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Q3 2016: positive recovery of operational result

Q3 2016 shows a positive recovery of net result with stable income in core services and strond decrease of operating expenses.

27 Oct 2016

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  • Net operational result in Q3 of EUR 4.4 million; YTD: EUR 5.3 million. Both amounts are excluding non-recurring IT employee harmonisation costs of net EUR 2.5 million.
  • Net result in Q3 of EUR 1.9 million, YTD: EUR 2.8 million.
  • Stable income in core services: custody and administration services.
  • 3% growth in Assets under Administration to EUR 519 billion and new clients in all three home markets (The Netherlands, Germany and UK), supported by continued investments in administration services and client satisfaction.
  • Strong decrease of operating expenses.
  • Further automation, robotics and continuous process improvements (LEAN) are starting to increase operational efficiency and higher quality of services.
  • Capital ratio and liquidity ratio remain stable at a high level.

Key figures

    2016       2015      
In EUR   Q3 Q2 Q1 YTD Q3 Q2 Q1 YTD
Operating income million 27.2 25.1 26.4 78.8 31.8 30.8 31.6 94.2
Operating expenses* million 21.4 24.2 25.3 70.9 26.1 26.3 25.2 77.6
Net result* million 4.4 0.1 0.8 5.3 4.3 3.5 4.8 12.6
Assets under Administration billion 519 503 480   451 460 506  

* excluding IT employee harmonisation costs related to IT outsourcing of EUR 3.3 million (net EUR 2.5 million)

In October 2016, KAS BANK has started with the outsourcing of IT services to ATOS, including the transfer of 70 employees. The cost savings over the contract period amount to EUR 30 million, including approximately EUR 10 million IT employee harmonisation costs (EUR 3.3 million) and IT transition costs. Based on the applicable accounting standards, the total IT employee harmonisation costs are accounted for in Q3 2016 and the IT transition costs will be amortised over the 7-year term of the contract.

The quality of our services to our clients remains paramount to reaching our strategic objectives. The investments made in continuous process improvement (LEAN) lead to increased efficiency of processes and show the first results of improved quality of our services. In addition, we have also initiated robotics in order to automate our data processing and increase the quality of our client reporting. On our journey to becoming the best administration bank, we have made progress to expand the range of back office services for institutional investors. Furthermore, the rationalisation of our target operating model is being investigated with the aim of further reducing costs and improve quality. This will contribute to the target of a structural annual cost reduction of EUR 20 million in the period up to and including 2019.

KAS BANK has come to an agreement with the Kroonenberg Group about the office building in Amsterdam. The transfer of the property will take place in December 2016.

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Remko Dieker

Any questions?

Remko Dieker

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