NETHERLANDS – KAS Bank has reported a €3.9mn 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,” said 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 €37.7mn from €33.8mn 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 €12.2mn to €13.6mn – up 11% on last year, while clearing and settlement services rose a marginal 1% to €13.8mn.
By far the biggest increase - attributed mainly to fixed income values - was in securities, which saw a staggering 47% climb from €5.2mn in 2004 to €7.6mn in 2005. And volume rose by 61% to €33.2bn.
According to the KAS financial report, their 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, said KAS.
The Bank’s trading income and investments – up 23% to €10.7mn – and the marginal contribution from other income saw income climb an overall 8.7% from €55mn to €59.8mn.
KAS has attributed 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.