Growth in commission combined with cost control favourable for KAS BANK

Press release 25 April 2007
As expected, KAS BANK closed the first quarter of 2007 with a positive result. Despite the continuing pressure on charges for basic services, the growth in commission was favourable, with costs being kept under control in line with the picture for 2006. However, interest earnings were again less than hoped for as a result of the low interest rate and the flat yield curve.

1 November 2007 will see the implementation in much of Europe of the EU’s Markets in Financial Instruments Directive (MiFID). One of the objectives of the directive is to ensure optimum transparency in investment services, including an obligation to strive for “best execution” for clients. One of the effects of the MiFID will be that new or alternative stock markets will be able to start up in addition to the existing ones (which are already linked to KAS BANK’s European central platform). KAS BANK has already linked the first alternative stock market to its platform, allowing clients to benefit immediately from the provisions of the new directive. On 1 November 2007, KAS BANK’s services will be fully compliant with the MiFID. Linking KAS BANK’s European platform to the main American markets – an operation carried out earlier this year – will also increase the range of services we can offer clients.

Barring exceptional circumstances, we expect a sharp rise in profits for 2007. This is in part due to the yields resulting from the transfer of our private banking activities earlier this year and profit taking on the conversion of our Euronext interests (EUR 13 million).