KAS Bank introduces provisional results for 2008.
Profit excluding exceptional items became down 20% at 18.8 million (2007: 23.6 million); operating performance as expected in very difficult marketconditions.
Total profit can be assessed as negative, 39.9 million, reflecting impairment losses on the banks loans and investment portfolio (including Lehman, Madoff and NYSE/Euronext)
Revenue declined to 132.3 million (2007: 133.2 million).
BIS ratio increased to 18% as at 31 December 2008 (year-end 2007: 14%), with Tier 1 ratio of 15% (year-end 2007: 13%)
KAS BANK has taken the following additional steps to address the current unrest on the financial markets.
Collateral/counterparty risk:-adjustment of haircuts to increase buffers and reduce risk;-lower counterparty limits, including intraday limits;- tighter collateral policy, including risk diversification, quality testing and explicit exclusions.
KAS BANK has launched a comprehensive internal risk management programme to match risk controls and risk awareness to the new environment.
There is now closer focus on balance sheet management and investment policy, with the aim of further reducing the investment risk profile and the volatility of thefinancial results.
The figures given in this statistics have not been examined by the external auditors.
L.D.