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SFN SFNP
SFN
SFN / SFNP - Sasfin - Unaudited Group Interim Results For The Six Month
Period Ended 31 December 2007 and dividend declaration
Sasfin Holdings Limited
(Incorporated in the Republic of South Africa)
"Sasfin" or "the Group" or "the Company"
Ordinary share code: SFN
ISIN: ZAE000006565
Preference share code: SFNP
ISIN: ZAE000060273
UNAUDITED GROUP INTERIM RESULTS FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER
2007
- Profit for the period R92,6 million up 16%
- Headline earnings per ordinary share - 280 cents up 15%
- Return on ordinary shareholders` average equity 31%
- Group capital adequacy 30%
- Return on total average assets 6%
- Efficiency ratio 57%
FINANCIAL HIGHLIGHTS
31 Dec 31 Dec 30 June
% 2007 2006 2007
change Unaudited Unaudited Audited
Share statistics
Headline earnings per ordinary
share (cents) 15 280 244 523
Earnings per ordinary share 15 280 244 524
(cents)
Diluted headline earnings per 16 274 237 514
ordinary (cents)
Diluted earnings per ordinary 16 274 237 514
share (cents)
Number of ordinary shares in 27 018 26 622 26 976
issue at end of the period
(`000)
Weighted average number of 26 996 26 602 26 714
shares in issue (`000)
Diluted weighted average shares 27 557 27 402 27 200
in issue (`000)
Dividends per ordinary share 15 84 73 207
relating to profit for the
period (cents)
Of which interim 84 73 73
Of which final 134
Dividends per preference share 515,55 442,09 909,35
relating to profit for the
period (cents)
Of which dividend number 5 442,09 442,09
Of which dividend number 6 467,26
Of which dividend number 7 515,55
Net asset value per ordinary 20 1 982 1 654 1 844
share (cents)
Financial performance
Return on ordinary 31 33 31
shareholders` average equity
(%)
Return on total average assets 6 6 6
(%)
Operating performance
Non-interest income to total 72 74 74
income (%)
Efficiency ratio (%) 57 56 56
Capital adequacy (unaudited)
Group capital to risk weighted 30 37 34
assets (%)
Sasfin Bank Limited capital to 24 35 32
risk weighted assets (%)
CONSOLIDATED BALANCE SHEETS
31 Dec 31 Dec 30 June
2007 2006 2007
% Unaudited Unaudited Audited
change R`000 R`000 R`000
Assets
Cash and cash equivalents 409 406 399 042 394 394
Short-term negotiable 43 781 28 768 35 372
securities
Loans and advances to 20 1 676 362 1 398 708 1 508 201
customers
Other receivables 276 878 350 478 298 776
Investment securities 38 210 375 152 698 178 212
Investments in associated 67 909 53 014 60 139
and joint venture
companies
Property and equipment 58 182 47 984 60 544
Intangible assets and 6 974 10 592 6 458
goodwill
Deferred tax asset 4 890 3 359 2 856
Total assets 13 2 754 757 2 444 643 2 544 952
Liabilities
Deposits from banks 17 882 32 626 29 186
Deposits from customers 40 952 343 678 624 745 781
Other payables 200 204 285 873 235 219
Debt securities issued 700 695 673 432 674 974
Provisions 12 812 7 081 11 457
Taxation 18 504 13 688 32 017
Deferred tax liability 41 659 45 273 41 903
Total liabilities 1 944 099 1 736 597 1 770 537
Equity
Ordinary share capital 26 005 23 765 25 703
and share premium
Reserves 22 509 549 416 437 472 529
Preference share capital 199 278 199 278 199 278
and share premium
Total equity attributable 734 832 639 480 697 510
to equity holders of the
parent
Minority interest 75 826 68 566 76 905
Total equity 14 810 658 708 046 774 415
Total liabilities and 13 2 754 757 2 444 643 2 544 952
equity
Commitments and 75 543 123 171 101 118
contingencies
CONSOLIDATED INCOME STATEMENTS
31 Dec 31 Dec 30 June
2007 2006 2007
% Unaudited Unaudited Audited
change R`000 R`000 R`000
Interest income 155 943 123 291 261 755
Interest expense 78 784 60 020 126 682
Net interest income 22 77 159 63 271 135 073
Impairment losses on (76) 1 254 5 152 10 345
loans and advances
Net income from lending 31 75 905 58 119 124 728
activities
Other income 8 196 385 182 202 389 986
Operating income 272 290 240 321 514 714
Operating expenses 14 157 089 138 271 291 923
Profit from operations 115 201 102 050 222 791
Share of associated and 1 700 4 217 5 185
joint venture companies`
income
Profit before income tax 10 116 901 106 267 227 976
