Credit crunch significantly affected KAS BANKs results in the third quarter of 2008. Comparing to 2007 turnover increased for the first nine months meanwhile operating profits decreased by 20%.
As a result of global credit crisis KAS BANK got lower profits and revenues from securities lending in this quarter despite the growth in client numbers. Nevertheless, solvency and liquidity remain rather strong. The surplus gained in this quarter exceeds the Dutch Central Bank (DNB) recommended minimum and makes up approximately 1.5 billion.
The supplementary impairment amounted to 68 million due to high volatility of collateral positions and lower than expected recovery rate after the Lehman Brothers default and the falling prices on NYSE Euronext. The total losses are 15 million.
L.D.