NETHERLANDS – KAS Bank says one of Dutch sub-custody clients is to pull around €30bn – or around 10% of the assets the bank has under custody/administration.
KAS said in a statement that “a global custodian client for its Dutch sub-custody services has decided to consolidate its sub-custody portfolio with one provider”. It did not name the client.
It said: “Although assets under custody will decrease by approximately €30bn, the effect on the 2006 revenues and profitability will be marginal, because the service offering to this client concentrated on basic services.”
KAS, which has around €300bn in assets under custody/administration, was not available for further comment.
The statement added that the growth of its European business, which offers (sub-)custody, clearing, settlement and investor services, would not be affected. The business was “developing in line with the bank’s confidence to achieve its stated growth targets”.
KAS said the unnamed client’s decision “was based on the client’s global business considerations rather than dissatisfaction of the bank’s service level”.
Yesterday KAS disclosed that Delta Lloyd’s Delta Deelnemingen Fonds has a 6.9% holding in the bank.
Last month KAS boosted its sales staff in Benelux and the European institutional areas.
It named Arno Vroom as associate director financial intermediaries for the Benelux. Cees Bezuijen became sales manager for institutional investors Europe.