KAS Bank’s commission income from custody and investment management services increased by 5% in 2009 to 30.1 million. The acquisition of Deutsche Postbank Privat Kapitalanlagegesellschaft helped to boost income from custody and investment management services.
However securities lending income fell 70% to 5.1 million.
According to KAS Bank: “Commission income was 16% lower at 75.3 million (2008: 89.2 million), largely due to the decline in commission income from securities lending in the wake of the financial crisis and the deteriorating market conditions since the fourth quarter of 2008. Excluding securities lending, commission income was only 3% lower.”
KAS Bank is not the only bank affected by falling securities lending revenues. State Street suffered a 83% fall in securities servicing revenue, and BNY Mellon 75%.
In total, KAS Bank operating profit increased 12% in 2009 at 21.0 million (2008 18.8 million). Total profit came to 24.6 million, up from a 39.9 million loss in 2008.