KAS Bank records profit increase as expenses drop

KAS Bank’s operating income dropped by almost €5 million compared to Q3 2015 but a reduction in expenses has contributed to a €4.4 million profit.
By Paul Walsh
KAS Bank has reported an increased profit in its Q3 2016 figures largely down to a decrease in its Q3 operating expenses.

Operating income stood at €27.2 million, down from €31.8 million in Q3 2015 while operating expenses stood at €21.4 million compared to €26.1 million for the same period in 2015.

These figures have contributed to a net result of €4.4 million compared to €4.3 million in Q3 2015.

The decrease in expenses has been put down to increased automated processes which the bank says are starting to increase operational efficiency and improve services.

Additionally, the bank has also initiated robotics to the data processing and client reporting quality in a bid to expand its back office services for institutional investors.

Such measures are set to contribute to a structural cost reduction target of €20 million in the period up to and including 2019.

The figures also come against the backdrop of KAS Bank outsourcing IT services to ATOS including the transfer of 70 employees which will reportedly lead to additional cost savings of around €30 million.

Other figures revealed a 3% growth in assets under administration which stood at €519 billion compared to €503 billion in Q2 2016 and €480 billion in Q1.

This increase has been put down to new clients in its three home markets in Germany, the Netherlands and the UK.

The bank also reported stable income in its core custody services, capital ratio and liquidity ratio.