Kas Bank reports drop in SL income 27 August 2010Amsterdam Reporter: Ben Wilkie
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Kas Bank has reported a drop in profits of five per cent for the first half of 2010, down in part to a significant fall in securities lending income.
The bank said that while custody and investment management services had seen a rise, clearing and settlement earnings had fallen, and securities lending income had declined by 24 per cent over the first six months of the year.
Total profits for the bank were EUR11 million. Albert Roell, chairman of Kas Bank's Managing Board said: "The first half of 2010 has shown that it is still too early to speak of a definite recovery in the financial markets, but it is encouraging that the stress testing recently conducted in Europe found most of the major European banks to have become more resilient.
"The stress test served to confirm Kas Bank's low risk profile and its high capital ratio of over 20 per cent in the worst-case scenario at year-end 2011. Market conditions are not good: commission income is under constant pressure from the lower market activity and lower volumes. In spite of the impact of the very low interest rates on our interest income, Kas Bank generated a net return on equity of 10 per cent in the first half of 2010."
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