Income tax expense 24 297 26 653 56 601
Profit for the period 16 92 604 79 614 171 375
Profit attributable to:
Minority interest 8 205 7 113 15 552
Preference shareholders 8 901 7 482 15 904
Equity holders of the 16 75 498 65 019 139 919
parent
Profit for the period 16 92 604 79 614 171 375
Basic earnings per share 15 280 244 524
Diluted earnings per 16 274 237 514
share
HEADLINE EARNINGS RECONCILIATION
31 Dec 31 Dec 30 June
2007 2006 2007
Unaudited Unaudited Audited
R`000 R`000 R`000
Headline earnings are determined
as follows:
Profit attributable to equity 75 498 65 019 139 919
holders of the parent
Capital gains (12) (59) (119)
Headline earnings 75 486 64 960 139 800
Headline earnings per ordinary 280 244 523
share (cents)
CONSOLIDATED CASH FLOW INFORMATION (CONDENSED)
31 Dec 31 Dec 30 June
2007 2006 2007
Unaudited Unaudited Audited
R`000 R`000 R`000
Cash flows from operating 68 275 (153 048) (124 905)
activities
Cash flows from investing (59 572) (82 582) (104 479)
activities
Net cash flows from financing 26 022 2 769 (1 944)
activities
Net increase in cash and cash 34 725 (232 861) (231 328)
equivalents
Cash and cash equivalents at 400 580 628 045 628 045
beginning of the year
Cash and cash equivalents - - 3 863
acquired
Cash and cash equivalents at end 435 305 395 184 400 580
of the year
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONDENSED)
31 Dec 31 Dec 30 June
2007 2006 2007
Unaudited Unaudited Audited
R`000 R`000 R`000
Opening total shareholders` 774 415 668 628 668 628
equity
Change in minorities (1 079) (73) 8 266
Issue of shares 302 240 2 178
Change in available for sale (99) 421 793
reserve
Change in share-based payment 15 134 633
reserve
Foreign currency translation (2 143) - -
reserve
Profit for the year (excluding 84 399 72 502 155 823
minority interest)
Preference share dividend (8 901) (7 482) (15 904)
Ordinary share dividend (36 251) (26 324) (46 002)
Closing balance 810 658 708 046 774 415
SEGMENTAL ANALYSIS (CONDENSED)
31 Dec 31 Dec 30 June
2007 2006 2007
Unaudited Unaudited Audited
R`000 R`000 R`000
Business Banking 25 801 24 916 55 776
Capital 17 437 14 486 27 471
Treasury 18 451 13 577 27 975
Personal Wealth 10 841 8 044 21 072
Specialised Services 2 956 3 937 7 506
Headline earnings 75 486 64 960 139 800
COMMENTARY
NATURE OF BUSINESS
Sasfin Holdings Limited ("Sasfin" or "the Group" or "the Company") is a bank-
controlling company listed in the "Financials: Investment Services" sector of
JSE Limited ("JSE"). Sasfin and its subsidiaries provide a wide range of
complementary banking, financial and related services.
BUSINESS REVIEW: GROUP PERFORMANCE
* Profit for the period increased by 16% to R92,6 million (2006: R79,6
million), whilst headline earnings per ordinary share for the period under
review increased by 15% to 280 cents (2006: 244 cents).
* Sasfin has continued to build on its core business activities. The growth
in headline earnings per ordinary share is satisfactory, with meaningful
contributions to Group headline earnings made by all core business units.
* The Group benefited from a lower tax charge, resulting from three factors:
income earned in low tax jurisdictions, higher income subject to Capital
Gains Tax rates due to increased investment activity, and the recently
announced reduction in the corporate tax rate by the Finance Minister.
* The recently established International Treasury unit and Sasfin Asia
Limited`s branch in Hong Kong are now operational and broadens the base of
the Group`s activities. Growth in revenue generation has commenced, albeit
not yet at optimal levels.
* Impairment losses at 0,17% of average loans and advances are extremely low
due to Sasfin`s strong credit management policies, systems and personnel, as
well as its non-exposure to the consumer credit market.
* Deposits reflect an impressive 40% increase, highlighting Sasfin Bank
Limited`s ("the Bank") focus in growing its funding book as well as improved
confidence in the Bank.
* Group total assets increased by 13% to R2,8 billion (2006: R2,4 billion),
underpinned by a growth of 20% in loans and advances, and a 38% growth in
investment securities.
