KAS Bank NV – half year results
Topline one sees a decrease, but the important part, commission income remained stable at 36.5 mn EUR. Underlying administrated Assets increased nicely.
Especially interesting was this statement:
In H1 2012, investment funds’ demand for KAS BANK’s independent custody services increased further in connection with the coming AIFM Directive which will take effect in mid-2013. This European Directive will impose tougher requirements for the custodial function of investment institutions.
This looks like a structural “tail wind” for custodians.
All in all, the 0.56 EUR earnings for the first 6 months looks like a solid profit at this point of the cycle. As the result does not yet include the sale of the Clearnet stakes, I think full year results should come in at least at 1 EUR per share.
So far, KAS Bank seems to do relatively well in this low part of the cycle. I will therefore continue to build up a full position (5%) of the portfolio. Trading volume in KAS Bank was low the last few days but picked up today.