| Tue 9 Sep 2008, 13:00 | | SFN / SFNP - Sasfin Holdings - Audited Group Results For The Year Ended |
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SFN / SFNP - Sasfin Holdings - Audited Group Results For The Year Ended
30 June 2008 and dividend declaration
Sasfin Holdings Limited
Unlimited Financial Horizons
("Sasfin" or "the Group" or "the Company")
(Incorporated in the Republic of South Africa)
(Company Registration Number 1987/002097/06)
(Ordinary share code: SFN & ISIN: ZAE000006565)
(Preference share code: SFNP & ISIN: ZAE000060273)
AUDITED GROUP RESULTS FOR THE YEAR ENDED 30 JUNE 2008
- Headline earnings - R156 million up 12%
- Headline earnings per ordinary share - 576 cents up 10%
- Total assets exceed R3 billion up 18%
- Return on ordinary shareholders` average equity 28%
- Return on total average assets 6%
FINANCIAL HIGHLIGHTS
30 June 30 June
% 2008 2007
change Audited Audited
Share statistics
Headline earnings per ordinary share 10 576 523
(cents)
Earnings per ordinary share (cents) 10 576 524
Diluted headline earnings per 11 572 514
ordinary share (cents)
Diluted earnings per ordinary share 11 572 514
(cents)
Number of ordinary shares in issue 27 288 27 013
at end of the period (`000)
Weighted average number of shares in 27 094 26 714
issue (`000)
Diluted weighted average shares in 27 301 27 200
issue (`000)
Dividends per ordinary share 10 228 207
relating to profit for the period
(cents)
Of which interim 84 73
Of which final 144 134
Dividends per preference share 1 068 909
relating to profit for the period
(cents)
Of which dividend number 5 442
Of which dividend number 6 467
Of which dividend number 7 517
Of which dividend number 8 552
Net asset value per ordinary share 20 2 204 1 844
(cents)
Financial performance
Return on ordinary shareholders` 28 31
average equity (%)
Return on total average assets (%) 6 6
Operating performance
Non-interest income to total income 74 74
(%)
Efficiency ratio (%) 61 56
Capital adequacy
Group capital to risk weighted 28 34
assets (%)
Sasfin Bank Limited and its 22 32
subsidaries capital to risk weighted
assets (%) (unaudited)
CONSOLIDATED INCOME STATEMENT
30 June 30 June
2008 2007
% Audited Audited
change R`000 R`000
Interest income 336 054 261 755
Interest expense 180 906 126 682
Net interest income 15 155 148 135 073
Other income 11 432 210 389 986
Total income 587 358 525 059
Impairment charges on loans and 4 299 10 345
advances
Net income after impairments 583 059 514 714
Operating costs 24 360 622 291 923
Staff costs 144 719 121 615
Other operating expenses 215 903 170 308
Profit from operations 222 437 222 791
Share of associated companies` 4 932 5 185
income
Profit before income tax 227 369 227 976
Income tax expense 42 940 56 601
Profit for the year 8 184 429 171 375
Profit attributable to:
Minority interest 9 614 15 552
Preference shareholders 18 723 15 904
Equity holders of the parent 12 156 092 139 919
Profit for the year 8 184 429 171 375
Basic earnings per share (cents) 10 576 524
Diluted earnings per share (cents) 11 572 514
CONSOLIDATED BALANCE SHEET
30 June 30 June
2008 2007
% Audited Audited
change R`000 R`000
Assets
Cash and cash balances 14 449 315 394 394
Short-term negotiable securities 55 106 35 372
Loans and advances to customers 20 1 803 516 1 508 201
Other receivables 327 107 286 776
Investment securities 22 232 777 190 212
Investment in associated companies 36 196 60 139
Property, plant and equipment 94 627 60 544
Intangible assets and goodwill 9 417 6 458
Deferred tax asset 7 691 2 856
Total assets 18 3 015 752 2 544 952
Liabilities
Deposits from banks 21 359 29 186
Deposits from customers 49 1 108 051 745 781
Other payables 286 092 246 676
Debt securities issued 703 037 674 974
Taxation 3 689 32 017
Deferred tax liability 52 605 41 903
Total liabilities 23 2 174 833 1 770 537
Equity
Ordinary share capital and share 27 539 25 703
premium
Reserves 21 573 941 472 529
Preference share capital and share 199 278 199 278
premium
