Vanderlinden Asset Management ceased to exist as a legal entity and continued, after integration with the Van Lanschot Belgium branch, as Mercier Van Lanschot. Notes to the consolidated financial statements 244 The table below shows the total amounts of the mortgage loans involved in each covered bond programme. Structured entities (€1,000) 31/12/2024 31/12/2023 Fair value Carrying amount Fair value Carrying amount Total 2,408,048 2,553,285 2,471,899 2,700,817 Retained Conditional Pass-Through Covered Bond programme 563,299 603,577 546,070 604,964 Public Soft Bullet Covered Bond programme 1,844,749 1,949,707 1,925,829 2,095,853 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 Residential mortgage-backed securities are classified as financial assets at fair value through other comprehensive income or other financial assets at amortised cost . 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’s 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 €240.6 million at 31 December 2024 (2023: €276.3 million). 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 2024 (€1,000) Interest income Impairment Comprehensive income Total income Investments Total 7,827 -11 939 8,756 255,043 Residential mortgage-backed securities 7,827 -11 939 8,756 255,043 Non-consolidated structured entities 2023 (€1,000) Interest income Impairment Comprehensive income Total income Investments Total 2,473 -17 1,982 4,438 289,729 Residential mortgage-backed securities 2,473 -17 1,982 4,438 289,729 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 (€1,000) 31/12/2024 31/12/2023 Total 54 93 Consolidated investment funds 54 93 Van Lanschot Kempen’s minority interests are recognised under non-controlling interests as part of equity. Notes to the consolidated financial statements 245 Changes in non-controlling interests (€1,000) 2024 2023 Non-controlling interests Undistributed profit attributable to non-controlling interests Total Non-controlling interests Undistributed profit attributable to non-controlling interests Total At 1 January 134 -40 93 — 146 146 Profit appropriation -40 40 — 146 -146 — Dividend -228 — -228 — — — Result for the reporting period — 189 189 — -40 -40 Other changes — — — -12 — -12 At 31 December -134 189 55 134 -40 93 Consolidated investments The table below provides aggregated information on consolidated investments. Financial information consolidated investments (€1,000) 2024 2023 Total assets 116 151 Total liabilities 48 33 Equity attributable to shareholders 14 25 Equity attributable to non-controlling interests 54 93 Total income from operating activities 285 -43 Total expenses 49 8 Taxes — — Net income 236 -50 Of which attributable to shareholders 47 -10 Of which attributable to non-controlling interests 189 -40 Notes to the consolidated financial statements 246 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. 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 2024, no investments were sold. In 2023, we sold our interest in Movares Group BV (33.3%); see Note 23, Income from securities and associates. Name Activities Head office Interest Bolster Investments Coöperatief UA Bolster Investments Coöperatief UA is an investment fund managed by Bolster Investment Partners BV. A flexible, long-term investor, Bolster Investment Partners specialises in partnerships with entrepreneur-led and family-owned businesses through minority and majority interests. Amsterdam 29.75% Bolster Investments II Coöperatief UA Bolster Investments II Coöperatief UA is an investment fund, managed by Bolster Investment Partners BV. A flexible, long-term investor, Bolster Investment Partners specialises in partnerships with entrepreneur-led and family-owned businesses through minority and majority interests. Amsterdam 22.00% Langosta BV Langosta participates in financing companies. Amsterdam 47.74% OGD Holding BV OGD provides IT 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. Delft 31.30% Ploeger Oxbo Holding BV Ploeger Oxbo develops, manufactures and sells a wide range of specialist harvesting equipment to customers across the world. Roosendaal 11.83% Tecnotion Investment BV Tecnotion designs, produces and sells linear motors across the world, to the semiconductor, electronics, LCD, automotive and robotics industries among other sectors. Almelo 38.00% Aggregated financial information of associates for which Van Lanschot Kempen applies the equity method (€1,000) 2024 2023 Associates, equity method Attributable to Van Lanschot Kempen Associates, equity method Attributable to Van Lanschot Kempen Total 367,205 110,892 350,759 103,987 Current assets 261,316 40,444 250,307 40,274 Non-current assets 530,779 102,946 498,891 96,628 Current liabilities -101,551 -18,156 -103,565 -18,540 Non-current liabilities -323,339 -43,559 -294,874 -40,252 Goodwill 17,541 18,221 Impairments — — Other 11,676 7,656 Other financial information Dividend received 1,393 4,469 Income from operational activities 6,638 13,020 Share of net income 6,334 32,214 Unrecognised share of losses 117 117 Comprehensive income — — Notes to the consolidated financial statements 247 The table below shows the income and expenses that we report for associates using the equity method in the statement of income and the positions included in the statement of financial position, as well as commitments given at year-end in respect of these entities. Transactions with Investments in associates using the equity method (€1,000) 2024 2023 Income — — Amount payable 1,361 4,003 Commitments 20,595 25,655 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 2024 or 2023. Van Lanschot Kempen Participaties Investments using the equity method held by Van Lanschot Kempen Participaties are managed by Bolster Investment Partners. Van Lanschot Kempen Participaties invests in a portfolio of equity funds. In addition, one of the portfolio companies issued cumulative preference shares. Moreover, a subordinated loan has been issued to one of the portfolio companies. The table below shows Van Lanschot Kempen Participaties’ financial impact on the consolidated statement of financial position and statement of income. The table does not include information about controlling interests. Van Lanschot Kempen Participaties at 31 December 2024 (€1,000) Investment activity Item Carrying value Interest Income from securities and associates Impairments Total Direct investment Investment in associates using the equity method 34,394 — 1,445 — 1,445 Shareholdings Financial assets at fair value through profit or loss 1,238 113 — — 113 Subordinated loans Loans and advances to the public and private sectors 3,479 — — — — Fund investment Financial assets at fair value through profit or loss 540 — 91 — 91 Total 39,651 113 1,536 — 1,649 Notes to the consolidated financial statements 248 Commitments and contingent liabilities (€1,000) Contingent liabilities and irrevocable commitments 2024 2023 Total 219,624 214,510 Guarantees, etc. 52,588 66,036 Irrevocable unused credit facilities 130,745 113,284 Irrevocable lease commitments 58,326 — Other irrevocable commitments 36,291 35,190 This item does not include unconditionally revocable unused credit facilities, which amounted to €1,001 million in 2024 (2023: €1,086 million). In the 2023 financial statements the split between irrevocable and revocable facilities was not made. For several group companies, guarantees totalling €237.3 million (2023: €254.1 million) have been issued. It is uncertain whether, when and how much of these contingent liabilities will be claimed. The following tables show the contingent items (contingent liabilities and irrevocable commitments) based on their remaining contractual terms to maturity at the reporting date. For each transaction that we have guaranteed, the maximum guaranteed amount is included in the relevant term bucket. Irrevocable lease commitments consist of a long-term lease contract signed before year-end 2024. This contract had not yet commenced at year-end 2024. It relates to the relocation to a new office in Amsterdam from 2027. For each obligation arising from an irrevocable commitment, the committed amount is classified in the relevant term bucket. Comparative figures for the Guarantees, etc. and Irrevocable unused credit facilities have been restated for an amount of €23 million and €916 million respectively. This amount has been reclassified as revocable facilities as these may be revoked on demand. Contractual maturity of contingent items at 31 December 2024 Withdrawable on demand < 3 months 3 to 12 months 1 to 5 years More than 5 years Total Total 33,333 76,201 11,086 49,836 107,493 277,950 Guarantees 2,483 4,237 8,862 13,887 23,119 52,588 Irrevocable unused credit facilities 30,850 71,965 2,224 21,284 4,423 130,745 Irrevocable lease commitments — — — 13,366 44,960 58,326 Other irrevocable commitments — — — 1,300 34,991 36,291 Contractual maturity of contingent items at 31 December 2023 Withdrawable on demand < 3 months 3 to 12 months 1 to 5 years More than 5 years Total Total 74,169 37,336 21,642 9,454 71,908 214,510 Guarantees 2,807 1,691 20,481 6,239 34,818 66,036 Irrevocable unused credit facilities 71,362 35,645 1,161 1,915 3,200 113,284 Irrevocable lease commitments — — — — — — Other irrevocable commitments — — — 1,300 33,890 35,190 Other commitments We have 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 €56.8 million (2023: €46.3 million) and solely consist of intangible asset expenses. 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 (€1,000) 2024 2023 Total 150,695 128,150 Within 1 year 54,445 48,187 1 to 5 years 88,191 69,783 More than 5 years 8,059 10,180 The increase in Future payments for IT and other contracts was due to higher costs of IT and other contracts. Notes to the consolidated financial statements 249 Segment information As a specialist wealth manager, we serve the entire spectrum of client groups, ranging from private banking clients to institutional investors and corporates. Key to our strategy is the ability to adapt quickly to changing client needs and market circumstances. At the beginning of 2024, we changed our organisational structure. This new organisational structure means that our segment reporting has also changed to client groups from 2024 onwards, i.e. Private Clients Netherlands, Private Clients Belgium, Investment Management Clients, Investment Banking Clients, and Other activities. Comparative figures for 2023 have been adjusted in a compressed manner due to the change in operating segments. Private Clients Netherlands Private Clients Netherlands offers private banking clients and entrepreneurs a range of wealth management services and products in the private banking market in the Netherlands and Switzerland, while also focusing on business professionals and executives, healthcare professionals, family businesses, foundations and associations. The activities of Evi, Van Lanschot Kempen’s online investment platform, are integrated in this segment and specifically target affluent individuals. Private Clients Belgium Private Clients Belgium offers private banking clients wealth planning, discretionary solutions, and investment advice complemented by specific banking services under the new brand name Mercier Van Lanschot. The focus is on excellent client service and understanding of client needs. Investment Management Clients This client segment includes Van Lanschot Kempen’s investment management activities in the Netherlands and the UK. Investment Management Clients is an active management boutique with expertise in small caps, credits and private equity. It serves Dutch and international clients with focused strategies and fiduciary management services. Investment Banking Clients Investment Banking Clients is a specialist investment bank with an international sector-focused approach in European real estate, life sciences & healthcare, tech & fintech and infrastructure. Investment Banking Clients offers specialist services including equities research and trading, M&A, equity capital market transactions and debt advisory services to corporate and institutional investors. Other The Other segment comprises activities in the fields of interest rate, management book, market and liquidity risk management, structured products activities, and staff departments, as well as the activities of Van Lanschot Kempen Participaties, our investment in the Bolster funds, and consolidated investments. Operating segments in 2024 (€ million) Private Clients Netherlands Private Clients Belgium Investment Management Clients Investment Banking Clients Other Total Statement of income Net interest income 156.9 9.3 0.9 -0.4 8.7 175.5 Income from securities and associates — — 0.2 3.7 14.5 18.4 Net commission income 234.2 105.5 127.2 40.4 3.8 511.1 Result on financial transactions 1.3 0.0 -0.1 2.2 10.0 13.4 Other income — — — — 6.3 6.3 Total income from operating activities 392.4 114.9 128.2 45.8 43.4 724.6 Staff costs 92.3 40.4 62.6 22.8 127.6 345.6 Other administrative expenses 68.2 18.2 40.5 8.9 16.9 152.7 Allocated expenses 92.4 7.9 -0.7 10.1 -109.7 — Depreciation and amortisation 7.0 10.4 0.9 0.2 15.8 34.3 Impairments -2.4 0.1 — — 0.9 -1.4 Total expenses 257.4 77.0 103.3 41.9 51.4 531.1 Operating result before tax 134.9 37.8 24.9 3.9 -8.1 193.5 Notes to the consolidated financial statements 250 Operating segments in 2023 (€ million) Private Clients Netherlands Private Clients Belgium Investment Management Clients Investment Banking Clients Other Total Statement of income Net interest income 172.4 12.6 0.4 -0.3 11.7 196.8 Net commission income 193.8 80.0 111.8 36.7 5.0 427.3 Other income1 0.9 0.5 0.1 2.1 41.7 45.3 Total income from operating activities 367.1 93.1 112.3 38.6 58.4 669.4 Total expenses 239.7 67.1 102.1 42.9 51.3 503.2 Operating result before tax 123.9 27.8 10.1 -4.4 6.7 164.2 The tables below give additional information on the geographical spread of income from operations. Geographical segments in 2024 (€ million) Netherlands Belgium Other Total Statement of income Total income from operating activities 580.1 113.6 30.9 724.6 Of which income from other segments -26.0 32.0 -5.9 — Statement of financial position Due from banks 66.7 — — 66.7 Investments in associates using the equity method 117.6 — — 117.6 Other non-current assets² 270.5 106.0 3.1 379.6 Total non-current assets3 454.7 106.0 3.1 563.8 Geographical segments in 2023 (€ million) Netherlands Belgium Other Total Statement of income Total income from operating activities 548.5 92.5 28.4 669.4 Of which income from other segments -20.5 23.0 -2.6 — Statement of financial position Due from banks 49.1 — — 49.1 Investments in associates using the equity method 110.9 — — 110.9 Other non-current assets2 276.2 98.2 3.0 377.5 Total non-current assets3 436.1 98.2 3.0 537.4 1 Includes Income from securities and associates, Result on financial transactions and Other income as presented in the consolidated statement of income. 