Kas Bank said it achieved a considerably higher operating result in the first quarter of 2012, after a disappointing second half of 2011, compared to both the fourth quarter of 2011 and the first quarter of 2011. Compared to the last quarter of 2011 results have more than doubled, said Kas Bank.
The banks total net result is 4.9 million (Q1 2011: 5.4 million). Net operating profit in the first quarter is more than 25% higher than the first quarter of 2011.
Total income has risen 18% compared to the fourth quarter of 2011, partly due to higher commission income.
Interest income fell marginally in the first quarter, due to a tightening yield curve, but this was more than offset by rising commission income, said Kas Bank. In addition, AuA increased by 5%, a rise attributable partly to net customer growth. Interest income will remain under pressure from the liquidity excess facilitated during the last quarter by the European Central Bank.
The 6% decrease in expenses relative to the fourth quarter of 2011 reflects the continuing focus on cost-cutting, said Kas Bank. General administrative costs are higher than usual, as a consequence of the partnership with dwpbank to create a Pan-European Securities Platform. Total costs in 2012 are expected to remain stable relative to 2011.
Kas Bank recently offered its holding in LCH.Clearnet for sale. The expectation is that the London Stock Exchange will declare its offer unconditional which, under those circumstances, will yield net proceeds of 4.3 million for Kas Bank in 2012 and, potentially, an additional deferred dividend of 0.4 million over the next five years.
Due to the volatile markets, the managing board will not at this stage predict profit for the rest of 2012.
(JDC)