Gestión del conocimiento en la educación

The financial statements set out below are included in the annual report 2008, the press release annual results 2008 publicly made available on 20 March 2009 (see item i of the 'Documents incorporated by reference') and in the semi annual review (see item c of the 'Documents incorporated by reference') 2009, which can be obtained from the website of Van Lanschot N.V. at http://www.vanlanschot.com.

Developments in 2008

The Bank's balance sheet remained solid in 2008. The Bank’s services focus on high net-worth individuals, as well as entrepreneurs and their businesses. The Bank uses its balance sheet for its clients. The use of the balance sheet for the Bank’s own account is, and will continue to be, extremely limited. The result of this is a low risk profile. In line with this, the Bank has not invested in the subprime sector or any other high-risk investments such as CDOs or SIVs. The Bank’s investment portfolio (€ 0.9 billion) consists primarily of bonds and government securities with a Triple A rating. A small portion of the portfolio consisted of positions in equities, which were liquidated in late 2008, resulting in a loss on sale of € 51.7 million.

The quality of the loans portfolio is excellent. The losses on the Bank’s loans portfolio have traditionally been among the lowest in the Netherlands. However, in the course of the 2008 the impact of the economic recession was visible in the form of mounting credit losses. As a result, the addition to the provision for loan losses in 2008 amounted to 15 basis points of riskweighted assets, compared with 1 basis point in 2007. Loans and advances to corporate clients increased 13% in 2008 to € 6.6 billion. In line with the policy of putting less focus on mortgages as introduced in 2006, the mortgage portfolio remained more or less stable at € 8.0 billion. Overall, the loans portfolio grew 7% to € 17.1 billion at year-end 2008, which represents 83% of total assets.

In 2008, the Bank succeeded in raising fresh capital in the capital market on two occasions. In August, it raised a total of € 100 million in long-term Lower Tier II capital from institutional investors, and in December € 150 million in preference shares were issued to both new and existing institutional and private shareholders. The Bank’s capital ratios have always been among the best in the market, as befits a private bank. Issuing new capital puts the Bank in a position to ensure its ratios are once again among the highest new levels on the market. The capital ratios are expected to be substantially improved by the application of the F-IRB approach under Basel II, which the Bank hopes to introduce ahead of schedule in January 2010.

The Bank’s cash position is one of the best in the industry. In 2008, the Bank did not have to make use of the lending facilities from the ECB. The activities of the Bank are financed mainly by savings and deposits of clients. This is reflected in the Bank's funding ratio (the ratio of funds entrusted by clients to total loans and advances) of 90%, which is among the highest among the Dutch banks. Thanks to its comfortable liquidity position, in 2008 the Bank was able to make early and scheduled repayments of € 1.25 billion on Floating Rate Notes.

As the international capital markets have been more or less closed to many financial institutions in the past year, and as these financial institutions have had to take back certain previously securitised assets onto their balance sheets, their need for funding has increased enormously. The traditional savings market was the only market still open. These banks are therefore making more intensive use of this market than previously. This has led to deposit and savings rates being offered that are substantially higher than Euribor rates. Normal interest rate relationships are therefore completely distorted. The Bank matches these interest rates for its own clients.

Total assets under management fell in 2008 to € 24.6 billion due to a negative market performance. Assets under management for institutional clients, however, rose as the Bank took on a number of major new clients.

In 2008, the number of private clients rose by over 5% and the number of corporate clients by over 8.0%. Savings accounts and deposits of private clients increased in 2008 by 15%, or € 1.5 billion to € 11.6 billion. During 2008, the Bank expanded its private banking segment with the acquisition of Buttonwood in Belgium and ING private banking Curaçao.

Net profit for 2008 amounted to € 30.1 million, a decline of 86% on 2007 (€ 215.4 million). Earnings per share in 2008 were € 0.55, i.e. a 91% decrease compared with 2007 (€ 5.94).

The profit for 2008 was adversely impacted by several one-off items for an amount of € 76.4 million. These were the above-mentioned loss of € 51.7 million on the sale of the equity portfolio, a write-off of € 20.5 million relating to capitalised investments for the IT project, and a provision of € 4.2 million for the Bank's obligations under the deposit guarantee scheme. On the other hand, a number of provisions were released within staff costs: a pension provision for € 8.2 million and a healthcare costs provision for € 5.2 million. The interest margin was essentially stable during 2008 at 1.39%. On balance, the higher volumes were good for a 6% increase in interest income. The turmoil on the financial markets made investors very cautious, and faced with collapsing

share prices they sought refuge in deposits. As a result, the volume of securities transactions in 2008 was down 32% on 2007. In addition, falling share prices resulted in lower management fees. Overall, in 2008 securities commission decreased by 33% compared with 2007.