2 Includes Property and equipment, Goodwill and other intangible assets and Other assets as presented in the consolidated statement of financial position. 3 Other than financial instruments, deferred tax assets and post-employment assets. Notes to the consolidated financial statements 251 Country-by-country reporting 2024 Country Name of subsidiary Nature of activities Average number of staff (FTEs) Total income from operating activities (€ million) Operating result before tax (€ million) Income tax (€ million) Government subsidies (€ million) Total 1,990 724.6 193.5 -51.6 — Netherlands Van Lanschot Kempen NV Wealth management 1,736 580.1 150.1 -39.1 — Belgium Van Lanschot Kempen NV branch Mercier Van Lanschot4 Accuro NV Wealth management 175 113.6 43.5 -12.0 — Switzerland Van Lanschot Kempen (Schweiz) AG Wealth management 39 19.2 1.5 -0.2 — United Kingdom Van Lanschot Kempen Investment Management (UK) Ltd Asset management 33 7.3 -2.4 — — United States Van Lanschot Kempen (USA) Inc. Securities broker-dealer 5 3.7 0.7 -0.2 — France Van Lanschot Kempen Investment Management NV branch Asset management 2 0.7 0.2 -0.1 — Sweden Van Lanschot Kempen NV cross-border activity Investment banking 0 0.0 0.0 0.0 — Country-by-country reporting 2023 Country Name of subsidiary Nature of activities Average number of staff (FTEs) Total income from operating activities (€ million) Operating result before tax (€ million) Income tax (€ million) Government subsidies (€ million) Total 1,901 669.4 164.2 -39.0 — Netherlands Van Lanschot Kempen NV Wealth management 1,653 548.5 134.2 -28.3 — Belgium Van Lanschot Kempen NV branch Mercier Vanderlinden Asset Management NV Wealth management 172 92.5 29.0 -8.3 — Switzerland Van Lanschot Kempen (Schweiz) AG Wealth management 36 17.9 4.8 -1.0 — United Kingdom Van Lanschot Kempen Investment Management (UK) Ltd Asset management 33 5.8 -4.7 -1.1 — United States Van Lanschot Kempen (USA) Inc. Securities broker-dealer 4 3.5 0.7 -0.2 — France Van Lanschot Kempen Investment Management NV branch Asset management 2 0.7 0.0 0.0 — Sweden Van Lanschot Kempen NV cross- border activity Investment banking 1 0.5 0.0 0.0 — 4 On 1 January 2024, the legal merger between Mercier Vanderlinden Asset Management and Van Lanschot Kempen (the acquiring entity) became effective. As a result of this merger, Mercier Vanderlinden Asset Management ceased to exist as a legal entity and continued, after integration with the Van Lanschot Belgium branch, as Mercier Van Lanschot. Notes to the consolidated financial statements 252 Profit appropriation If the annual general meeting of shareholders approves the dividend proposal as included in these financial statements (see Note 32, Earnings per ordinary share), the appropriation of net result will be as follows: Profit appropriation (€1,000) 2024 2023 Total 131,855 118,446 Addition to reserves 15,318 33,492 Dividend on Class A ordinary shares 116,537 84,954 Notes to the consolidated financial statements 253 Remuneration of the Management and Supervisory Boards For further details of remuneration received in 2024, see “Remuneration report” on page 143. Total remuneration of the individual members of the Management Board (€1,000)1 Management Board member Year Fixed salary amount in cash Fixed salary amount in shares2 Total fixed salaries Extra- ordinary items Pension and disability insurance Total remuneration Share-based payment expenses3 Total staff cost Maarten Edixhoven4 2024 891 388 1,279 — 417 1,696 78 1,774 2023 875 388 1,263 34 412 1,709 78 1,787 Jeroen Kroes 2024 514 313 827 — 270 1,097 35 1,132 2023 504 312 816 — 267 1,083 35 1,118 Damla Hendriks5 2024 300 183 483 — 158 641 20 661 2023 — — — — — — — — Arjan Huisman 2024 514 313 827 — 270 1,097 35 1,132 2023 504 312 816 — 267 1,083 35 1,118 Wendy Winkelhuijzen 2024 514 313 827 — 270 1,097 35 1,132 2023 504 312 816 — 267 1,083 35 1,118 Erik van Houwelingen 2024 514 313 827 — 270 1,097 35 1,132 2023 504 312 816 — 267 1,083 35 1,118 Richard Bruens6 2024 342 209 551 — 180 731 46 777 2023 504 312 816 — 267 1,083 35 1,118 Total 2024 2024 7,456 284 7,740 Total 2023 2023 7,124 253 7,377 1 To be able to make a comparison between 2024 and 2023, the same definition of total remuneration has been used (total fixed salary plus pension and disability insurance). Business expenses have not been included. 2 A proportion of fixed salary is paid in the form of Van Lanschot Kempen shares. Maarten Edixhoven received 13,788 shares (2023: 17,206 shares), Damla Hendriks received 6,481 shares, Richard Bruens received 7,407 shares (2023: 13,865 shares), while the other members of the Management Board each received 11,110 shares (2023: 13,865 shares). The number of shares granted is based on the average share price for the first four trading days in January. For 2024 the average share price amounted to €28.10 in January (2023: €22.52); in June for Damla Hendriks €37.29. IFRS Accounting Standards take the share price at grant date as the basis for recognition. This price also amounted to €28.10 in 2024 (2023: €22.54). 3 Share-based payments have a lock-up period of five years, allowing Van Lanschot Kempen to provide a discount of 18.5% on the shares. 4 The extraordinary item of €34,000 in 2023 relates to deferred compensation for lapsed rights to variable remuneration at Maarten Edixhoven's previous employer. 5 Damla Hendriks was appointed as a member of the Management Board on 1 June 2024. 6 Richard Bruens stepped down as a member of the Management Board on 1 June 2024. Notes to the consolidated financial statements 254 Number of depositary receipts for shares held by Management Board members in 2024 At 1 January Bought/awarded Sold/post- employment At 31 December Maarten Edixhoven 44,669 17,327 — 61,996 Jeroen Kroes 27,616 6,884 — 34,500 Damla Hendriks (as of 1 June 2024) — 3,026 — 3,026 Arjan Huisman 80,617 6,884 — 87,501 Wendy Winkelhuijzen 19,333 6,884 — 26,217 Erik van Houwelingen 45,118 6,884 — 52,002 Richard Bruens (until 1 June 2024) 96,966 8,586 — n/a Total 314,319 56,475 — 265,242 Loans to Management Board members 2024 (€1,000) At 31 December Repaid in the year Interest range Type Maarten Edixhoven — — — Jeroen Kroes 320 12 1.35% Mortgage Damla Hendriks — — — — Arjan Huisman — — — — Wendy Winkelhuijzen 1,052 409 1.65 - 4.31% Mortgage — 680 5.60% Bridge loan Erik van Houwelingen 2,151 24 1.25 - 4.91% Mortgage Total 3,523 1,125 Loans to Management Board members 2023 (€1,000) At 31 December Repaid in the year Interest range Type Maarten Edixhoven — — — — Jeroen Kroes 332 12 1.35% Mortgage Wendy Winkelhuijzen 1,461 15 1.85 - 4.61% Mortgage 680 — 5.60% Bridge loan Arjan Huisman — — — — Richard Bruens 2,296 37 1.10 - 1.56% Mortgage Erik van Houwelingen 2,175 20 1.35 - 5.21% Mortgage Total 6,944 84 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 (€1,000) 2024 2023 Frans Blom 130 117 Manfred Schepers 104 95 Karin Bergstein 104 92 Brigitte Boone 87 76 Else Bos (from 21 October 2024) 11 — Maarten Muller 100 82 Elizabeth Nolan (from 25 May 2023) 94 44 Bernadette Langius (until 25 May 2023) — 33 Lex van Overmeire (deceased 4 April 2023) — 28 Total 630 567 No loans or advances had been granted to members of the Supervisory Board at 31 December 2024 and 31 December 2023. 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. Notes to the consolidated financial statements 255 Events after the reporting period We propose to return €1.40 per share in June 2025 and this has been approved by DNB. We will convene an extraordinary general meeting (EGM) on 10 April 2025 to confirm this proposal. The expected impact of this capital return on our equity is approximately -€59 million. Company statement of financial position 257 Company statement of financial position (€1,000) Company statement of financial position at 31 December Before profit appropriation 2024 2023 Assets Cash and cash equivalents and balances at central banks 1 1,965,490 2,812,997 Government paper eligible for central bank refinancing 2 884,157 509,623 Due from banks 3 242,116 255,087 Loans and advances to the public and private sectors 4 9,126,650 8,984,652 Debt instruments 5 3,508,016 3,034,744 Equity instruments 6 11,254 15,242 Investments in group companies 7 284,292 355,633 Investments in associates using the net asset value method 8 83,162 76,299 Goodwill and other intangible assets 9 298,309 225,151 Property and equipment 10 67,891 59,490 Other assets 11 53,288 59,064 Derivatives 12 314,610 339,604 Accrued assets 11 152,997 99,215 Total assets 16,992,230 16,826,802 Liabilities Due to banks 13 482,046 791,097 Public and private sector liabilities 14 12,490,439 12,073,202 Issued debt securities 15 1,956,145 1,940,310 Other liabilities 16 140,058 121,335 Derivatives 12 251,279 242,662 Accrued liabilities 16 109,105 104,336 Provisions 17 32,065 34,943 Subordinated loans 18 153,825 170,238 Total liabilities 15,614,962 15,478,124 Issued share capital 43,040 43,040 Treasury shares -19,928 -14,243 Share premium reserve 211,725 211,725 Revaluation reserve -20,405 -10,083 Reserves required by law 46,904 41,029 Other reserves 881,834 857,076 Undistributed profit attributable to shareholders 131,855 118,446 Equity attributable to shareholders 1,275,026 1,246,991 AT1 capital securities 100,000 100,000 Undistributed profit attributable to holders of AT1 capital securities 2,242 1,688 Equity attributable to AT1 capital securities 102,242 101,688 Total equity 19 1,377,268 1,348,678 Total equity and liabilities 16,992,230 16,826,802 The number beside each item refers to the Notes to the company statement of financial position. Company statement of income 258 Company statement of income (€1,000) Company statement of income 2024 2023 Income from operating activities Interest income 657,295 514,029 Interest expense 493,136 332,018 Net interest income 21 164,159 182,011 Income from associates using the net asset value method 4,879 3,941 Other income from securities and group companies 83,960 97,784 Income from securities and subsidiaries 22 88,839 101,725 Commission income 299,390 204,841 Commission expense 8,112 5,553 Net commission income 23 291,278 199,289 Result on financial transactions 24 12,438 3,374 Total income from operating activities 556,714 486,398 Expenses Staff costs 25 271,665 256,248 Other administrative expenses 26 86,891 66,753 Staff costs and other administrative expenses 358,556 323,001 Depreciation and amortisation 27 33,704 24,171 Operating expenses 392,261 347,173 Impairments of financial instruments -1,905 1,892 Impairments 28 -1,905 1,892 Total expenses 390,356 349,065 Operating profit before tax 166,358 137,333 Income tax 29 24,606 12,137 Net result 141,751 125,196 Of which attributable to shareholders 131,855 118,446 Of which attributable to holders of AT1 capital securities 9,896 6,750 The number beside each item refers to the Notes to the company statement of income. Company statement of changes in equity 259 Company statement of changes in equity Before profit appropriation (€1,000) Company statement of changes in equity in 2024 Issued share capital Treasury shares Share premium reserve Other reserves Undistributed profit Total equity attributable to shareholders Equity attributable to AT1 capital securities Total equity At 1 January 43,040 -14,243 211,725 888,023 118,446 1,246,991 101,688 1,348,678 Net profit (as per company statement of income) — — — — 131,855 131,855 9,896 141,751 Total other comprehensive income — — — -13,709 — -13,709 — -13,709 Total comprehensive income — — — -13,709 131,855 118,146 9,896 128,042 Issue of share capital — — — — — — — — Share plans — 16,979 — 1,140 — 18,119 — 18,119 Shares to be issued — — — — — — — — Profit appropriation — — — 118,446 -118,446 — — — Repurchased treasury shares — -22,664 — — — -22,664 — -22,664 To reserves required by law — — — 5,875 — 5,875 — 5,875 Dividends/Capital return — — — -84,731 — -84,731 -9,341 -94,072 To share capital — — — — — — — — Other changes — — — -6,710 — -6,710 — -6,710 At 31 December 43,040 -19,928 211,725 908,335 131,856 1,275,027 102,243 1,377,269 Company statement of changes in equity in 2023 Issued share capital Treasury shares Share premium reserve Other reserves Undistributed profit Total equity attributable to shareholders Equity attributable to AT1 capital securities Total equity At 1 January 41,362 -15,109 262,658 914,120 77,799 1,280,829 101,688 1,382,517 Net profit (as per company statement of income) — — — — 118,446 118,446 6,750 125,196 Total other comprehensive income — — — 6,922 — 6,922 — 6,922 Total comprehensive income — — — 6,922 118,446 125,368 6,750 132,118 Issue of share capital 1,678 — 34,022 — — 35,700 — 35,700 Share plans — 10,498 — 902 — 11,400 — 11,400 Shares to be issued — — — -35,700 — -35,700 — -35,700 Profit appropriation — — — 77,799 -77,799 — — — Repurchased treasury shares — -9,632 — — — -9,632 — -9,632 To reserves required by law — — — -3,766 — -3,766 — -3,766 Dividends/Capital return -84,954 — — -74,324 — -159,278 -6,750 -166,028 To share capital 84,954 — -84,954 — — — — — Other changes — — — 2,069 — 2,069 — 2,069 At 31 December 43,040 -14,243 211,725 888,023 118,446 1,246,991 101,688 1,348,678 In 2023, 1,678,270 new shares were issued to the amount of €35.7 million, of which €34.0 million in share premium related to the acquisition of the remaining 30% stake in Mercier Vanderlinden by Van Lanschot Kempen. Notes to the company financial statements 260 Notes to the company financial statements Basis of preparation The company financial statements of Van Lanschot Kempen NV ("Van Lanschot Kempen") have been prepared in accordance with the legal requirements as set out in Part 9, Book 2 of the Dutch Civil Code. We have taken the option offered in Article 362 (8), Book 2 of the Dutch Civil Code to apply the same accounting principles of recognition, measurement and determination of results in the company financial statements as used for the preparation of the consolidated financial statements (including the accounting principles for the presentation of financial instruments as equity or liabilities). The line items Investments in group companies and Investments in associates are exceptions to this general rule; these are accounted for using the net asset value method. The company financial statements are denominated in euros, Van Lanschot Kempen’s functional and reporting currency. All amounts are in thousands of euros unless otherwise stated. The totals may not always match because rounding is applied. Notes to the company financial statements 261 Notes to the company statement of financial position At 31 December (€1,000) 1. Cash and cash equivalents and balances at central banks Cash and cash equivalents and balances at central banks 2024 2023 Total 1,965,490 2,812,997 Balances at central banks 1,804,638 2,627,674 Statutory reserve deposits at central banks 126,089 121,417 Amounts due from banks 34,763 63,907 Impairments 0 0 Statutory reserve deposits at central banks comprise balances at central banks within the scope of the minimum reserve requirement. The balances at central banks also include irrevocable payment commitments (IPC) cash collateral regarding the SRF. The IPC cash collateral amounted to €7.1 million at year-end 2024 (2023: €7.1 million). The amount of IPC made in the reporting year was nil (2023: €1.7 million). We cannot use these balances in our day-to-day operations. See “Summary of material accounting policies” for our other accounting policies on cash and cash equivalents. 