Total equity attributable to equity 800 758 697 510
holders of the parent
Minority interest 40 161 76 905
Total equity 9 840 919 774 415
Total liabilities and equity 18 3 015 752 2 544 952
Commitments and contingencies 216 141 101 118
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (SUMMARISED)
30 June 30 June
2008 2007
Audited Audited
R`000 R`000
Opening total shareholders` equity 774 415 668 628
Recognised income and expense for the year 174 292 156 616
Profit for the year (excluding minority 174 814 155 823
interest)
Change in available for sale reserve (522) 793
Change in minorities (36 744) 8 266
Issue of shares 1 836 2 178
Change in share-based payment reserve - 633
Change in foreign currency translation 5 016 -
reserve
Preference share dividend (18 723) (15 904)
Ordinary share dividend (59 173) (46 002)
Closing balance 840 919 774 415
CONSOLIDATED CASH FLOW INFORMATION (SUMMARISED)
30 June 30 June
2008 2007
Audited Audited
R`000 R`000
Cash flows from operating activities 166 941 (124 587)
Cash flows from investing activities (73 879) (104 479)
Cash flows from financing activities (13 548) (1 944)
Net increase in cash and cash equivalents 79 514 (231 010)
Cash and cash equivalents at beginning of 400 580 628 045
the year
Effect of exchange rate fluctuations on cash 2 968 (318)
held
Cash and cash equivalents acquired - 3 863
Cash and cash equivalents at end of the year 483 062 400 580
HEADLINE EARNINGS RECONCILIATION
30 June 30 June
2008 2007
% Audited Audited
change R`000 R`000
Headline earnings are determined as
follows:
Profit attributable to equity holders 12 156 092 139 919
of the parent
Capital loss/(gain) - net impact 54 (119)
Gross loss/(gain) 65 (150)
Tax impact (9) 19
Minority effect (2) 12
Headline earnings 12 156 146 139 800
Headline earnings per ordinary share 10 576 523
(cents)
SEGMENTAL ANALYSIS (SUMMARISED)
30 June 30 June
2008 2007
% Audited Audited
change R`000 R`000
Business Banking 6 59 411 55 776
Capital 4 28 633 27 471
Treasury (includes interest on own 37 38 203 27 975
funds)
Wealth Management 19 25 136 21 072
Specialised Services (37) 4 763 7 506
Headline earnings 12 156 146 139 800
COMMENTARY
NATURE OF BUSINESS
Sasfin is a bank-controlling company listed in the "Financials: Investment
Services" sector of JSE Limited ("JSE"). Sasfin`s subsidiaries provide a wide
range of complementary banking, financial and related services.
BUSINESS REVIEW: GROUP PERFORMANCE
Despite the deterioration in the economic environment and the costs pertaining
to certain of the developments referred to below, it is pleasing to report that
headline earnings for the year under review increased by 12% to R156 million
(2007: R139,8 million), representing returns on ordinary shareholders` equity of
28% (2007: 31%) and on total average assets of 6% (2007: 6%).
It should be noted that:
- The reduced tax rate is substantially attributable to gains in private and
property equity which are subject to CGT and an exemption from income tax of
certain foreign sourced income, and
- Credit losses have reduced year on year as a result of prudent credit
management.
SIGNIFICANT DEVELOPMENTS
There were a number of significant developments in the year under review, some
of which are set out below:
- Strong growth in assets and deposits.
- Establishment of a full service office in Hong Kong for Sasfin Asia
Limited.
- Commencement of the development of Sasfin`s new headquarters in Waverley,
Johannesburg.
- Establishment of a foreign exchange dealing desk.
- Expansion of Sasfin`s property private equity unit.
- Implementation of the necessary structures to comply with the Basel II
Capital Accord, which was introduced on 1 January 2008.
- Non-consummation of the proposed black economic empowerment transaction
with Circle Capital Ventures (Pty) Limited.
THE FINANCIAL SECTOR CHARTER
Whilst there is uncertainty about the status of this Charter, Sasfin has
recently been awarded an A rating for black economic empowerment by the
Financial Sector Charter Council.
