Kas Bank reported profit for 2011 of 10.2 million, down 45% on 2010 (2010: 18.5 million). Income fell fractionally to 115.3 million (2010: 117.1 million). Operating expenses were almost stable at 97.9 million (2010: 97.5 million).
The bank said the fall in profits is due in particular to lower profits achieved on the investment portfolio, amortization of goodwill and lower transaction volumes on financial markets.
The asset servicing commissions, comprising custody, investment management services and securities lending, increased by 4% to 41.5 million (2010: 39.8 million). AuA grew to 276 billion (2010: 271 billion).
Other income increased by 8.5 million, to 10.6 million (2010: 2.1 million), due chiefly to exceptional income on the extension of an existing client contract. A large proportion of this income was used to amortise capitalized goodwill and client value, said Kas Bank.
“Obviously, 2011 wasnt an easy year for the financial sector and, by extension, KAS BANK, says Albert Rell, chairman of Kas Bank’s Managing Board. “That said, we have been able to strengthen our position on the Dutch institutional market, by offering consistently high service quality and transparent, competitive pricing. Despite falling markets, the assets under administration grew 5% in the second half of 2011.
“Clearly, the calls for security and continuity in the financial infrastructure are getting ever louder and, as a specialized Dutch bank, we are well-placed to meet that demand. There is, for instance, growing demand from pension funds in particular for our asset servicing products and services, which support and safeguard pension fund boards in respect of their management responsibility. Those products and services primarily entail solutions for risk management, compliance and governance issues. In addition, we are increasingly taking over the information provision and reporting role for pension fund trustees and their regulators.”
(JDC)