2. Government paper eligible for central bank refinancing Government paper eligible for central bank refinancing 2024 2023 Carrying amount Acquisition cost Carrying amount Acquisition cost Total 884,157 858,875 509,623 495,741 Government paper at fair value 792,409 768,484 418,521 405,230 Government paper at amortised cost 91,748 90,391 91,102 90,511 Changes in government paper eligible for central bank refinancing 2024 2023 At 1 January 509,624 407,056 Purchases 402,093 470,278 Sales -32,933 -103,071 Redemptions -5,900 -282,789 Amortisation of premiums/discounts on debt instruments 5,810 -6,234 Value changes to equity 5,364 24,325 Value changes to profit and loss 99 60 At 31 December 884,157 509,623 The nominal value of government paper eligible for central bank refinancing amounted to €859 million in 2024 (2023: €520 million), while cumulative revaluation amounted to €18.5 million (2023: €13.1 million). Accumulated amortisation and impairments were nil (2023: nil). In 2024, €825.1 million of government paper eligible for central bank refinancing will be repayable on demand (2023: €457.7 million). In 2024 and 2023, 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 €140 million (2023: €114 million) and to nil for group companies (2023: nil). We do not have free access to these debt instruments. Notes to the company financial statements 262 3. Due from banks Due from banks 2024 2023 Total 242,116 255,087 Repayable on demand 16,280 23,348 Other receivables 225,836 231,739 Impairments 0 0 The line item Other receivables comprises deposits to the value of €63.3 million (2023: €41.9 million) serving as collateral for obligations arising from derivatives transactions, and these are not repayable on demand. Due from banks includes €162.5 million from group companies (2023: €183.7 million). 4. Loans and advances to the public and private sectors Loans and advances to the public and private sectors 2024 2023 Total 9,126,650 8,984,652 Mortgage loans 6,410,069 6,400,611 Loans 2,334,857 2,235,223 Current accounts 537,735 547,805 Securities-backed loans and settlement receivables 28,721 16,387 Value adjustment fair value hedge accounting -154,937 -181,419 Loss allowance for expected credit losses -29,795 -33,955 The credit risk in the company financial statements is similar to that described in the consolidated financial statements. For more information, see "Risk management" under 3, Credit risk. See “Notes to the consolidated financial statements” for a more in-depth review of the criteria and the way in which we determine loss allowance for expected credit losses and the write-down of loans and advances to the public and private sectors. Loans and advances to the public and private sectors include €531.1 million from group companies (2023: €556.0 million). 5. Debt instruments Debt instruments 2024 2023 Carrying amount Purchase price Carrying amount Purchase price Total 3,508,016 3,490,047 3,034,744 3,123,278 Debt instruments at fair value 2,398,222 2,390,583 1,924,713 2,018,995 Debt instruments at amortised cost 1,109,794 1,099,464 1,110,032 1,104,283 Changes in debt instruments 2024 2023 At 1 January 3,034,744 2,621,028 Purchases 888,805 1,101,820 Sales -178,371 -494,439 Redemptions -267,541 -307,450 Amortisation of premiums/discounts on debt instruments 8,681 15,917 Value changes to equity 22,936 94,792 Value changes to statement of income -349 -2,964 Other changes -890 6,040 At 31 December 3,508,016 3,034,744 Notes to the company financial statements 263 The cumulative revaluation amounted to €3.1 million in 2024 (2023: €19.8 million negative). Accumulated amortisation and impairment was nil (2023: nil). The nominal value of these debt instruments amounted to €3.5 billion in 2024 (2023: €3.1 billion). Debt instruments from group companies were nil (2023: nil). In 2024, debt instruments serving as collateral to DNB amounted to €9 million (2023 : €4 million). The carrying amount of debt instruments serving as collateral to financial institutions amounted to €105 million (2023: €91 million) and to nil for group companies (2023: nil). These debt instruments are not freely available to us. 6. Equity instruments Equity instruments 2024 2023 Fair value Purchase price Fair value Purchase price Total 11,254 10,807 15,242 10,784 Listed shares 8,787 8,554 12,769 8,433 Unlisted shares 2,466 2,253 2,473 2,351 Changes in equity instruments 2024 2023 At 1 January 15,242 19,211 Purchases 212 384 Sales -6,249 -6,051 Value changes to statement of income 2,056 1,639 Other changes -7 59 At 31 December 11,254 15,242 We purchased 22% of the listed and unlisted shares (2023: 16%), with the intention to hold them for an indefinite period. 7. Investments in group companies Investments in group companies 2024 2023 Total 284,292 355,633 Subsidiaries – credit institutions 31,963 32,798 Other subsidiaries 252,328 322,834 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 group companies in the company statement of income. Changes in investments in group companies 2024 2023 At 1 January 355,633 328,841 Purchases 2,984 — Deconsolidation of group companies -73,886 — Share of profit 80,044 97,238 Revaluations -651 1,375 Dividend received -79,337 -70,619 Other changes -496 -1,203 At 31 December 284,292 355,633 On 1 January 2024, the legal merger between Mercier Vanderlinden Asset Management and Van Lanschot Kempen (the acquiring entity) became effective. As a result of this merger, Mercier Vanderlinden Asset Management ceased to exist as a legal entity and continued, after integration with the Van Lanschot Belgium branch, as Mercier Van Lanschot. Accumulated impairments stood at nil (2023: nil). Notes to the company financial statements 264 Group companies Head office Consolidated interest Van Lanschot Kempen (Schweiz) AG Zurich 100% Van Lanschot Kempen Investment Management NV Amsterdam 100% Van Lanschot Kempen Bewaarder NV Amsterdam 100% Van Lanschot Kempen AM NL BV Amsterdam 100% Van Lanschot Kempen (USA) Inc. New York 100% Van Lanschot Kempen Participaties BV s-Hertogenbosch 100% Beheermaatschappij "Orthenstraat" BV s-Hertogenbosch 100% Kempen Dutch Inflation Fund I NV Amsterdam 100% Sapphire Investments BV Amsterdam 100% Quion 17 BV Capelle aan den IJssel 100% Efima Hypotheken BV s-Hertogenbosch 100% LansOG Beheer BV s-Hertogenbosch 100% Hof Hoorneman NV Amsterdam 100% Accuro NV Antwerp 100% Entities in which Van Lanschot Kempen exercises control: – Van Lanschot Conditional Pass-Through Covered Bond Company 2 BV; – Van Lanschot Kempen SB Covered Bond Company BV. All investments in group companies are unlisted holdings. 8. Investments in associates using the net asset value method Investments in associates using the net asset value method 2024 2023 Total 83,162 76,299 Investments in associates 83,162 76,299 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 associates using the net asset value method in the company statement of income. Changes in investments in associates 2024 2023 At 1 January 76,299 63,091 Purchases 5,060 10,835 Sales -3,076 -1,568 Share of profit 4,879 3,941 At 31 December 83,162 76,299 Accumulated impairments stood at nil (2023: nil). Name Head office Interest Bolster Investments Coöperatief UA Amsterdam 29.75% Bolster Investments II Coöperatief UA Amsterdam 22.00% Bolster Investments Coöperatief UA and Bolster Investments II Coöperatief UA are unlisted investments. Notes to the company financial statements 265 9. Goodwill and other intangible assets Goodwill and other intangible assets 2024 2023 Total 298,309 225,151 Goodwill 184,070 179,363 Brand names 4,046 3,314 Other intangible assets 110,192 42,474 The goodwill shown above represents goodwill arising from acquisitions. For the impairment test, this goodwill is allocated to the relevant cash-generating units. In 2024, the impairment test did not result in a goodwill impairment. Additional information on the impairment test is included in Note 10, Goodwill and other intangible assets, in the consolidated financial statements. Other intangible assets mainly relate to client relationships and application software. Based on the useful life tests carried out in 2024, we concluded that no other intangible assets need to be impaired. Changes in goodwill and other intangible assets in 2024 Goodwill Brand names Other intangible assets Total At 1 January 179,363 3,314 42,474 225,151 Additions due to legal merger — 5,480 99,599 105,079 Additions acquired through business combinations 4,707 — — 4,707 Amortisation — -4,748 -31,881 -36,629 At 31 December 184,070 4,046 110,192 298,308 Historical cost 184,070 21,897 172,190 378,158 Accumulated amortisation and impairments — -17,850 -61,999 -79,849 Net carrying amount at 31 December 184,070 4,046 110,192 298,309 Due to the merger of Mercier Vanderlinden Asset Management with the Van Lanschot Belgium branch, the related brand name and client relationships were included in our company financial statements. Changes in goodwill and other intangible assets in 2023 Goodwill Brand names Other intangible assets Total At 1 January 176,761 3,066 30,846 210,673 Additions acquired through business combinations 2,603 1,087 16,311 20,000 Additions acquired separately — — 1,597 1,597 Amortisation — -839 -6,280 -7,119 At 31 December 179,363 3,314 42,474 225,151 Historical cost 179,363 16,417 78,280 274,060 Accumulated amortisation and impairments — -13,103 35,805 22,702 Net carrying amount at 31 December 179,363 3,314 42,474 225,151 Notes to the company financial statements 266 10. Property and equipment Property and equipment 2024 2023 Total 67,891 59,490 Buildings 19,642 19,040 Right-of-use – buildings 26,124 25,472 Right-of-use – transport equipment 12,883 5,966 Other property and equipment 7,635 7,996 Work in progress 1,607 1,016 Changes in property and equipment in 2024 Buildings Right-of-use – buildings Right-of-use – transport equipment Other property and equipment Work in progress Total At 1 January 19,040 25,472 5,966 7,996 1,016 59,490 Additions 3,371 9,332 11,140 3,447 591 27,880 Disposals -1,002 — — -1,213 — -2,215 Depreciation -1,767 -8,679 -4,223 -2,595 — -17,264 At 31 December 19,642 26,124 12,883 7,635 1,607 67,891 Historical cost 38,153 34,803 17,105 21,416 1,607 113,085 Accumulated depreciation and impairments -18,512 -8,679 -4,223 -13,781 — -45,194 Net carrying amount at 31 December 19,642 26,124 12,883 7,635 1,607 67,891 Changes in property and equipment in 2023 Buildings Right-of-use – buildings Right-of-use – transport equipment Other property and equipment Work in progress Total At 1 January 22,221 28,880 6,633 8,043 1,551 67,328 Additions 2,671 5,358 2,668 2,448 — 13,143 Disposals -3,935 — — — -535 -4,470 Depreciation -1,916 -8,766 -3,334 -2,494 — -16,511 At 31 December 19,040 25,472 5,966 7,996 1,016 59,490 Historical cost 35,785 34,238 9,300 24,299 1,016 104,639 Accumulated depreciation and impairments -16,745 -8,766 -3,334 -16,303 — -45,149 Net carrying amount at 31 December 19,040 25,472 5,966 7,996 1,016 59,490 The line item Buildings comprises real estate in own use. We have entered into lease contracts for buildings – including service fees and rent for any parking spaces – as well as car lease contracts. These contracts are recognised as right-of-use assets. Other property and equipment comprises IT, furniture and fixtures, and communications and safety equipment. Notes to the company financial statements 267 11. Other assets and accrued assets Other assets relate to current tax assets (2024: €1.3 million; 2023: €0.6 million), deferred tax assets (2024: €17.2 million; 2023: €11.4 million) and amounts receivable, such as debtors, suspense accounts and intercompany assets. Accrued assets relate to interest receivables, commission receivables and transitory items. 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. All current assets fall due in less than one year. 12. Derivatives Derivatives At 31 December 2024 Asset Liability Contract amount Total 314,610 251,279 9,546,676 Derivatives used for trading purposes 50,214 50,214 561,540 Derivatives used for hedge accounting purposes 219,234 158,706 7,474,285 Other derivatives 45,162 42,358 1,510,850 At 31 December 2023 Asset Liability Contract amount Total 339,604 242,662 7,696,011 Derivatives used for trading purposes 33,944 33,849 468,653 Derivatives used for hedge accounting purposes 267,239 163,252 6,142,285 Other derivatives 38,420 45,561 1,085,074 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 2024 2023 Total 482,046 791,097 Liabilities withdrawable on demand 286,049 461,949 Other liabilities 195,997 329,148 Due to banks includes €317.6 million from group companies (2023: €541.1 million). 