“We are proud of our performance over the first half of 2017. The transformation of KAS BANK is proceeding well. The main part of the restructuring is completed."
08 Sep 2017
"The emphasis is on improving the quality of services for our clients and increasing efficiency, including the reduction of costs. The transformation clearly delivers its benefits. This year, we focus on delivering a better performance for our clients and shareholders. We will continue this approach, while increasing our efforts to improve organic growth of our business.”Sikko van Katwijk - Chairman of the Managing Board
- Net result of EUR 8.5 million (H1 2016: EUR 0.9 million).
- Operating income increased by 4% to EUR 53.6 million (H1 2016: EUR 51.6 million).
- Operating expenses are 17% lower at EUR 42.4 million (H1 2016: EUR 51.2 million).
- Distribution of an interim dividend of EUR 0.33 (interim dividend 2016 nil).
- Capital ratio of 35% and the liquidity coverage ratio of 214% remain strong.
|In EUR||H1 2017||H1 2016||Change|
|Net result||8.5 million||0.9 million||7.6 million|
|Operating income||53.6 million||51.6 million||2.0 million|
|Operating expenses||42.4 million||51.2 million||-8.8 million|
|Assets under Administration||515 billion||500 billion||15 billion|
|Earnings per share||0.58||0.06|
|Dividend per share||0.33||-|
Our H1 2017 net result is positive, following a good H2 2016. Operating income increased to EUR 53.6 million, and operational expenses decreased to EUR 42.4 million. This is mainly driven by stable income, growth in asset servicing and the continuation of our focus on the rationalisation of our processes.
Robotics, for example, has been implemented to make our processes more reliable and predictable. This enables us to improve our custody and administration servicing to our clients and to focus on and invest in innovation and added-value services.
The position we have as a network organisation is unique and gives us the ability to support our clients in realising their businesses objectives. As a market leader in our main client segments, we are setting the industry standard for regulatory reporting services.
Despite the ongoing consolidation of the Dutch pension and insurance market, we were able to sustain our operating income in H1 2017. We have welcomed new clients in H1 2017 in all our home countries. The launch of the cost transparency benchmarking service in the UK is a success. In Germany, our client base is growing as the pension industry responds to governance challenges and new rules and regulation. There is a growing demand for a specialist provider that is trusted to secure, protect and develop the assets and provide high quality services for institutional investors.
In October we are moving to a new HQ office located at De Entree 500 in Amsterdam-Zuidoost. The office is a modern and spacious building and is fully aligned with the integrated setup of our services. The bright and spacious work environment supports an open and client-oriented culture, enhances product development and enables us to work effectively in multi-disciplinary teams.
KAS BANK will distribute an interim dividend of EUR 0.33 (interim dividend 2016 nil).
In the second half of 2017, we expect no major changes in the macro-economic conditions which could affect KAS BANK. The ongoing consolidation in the Dutch pension and insurance market will result in a lower level of assets under administration at the end of 2017. We see a market opportunity within our current strategic focus and are increasing our efforts to improve organic growth in both custody and administration services. To strengthen our position as market leader and adapt to the changing needs of our clients, we are making increased investments in innovation in our services.
We expect that our investments will increase in the second half of 2017 with Robotics initiatives and the move to our new office building. We therefore anticipate the reduction in costs to continue at a slower pace, than in H1 2017.
Read our full press release Solid performance first half 2017 with the consolidated income statement and the consolidated balance sheet (PDF opens in a new window).
Figures in this press release have not been audited by an external auditor.