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Solid year for KAS BANK, strengthening core business

Net result from operations increased with 18% to EUR 15.4 million (2014: EUR 13.0 million) with solid contributions across the board.

25 Feb 2016

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Highlights

  • Net result from operations increased with 18% to EUR 15.4 million (2014: EUR 13.0 million) with solid contributions across the board. Total net result of EUR 15.3 million (2014: EUR 24.3 million).
  • Focus strategy paying off with positive traction experienced within the core business activities of the bank. All institutional segments contributing to top line with higher gross income numbers. Pensions and insurance segments gross income increased by >15%. Transaction Banking remains a solid base and contributor.
  • Expansion of product range resulted in an increase of new business in particular in risk advisory services.
  • Higher costs due to increase of pension costs and planned business and operations improvements.
  • Capital ratio remains stable at an average of 20%, which emphasizes our low risk strategy.
  • Dividend pay-out maintained at EUR 0.64 (2014: EUR 0.64) and a dividend yield of 6%.

Key figures

in EUR 2015 2014 Verschil
Net result 15.3 million 24.3 million -37%
Net result from operations* 15.4 million 13.0 million 18%
Operating income** 115.5 million 104.2 million 11%
Assets under Administration 464 billion 451 billion 3%
Total earnings per share (basic) 1.04 1.65 -37%
Dividend per share 0.64 0.64  
Capital ratio (average) 20% 24%  
*  Exluding sale Lehman claim (2015) / received compensation dwpbank (2014)
** Excluding items mentioned as 'other items' below
     

 

Chairman's statement

“The engagement of strategic initiatives is on track and we are proud that our clients are rewarding our focus on their business by bringing us more,” says Sikko van Katwijk, Chairman of KAS BANK’s Managing Board. “By putting the interests of our clients first we have been able to anticipate on their changing needs by developing new solutions and services. This has led to an increase of business activities within all institutional segments and eventually resulted in a sustainable improvement of the profitability of the bank. We will continue to invest in solutions that add value to our clients and remain dedicated to further improve the services offered.”

Positive client contributions despite difficult markets

With financial markets in a state of flux throughout most of the year, our clients have been struggling to reach calmer waters. The events of dropping interest rates, depreciation of oil prices, declining yield and turmoil in China, have created uncertainty across all our clients segments. Despite the continuous shifting of priorities on the agenda of our clients, our focus segments have all managed to individually contribute in a positive way to the underlying results.

Progress made on strategic priorities

KAS BANK made promising progress on the strategic initiatives launched and has started initiating measures to improve the efficiency and productivity of its operations. As an example, the bank has widely adopted the Lean methodology in 2015 and has successfully completed the first phase of a process improvement project for our investment accounting platform. In addition, it has executed and will maintain continuous reviews of opportunities to further rationalise its market infrastructure. KAS BANK expects to see significant results and subsequent benefits to the efficiency of the operations in the coming years.

In order to optimize our client relationships KAS BANK actively seeks product-, clients-, and operational partnerships.

In following our corporate objectives of improving operational excellence, KAS BANK initiated an assessment of outsourcing opportunities of its IT.

Maintaining dividend pay-out

KAS BANK will propose to the General Meeting of Shareholders a total cash dividend for 2015 of EUR 0.64 for each ordinary KAS BANK share. EUR 0.33 for each ordinary share has already been distributed as interim dividend for 2015.

KAS BANK is continuing its policy of distributing a dividend of 60-80% of the total profit under normal market conditions.

Outlook reconfirming continued improvement

KAS BANK expects that the financial markets in general and for our clients in particular will remain to be uncertain which means market conditions are expected to remain challenging.

As we expect a continued, sustainable growth of the business and strategic initiatives to contribute to the improvement of the bank’s efficiency, we reconfirm the long term objectives which we have communicated externally.

Read the full press release Solid year for KAS BANK strengthening core business.

"The engagement of strategic initiatives is on track and we are proud that our clients are rewarding our focus on their business by bringing us more."

Sikko van Katwijk, chairman Managing Board
Remko Dieker

Any questions?

Remko Dieker

Secretary to the Managing Board / Investor Relations
+31 (0)20 557 51 80