14. Public and private sector liabilities Public and private sector liabilities 2024 2023 Total 12,490,439 12,073,202 Savings Savings withdrawable on demand 3,237,959 2,659,079 Savings not withdrawable on demand 685,732 738,958 Total savings 3,923,691 3,398,037 Other public and private sector liabilities Other public and private sector liabilities withdrawable on demand 6,681,057 6,677,757 Other public and private sector liabilities not withdrawable on demand 1,885,691 1,997,407 Total other public and private sector liabilities 8,566,748 8,675,164 Savings include all deposit and savings accounts held by private individuals and not-for-profit organisations. Public and private sector liabilities include € 156.9 million from group companies (2023: €157.2 million). Notes to the company financial statements 268 15. Issued debt securities Issued debt securities 2024 2023 Total 1,956,145 1,940,310 Issued debt securities at fair value, listed 116 482 Issued debt securities at fair value, unlisted 464,776 466,189 Issued debt securities at amortised cost, listed 1,491,254 1,473,639 Changes in issued debt securities 2024 2023 At 1 January 1,940,310 1,816,014 Purchases 177,113 829,567 Sales -2,552 -5,687 Redemptions -196,202 -786,461 Amortisation of premiums/discounts on debt instruments 1,452 -794 Revaluations 36,023 87,672 At 31 December 1,956,145 1,940,310 In 2025, €115.3 million of these debt securities will mature (2024: €110.6 million). The discount on issued debt securities amounted to €3.0 million (2023: €4.5 million) and is included in the item’s carrying value. 16. Other liabilities and accrued liabilities Other liabilities relate to lease liabilities, current tax liabilities (2024: €11.2 million; 2023: €0.8 million), deferred tax liabilities (2024: €19.5 million; 2023: nil) and amounts payable such as creditors, accruals and intercompany liabilities. Lease liabilities stood at €42.6 million (2023: €34.8 million). Payments not included in the lease liability measurement amounted to €1.3 million (2023: €1.2 million). Interest expense on leases amounted to €1.2 million in 2024 (2023: €0.7 million) and is recognised in the statement of income under line item Other interest expense in Note 21, Net interest income. Accrued liabilities relate to interest payable (2024: €75.2 million; 2023: €73.2 million) and other accruals (2024: €33.9 million; 2023: €31.1 million). 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 Beheermaatschappij “Orthenstraat” BV, Van Lanschot Kempen 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 Provisions 2024 2023 Total 32,065 34,943 Pension provision 21,828 22,400 Other provisions 10,237 12,543 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. Other provisions comprise provisions taken for restructuring, the jubilee benefits scheme, interest rates, employee discounts, financial guarantees and loan commitments, and all other provisions. Of these other provisions, €1.3 million relates to legal claims, of which 83% are long-term (2023: 18%) and 17% short-term (2023: 82%). For more information about provisions, see Note 17, Provisions, in the consolidated financial statements. Notes to the company financial statements 269 18. Subordinated loans Subordinated loans 2024 2023 Total 153,825 170,238 Inflation-linked subordinated bond 08/33 25,457 25,582 Inflation-linked subordinated bond 08/38 25,924 26,030 Inflation-linked subordinated bond 08/43 52,525 52,710 2.000% subordinated bond 03/32 49,919 49,883 Other subordinated loans — 16,034 Changes in subordinated loans 2024 2023 At 1 January 170,238 170,882 Redemptions -15,996 -113 Amortisation of premiums/discounts on debt instruments -416 -416 Other changes -1 -115 At 31 December 153,825 170,238 Subordinated loans provide solvency capital for Van Lanschot 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’s 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 €9.3 million (2023: €10.6 million). 19. Total equity Total equity 2024 2023 Total 1,377,268 1,348,678 Equity attributable to shareholders Issued share capital 43,040 43,040 Treasury shares -19,928 -14,243 Share premium reserve 211,725 211,725 Revaluation reserve -20,405 -10,083 Actuarial results on defined benefit pension scheme -26,584 -26,759 Cash flow hedge reserve -6,363 -7,015 Own credit risk reserve -1,966 1,989 Reserves required by law 46,904 41,029 Freely available reserves 916,748 888,861 Other reserves 908,334 888,023 Undistributed profit attributable to shareholder 131,855 118,446 Total equity attributable to shareholders 1,275,026 1,246,991 Equity attributable to AT1 capital securities AT1 capital securities 100,000 100,000 Undistributed profit attributable to AT1 capital securities 2,242 1,688 Total equity attributable to AT1 capital securities 102,242 101,688 Notes to the company financial statements 270 The reserves required by law comprise a reserve in the amount of the share in the positive income from associates of €43.1 million (2023: €37.1 million), a reserve for currency translation differences on associates and subsidiaries of €0.8 million (2023: €1.0 million) and a reserve required under the Articles of Association from subsidiaries of €3.0 million (2023: €2.9 million). Tax effects on changes in the revaluation reserves amounted to € 3.6 million negative in 2024 (2023: €3.3 million positive). Liability capital comprises equity and subordinated loans, which are accounted for under non-current liabilities. At year-end 2024, this liability capital amounted to €1,429 million (2023: €1,417 million). Distributable items 2024 2023 Other reserves 908,334 888,023 Revaluation reserve -20,405 -10,083 Actuarial results on defined benefit pension scheme -26,584 -26,759 Cash flow hedge reserve -6,363 -7,015 Own credit risk reserve -1,966 1,989 Reserves required by law 46,904 41,029 Freely available reserves 916,748 888,861 Share premium reserve 211,725 211,725 Total distributable items 1,128,473 1,100,586 20. Other notes to the statement of financial position Contractual maturity of assets and liabilities The tables below 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 reconcile with the values presented in the company statement of financial position. Contractual maturity of assets and liabilities at 31 December 2024 Withdrawable on demand < 3 months ≥ 3 months < 1 years ≥ 1 years < 5 years ≥ 5 years Total Assets Due from banks 16,280 158,870 2,558 64,409 — 242,116 Loans and advances to the public and private sectors 845,347 69,613 110,927 695,825 7,404,937 9,126,650 Total assets 861,627 228,483 113,485 760,234 7,404,937 9,368,766 Liabilities Due to banks 286,049 62,366 14,563 107,647 11,420 482,046 Public and private sector liabilities 9,267,025 2,514,670 415,435 185,522 107,787 12,490,439 Issued debt securities — 34,493 80,831 1,797,505 43,316 1,956,145 Subordinated loans — — — 25,000 128,825 153,825 Total liabilities 9,553,075 2,611,529 510,830 2,115,674 291,348 15,082,455 Contractual maturity of assets and liabilities at 31 December 2023 Withdrawable on demand < 3 months ≥ 3 months < 1 years ≥ 1 years < 5 years ≥ 5 years Total Assets Due from banks 23,348 156,916 28,416 40,364 6,043 255,087 Loans and advances to the public and private sectors 873,915 61,505 81,660 614,328 7,353,244 8,984,652 Total assets 897,262 218,421 110,076 654,692 7,359,287 9,239,739 Liabilities Due to banks 361,949 179,876 130,386 118,046 840 791,097 Public and private sector liabilities 8,842,846 2,270,543 671,389 159,730 128,693 12,073,202 Issued debt securities — 22,414 88,208 1,805,449 24,239 1,940,310 Subordinated loans — 16,034 — — 154,205 170,238 Total liabilities 9,204,796 2,488,867 889,983 2,083,225 307,977 14,974,847 Notes to the company financial statements 271 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", under15. Fair value. Financial instruments at fair value at 31 December 2024 Item Fair value determination using listed market prices Fair value determination using observable market inputs Fair value determination using non- observable market inputs Total Assets Government paper eligible for central bank refinancing 792,409 — — 792,409 Debt instruments 2,398,222 — — 2,398,222 Equity instruments 8,787 — 2,466 11,254 Derivatives (assets) 50,214 255,900 8,495 314,610 Total assets 3,249,633 255,900 10,961 3,516,495 Liabilities Issued debt securities 116 462,553 2,223 464,891 Derivatives (liabilities) 50,214 192,507 8,557 251,279 Total liabilities 50,330 655,060 10,780 716,170 Financial instruments at fair value at 31 December 2023 Item Fair value determination using listed market prices Fair value determination using observable market inputs Fair value determination using non- observable market inputs Total Assets Government paper eligible for central bank refinancing 418,521 — — 418,521 Debt instruments 1,922,584 2,129 — 1,924,713 Equity instruments 12,769 — 2,473 15,242 Derivatives (assets) 33,944 303,059 2,600 339,604 Total assets 2,387,818 305,188 5,073 2,698,080 Liabilities Issued debt securities 455 466,217 — 466,672 Derivatives (liabilities) 33,849 206,013 2,800 242,662 Total liabilities 34,304 672,230 2,800 709,334 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 2024 2023 Item Value changes recognised in profit or loss Value changes to revaluation reserve Total value changes Value changes recognised in profit or loss Value changes to revaluation reserve Total value changes Government paper eligible for central bank refinancing 99 5,364 5,463 60 24,325 24,385 Debt instruments -349 22,936 22,587 -2,964 94,792 91,827 Equity instruments 2,056 — 2,056 1,639 — 1,639 Derivatives 33,269 — 33,269 32,818 — 32,818 Issued debt securities -31,007 — -31,007 -38,858 — -38,858 Total 4,067 28,300 32,367 -7,306 119,117 111,811 Notes to the company financial statements 272 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 of which 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 2024 2023 Fair value Carrying amount Fair value Carrying amount Valued using Valuation method Assets Government paper eligible for central bank refinancing 92,634 91,748 91,977 91,102 Listed market prices Listed market prices Due from banks 241,257 242,116 253,385 255,087 Observable market inputs Discounted cash flows using applicable money market rates Loans and advances to the public and private sectors 8,819,690 9,126,650 8,460,994 8,984,652 Unobservable market inputs Discounted cash flows using current market fees for comparable loans and taking into account the creditworthiness of the counterparty Debt instruments – Other debt instruments at amortised cost 1,112,888 1,109,794 1,106,465 1,110,032 Listed market prices Listed market prices Total assets 10,266,469 10,570,308 9,912,820 10,440,872 Liabilities Due to banks 482,134 482,046 787,161 791,097 Observable market inputs Discounted cash flows using applicable money market rates for liabilities Public and private sector liabilities 12,434,971 12,490,439 11,909,980 12,073,202 Unobservable market inputs Discounted cash flows using applicable money market rates for liabilities with a comparable term to maturity, taking account of own credit risk1 Issued debt securities 1,487,180 1,491,254 1,472,220 1,473,639 Listed market prices Quoted prices in active markets Subordinated loans 163,936 153,825 181,194 170,238 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 Total liabilities 14,568,221 14,617,564 14,350,555 14,508,175 1 The fair values of client deposits without contractual maturities (non-maturing deposits or NMDs) are approximated by the economic values that we calculate for these products as part of our interest rate risk management. We gauge their interest rate sensitivity (duration) by means of replicating portfolios, in which NMDs are hypothetically invested in fixed income instruments (swaps) with various interest rate maturities. To arrive at economic values, we discount these replicating portfolio investments’ cash flows at current market interest rates (swap rates). Notes to the company financial statements 273 Commitments not recognised in the statement of financial position Contingent liabilities and irrevocable commitments 2024 2023 Total 520,758 458,274 Guarantees, etc. 273,774 287,555 Irrevocable unused credit facilities 154,007 137,284 Irrevocable lease commitments 58,326 — Other irrevocable commitments 34,651 33,435 This item does not include unconditionally revocable unused credit facilities, which amounted to €881 million in 2024 (2023: €939 million). In the 2023 financial statements the split between irrevocable and revocable facilities was not made. At year-end 2024, issued guarantees for a number of group companies amounted to €228.8 million (2023: €229.3 million). Irrevocable unused credit facilities from group companies amounted to €25.0 million (2023: €25.0 million). Irrevocable lease commitments consist of a long-term lease contract signed before year-end 2024. This contract had not yet commenced at year-end 2024. It relates to the relocation to a new office in Amsterdam from 2027. Comparative figures for Guarantees, etc. and Irrevocable unused credit facilities have been restated for an amount of €23 million and €916 million respectively. These amounts are reclassified as revocable facilities as these may be revoked on demand. Other commitments We have 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 €56.8 million (2023: €46.3 million), of which €17.3 million (2023: €18.1 million) within one year, €31.5 million (2023: €18.0 million) between one and five years, and €8.1 million (2023: €10.2) in more than five years. Van Lanschot Kempen has issued 403 statements pursuant to Article 403, Book 2, of the Dutch Civil Code for the following entities: – Efima Hypotheken BV; – Beheermaatschappij "Orthenstraat" BV; – Van Lanschot Kempen Participaties BV. Notes to the company financial statements 274 Notes to the company statement of income (€1,000) 21. Net interest income Net interest income 2024 2023 Total interest income 657,295 514,029 Interest income on cash and cash equivalents 79 2,403 Interest income on balances at central banks 64,317 62,836 Interest income on public and private sectors 225,569 213,189 Interest income on derivatives 246,353 162,714 Other interest income 120,976 72,886 Total interest expense 493,136 332,018 Interest expense on public and private sectors 227,761 142,410 Interest expense on issued debt securities 40,302 31,191 Interest expense on subordinated loans 9,261 10,631 Interest expense on derivatives 189,433 119,435 Other interest expense 26,380 28,351 Net interest income 164,159 182,011 Total interest income includes €13.5 million from group companies (2023: €9.5 million). Total interest expense from group companies amounted to €2.3 million (2023: €2.4 million). 