Results

Income from operating activities for the year 2008 totalled € 493.6 million, which is € 154.4 million lower than for the entire year 2007 (€ 648.0). This was mainly the result of a decline in commission income, income from securities and associates and profit on financial transactions.

Interest income rose 6% from € 276.3 million in 2007 to € 294.1 million in 2008, as a result of the positive trend in the underlying volumes and a stable interest margin. The amortisation of acquired surplus (which resulted from the acquisition of CenE Bankiers) was € 0.9 million for 2008, compared with € 4.5 million for 2007.

Private client savings accounts and deposits rose in 2008 by 15%, or € 1.5.1 billion to € 11.6 billion.

Income from securities and associates was € 17.3 million negative in 2008. This includes € 31.8 million negative for the loss on the sale of available-for-sale investments (2007: € 17.3 million positive). This loss comprises the aforementioned loss of € 42.1 million plus the profit of € 10.3 on the sale of a number of other available-for-sale investments. In addition, this item includes € 22.9 million in dividend distributions (2007: € 11.2 million) and a negative revaluation result of € 8.4 million (2007: € 1.0 million negative).

Commission income for the year 2008 totalled € 217.7 million, which is 26% down on 2007 (€ 295.4 million). This was entirely the result of declining securities commission and management fees, which fell from € 252.4 million in 2007 to € 170.0 million. The number of transactions was 32% lower than in 2007. The falling share prices (the AEX fell 52% in 2008) resulted in a substantial reduction in value of the Assets under Management, causing a major decrease in management fees. Other commission was up 11% from € 43.0 million to € 47.7 million.

For 2008, profit on financial transactions was € 0.9 million negative; in 2007 this was € 48.8 million positive. This amount contains the realised and unrealised value changes on the trading portfolio, the exchange differences and realised and unrealised gains and losses on hedge accounting. Profit on financial transactions strongly depends on the development of the interest rate, the sentiment on the stock exchanges and the exchange rate movements.

Total operating expenses for 2008 totalled € 422.1 million, i.e. an increase of € 7.4 million compared with 2007 (€ 414.7 million). This increase was caused by the higher other administrative expenses; staff costs and depreciation and amortisation were lower than in 2007.

In 2008 staff costs totalled € 224.9 million, i.e. a 9% decline on 2007 (€ 248.5 million). This decline was the result of the release of the pension provision (€ 8.2 million) and of the provision for healthcare costs (€ 5.2 million) and a lower accrual for variable remuneration (€ 27.6 million lower than in 2007). Compared with 2007, the number of FTEs slightly declined by 21 to 2,241 at year-end 2008, due to the outsourcing of the IT activities. As at 1 December 2008 90 FTEs transferred from the Bank to IBM and Accenture. This decline was offset by an increase in the number of FTEs at Kempen & Co (+39 FTEs) and Van Lanschot Bankiers (+30 FTEs). The increase at Van Lanschot Bankiers mainly related to private banking, where the forming of the Private Wealth teams was continued.

Other operating expenses grew by 25% from € 129.8 million to € 162.3 million in 2008, which was largely caused by the increase in IT costs due to external staff hired for the IT project and the outsourcing of the IT activities. In 2008, within the scope of this IT project, € 6.9 million was charged to profit, of which amount € 3.6 million concerned the depreciation of the modules put into use. In addition, the investments in marketing and communication continued, causing the marketing costs to rise. Finally, a provision of € 4.2 million was formed in 2008 for the Bank’s obligations under the deposit guarantee scheme, including in connection with the bankruptcy of Icesave.

Depreciation and amortisation was 4% lower than in 2007 (from € 36.4 million to € 34.9 million in 2008). This decline was largely the result of the lower amortisation of intangible assets due to the takeover of Kempen & Co. In 2007 this involved an amount of € 13.6 million and in 2008 € 10.9 million.

The item impairments totalled € 50.3 million. Of this amount, € 20.5 million related to the impairment of the costs of the IT project and € 9.6 million to the impairment of the available for-sale equity investments. In 2008, the addition to the loan loss provision was € 20.1 million (2007: € 1.3 million), i.e. 15 basis points of the risk-weighted assets (2007: 1 basis point). The percentage of non-performing loans covered by the provision for loan losses is 63.8% (year-end 2007: 138.6%).

Income tax on operating profit for 2008was a tax credit of € 8.9 million. This resulted from the low profit before tax on the one hand, and the tax benefit from the participation exemption on the other.

