Amsterdam-based custodian KAS Bank has reported a €3.9m increase in commission in the group’s half-year figures released today – an 11.5% increase on the same figures in 2004.
“The positive development of results reflects Kas Bank’s strength,” says chairman Albert Röell in a statement. “The growth takes place amongst our core target groups,
institutional investors and financial institutions, and
is widespread, both with
reference to products sold and areas of distribution.”
The commission climbed to €37.7m from €33.8m last year. Increases in custody and investment management services (IMS), clearing and settlement, and securities lending all contributed to the sizeable total.
IMS increased from €12.2m to €13.6m – up 11% on last year, while clearing and settlement services rose a marginal 1% to €13.8m.
The biggest rise - attributed mainly to fixed-income values - was in securities lending, which surged 47% from €5.2m in 2004 to €7.6m in 2005. And volume rose by 61% to €33.2bn.
According to the KAS financial report, its assets under custody increased 17%, and those under administration rose to over €20bn, of which half are held by third parties. This brings the total assets close to €300bn.
The only negative influence was a drop in interest income of just over 10%. This was due to falling interest margins, says KAS.
The bank’s trading income and investments, which increased 23% to €10.7m, and the marginal contribution from other income pushed overall income up 8.7% from €55m to €59.8m.
KAS attributes much of the growth to its development and expansion in Europe, cross-selling, and an influx of new clients.
“Our successful European service provision is based on three pillars: our high level of specialisation, state-of-the-art automation, and our neutral position in the securities market,” said Röell.
Overall net profit also increased 30% from €6.9mn in 2004 to €9mn in 2005.
KAS Bank reported a €3.9m increase in commission in the group’s half-year figures released recently – a rise of 11.5% on the figures in 2004.