22. Income from securities and subsidiaries This item includes the income realised by associates and by securities, and other income related to securities and group companies. The income from investments in group companies of €84.0 million (2023: €97.8 million) is included in Other income from securities and group companies. 23. Net commission income Net commission income 2024 2023 Total 291,278 199,289 Securities commissions 40,673 30,634 Management commissions 210,385 132,686 Cash transactions and funds transfer commissions 6,377 5,920 Corporate Finance and Equity Capital Markets commissions 29,057 25,125 Other commissions 4,786 4,924 24. Result on financial transactions Result on financial transactions 2024 2023 Total 12,438 3,374 Gains/losses on securities trading 2,104 1,657 Gains/losses on currency trading 9,120 6,446 Gains/losses on derivatives under hedge accounting 1,121 -1,834 Realised gains/losses on debt instruments -820 -1,629 Gains/losses on economic hedges – hedge accounting not applied 32,148 34,652 Gains/losses on financial assets and liabilities at fair value through profit or loss -31,234 -35,919 Notes to the company financial statements 275 25. Staff costs The number of staff at year-end 2024 was 1,878 (2023: 1,766). The average number of staff in FTEs was 1,656 (2023: 1,564). Of these, 182 were employed outside the Netherlands (2023: 205). Staff costs 2024 2023 Total 271,665 256,248 Salaries and wages 192,731 186,554 Pension costs 29,020 27,418 Other social security costs 24,451 21,442 Other staff costs 25,464 20,835 26. Other administrative expenses Other administrative expenses comprise IT expenses, accommodation expenses, costs of marketing and communication, consultancy fees, office expenses and other administrative expenses. For more information about the independent external auditors’ fees, see Note 28, Other administrative expenses, in the consolidated financial statements. 27. Depreciation and amortisation This item includes the depreciation and amortisation on buildings, IT, operating system software and communications equipment, application software, intangible assets arising from acquisitions such as client relationships and brand names, results on disposals of property and equipment, and other depreciation and amortisation. 28. Impairments This item comprises the recognised impairments on financial instruments and other impairments and reversals of such impairments. 29. Income tax This item consists of the income tax expense for the financial year on the operating result as recognised in the statement of income, also allowing for any tax relief facilities. We have applied currently existing tax rules to determine the tax amount. The effective tax rate amounts to 14.8% (2023: 8.8%). Changes in the effective tax rate were mainly due to the equity holding exemption and non-deductible expenses. The tax effect due to the deduction of coupon payments on our AT1 instruments is included in Other changes. Income tax 2024 2023 Operating profit before tax 166,358 137,333 Prevailing tax rate in the Netherlands (in %) 25.8 25.8 Expected tax 42,920 35,432 Increase/decrease in tax expense due to: Tax-free interest 3,273 2,110 Tax-free income from securities and subsidiaries -21,383 -25,945 Non-deductible costs 3,052 2,014 Adjustments to taxes for prior financial years 108 -192 Impact of foreign tax differences -341 -109 Other changes -3,022 -1,173 -18,314 -23,295 Total tax 24,606 12,137 Notes to the company financial statements 276 Events after the reporting period We propose to return €1.40 per share in June 2025 and this has been approved by DNB. We will convene an extraordinary general meeting (EGM) on 10 April 2025 to confirm this proposal. The expected impact of this capital return on our equity is approximately -€59 million. 's-Hertogenbosch, 26 February 2025 Supervisory Board – Frans Blom, Chair – Manfred Schepers, Vice-Chair – Karin Bergstein – Brigitte Boone – Else Bos – Maarten Muller – Elizabeth Nolan Management Board – Maarten Edixhoven, Chair – Jeroen Kroes – Damla Hendriks – Arjan Huisman – Wendy Winkelhuijzen – Erik van Houwelingen Independent auditor's report 278 Independent auditor's report 279 Independent auditor's report 280 Independent auditor's report 281 Independent auditor's report 282 Independent auditor's report 283 Independent auditor's report 284 Independent auditor's report 285 Independent auditor's report 286 Independent auditor's report 287 Independent auditor's report 288 Independent auditor's report 289 Independent auditor's report 290 Independent auditor's report 291 Independent auditor's report 292 Independent auditor's report 293 Appendix to our auditor’s report on the financial statements 2024 of Van Lanschot Kempen N.V. 294 Appendix to our auditor's report on the financial statements 2024 of Van Lanschot Kempen N.V. 295 Limited assurance report of the independent auditor on the sustainability statement 296 Limited assurance report of the independent auditor on the sustainability statement 297 Limited assurance report of the independent auditor on the sustainability statement 298 Limited assurance report of the independent auditor on the sustainability statement 299 Limited assurance report of the independent auditor on the sustainability statement 300 Limited assurance report of the independent auditor on the sustainability statement 301 Articles of Association on profit appropriation 302 Articles of Association on profit appropriation Profit is appropriated in accordance with Article 32 of the Articles of Association. This article states that the dividend on Class C preference shares1 must first be paid from distributable profits (Article 32(1)). The Management Board, with the approval of the Supervisory Board, will then determine what portion of remaining profits after dividend distribution on Class C preference shares will go to reserves (Article 32(3)). The portion of the profit remaining after the distribution on Class C preference shares and transfer to the reserves will be at the disposal of the annual general meeting of shareholders, providing that no further distributions will be made on Class C preference shares. If losses have been incurred in any financial year which could not be covered by a reserve or in any other way, no profit distributions will be made until such losses have been recovered (Article 32(5)). The Management Board may decide that a dividend distribution on Class A ordinary shares will be made in full or in part in the form of shares or depositary receipts rather than in cash. This decision is subject to the approval of the Supervisory Board (Article 32(8)). 1 There are no Class C preference shares in issue. Stichting Administratiekantoor van gewone aandelen A Van Lanschot Kempen 303 Stichting Administratiekantoor van gewone aandelen A Van Lanschot Kempen Board report The board (the “Board”) of Stichting Administratiekantoor van gewone aandelen A Van Lanschot Kempen (the “Stichting”) reports on its activities in 2024. Purpose, policies and activities The Stichting issues depositary receipts for shares that are exchangeable for their underlying Class A ordinary shares in Van Lanschot Kempen NV (“Van Lanschot Kempen”). The Stichting's policy is solely aimed at pursuing what is described in its objects clause as included in Article 2 of its Articles of Association (statutaire doelomschrijving). Its activities exclusively concern holding and managing shares in Van Lanschot Kempen; the Stichting does not engage in any commercial activities. In line with the Dutch Corporate Governance Code, at every Van Lanschot Kempen general meeting the Stichting grants a proxy to depositary receipt holders that either attend the meeting in person or are represented by a third party. In other words, depositary receipt holders can always vote at their own discretion for the number of shares for which they hold depositary receipts. In 2024, the Stichting’s activities consisted of: – Convening board meetings (at which the matters mentioned below were discussed); – Granting proxies for Van Lanschot Kempen’s general meetings; – Attending Van Lanschot Kempen’s general meetings; – Exercising the voting rights on Van Lanschot Kempen shares held by the Stichting at Van Lanschot Kempen’s general meetings, to the extent that no proxies had been granted to depositary receipt holders; – Reviewing a proposal for the remuneration policies of the Management and Supervisory Boards; – Convening a meeting of holders of depositary receipts. The Stichting will continue to pursue its policies and activities in 2025 in accordance with its objects clause and in keeping with past practice. No changes in the activities of the Stichting in 2025 are foreseen. The Stichting’s income consists of an “independence donation” paid by Van Lanschot Kempen (in the year 2024 this amounted to €60,150). The costs incurred by the Stichting typically only consist of the remuneration due to its Board members and administrative charges (such as audit fees). As the Stichting does not have any discretionary funds, it has no policies in place related to such spending. The Board expects the Stichting’s budget for 2025 to be similar to the budget (as well as the profit and loss account) for 2024. Board meetings In 2024, the Board held three board meetings. The topics covered in these meetings included: – Van Lanschot Kempen’s 2023 financial statements; – The state of affairs within Van Lanschot Kempen; – The agenda of the general meeting of Van Lanschot Kempen held on 23 May 2024 (the “AGM”) and the Stichting’s voting intentions; – Van Lanschot Kempen’s 2024 half-year results; – The agenda of the extraordinary general meeting of Van Lanschot Kempen held on 21 October 2024 (the “EGM”) and the Stichting’s voting intention; – The amendment of the Stichting's Articles of Association; – The meeting of holders of depositary receipts on 20 November 2024 and the preparation thereof; – The reappointment of Ms Mennen-Vermeule as a member of the Board in 2024 and the reappointment of Mr Norbruis as a member of the Board in 2026. Van Lanschot Kempen’s general meetings The Board attended the AGM and the EGM. The Stichting granted proxy votes to holders of depositary receipts for shares that attended these meetings in person or were represented by third parties. This enabled these depositary receipt holders to vote at their own discretion for the number of Class A ordinary shares corresponding to the depositary receipts of Class A ordinary shares held by them at record date. The Stichting voted, at its own discretion, on the Class A ordinary shares for which no proxy votes had been requested. Such shares represented 36.45% of the total number of votes that could be cast at the AGM and 36.11% of the total number of votes that could be cast at the EGM. The Board carefully considered each of the items put to the ballot and after due consideration decided to vote in favour of all items put to the ballot. This included the remuneration report for the year 2023 and the remuneration policies for the Management and Supervisory Boards, the discharge of the Management and Supervisory Boards, the composition of the Supervisory Board and the discharge of the members of the former board of directors of Mercier Vanderlinden Asset Management NV. Meeting of holders of depositary receipts In 2024, a vacancy arose due to the expiry of Ms Mennen- Vermeule's current term in accordance with the appointment schedule. Ms Mennen-Vermeule was available for reappointment. The terms of appointment for Mr Hendriksen and Mr Norbruis will end after the meeting of holders of depositary receipts to be held in 2026. To ensure the continuity of the Board, the Board has already decided on its appointment to fill the vacancy that will arise in 2026 due to the expiry of Mr Norbruis's current term. Mr Norbruis was available for reappointment. The Board called a meeting of holders of depositary receipts which took place on 20 November 2024. Holders of depositary receipts were given the opportunity, in advance of this meeting, to make a recommendation to fill the Board vacancies. They did not make a recommendation. During the meeting, the Board explained its intention to reappoint Ms Mennen-Vermeule and Mr Norbruis. Ms Mennen-Vermeule was reappointed as a member of the Board until the meeting of holders of depositary receipts to be held in 2026. The reappointment of Ms Mennen- Vermeule for a third term was motivated by the fact that her reappointment will ensure continuity in the composition of Stichting Administratiekantoor van gewone aandelen A Van Lanschot Kempen 304 the Board and because her extensive financial, economic and managerial knowledge and experience are of great value to the Board. Mr Norbruis was reappointed as a member of the Board for a period of four years with effect from the date on which the biennial meeting of holders of depositary receipt will be held in 2026 and as of the time immediately preceding the commencement of that meeting, subject to the condition that the Board has not previously reversed (in writing or otherwise) by resolution the decision to reappoint Mr Norbruis in 2026. The reappointment of Mr Norbruis was motivated by his extensive legal and managerial knowledge and experience, which are of great value to the Board. At the request of the Board, the holders of depositary receipts confirmed their trust in the Board. Composition of the Board The Board’s current members are: – Mr