* Annualised return on ordinary shareholders` average equity is 31% (2006:
33,4%).
* The statutory risk-weighted capital adequacy of the Group is 30% (2006:
37%) and that of the Bank is 24% (2006: 35%), which is well above the
prescribed minimum requirements.
CIRCLE CAPITAL VENTURES (PTY) LIMITED ("CIRCLE CAPITAL")
The turbulence in global credit markets has caused Circle Capital to
restructure its planned funding arrangements for this transaction, resulting
in the transaction being marginally down-scaled. Notwithstanding, the
transaction is approaching closure and a further announcement will be made
shortly.
THE FINANCIAL SECTOR CHARTER
The Group subscribes to the Charter and is pleased to report that its
empowerment programme is ahead of schedule. The Group is hopeful that it will
be in a position to finalise its strategy once the process of aligning the
Charter with the Codes of Good Practice has been finalised.
PROSPECTS
* The demand by Sasfin`s target market for its products and services remains
strong.
* Notwithstanding the uncertainty and difficult economic conditions, the
Group anticipates achieving solid growth for the year.
BASIS OF PREPARATION AND PRESENTATION OF INTERIM FINANCIAL STATEMENTS
The unaudited interim consolidated financial statements have been prepared in
accordance with IAS 34 - "Interim Financial Reporting" and the accounting
policies applied conform to International Financial Reporting Standards. The
same accounting policies and methods of computation are followed in the
interim financial statements as compared to the 2007 annual financial
statements.
PREFERENCE SHARE DIVIDEND
Notice is hereby given that preference dividend number 7 amounting to 515,55
cents (2006: 442,09 cents) per preference share ("preference dividend") has
been declared for the period 1 July 2007 to 31 December 2007 on one million
preference shares issued at R100,00 each, and on nine hundred and five
thousand preference shares issued at R110,49 each. The preference dividend is
payable to holders of preference shares recorded in the register of the
Company at the close of business on Friday, 4 April 2008.
The salient dates relating to the preference dividend are as follows:
Last day to trade cum the preference Friday, 28 March 2008
dividend
Preference shares commence trading ex the Monday, 31 March 2008
preference dividend
Preference dividend record date Friday, 4 April 2008
Payment of preference dividend Monday, 7 April 2008
Preference shares may not be dematerialised or rematerialised between Monday,
31 March 2008 and Friday, 4 April 2008, both days inclusive.
INTERIM ORDINARY SHARE DIVIDEND
The Group has a stated policy of annually declaring ordinary share dividends
equal to 40% of headline earnings. Without changing this policy, the Board
of Sasfin has resolved to pay an interim dividend as set out below.
Notice is hereby given that an interim ordinary share dividend of 84 cents
(2006: 73 cents) per ordinary share ("interim ordinary dividend") has been
declared and is payable to ordinary shareholders recorded in the register of
the Company at the close of business on Friday, 4 April 2008.
The salient dates relating to the interim dividend are as follows:
Last day to trade cum the interim ordinary Friday, 28 March 2008
dividend
Shares commence trading ex the interim Monday, 31 March 2008
ordinary dividend
Record date Friday, 4 April 2008
Payment of interim ordinary dividend Monday, 7 April 2008
Ordinary shares may not be dematerialised or rematerialised between Monday,
31 March 2008 and Friday, 4 April 2008, both days inclusive.
For and on behalf of the Board.
MB GLATT RDEB SASSOON
Chairman Chief Executive Officer
4 March 2008
This announcement and additional information is available on the website:
www.sasfin.com
Non-Executive Chairman:
MB Glatt
Executive Directors:
RDEB Sassoon * (Chief Executive Officer), AW Greenstein (Managing Director),
M Segal * British
Non-Executive Directors:
CN Axten, ETB Blight, DD Mokgatle, MS Rylands, ML Smith
Company Secretary:
S Jackson
Registered Office:
Sasfin Place, 13-15 Scott Street, Waverley, 2090, Johannesburg
Tel: +27 11 809 7500
Fax: +27 11 887 6167/2489
Websites: www.sasfin.com/www.sfpsecurities.com
Transfer Secretaries:
Computershare Investor Services (Pty) Limited,
70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
Company Registration Number:
1987/002097/06
Lead Sponsor:
KPMG Services (Pty) Limited
Joint Sponsor:
Sasfin Capital (a division of Sasfin Bank Limited)
Corporate Law Advisors:
Edward Nathan Sonnenbergs Inc.
Date: 04/03/2008 10:00:03 Produced by the JSE SENS Department.
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