The efficiency ratio i.e. the ratio of operating expenses to income from operating activities, rose to 85.5% from 64.0% in 2007.

Earnings per share for 2008 amounted to € 0.55, a 91% decrease compared with 2007 (€ 5.94). Private Banking

The number of private banking target group clients was up 5%. Private client savings accounts and deposits were up € 1.5 billion in 2008 (i.e. 15%), from € 10.1 billion to € 11.6 billion. Loans and advances to private clients increased by € 0.3 billion to € 10.4 billion. Client assets declined by € 2.1 billion (7%) from € 28.7 billion to € 26.6 billion. This decline was mainly caused by a decrease in the assets under management. Negative sentiment on the stock exchanges meant that private clients choose to hold part of their assets in the form of cash.

The assets under management for private clients fell by € 3.6 billion from € 18.6 billion to € 15.0 billion. This decrease was due to a net inflow of new money of € 0.3 billion and a negative market performance of € 3.9 billion. The net inflow included the assets under management from the acquisition of Buttonwood (€ 0.3 billion) by Van Lanschot Belgium and of ING private banking Curaçao (€ 0.5 billion) by Van Lanschot Curaçao. The assets under management for private clients include the Index Guarantee Contracts, which decreased in 2008 by € 0.3 billion to € 1.1 billion at year-end 2008. Income from operating activities decreased by € 32.9 million from € 351.1 million to € 318.2 million due to lower securities commission. Securities commission was down 28% from € 149.7 million to € 112.8 million. Interest income was higher. Operating expenses were up € 33.6 million from € 218.6 million to € 252.2 million, for a large part due to higher other administrative expenses. These expenses rose 37% from € 72.3 million to € 99.4 million, in particular due to the higher IT costs for external staff hired. Furthermore, staff costs grew 3% from € 131.4 million to € 135.3 million. Staff costs at private banking rose despite the fact that the number of FTEs stayed the same. In 2008, € 6.7 million was posted for impairments. Compared with 2007, this is a € 4.1 million increase. The operating profit for before tax of private banking was € 59.3 million, representing a decline of € 70.6 million on 2007 (€ 129.9 million).

Van Lanschot Belgium

Van Lanschot Belgium also felt the impact of the turbulent developments on the market. Organic growth in the number of target group clients still was 5%. Furthermore, the client portfolio was extended on 1 October thanks to the acquisition of the asset management company Buttonwood. Despite the inflow of new funds in private banking and the acquisition of Buttonwood, the negative sentiment on the stock exchanges caused a decline in the total income –generating assets of 11% to over € 3.1 billion. This decline, coupled with the fact that our clients were cautious with securities trading, resulted in a 26% decrease in securities commission. Interest income decreased by

8% due in particular to a lower interest margin on account of the fiercer competition for funds entrusted. The loans portfolio grew 2% to € 0.4 billion. Total income was down 16.7% from € 32.3 million to € 26.9 million, while the increase in total expenses was limited to 3.3%. As a result, operating profit before impairments and tax declined by 74.4% to € 2.1 million.

International Private Banking

International Private Banking ('IPB') concentrates on Dutch and Belgian clients who are in need of specific services due to emigration or international business and investment activities. IPB services are provided from our foreign offices, i.e. Van Lanschot Bankiers Luxembourg, Van Lanschot Bankiers Curaçao and Van Lanschot Bankiers Schweiz. The gross operating result before tax of IPB fell 33% from € 15.3 million for 2007 to € 10.3 million for 2008. This decline was mainly the result of lower securities commission.

Assets under management

This segment’s income from operating activities in the year 2008, which is mainly made up of commission, decreased 37% from € 62.9 million to € 39.8 million. This decline was mainly caused by falling commission income due to the bearish sentiment on the stock exchange. Commission decreased € 22.4 million to a level of € 38.3 million in 2008.

Operating expenses dropped 27% from € 35.6 million to € 26.0 million. This decrease in 2008 was in particular the result of staff costs, which were down 34% from € 27.9 million to € 18.3 million on account of the lower accrual for variable remuneration in this segment. The operating profit for before tax in 2008 of this segment was € 13.3 million, representing a decline of € 14.0 million on 2007 (€ 27.3 million).

In 2008, assets under management for institutions and in-house funds decreased by € 1.0 billion from € 10.6 billion to € 9.6 billion. The net inflow was € 1.8 billion, offset by a € 2.8 billion negative market performance. The net inflow can be attributed to the mandate of De Goudse (€ 1.6 billion) and the asset management agreement with Stichting Pensioenfonds Randstad (€ 0.4 billion).