R.W.Th. Norbruis, Chair – Ms C.M.P. Mennen-Vermeule, Secretary – Mr W.F. Hendriksen Mr Norbruis is a partner at Norbruis Clement Advocaten and the Chair of the Supervisory Board of BE Semiconductor Industries. Ms Mennen-Vermeule is a member of the Management Board and CFO of Koninklijke Ahrend, and Chair of the Audit Committee of Efteling and Enstall. Mr Hendriksen is a partner at Van Doorne. The annual remuneration of the Chair of the Board amounts to €12,500 and that of each other Board member to €10,000. Expenses Other expenses incurred by the Stichting amounted to €28,660 in 2024. Outstanding depositary receipts At 31 December 2024, the Stichting held 43,036,928 Class A ordinary shares, constituting 99.99% of the shares in Van Lanschot Kempen, with a nominal value of €1 each, for which depositary receipts with the same nominal value have been issued. Other The Stichting is a legal entity independent of Van Lanschot Kempen, as referred to in Section 5:71 (1) sub-paragraph (d) of the Financial Supervision Act. Stichting contact details The Board can be contacted at: Secretariat of Stichting Administratiekantoor van gewone aandelen A Van Lanschot Kempen PO Box 1021 5200 HC ’s-Hertogenbosch The Netherlands The Board 's-Hertogenbosch, the Netherlands, 20 February 2025 Stichting Preferente aandelen C Van Lanschot Kempen 305 Stichting preferente aandelen C Van Lanschot Kempen Board report The board (the "Board”) of Stichting Preferente aandelen C Van Lanschot Kempen (the "Stichting”) reports on its activities in 2024. Purpose, policies and activities The Stichting was set up on 28 December 1999 and has its seat in ’s-Hertogenbosch, the Netherlands. The purpose of the Stichting is to safeguard the interests of Van Lanschot Kempen NV (“Van Lanschot Kempen”) and its stakeholders, and to avert outside influences that could threaten its continuity, autonomy or identity to the detriment of such interests. The Stichting pursues its purpose by acquiring Class C preference shares in the capital of Van Lanschot Kempen and by exercising the rights attached to these shares. The Stichting and Van Lanschot Kempen have entered into a call option agreement granting the Stichting the right to acquire Class C preference shares up to 100% of the value of Van Lanschot Kempen’s share capital in issue before the exercise of the call option, less one share. When acquiring Class C preference shares, the Stichting is required to pay a minimum of 25% of the nominal amount. To ensure it will be able to pay when the time comes, the Stichting has a funding agreement with ING in place. Van Lanschot Kempen aims to keep any period with outstanding Class C preference shares as brief as possible, and has committed itself to a maximum of one year as the term within which Van Lanschot Kempen will propose to the general meeting to redeem any Class C preference shares. The Stichting’s policy is exclusively aimed at pursuing the purpose as described above. The Stichting does not in any way engage in commercial activities or any other type of activities as long as there are no circumstances that, pursuant to its objects clause, would give the Stichting cause to act and exercise its powers. In 2024, the Stichting’s activities consisted of convening a Board meeting as well as holding ad hoc consultations as and when required. The Stichting’s income consists of an “independence donation” paid by Van Lanschot Kempen (in 2024 this amounted to €194,795). The costs incurred by the Stichting typically only consist of a commitment fee due to ING in relation to the funding agreement, the remuneration due to its Board members and administrative charges (such as audit fees). As the Stichting does not have any discretionary funds, it has no policies in place related to such spending. The Board expects the Stichting's budget for 2025 to be similar to the budget (as well as the profit and loss account) for 2024. Board meetings In 2024, the Board convened for one meeting. Topics discussed at that meeting included: – The state of affairs within Van Lanschot Kempen; – Van Lanschot Kempen’s annual accounts for 2023; – The Stichting's annual accounts for 2023; – The minutes of the Board meeting held in June 2023; – An amendment of the Articles of Association of the Stichting; – The composition of the Board. In 2024, a vacancy arose due to the expiry of the current term of Mr Deterink in accordance with the appointment schedule. Mr Deterink was not available for reappointment. The Board considered various candidates and selected Mr Heller as the preferred candidate. Mr Heller was appointed as member of the Board in June 2024. The Board is very grateful to Mr Deterink for his measured judgement in our discussions over the past 25 years and his important contributions to the Stichting as a member of the Board. Ms Van der Pauw succeeded Mr Deterink as Chair of the Board. Composition of the Board The Board appoints its own members. The current members of the Board are: – Ms A.E. van der Pauw, Chair – Mr H.P.M. Kivits, Secretary – Mr J.H.H. Heller Ms Van der Pauw is a former partner of Allen & Overy. Mr Kivits is a former Chair of Stage Entertainment. Mr Heller is a former CEO of Louwman Group and Argenta Bank & Verzekeringen. The annual remuneration of the Chair of the Board amounts to €12,500, and that of each other Board member to €10,000. Expenses Other expenses incurred by the Stichting amounted to €163,756 in 2024. Other The Stichting is a legal entity independent of Van Lanschot Kempen, as referred to in Section 5:71 (1) sub-paragraph (c) of the Financial Supervision Act (Wft). The Board 's-Hertogenbosch, the Netherlands, 20 February 2025 Glossary 306 Glossary Advanced internal ratings-based approach (A-IRB) The most sophisticated credit risk measurement technique. Under A-IRB, a bank is allowed to develop its own models, based on direct or indirect observations, to estimate parameters for calculating risk-weighted assets. Credit risk under A-IRB is determined by using internal input for probability of default (PD), loss given default (LGD), exposure at default (EAD) and maturity (M). Annual general meeting (AGM) The annual general meeting of shareholders and other persons entitled to attend the meeting. Assets under administration (AuA) Assets which are entrusted by clients to Van Lanschot Kempen purely for custody or for which solely administrative services are performed. Clients make their own investment decisions and Van Lanschot Kempen has no influence on the management of these assets. Assets under discretionary management Client assets entrusted to Van Lanschot Kempen under a discretionary management agreement, irrespective of whether these assets are held in investment funds, deposits, structured products or cash. Assets under management (AuM) Assets deposited with Van Lanschot Kempen by clients, breaking down into assets under discretionary management and assets under non-discretionary management. Assets under non-discretionary management Assets held for clients by Van Lanschot Kempen, irrespective of whether these assets are held in investment funds, deposits, structured products or cash, with either a Van Lanschot Kempen investment adviser advising the client on investment policy or clients making their own investment decisions without Van Lanschot Kempen’s input. Association of Securities-Issuing Companies Represents the interests of companies that issue securities in the Netherlands, focusing on promoting best practices, transparency, and regulatory compliance in the securities market. Basel III The framework drawn up by the Basel Committee on Banking Supervision, which introduced a stricter definition of capital and several new ratios and buffers with which banks must comply. Basel IV The reform of Basel III, commonly referred to as “Basel IV”, involves the final calibration and design of capital output floors, based on revised standardised approaches. It also includes reforms of the IRB approach and the standardised approach for credit and operational risk. Business continuity management (BCM) A framework for identifying potential threats to Van Lanschot Kempen and ensuring that we can continue to operate during and after a disruption. Capital conservation buffer Capital Requirements Directive IV (CRD IV) requires Van Lanschot Kempen to maintain Common Equity Tier 1 capital equivalent to 2.5% of total risk-weighted assets as a capital conservation buffer. If an institution fails to maintain this capital conservation buffer, it will be restricted in making discretionary distributions. Capital deployment The allocation of financial resources by a company to various investments, projects, or business activities to generate returns. Capital expenditure (capex) Funds used by a company to acquire, upgrade, or maintain physical assets such as property, buildings, or equipment. Capital Requirements Regulation (CRR) Set of rules and regulations established by the EU to regulate the capital requirements for banks. It determines the amount of capital that banks must hold to ensure their financial stability and resilience. The CRR framework includes elements such as minimum capital requirements, risk-weighted assets, and liquidity requirements that banks must comply with to meet the regulations. Carbon risk real estate monitor (CRREM) An EU-funded project to help investors assess and manage risk in the real estate sector related to climate change. Cash flow hedges (hedge accounting) Instruments to hedge the exposure to fluctuations in cash flows of assets, liabilities or future transactions, arising as a result of interest rate changes and/or inflation. Client option positions Clients are unable to buy or sell share options directly on the stock exchange. Van Lanschot Kempen purchases or sells on behalf of these clients and covers this with offsetting transactions on the stock exchange. Such receivables and payables are recognised under Derivatives. Common Equity Tier 1 (CET 1) capital Also referred to as core capital, CET 1 capital encompasses a bank’s share capital, share premium and other reserves, adjusted for deductions as specified by regulators, such as goodwill, deferred tax assets and IRB shortfall. Common Equity Tier 1 (CET 1) ratio CET 1 capital as a percentage of total risk-weighted assets. Compliance and Operational Risk Committee A governance body responsible for overseeing and managing compliance and operational risks within Van Lanschot Kempen. Contingent liabilities All commitments arising from transactions for which Van Lanschot Kempen has given a guarantee to third parties. Glossary 307 Cost/income ratio Ratio of operating expenses (excluding costs incurred for special items) to income from operating activities. Cost/income ratio (IFRS Accounting Standards) Operating expenses excluding impairments and results from the sale of public and private sector loans and advances, as a percentage of income from operating activities. Countercyclical capital buffer Common Equity Tier 1 capital equivalent to the total risk exposure amount (calculated in accordance with the CRR) multiplied by the weighted average of the countercyclical buffer rates. The countercyclical buffer rates are set by the designated authority in each EU member state on a quarterly basis. The buffer is determined by calculating the weighted average of the countercyclical buffer rates that apply in the jurisdictions of the relevant credit exposures. CPB Netherlands Bureau for Economic Policy Analysis Generally known by its Dutch acronym, CPB Netherlands Bureau for Economic Policy Analysis is an independent research institute that provides policy-relevant economic analyses and projections, conducting research on the Dutch economy and on general socio-economic policy. Credit risk The risk that loans are not repaid, not fully repaid or not repaid on time. Credit support annex (CSA) Forming part of an international swaps and derivatives agreement (ISDA), a CSA regulates credit support (collateral) for obligations resulting from derivatives. Credit valuation adjustment (CVA) An adjustment made on the valuation of derivatives transactions with a counterparty, reflecting the current market value of counterparty credit risk. CRD/CRR Capital Requirements Regulation and Directive: Regulation (EU) No 575/2013 on prudential requirements for credit institutions and investment firms (CRR) and Directive 2013/36/EU on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms (CRD IV). The CRR/CRD IV package transposes the global standards on bank capital (the Basel III agreement) into EU law. CSRD On 5 January 2023, the Corporate Sustainability Reporting Directive (CSRD) entered into force. The new rules will ensure that investors and other stakeholders have access to the information they need to assess the impact of companies on people and the environment and for investors to assess financial risks and opportunities arising from climate change and other sustainability issues. Companies subject to the CSRD will have to report according to European Sustainability Reporting Standards (ESRS). Currency options Currency options grant their buyer the right, but not the obligation, to buy or sell a quantity of a certain currency at a pre-determined exchange rate during or at the end of a pre- determined period. The currency option constitutes an obligation for the seller. Van Lanschot Kempen’s currency options mainly relate to client transactions covered by offsetting transactions in the markets. Data breach An incident in which sensitive, confidential or protected information is accessed, disclosed or stolen by unauthorised individuals. Data protection impact assessment (DPIA) A process used to identify and mitigate risks to data privacy and protection when implementing new projects or systems involving personal data. Data Protection Officer (DPO) An independent internal supervisor responsible for ensuring that Van Lanschot Kempen complies with data protection laws and regulations. De Nederlandsche Bank (DNB) The Dutch central bank. Defined benefit scheme A pension scheme other than a defined contribution scheme (see below). In a defined benefit scheme, the company has the constructive obligation to make up any deficit in the scheme. This does not