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H1 2015: Strategic refocus on track

‘We are pleased that the strategic refocus on asset services for institutional markets has resulted in a healthy growth of revenue as well as profit’, says Albert Röell, chairman of KAS BANK’s Managing Board. ‘The results emphasise our strong position in our core markets.’

27 Aug 2015

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Main points

  • Growth of 20% in net result, excluding non-recurring items, to EUR 8.3 million (H1 2014: EUR 6.9 million)
  • Total operational income 16% higher at EUR 62.4 million (H1 2014, excluding one off compensation from dwpbank: EUR 53.6 million)
  • Commission income growth of 12% to EUR 37.2 million (H1 2014: EUR 33.2 million); growth in all the core segments
  • Operating expenses on track, despite higher pension costs and planned investments in operations and strategic approach from dwpbank compensation
  • Capital ratio strong at an average of 20%
  • Dividend at EUR 0.33 (H1 2014: EUR 0.33), an interim pay-out ratio of 59% reflecting a cautious approach in light of continuing unstable capital markets

Key figures

In EUR  H1 2015 H1 2014 Movement
Net result 8.3. million 21.2 million -61%
Net result, excluding non-recurring items 8.3 million 6.9 million 20%
Operating income 62.4 million 53.6 million* 16%
Assets under Administration 460 billion 360 billion 28%
Total earnings per share 0.56 1.44 -61%
Dividend per share 0.33 0.33  
Capital ratio (average) 20% 25%  
* Exluding dwpbank compensation of EUR 20 million      

Chairman’s statement

‘We are pleased that the strategic refocus on asset services for institutional markets has resulted in a healthy growth of revenue as well as profit’, says Albert Röell, chairman of KAS BANK’s Managing Board. ‘The results emphasise our strong position in our core markets.’

General overview

KAS BANK achieved a favourable result in the first half of 2015, despite the difficult economic conditions in Europe. All core segments of the bank – pension funds, insurance companies, investment funds and wealth management – supported both the result and the underlying growth of business. The Assets under Administration were strongly influenced by higher asset values in the first quarter of 2015 followed by an even stronger market adjustment in the second quarter. Including new business, Assets under Administration showed an overall growth of 2% to EUR 460 billion at 30 June 2015 compared to year-end 2014.

In the first half of 2015 we updated our strategy. The bank will further concentrate its activities on the institutional markets in the Netherlands, the United Kingdom and Germany. The mission of the bank is to service long term assets entrusted by pensioners and savers to professional organisations such as pension funds, insurance companies, private banks and wealth managers. We provide all necessary services to optimise the management of these assets cost efficient, transparent and with a low risk profile. These services include custody, investment accounting, transaction and overlay management, financing and advisory services. The bank will continue to focus on clients first, avoiding any conflict of interest in the way we conduct our business. Our custodian principles and key values enforce our mission to secure, protect and develop entrusted assets at all cost.

In addition to the renewed focus on asset services, we are investing to become the leading provider of investment accounting solutions in our core markets. With currently approximately EUR 150 billion assets on our central investment accounting platform and a compound annual growth (CAGR) of more than 25% over the last three years, the bank already is the largest independent multi-client provider in the Netherlands. The increasing complexity to administer assets, and being able to report on them in a timely and accurate manner, will lead to additional outsourcing by pension funds, insurance companies and asset managers alike. By focusing on delivery according to local market standards and governance, including the reporting to central banks, we enable the reduction of both the operational risks as well as the overall costs for market participants. The reporting requirements according to the Financial Assessment Framework (Financieel Toetsingskader) of the Dutch Central Bank highlight the necessity to further standardise the administrative burden for institutional asset owners, such as pension funds.

We will further develop our capabilities in the area of advisory services to institutional clients. In many cases, the data already provided to the bank and related to custody, transactions and/or investment accounting can be re-used to support clients with implementation management, cash management and risk services. In this way, clients can profit from a large data warehouse consisting of the data of a substantial part of the institutional market in our core markets. Our current activities in this field will be accelerated in H2 2015 and 2016 with the hiring of additional staff.

In 2014, KAS BANK received a compensation from dwpbank. In H1 2015, we have reinvested EUR 3.7 million (of in total EUR 16 million) in IT and Operations in the institutional market. We have commenced a program ‘KAS BANK 2 The Next Level’ with the aim of improving our service excellence as well as strengthening our processes, compliance and business culture, necessary to operate on the highest possible level. This program will continue in 2015 and 2016.


Interim dividend will be EUR 0.33 per ordinary share (interim dividend 2014: EUR 0.33 per ordinary share) amounting to EUR 4.9 million or 59% of the net result of H1 2015, reflecting a cautious approach towards continuing unstable capital markets.


We do not expect any change in the economic and political environment which means that the market conditions will remain difficult. Historically, our H2 net result is lower than H1. We continue our investments out of the allocated dwpbank compensation (in H2 at a comparable level to H1) to improve operations and to strengthen the strategic approach. Additional bank levies (new ex-ante Deposit Guarantee Scheme in the Netherlands and Resolution fund contributions in the European Union) will impact the H2 2015 net result.

As a result of the focus on sustainable growth and efficiency improvements, we expect a continued growth of the productivity in the near future. We repeat the bank's aim to meet our long term external objectives we set ourselves.

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Remko Dieker

More information

Remko Dieker

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