Dutch wealth manager Van Lanschot Kempen has swung to a loss in Q1 2020 driven by volatile market conditions and also reported a decrease in assets under management.

The firm reported a net loss of €10.5m in Q1 2020, versus a profit of €15.3m in the previous year.

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The firm attributed the loss to structured products and investments in own funds, which were affected by the turbulent market.

The performance of Private Banking, Asset Management and Merchant Banking was said to be “reasonably good”.

Operating expenses increased 4% year-on-year to €99.3m.

The firm’s assets under management stood at €80.6bn at the end of March 2020, versus €87.7bn at the end of December 2019.

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Client assets dropped from €102bn to €94.5bn over the period. Net inflows were €1.8bn in the quarter.

The firm’s CETI ratio, a key measure of strength, was 22.8% at the end of March 2020.

This was said to be “significantly above” its own stated capital target ratio of 15-17%.

Van Lanschot Kempen chief financial and risk officer Constant Korthout said: “Regrettably, we have to report a loss for this first quarter; the outcome of a very volatile market leading to a number of incidental items. As part of our 2013 strategic reorientation, we have been able to materially re-risk our balance sheet. Consequently, our credit exposure is limited, largely consisting of Dutch residential mortgages. As such, this has allowed us to maintain low levels of provisioning.

Korthout stressed that the firm’s capital and liquidity ratios are “robust”.

Last month, Van Lanschot Kempen agreed to postpone 2019 dividend for its shareholders to support the economy amid the Covid-19 pandemic.