BENELUX – Franco-Belgian bank Dexia has reported positive first-half results for its institutional asset management business, with an increase in assets under management in the Netherlands of 8.1%.

Asset management volumes amounted to 72.8 billion euros – an increase of 6.7% compared to the first quarter. New net inflows and improved market conditions are attributed to the increase. Dexia says new net inflows totalled 1.3 billion euros from around 15 new institutional mandates.

In the Netherlands, assets under management for Kempen & Co., and Dexia Bank Nederland were up 8.1% compared to the end of March at 4.5 billion euros.

Custody activities assets grew by 12.1% in the second quarter, mainly as a result of good operational performances, says Dexia. Custody assets reached 121.3 billion at the end of June. Custody assets in the Netherlands grew by 9.2% to 33.1 billion euros.

Overall, Dexia earned 446 million euros in the second quarter, against 385 million euros a year earlier. Chief executive Pierre Richard said: “The second quarter of 2003 is, in all respects favourable, and we are now back, barring any unexpected event, on the growth track.”