Press release H1 2016: Countering market challenges

  • Disappointing decrease of net result of 89% to EUR 0.9 million (H1: EUR 8.3 million); result from operations decreased with 61% to EUR 4.3 million (H1 2015: EUR 10.9 million).
  • As a result of low profitability we will forego the interim-dividend. Initiatives are implemented to improve net results and to meet our financial objectives, these include adhering to a dividend pay-out ratio of 60-80%. KAS BANK identified potential cost reductions of EUR 20 million in the period up to and including 2019.
  • Revenues declined by 17% to EUR 51.6 million (H1 2015: EUR 62.4 million) due to lower returns on interest and securities lending, as well as lower result on the investment portfolio. Growth of 7% in commission income in our core services (custody and administration) supports the strategic direction for the growth of our business.
  • Total operating expenses are 2% lower than last year, at EUR 46.7 million (H1 2015: EUR 47.8 million), being the first results of our cost control program.
  • Assets under Administration have increased by 8% to EUR 500 billion (Q4 2015: EUR 460 billion).
  • Capital ratio remains strong at 26% (Q4 2015: 25%) and the liquidity coverage ratio has increased to 171% (Q4 2015: 143%).

Read the full text of the KAS BANK H1 2016 press release Countering market challenges here (PDF opens in new window).