have to be based on any legal requirements, but may be simply on the basis of an historical intention on the part of the company to make up any deficits. Defined contribution scheme A scheme in which the company makes agreed contributions to a separate entity (a pension fund) to secure pension rights. The company is not obliged, either legally or effectively, to pay additional contributions if the pension fund does not have enough assets to cover all of its current and future obligations. Delta economic value of equity (ΔEVE) A long-term economic measure used to assess the degree of interest rate risk exposure. The measure reflects how changes in interest rates impact the value of Van Lanschot Kempen’s assets and liabilities. Delta net interest income (ΔNII) A short-term 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. Derivatives Financial assets whose value derives from the value of other financial assets, indices or other variables. Van Lanschot Kempen holds both derivatives whose size (face value), conditions and prices are determined between Van Lanschot Kempen and its counterparties (OTC derivatives), and standardised derivatives traded on established markets. Digital Operational Resilience Act (DORA) A piece of EU regulation aimed at ensuring that financial institutions can withstand, respond to and recover from all types of ICT disruptions and threats. It sets out requirements for risk management, incident reporting, testing and third-party risk management to enhance the digital resilience of the financial sector. Glossary 308 Directive 2013/34/EU An EU law that sets requirements for the financial statements and reports of certain companies, aiming to ensure transparency and comparability of financial information across the EU. Discounted cash flow (DCF) A method to value an investment by estimating future cash flows, taking account of the time value of money. Do no significant harm criteria (DNSH) Part of the EU Taxonomy Regulation, these criteria ensure that economic activities do not cause significant harm to environmental or social objectives while pursuing sustainability goals. Double materiality assessment (DMA) A process that evaluates both the financial impact of ESG issues on Van Lanschot Kempen and the company's impact on these issues, ensuring that both perspectives are considered in sustainability reporting. Due diligence A detailed review process that a company undertakes to assess potential risks and opportunities before a business transaction, which involves an examination of financial, legal and operational aspects to make informed decisions. Duration of equity A measure of the interest rate sensitivity of equity that reflects the impact on equity of a 1% parallel shift in the interest curve. Dutch Authority for the Financial Markets (AFM) The Dutch regulator for financial institutions in the Netherlands. Dutch Data Protection Authority The regulatory body responsible for overseeing and enforcing data protection laws in the Netherlands. Dutch Fund and Asset Management Association (DUFAS) An industry organisation representing the interests of asset managers and investment funds in the Netherlands, promoting a transparent, fair and efficient investment environment. Dutch Securities Institute (DSI) Certifies and registers financial professionals in the Netherlands, ensuring they meet industry standards and ethical guidelines. Economic hedges Derivatives used to manage risks without applying hedge accounting, carried at fair value. At Van Lanschot Kempen, these primarily take the shape of interest rate derivatives. Effective interest rate The rate that discounts estimated cash flows to the net carrying amount of the financial asset over the life of an instrument, or, where appropriate, over a shorter period. Employee engagement survey (EES) A tool used to measure the level of employee engagement, satisfaction and commitment to the company. Employee resource groups (ERGs) Voluntary, employee-led groups that foster a diverse, inclusive workplace aligned with the organisation's values, objectives, and goals. These groups provide support to their members and contribute to both personal and career development in the work environment. ERGs often focus on shared characteristics or life experiences, such as gender, age, sexual orientation or international background. Examples include groups for women, young professionals, LGBTQ+ employees, and international employees. Environmental, social and governance (ESG) Environmental, social and governance factors are used to evaluate companies and countries on their progress in terms of sustainability and ethical behaviour. EU Shareholder Rights Directive (SRD II) SRD II is a regulation that aims to strengthen the rights of shareholders in EU-listed companies. It enhances transparency and encourages long-term shareholder engagement by setting rules for executive remuneration, related party transactions and the identification and involvement of shareholders in corporate governance. EU taxonomy A piece of EU regulation that supplies a classification system defining which economic activities are environmentally sustainable. It guides investors, companies and policymakers in making informed decisions that support the EU's climate and environmental goals. European Banking Authority (EBA) An EU regulatory agency that works to ensure effective and consistent regulation and supervision of the banking sector across all EU member states. European Central Bank (ECB) The central bank for the eurozone, responsible for managing the euro and implementing monetary policy to maintain price stability. European Financial Reporting Advisory Group (EFRAG) EFRAG is a private association established with the support of the European Commission that serves the public interest by providing, among other things, technical advice on sustainability reporting. EFRAG provides technical advice to the European Commission in the form of draft European Sustainability Reporting Standards and/or draft amendments to these standards. European Securities and Markets Authority (ESMA) An EU regulatory authority that enhances investor protection and promotes stable and orderly European financial markets. European Sustainability Reporting Standards (ESRS) The ESRS provides detailed guidelines for companies to report on their ESG performance, enhancing transparency and comparability of sustainability information across the EU. Glossary 309 Expected credit losses (ECL) IFRS 9 The probability-weighted estimate of credit losses (i.e., the present value of all cash shortfalls) over the expected life of a financial instrument. Expected loss (EL) Expected loss on loans, expressed in the formula EL=PDEADLGD. Exposure at default (EAD) Basel Exposure at the time of a client’s default, Exposure at default (EAD) IFRS 9 The exposure at default is an estimate of the exposure at a future default date, taking into account expected changes in the exposure after the reporting date, including repayments of principal and interest, whether scheduled by contract or otherwise, expected drawdowns on committed facilities, and accrued interest from missed payments. Fair value hedges (hedge accounting) A fair value hedge comprises one or more swaps concluded to cover the changes in fair value resulting from changes in interest rates, of debt securities, for example. Hedge relations are typically exact hedges, involving debt securities with fixed rates and terms being offset by swaps with exactly the same terms and fixed interest rates. Fiduciary management Holding assets as a trustee or in another fiduciary role for individuals, trusts, pension providers and other institutions. These assets are not included in the consolidated financial statements because they are not Van Lanschot Kempen’s assets. Financial materiality The significance of financial information or events that could influence the economic decisions of users, such as investors or stakeholders. Fitch Ratings (Fitch) Credit rating agency. Forbearance Making a concession regarding the terms and conditions of a loan agreement due to actual or anticipated financial difficulties which prevent a client from meeting their obligations vis-à-vis Van Lanschot Kempen. The concession enables the client to meet the revised obligations. This may also include the whole or partial refinancing of the existing loan. Forwards Contractual obligations to purchase or sell goods or financial assets at a future date at a pre-determined price. Forward contracts are customised contracts traded on the OTC markets. Foundation internal ratings-based approach (F-IRB) An advanced credit risk measurement technique. Under F- IRB, a bank is allowed to develop its own models, based on direct or indirect observations, to estimate parameters for calculating risk-weighted assets. Credit risk under F-IRB is determined by using internal input for probability of default (PD). In contrast to A-IRB, the loss given default (LGD) is included, based on prescribed values. Fund for joint account (FGR) As part of the partnership plan, partners' individual contributions are collected in a fonds voor gemene rekening (FGR). These contributions remain in the fund during their full tenure as a partner. Funding ratio The ratio between public and private sector liabilities and total loans and advances (excluding bank borrowing and lending). Futures Contractual obligations to purchase or sell goods or financial assets at a future date at a pre-agreed price. Futures are standardised contracts traded on organised markets, with stock exchanges acting as intermediaries and requiring daily settlement in cash and/or deposits of collateral. Van Lanschot Kempen has a number of futures on share indices on its books, partly for its own use and partly for clients, for offsetting transactions in the markets. General Data Protection Regulation (GDPR) The General Data Protection Regulation (GDPR) is an EU law that protects the personal data and privacy of individuals within the EU and EEA. It sets strict rules for data collection, processing, and storage, emphasising principles such as lawfulness, transparency, data minimisation, and security. The GDPR also provides individuals with rights over their data, such as access, correction and erasure. General meeting The body formed by voting shareholders and others with voting rights. Global Reporting Initiative (GRI) An independent organisation which develops guidelines for sustainability reports. Van Lanschot Kempen’s integrated annual report is based on GRI. Green asset ratio (GAR) Measures the proportion of a financial institution's assets that are environmentally sustainable according to the EU taxonomy. Greenhouse gases (GHGs) Greenhouse gases, including carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O), trap heat in the atmosphere and contribute to global warming and climate change. Gross exposure The value at which receivables are recognised in the consolidated statement of financial position, with the exception of derivatives. Gross exposure is calculated on the basis of an add-on percentage of the nominal value (fixed percentages in accordance with the Financial Supervision Act) and the positive replacement value. Hedge Protection of a financial position – against interest rate risks in particular – by means of a financial instrument (typically a derivative). Higher energy performance certificate (EPC) Indicates that a building has superior energy efficiency, resulting in lower energy consumption and reduced environmental impact. Glossary 310 Impacts, risks, and opportunities (IROs) Assessment of how a company's activities affect the environment and society (impact), the potential adverse effects that ESG issues may have on the company (risks), and the potential benefits or positive outcomes that can arise from addressing these issues (opportunities). Impairment Amount charged to the result for possible losses on non- performing or irrecoverable loans and advances. Alternatively, an impairment test may suggest lower asset values, if fair values have dipped below carrying amounts and/or the fair value of investments and associates have moved below cost. Interest rate option An agreement between a buyer and a seller, under which the seller guarantees the buyer a maximum interest rate (cap) or minimum interest rate (floor) for a fixed term. Interest rate risk The risk that profit and equity are impacted by changes in interest rates, in particular in the event of an intentional or unintentional mismatch in the terms of funds lent and borrowed. Interest rate swaps A contract in which two parties exchange interest payments for a pre-agreed period and a notional principal amount, while not swapping the face value. An interest rate swap typically involves exchanging fixed-rate cash flows for floating-rate cash flows in the same currency, with the floating rate based on a benchmark interest rate (usually Euribor). Internal capital adequacy assessment process (ICAAP) Strategies and procedures designed for Van Lanschot Kempen's continuous assessment as to whether the amount, composition and distribution of its equity still reconcile with the size and nature of its current and potential future risks. Internal liquidity adequacy assessment process (ILAAP) A key purpose of the ILAAP is to document and demonstrate overall liquidity adequacy. This documentation informs a bank’s board and regulators of the ongoing assessment and quantification of its liquidity and funding risks, how it intends to mitigate those risks and how much current and future liquidity is required. In addition to the analysis of liquidity risk, ILAAP should also include a detailed analysis of its funding profile and evaluation of risks to the stability of the funding profile. Internal ratings-based approach (IRB) An advanced approach used to calculate credit risk. Van Lanschot Kempen applies only the advanced internal ratings-based (A-IRB) approach. IFRS Accounting Standards Accounting and reporting standards drawn up by the International Accounting Standards Board. These standards have been adopted by the EU and have been applied by us from the 2005 financial year. Irrevocable commitments All obligations resulting from irrevocable commitments that could result in loans or mortgages being granted. Learning and development (L&D) Activities and programmes implemented by organisations to enhance the skills, knowledge and competencies of their employees. 