| Tue 31 Jul 2007, 8:00 | | IBLP - Imperial Bank - Financial results for the s |
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JSE IBLP
IBLP
IBLP - Imperial Bank - Financial results for the six months ended 30 June 2007
IMPERIAL BANK
Reg No.: 1995/012641/06,
Incorporated in the Republic of South Africa
Preference share code: IBLP
ISIN: ZAE000081675
Financial results for the six months ended 30 June 2007
OVERVIEW
Imperial Bank Limited (Imperial Bank) is a 50.1% subsidiary of Nedbank Limited
with the remaining 49.9% held by Imperial Holdings Limited. These interim
financial results are published, to provide information to the holders of
Imperial Bank`s listed non-redeemable, non-participating, non-cumulative
preference shares.
Imperial Bank has had a satisfactory six months, with most key ratios
improving on those of the corresponding period. Gross advances increased 33.7%
from R24 billion to R32 billion and net profit after taxation increased 26%
from R178 million to R224 million. Net interest income grew by 38% and
expenses grew by 25.1%, resulting in the efficiency ratio improving from 34.7%
to 32.0%.The return on ordinary shareholders` equity declined from 24.6% to
24.3%.
Property Finance had a satisfactory six months with continued strong demand
for both commercial finance and residential development finance. Medical and
Supplier Asset Finance performed in line with expectations whilst Motor
Finance was affected negatively by lower vehicle sales and higher interest
rates.
The impairment charge has increased 74.5% compared to the previous interim
period. This is mainly due to the increases in interest rates over the past
year which has put pressure on consumers, resulting in a higher impairment
charge, particularly in the Motor Finance division.
It is expected that there may be a further deterioration in the impairment
charge in the second half due to the National Credit Act which has the effect
of lengthening the collection process, combined with the increased interest
rate environment.
SECURITISATION
On 18 June 2007, Imperial Bank successfully securitised R2 billion of its
motor vehicle instalment sale agreements. The transaction has been structured
as a revolving R2 billion tranche for a period of 24 months and thereafter, a
controlled amortisation.
Although the instalment sale agreements have been legally ceded by Imperial
Bank, the instalment sale assets remain on the Imperial Bank balance sheet, as
required by International Accounting Standard (IAS) 39.
CAPITAL MANAGEMENT
In order to support Imperial Bank`s continued strong growth the two
shareholders contributed R300 million of equity capital on 26 March 2007.
PROSPECTS
The increased interest rates have dampened demand, particularly for passenger
vehicle finance. Imperial Bank was well prepared for the introduction of the
National Credit Act and is encouraged by the volumes of new business being
processed. Overall we remain positive about the prospects for the second half
of the year.
SHAREHOLDERS` AGREEMENT
Nedbank Limited and Imperial Holdings Limited have reconfirmed their
commitment to Imperial Bank and are currently finalising a revised
shareholders` agreement that will formalise the terms of their commitment to
Imperial Bank beyond 2010.
CHANGES TO BOARD OF DIRECTORS
During the reporting period the following changes were made to the Imperial
Bank board:
- Mrs N P Mnxasana was appointed as a non-executive director on 8 May 2007.
- Mr W G Lynch retired as a director and chairman of the board on
16 July 2007. Mr Lynch was instrumental in establishing Imperial Bank in 1996
and has been chairman since that date. He has played a leading role in
building Imperial Bank into the significant organisation it is today. The
board pays tribute to Mr Lynch for his contribution to Imperial Bank and
wishes him well in his retirement.
- Mr H R Brody was appointed chairman of the board on 18 July 2007.
ACCOUNTING POLICIES
The accounting policies applied for the first half of the year are consistent
with those of the prior year. Imperial Bank`s financial statements have been
prepared in accordance with IAS 34 Interim Financial Reporting.
IMPERIAL BANK NON-REDEEMABLE, NON-PARTICIPATING, NON-CUMULATIVE PREFERENCE
SHARES - DECLARATION OF DIVIDEND NO. 2
Notice is hereby given that preference dividend No. 2 of 435.82192 cents per
share has been declared for the period from 1 January 2007 to 30 June 2007,
payable on Monday, 17 September 2007, to shareholders of the non-redeemable,
non-participating, non-cumulative preference shares recorded in the books of
the company at the close of business on Friday, 14 September 2007.
