KAS BANK reports restricted revenue growth in H1 2008
28 August 2008

Written by Sophie Baker

European bank KAS BANK has reported a growth in total income of six per cent in its first half of 2008 report, rising from €67.3 million in the first half 2007 to €71.0 million in the same period of 2008, attributed to rising interest income and stable commission income.

Operating profit for the bank (excluding exceptional items), however, has dropped by €1.6 million since 2007, with reduced client activity, lower market prices and expenses cited as the causes.

In terms of the BIS ratio, a measure of risk-bearing capital to the risk-weighted assets, the figure has increased by two per cent from 14 per cent at the end of 2007, to 16 per cent as at 30 June 2008. This, the bank says, reflects its strong focus on risk management.

“Given the difficult market condition, KAS BANK performed well in the first half of 2008,” commented Albert Röell, chairman of the KAS BANK managing board.

“Our market position in our core markets has improved and the bank’s risk profile has stayed low,” he added.

In terms of looking forward to the end of 2008 results, the bank sees the recent acquisition of Delta Lloyd Investment Managers GmbH in Germany as a positive and strengthening position in the market, and predicts that it will have a “slight effect” on this next set of results.

However, beyond this, the managing board declined from commenting. If the trend of the increase in liquidity over 2007 and in credit risk for the bank’s investment, additional impairment losses in the second half of 2008 could, the bank says, be a likely result. “In view of this uncertainty, the Managing Board prefers not to give a forecast of the full-year results for 2008.”