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 active markets, e.g. over-the-counter (OTC) financial derivatives is established using cash flow and option valuation models. On the basis of its estimates, Van Lanschot Kempen selects a number of methods and makes assumptions based on the market conditions (observable data) at the reporting date. Level 3: Significance of unobservable market data The financial assets in this category have been assessed on an individual basis. Their valuation is based on management’s best estimate by reference to the most recent prices, prices of similar instruments and, to a not insignificant extent, information not observable in the market. Leverage ratio (LR) The leverage ratio represents the relationship between total assets plus contingent items and Basel III Tier 1 capital. It is calculated in accordance with the CRR. LGBTQ+ LGBTQ+ stands for lesbian, gay, bisexual, transgender and queer/questioning, with the "+" representing other sexual and gender identities. It is an inclusive term used to describe a diverse range of sexual orientations and gender identities. Lifetime probability of default (LPD) See "Probability of default". Liquidity coverage ratio (LCR) The LCR represents the ratio between high-quality liquid assets and the balance of cash outflows and cash inflows in the next 30 days. Liquidity risk The risk that Van Lanschot Kempen has insufficient liquid assets available to meet current liabilities in the short term. Litigation costs Expenses incurred by Van Lanschot Kempen in the process of legal proceedings, including attorney fees, court fees, and settlement costs. Glossary 311 Loss given default (LGD) The loss given default is an estimate of the loss arising in the event of a default 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. It is typically expressed as a percentage of EAD. Loss given loss (LGL) model A product-level model evaluating the part of exposure at default (EAD) that may be lost. Market risk The risk that the value of a financial position changes due to movements in stock exchange prices, foreign exchange and/ or interest rates. Markets in Financial Instruments Directive (MiFID) The Markets in Financial Instruments Directive (MiFID) is a regulatory framework established by the EU to standardise investment services across member states and enhance investor protection. It aims to increase transparency in financial markets, improve the functioning of those markets, and ensure a consistent level of protection for investors. Morgan Stanley Capital International (MSCI) MSCI is a global provider of equity, fixed income and real estate indices, multi-asset portfolio analysis tools, and tools to evaluate ESG and climate products. Morningstar Morningstar rates mutual funds and ETFs from 1 to 5 stars based on how well they have performed in comparison to similar funds and ETFs. MSCI orange flags Indicators used by MSCI to highlight potential governance, environmental, or social risks associated with a company. Net Promoter Score (NPS) The NPS provides information on client loyalty and the number of promoters of the organisation. The score lies within a range of –100 to 100 points. The formula is as follows: NPS = % promoters - % detractors. Promoters give the organisation a score of 9 or 10, whereas detractors award a score of between 0 and 6. Net stable funding ratio (NSFR) The relationship between available stable funding and the required amount of stable funding. Non-controlling interests Non-controlling interests in entities that are fully consolidated by Van Lanschot Kempen. OECD Guidelines The guidelines of the Organisation for Economic Co- operation and Development (OECD) describe what the Dutch government expects from multinational enterprises when it comes to corporate social responsibility. The Guidelines provide companies with guidance in the field of e.g. supply chain management, human rights, child labour, environment and corruption. Operating expenses (opex) Ongoing costs for running Van Lanschot Kempen’s business, such as salaries, rent, utilities, and maintenance. Operational risk The risk of direct or indirect losses as a result of inadequate or defective internal processes and systems, inadequate or defective human acts, or external events. Partnership for Biodiversity Accounting Financials (PBAF) A non-profit organisation that develops methods for financial institutions to measure and report on the biodiversity impact of their investments. Partnership for Carbon Accounting Financials (PCAF) A global initiative that provides a standardised framework for financial institutions to measure and disclose the greenhouse gas emissions associated with their loans and investments. Principles for Responsible Investment (PRI) The Principles for Responsible Investment (PRI) provide a framework for incorporating environmental, social and governance criteria in investment policies. Probability of default (PD) The probability of default is an estimate of the likelihood of default over a given time horizon. In our IRB models (Basel), this time horizon is one year. For IFRS 9 purposes, we use the one-year PD as well as the lifetime PD. A default may only happen at a certain time during the assessed period if the facility has not already been derecognised and is still in the portfolio. Product backlog item (PBI) A single unit of work or requirement that is listed in the product backlog and prioritised for development in agile project management. Residential mortgage-backed securities (RMBS) Securities backed by residential mortgages. A provider of residential mortgages (typically a bank) will sell these on to a separate entity, a special purpose vehicle (SPV). To finance the mortgages, the SPV will then issue securities called RMBS, which are secured by the mortgages. Risk-weighted assets (RWA) The assets of a financial institution after being adjusted by a weighting factor, set by its regulators, that reflects the relative risk attached to the relevant assets. Risk-weighted assets, also referred to as "total risk exposure amount," are used to calculate the minimum amount of capital the institution needs to hold. Science Based Targets initiative (SBTi) A collaboration between Carbon Disclosure Project, the United Nations Global Compact, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF) that helps companies set greenhouse gas emission reduction targets in line with climate science. Settlement risk The risk 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. Glossary 312 Shortfall The difference between the calculated expected loss (EL) and the provision made for a loan for which the capital adequacy requirement is calculated using the IRB method. If the calculated EL exceeds the provision made, the difference must be deducted from Common Equity Tier 1 capital. Single Resolution Fund (SRF) The Single Resolution Fund is an emergency fund that can be called upon in times of crisis. It can be used to ensure the efficient application of resolution tools for resolving failing banks, after other options, such as the bail-in tool, have been exhausted. The SRF enables the financial industry as a whole to ensure the stabilisation of the financial system. Software-as-a-service (SaaS) solutions Software-as-a-service (SaaS) solutions are cloud-based applications delivered via the internet, allowing users to access software without installing it on local devices. Solvency Van Lanschot Kempen’s buffer capital expressed as a percentage of risk-weighted assets. Standard & Poor’s (S&P) Credit rating agency. Standardised approach (SA) A method used under Basel to measure operational, market and credit risks, based on a standardised approach, in which risk weightings are prescribed by the regulators. Strategic risk Current or future threats to Van Lanschot Kempen’s results or equity resulting from not or inadequately responding to changes in external factors and/or from taking incorrect strategic decisions. This is a part of the business risk. Structured products Synthetic investment instruments specially created to meet specific needs that cannot be met by the standardised financial assets available in the markets. Supervisory review and evaluation process (SREP) SREP is a set of procedures carried out on an annual basis by the supervisory authorities to ensure that each credit institution has in place the strategies, processes, capital and liquidity appropriate to the risks to which it is or might be exposed. Sustainable Development Goals (SDGs) In 2015, the United Nations set out the SDGs for 2030: a set of 17 highly ambitious goals relating to climate, poverty, healthcare, education and other challenges. Systematic integrity risk analysis (SIRA) A methodology used to identify, assess, and manage integrity risks within an organisation. Technical screening criteria (TSC) Specific requirements that economic activities must meet to be considered environmentally sustainable under the EU taxonomy. Tier 1 capital ratio The ratio between total Tier 1 capital and risk-weighted assets. Total capital ratio The percentage of a bank’s capital adequacy, calculated by dividing qualifying capital by the risk-weighted assets as defined by the Bank for International Settlements (BIS). Total risk exposure amount (TREA) The sum of risk-weighted exposure amounts for credit risk, foreign exchange risk, settlement risk, counterparty risk, operational risk, market risk and for credit valuation adjustment (CVA) risk. Total Tier 1 capital Van Lanschot Kempen's total Tier 1 capital includes share capital, share premium and other reserves, adjusted for certain deductions set by the regulator, such as goodwill and shortfall. Value at risk (VaR) Statistical analysis of historical market trends and volatilities, used to estimate the likelihood that a portfolio’s losses will exceed a certain amount. Van Lanschot Kempen Van Lanschot Kempen NV Verified carbon standard (VCS) A certification programme that ensures the credibility and quality of carbon offset projects, verifying that they meet specific criteria for reducing greenhouse gas emissions. Weighted average carbon intensity (WACI) Measures the carbon emissions per unit of revenue, weighted by the size of each investment in a portfolio. Wft (Financial Supervision Act) The Wft governs the supervision of the financial sector in the Netherlands. Ten-year figures 313 Ten-year figures Results (€1,000) 2024 2023 2022 2021 2020 Total income from operating activities 724,606 669,372 578,078 598,405 442,740 Operating expenses 532,533 503,172 465,634 437,791 386,655 Impairments -1,439 2,027 -6,534 -17,837 1,871 Operating profit before tax 193,512 164,173 118,979 178,450 54,214 Net result (group profit) 141,940 125,156 84,301 143,807 49,844 Statement of financial position (€1,000) Equity attributable to shareholders 1,275,008 1,246,996 1,280,539 1,307,544 1,254,481 Public and private sector liabilities 12,766,921 12,573,814 12,726,194 11,729,556 10,141,109 Loans and advances to the public and private sectors 9,331,093 9,161,433 9,363,958 8,875,601 8,448,326 Total assets 16,983,332 16,835,885 17,018,965 16,306,596 15,149,026 Key data Number of ordinary shares at year-end (excluding treasury shares) 42,377,190 42,477,086 40,717,318 40,847,117 41,071,819 1 Average number of ordinary shares 42,385,602 41,969,250 40,706,137 40,910,434 40,989,428 1 Earnings per ordinary share based on average number of ordinary shares (€) 3.11 2.82 1.90 3.35 1.05 Dividend per ordinary share (€) 2.75 2.00 1.75 2.00 0.70 IFRS Accounting Standards cost/income ratio (%) 73.5 75.2 80.5 73.2 87.3 Results (€1,000) 2019 2018 2 2017 2016 2015 Total income from operating activities 553,222 506,282 522,539 524,400 561,140 Operating expenses 410,840 440,193 428,990 440,729 422,516 Impairments 22,854 -13,416 -11,461 -2,115 61,937 Operating profit before tax 119,529 79,504 105,010 85,785 54,284 4 Net result (group profit) 98,414 80,315 94,945 69,800 42,754 Statement of financial position (€1,000) Equity attributable to shareholders 1,210,853 1,243,663 ³ 1,332,860 1,340,470 1,299,358 Public and private sector liabilities 9,545,095 9,090,939 9,145,119 9,679,764 9,908,391 5 Loans and advances to the public and private sectors 8,597,894 8,561,497 9,103,327 9,624,048 10,504,423 5 Total assets 14,318,853 13,983,184 ³ 14,658,875 14,877,411 15,831,775 Key data Number of ordinary shares at year-end (excluding treasury shares) 40,920,773 41,017,021 40,846,973 40,873,462 40,961,353 Average number of ordinary shares 40,974,330 41,004,769 40,959,989 40,908,194 40,919,503 Earnings per ordinary share based on average number of ordinary shares (€) 2.27 1.82 2.19 1.61 0.83 Dividend per ordinary share (€) 1.45 1.45 1.45 1.20 0.45 IFRS Accounting Standards cost/income ratio (%) 74.3 86.9 82.1 84.0 75.3 1 The number of shares for Van Lanschot Kempen NV, for the years 2020 and before, are prior to the legal merger of Van Lanschot Kempen and Van Lanschot Kempen Wealth Management. 2 As of 2018, the figures have been prepared in accordance with IFRS 9; those for the years prior to 2018 in accordance with IAS 39. 3 Some amounts differ from previously published reports, reflecting changes that result from the accounting changes related to the provision for pensions. 4 Includes the result from sale of loans and advances to the public and private sectors, amounting to €22.4 million. 5 The 2015 figures have been adjusted to reflect the discontinuation of offsetting current account balances. Text and editing Van Lanschot Kempen NV Stephanie Broad (Narrative Labs) Anita Graafland, Tom Scott Design Capital Advertising Photography Phenster Jessy Visser Head office Van Lanschot Kempen NV Hooge Steenweg 29 5211 JN ’s-Hertogenbosch Telephone +31 20 354 45 90 [email protected] vanlanschotkempen.com/en ’s-Hertogenbosch Trade Register no. 16038212 We welcome your views and opinions – please see our contact details above. This annual report was published on 27 February 2025.
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