In accordance with the provisions of STRATE, the electronic settlement and
custody system used by the JSE Limited, the relevant dates for the payment of
the dividend are as follows:
Last day to trade cum dividend Friday, 7 September 2007
Shares trade ex dividend Monday, 10 September 2007
Record date Friday, 14 September 2007
Payment date Monday, 17 September 2007
Share certificates may not be dematerialised or rematerialised between Monday,
10 September 2007, and Friday, 14 September 2007, both days inclusive.
Where applicable, dividends in respect of certificated shares will be
transferred electronically to shareholders` bank accounts on payment date.
In the absence of specific mandates, dividend cheques will be posted to
shareholders. Shareholders who have dematerialised their share certificates
will have their accounts, at their CSDP or broker, credited on Monday,
17 September 2007.
For and on behalf of the board
H R Brody R van Wyk
Chairman Chief Executive 1 August 2007
KEY RATIOS
As at June June December
2007* 2006* 2006**
Net interest income to average
interest-earning banking assets % 4.6 4.4 4.4
Impairments charge to
average gross loans and advances % 1.2 1.0 0.9
Non-interest revenue to operating
income % 6.6 8.1 6.9
Efficiency ratio % 32.0 34.7 35.4
Return on ordinary shareholders`
equity % 24.3 24.6 24.7
Return on total average assets % 1.4 1.5 1.5
Bank capital adequacy ratio
- Tier 1 % 6.7 6.2 6.1
- Total % 10.7 11.3 10.5
SHARE STATISTICS
Number of shares in issue
- Ordinary shares m 340.0 288.2 288.2
- Preference shares m 3.0 3.0 3.0
Preference share traded price
(closing) R 93.5 103.0 99.0
CORPORATE INFORMATION
Registered office: Imperial Bank Limited, 24 Achter Road, Paulshof,
Sunninghill, 2191. PO Box 6093, Rivonia, 2128.
Transfer secretaries: Computershare Investor Services 2004 (Pty) Ltd,
70 Marshall Street, Johannesburg, 2001. PO Box 61051, Marshalltown, 2107.
Directors: H R Brody: Chairman, R van Wyk: Chief Executive Officer*,
O S Arbee, C J W Ball, L E Bakoro, M J Croucamp, M A Enus-Brey, P C W Hibbit*,
N P Mnxasana, P A Wessels. *Executive
Company Secretary: J Delport
Sponsor: Nedbank Capital
Reg No.: 1995/012641/06, Incorporated in the Republic of South Africa
Preference share code: IBLP ISIN: ZAE000081675
INCOME STATEMENT
For the period ended June June December
2007* 2006* 2006**
R`000 R`000 R`000
Interest and similar income 1 985 696 1 286 511 2 909 071
Interest expense and similar charges 1 303 905 792 347 1 830 442
Net interest income 681 791 494 164 1 078 629
Impairment charge on loans
and advances 177 189 101 532 210 807
Income from lending activities 504 602 392 632 867 822
Non-interest revenue 35 857 34 536 64 127
Operating income 540 459 427 168 931 949
Operating expenses 229 429 183 471 404 540
Indirect taxation 12 097 10 385 21 150
Profit from operations
before direct taxation 298 933 233 312 506 259
Direct taxation 74 639 55 333 120 199
Profit for the period 224 294 177 979 386 060
BALANCE SHEET
As at June June December
2007* 2006* 2006**
R`000 R`000 R`000
Assets
Cash and cash equivalents 67 896 148 281 12 774
Other short-term securities 1 002 411 742 342 1 154 105
Derivative financial instruments 70 974 101 612 78 334
Government and other securities 336 916 384 951 360 114
Loans and advances to customers 31 359 737 23 275 559 27 736 031
Other assets 291 831 239 926 272 304
Investment securities 6 746 8 243 5 309
Deferred taxation asset - 14 041 -
Property and equipment 120 983 128 316 125 160
Mandatory reserve deposits with
central bank 746 800 548 425 656 030
Total assets 34 004 294 25 591 696 30 400 161
Equity and liabilities
Ordinary share capital 3 400 2 882 2 882
Ordinary share premium 648 284 348 802 348 802
Reserves 1 468 356 1 048 910 1 256 990
Total ordinary equity 2 120 040 1 400 594 1 608 674
Preference share capital and
premium 298 047 299 902 298 062
Total shareholders` equity 2 418 087 1 700 496 1 906 736
Total liabilities 31 586 207 23 891 200 28 493 425
Derivative financial instruments 99 409 126 820 102 585
