KAS BANK releases 2009 results; securities lending drop hits commission income, slight custody rise

KAS BANK has released its results for 2009, revealing a sharp drop in securities lending commission but a slight rise in terms of custody, with total profit markedly up from 2008.

Overall commission income for the year was EUR75.3 million, down 16% on the EUR89.2 million recorded in 2008. However, removing securities lending from the equation meant there was only a 3% fall.

In total, securities lending revenues fell from EUR17.2 million in 2008 to EUR5.1 million in 2009, a drop of 70%, with KAS BANK blaming the financial crisis and deterioration in market conditions for the loss.

Meanwhile, KAS BANK saw a 5% increase in commission from custody and investment management services over the same period, from EUR28.7 million to EUR30.1 million, which the bank partly attributed to its purchase of Deutsche Postbank Privat Kapitalanlagegesellschaft.

However, income from clearing and settlement suffered a loss of 10%, from EUR37.6 million in 2008 to EUR33.8 million in 2009.

Total profit for the bank in 2009 was EUR24.6 million, compared with a EUR39.9 million loss in 2008.

Albert Röell, chairman of KAS BANK’s managing board, commented: “Although the markets are still fragile, our absolute independence as a provider of wholesale securities services offers good opportunities for sustainable growth, both in the Netherlands and in other parts of Europe. This growth will take place among pension funds, insurance companies and other institutional investors as well as in services to banks and brokers.”