Business Banking

The business banking segment also comprises the activities of the Healthcare-sub segment (CenE Bankiers).

Income from operating activities increased in the year 2008 by 15% from € 140.2 million to € 161.8 million. Compared with 2007, interest income was up by 17%. Loans and advances to corporate clients in 2008 increased by € 0.7 billion to € 6.6 billion. On the other hand, liabilities decreased by € 0.8 billion to € 3.7 billion. These volumes, along with the higher interest rates, positively impacted interest income. The profits on sale and valuation gains on associates and the venture capital unit totalled € 16.9 million. The number of business banking clients grew by 8.3%. Operating expenses showed a 6% increase (i.e. € 4.4 million) to € 80.4 million. The increase was attributable to the other administrative expenses, which rose 28% to € 34.6 million as a result of the higher IT costs for the hiring of external staff. The addition to the loan loss provision of € 12.0 million was made on account of the economic downturn. In contrast with the addition in 2008, the year 2007 saw a release in the provision of € 3.1 million. The operating profit for before tax of business banking was € 69.4 million, representing an increase of € 2.1 million on 2007 (€ 67.3 million).

Corporate Finance and Securities

This segment comprises the corporate finance activities and securities broking to professional investors in Europe and the United States. In this segment, income from operating activities declined 31%, from € 72.5 million in 2007 to € 49.8 million in 2008. The activities included in this segment are volatile by nature and their results depend on stock exchange trends and the number of share issues, mergers and acquisitions led by the Bank. Corporate Finance’s commission income posted a solid increase thanks to their successful involvement in a number of mergers and acquisitions. However, the turmoil on the stock exchanges put pressure on commission and trading income levels of the Securities department. On balance, commission income was 32% lower than in 2007. Operating expenses were down 25% from € 47.5 million to € 35.8 million, mainly as a result of a lower accrual for variable remuneration. Other administrative expenses declined 23% from € 13.7 million to € 10.6 million. Operating profit before tax in the year 2008 was € 14.0 million, representing a decline of € 11.0 million on 2007 (€ 25.0 million).

Other activities

This segment comprises, among other things, income and expenses that at present cannot be allocated to other segments. The Bank is constantly striving to refine this allocation. In addition, this segment comprises income and expenses arising from interest rate, market and liquidity risk management. Income from operating activities decreased in the year 2008 to a negative amount of € 76.0 million. This comprises the € 42.1 million loss on available-for-sale investments and the negative result on financial transactions. Total operating expenses dropped 25% from € 37.0 million to € 27.7 million. This comprises the amortisation of the intangible assets due to the acquisition of Kempen & Co totalling € 10.9 million (2007: € 13.6 million). The costs involved in the impairment of the IT project of € 20.5 million and the impairment of the shares from available-for-sale investments of € 9.6 million are included in the impairment charge. The operating loss before tax in the year 2008 was € 134.8 million, representing a decline of € 118.5 million on 2007 (loss of € 16.3 million).

Balance sheet

Total assets at 31 December 2008 came to € 20.7 billion (31 December 2007: € 21.7 billion). Public and private sector liabilities were up € 0.7 billion (5%) from € 14.6 billion to € 15.3 billion. Existing private clients chose to keep part of their securities portfolios in liquidities and new clients transferred to the Bank with portfolios in the form of liquid assets. This resulted in a substantial growth of € 2.0 billion up to and including August of 2008. In the last period of the year, this item underwent a net decline of € 1.3 billion. This decline was caused by the nationalisation of ABN Amro and Fortis Nederland and the choice made by private clients to spread their liquidities among various banks. In addition, government bonds became the safe haven of choice for clients. Other liabilities to the public and private sectors consists mainly of current account balances.

Total loans and advances to the public and private sectors increased by € 1.1 billion (7%) in 2008. This increase was mainly realised in business banking. In the private banking segment, loans and advances rose less rapidly as a result of the Bank’s strategy to put less focus on mortgages. The mortgage portfolio remained stable at a level of € 8.0 billion.

The Bank's funding ratio (the ratio of public and private sector liabilities to total loans and advances to the public and private sectors) was 90% at the end of December 2008. At year-end 2007, this ratio was 791.2%. Shareholders' funds totalled climbed from € 1.7 billion at 31 December 2007 to € 1.5 billion at 31 December 2008.

Financial ratios

Return on average shareholders' funds for 2008 declined from 16.9% to 1.5%.

The BIS total capital ratio increased from 11.6% to 12.5% due to an increase in qualifying capital as a result of the