Amounts owed to depositors 30 183 622 22 416 305 27 036 305
Other liabilities 212 741 253 619 237 974
Deferred taxation liability 15 108 - 3 797
Current taxation 45 607 54 277 54 582
Long-term debt instruments 1 029 720 1 040 179 1 058 182
Total equity and liabilities 34 004 294 25 591 696 30 400 161
Guarantees on behalf of
customers excluded from assets 1 040 949 690 132 943 913
SEE PRESS RELEASE FOR GRAPH
CASH FLOW STATEMENT
For the period ended June June December
2007* 2006* 2006**
R`000 R`000 R`000
Cash generated by operations 486 682 387 155 812 256
Change in funds for operating
activities (549 853) (610 952) (486 029)
Net cash (utilised in)/generated by
operating activities before taxation (63 171) (223 797) 326 227
Taxation paid (84 399) (62 204) (132 059)
Net cash (utilised in)/generated by
operating activities (147 570) (286 001) 194 168
Net cash flows (utilised
in)/generated by
investing activities (6 523) 8 511 2 279
Net cash flows from/(utilised in)
financing activities 299 985 499 711 (2 128)
Net increase in cash and cash
equivalents 145 892 222 221 194 319
Cash and cash equivalents at
beginning of period 668 804 474 485 474 485
Cash and cash equivalents including
mandatory reserve deposits with
central bank 814 696 696 706 668 804
STATEMENT OF CHANGES IN SHAREHOLDERS` EQUITY
For the period ended
Number of Ordinary Ordinary
ordinary share share
shares capital premium
R`000* R`000*
Balance as at 31 December 2005 358 934 487 3 589 648 285
Transfer to/(from) reserves
Profit for the year
Ordinary shares bought back (70 711 888) (707) (299 293)
Preference shares issued
Share issue expenses (190)
Balance as at 31 December 2006 288 222 599 2 882 348 802
Transfer to/(from) reserves
Profit for the period
Ordinary shares issued 51 787 025 518 299 482
Share issue expenses
Dividends paid
Balance as at 30 June 2007 340 009 624 3 400 648 284
General
Revaluation risk Accumulated
reserve reserve profit
R`000* R`000* R`000*
Balance as at 31 December 2005 2 823 97 611 770 496
Transfer to/(from) reserves (2 823) 83 210 (80 387)
Profit for the year 386 060
Ordinary shares bought back
Preference shares issued
Share issue expenses
Balance as at 31 December 2006 - 180 821 1 076 169
Transfer to/(from) reserves 20 404 (20 404)
Profit for the period 224 294
Ordinary shares issued
Share issue expenses
Dividends paid (12 928)
Balance as at 30 June 2007 - 201 225 1 267 131
Total Preference
ordinary share capital Total
shareholders` and shareholders`
equity premium equity
R`000* R`000* R`000*
Balance as at 31 December
2005 1 522 804 - 1 522 804
Transfer to/(from)
reserves - -
Profit for the year 386 060 386 060
Ordinary shares bought
back (300 000) (300 000)
Preference shares issued - 300 000 300 000
Share issue expenses (190) (1 938) (2 128)
Balance as at 31 December
2006 1 608 674 298 062 1 906 736
Transfer to/(from)
reserves - -
Profit for the period 224 294 224 294
Ordinary shares issued 300 000 300 000
Share issue expenses - (15) (15)
Dividends paid (12 928) (12 928)
Balance as at 30 June 2007 2 120 040 298 047 2 418 087
SEGMENTAL ANALYSIS BY OPERATION
For the period ended
Total assets (Rbn)
June June December
2007* 2006* 2006**
Motor Finance 19.7 14.6 17.3
Property Finance 5.7 4.1 5.0
Medical Finance 3.6 2.4 3.0
Supplier Asset Finance 3.9 3.2 3.5
Treasury and Eliminations 1.1 1.3 1.6
Total 34.0 25.6 30.4
Operating income (Rm)
June June December
2007* 2006* 2006**
Motor Finance 281.7 226.1 481.8
Property Finance 138.0 119.7 228.1
Medical Finance 38.6 31.2 64.5
Supplier Asset Finance 85.5 77.9 165.3
Treasury and Eliminations (3.3) (27.7) (7.8)
Total 540.5 427.2 931.9
Profit for the period (Rm)
June June December
2007* 2006* 2006**
Motor Finance 100.9 86.4 173.4
Property Finance 69.1 62.5 113.6
Medical Finance 5.7 7.5 15.9
Supplier Asset Finance 37.9 37.8 76.4
Treasury and Eliminations 10.7 (16.2) 6.8
Total 224.3 178.0 386.1
* Unaudited ** Audited
These results are available on our website: www.imperialbank.co.za
Date: 31/07/2007 08:00:01 Produced by the JSE SENS Department.