PROSPECTS
The demand for Sasfin`s products and services from its target market of small to
medium sized enterprises continues to grow, despite deterioration in economic
conditions. Accordingly, the Group expects continued earnings growth.
BASIS OF PREPARATION AND PRESENTATION OF ANNUAL FINANCIAL STATEMENTS
- The Group`s annual financial statements are prepared in accordance with
International Financial Reporting Standards, with the presentation and
disclosure requirements of International Accounting Standards statement IAS
34 and the requirements of the South African Companies Act of 1973.
- The financial statements are prepared in accordance with the going concern
principle under the historical basis, except for certain financial assets
and liabilities measured at fair value.
- The summarised annual financial statements comprise a consolidated balance
sheet at 30 June 2008, and a consolidated income statement, a summarised
statement of equity, a summarised cash flow statement and summarised
segmental analysis report for the year ended 30 June 2008.
The Group reclassified certain balance sheet items and segmental analysis
figures in its 2008 results relating to appropriate line items to conform with
presentation in the current year. These reclassifications did not impact profit
or equity attributable to ordinary shareholders of the Group.
These summarised financial statements have been extracted from the audited
financial statements on which KPMG Inc and PKF (Jhb) Inc have issued an
unqualified audit opinion. This report is available for inspection at the
Company`s registered office.
PREFERENCE SHARE DIVIDEND
Notice is hereby given that preference dividend number 8 amounting to 552 cents
per preference share ("preference dividend") has been declared for the period 1
January 2008 to 30 June 2008, on 1 000 000 preference shares issued at R100,00
each, and on 905 000 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 of Friday, 3 October 2008.
The salient dates relating to the preference dividend are as follows:
Last day to trade cum the preference Friday, 26 September 2008
dividend
Preference shares commence trading ex the Monday, 29 September 2008
preference dividend
Preference dividend record date Friday, 3 October 2008
Payment of preference dividend Monday, 6 October 2008
Preference shares may not be dematerialised or rematerialised between Monday, 29
September 2008 and Friday, 3 October 2008, both days inclusive.
FINAL ORDINARY SHARE DIVIDEND
Notice is hereby given that a final ordinary share dividend for the financial
year ended 30 June 2008, amounting to 144 cents per share (2007: 134 cents per
share) ("ordinary dividend") has been declared. The ordinary dividend is payable
to holders of ordinary shares recorded in the register of the Company at the
close of business on Friday, 10 October 2008.
Together with the interim ordinary dividend of 84 cents declared on 4 March
2008, the total ordinary dividends for the financial year amount to 228 cents
per share (2007: 207 cents per share).
The salient dates relating to the ordinary dividend are as follows:
Last day to trade cum the ordinary dividend Friday, 3 October 2008
Ordinary shares commence trading ex the Monday, 6 October 2008
ordinary dividend
Ordinary dividend record date Friday, 10 October 2008
Payment of ordinary dividend Monday, 13 October 2008
Ordinary shares may not be dematerialised or rematerialised between Monday, 6
October 2008 and Friday, 10 October 2008, both days inclusive.
For and on behalf of the Board
MB GLATT RDEB SASSOON
Chairman Chief Executive Officer
9 September 2008
Registered Office
Sasfin Place, 13-15 Scott Street, Waverley, 2090, Johannesburg
Tel: +27 11 809 7500
Fax: +27 11 887 6167/2489
Non-Executive Chairman
MB Glatt
Executive Directors Non-Executive Directors
RDEB Sassoon* (Chief Executive Officer) CN Axten
AW Greenstein (Managing Director) ETB Blight
M Segal DD Mokgatle
* British MS Rylands
ML Smith
Transfer Secretaries Group Secretary
Computershare Investor Services (Pty) Limited S Jackson
70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
Lead Sponsor Joint Sponsor
KPMG Services (Pty) Limited Sasfin Capital
(a division of Sasfin Bank Limited)
Joint Auditors
KPMG Inc, PKF (Jhb) Inc
THIS ANNOUNCEMENT AND ADDITIONAL INFORMATION IS AVAILABLE ON www.sasfin.com
Date: 09/09/2008 13:00:03 Produced by the JSE SENS Department.
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