| Thu 5 Mar 2009, 10:53 | | SFN / SFNP - Sasfin Holdings - Unaudited Group Interim Results For The Six |
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SFN / SFNP - Sasfin Holdings - Unaudited Group Interim Results For The Six
Month Period Ended 31 December 2008 And Dividend Declarations
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)
Unaudited Group Interim Results For The Six Month Period Ended 31 December 2008
and dividend declarations
31 December 31 December
2008 2007
- Profit for the period R81 million R93 million
- Headline earnings per ordinary share 239 cents 280 cents
- Normalised earnings per ordinary share 271 cents 296 cents
- Return on ordinary shareholders` 22% 31%
average equity
- Group capital adequacy 31% 30%
- Return on total average assets 4% 6%
FINANCIAL HIGHLIGHTS
31 Dec 31 Dec 30 June
% 2008 2007 2008
change Unaudited Unaudited Audited
Balance sheet
Total assets (Rm`s) 10 3 043 2 755 3 016
Total gross loans and 11 1 912 1 724 1 850
advances (Rm`s)
Non-performing loans and 11 122 110 96
advances (Rm`s)
Income statement
Headline earnings (Rm`s) (13) 65 75 156
Normalised earnings (Rm`s) (8) 74 80 164
Earnings attributable to (13) 65 75 156
ordinary shareholders (Rm`s)
Financial performance
Return on ordinary 22 31 28
shareholders` average equity
(%)
Return on total average 4 6 6
assets (%)
Operating performance
Non-interest income to total 78 72 74
income (%)
Efficiency ratio (%) 61 57 61
Non-performing advances to 6 6 4
total gross loans and
advances (%)
Share statistics
Headline earnings per (15) 239 280 576
ordinary share (cents)
Normalised earnings per (8) 271 296 605
ordinary share (cents)
Diluted earnings per (13) 238 274 572
ordinary share (cents)
Diluted headline earnings (13) 238 274 572
per ordinary share (cents)
Number of ordinary shares in 2 27 432 27 018 27 288
issue at end of the period
(`000)
Weighted average number of 1 27 312 26 996 27 094
ordinary shares in issue
(`000)
Diluted weighted average (1) 27 412 27 557 27 301
shares in issue (`000)
Dividends per ordinary share (15) 71 84 228
relating to profit for the
period (cents)
Dividends per preference 13 584 517 1 068
share relating to profit for
the period (cents)
Of which dividend number 7 - 517 517
Of which dividend number 8 - - 552
Of which dividend number 9 584 - -
Net asset value per ordinary 15 2 287 1 982 2 204
share (cents)
Capital adequacy
Group capital to risk 3 31 30 28
weighted assets (%)
Sasfin Bank Limited capital (8) 22 24 22
to risk weighted assets (%)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 Dec 31 Dec 30 June
% 2008 2007 2008
change Unaudited Unaudited Audited
R`000 R`000 R`000
ASSETS
Cash and cash balances 357 341 409 406 449 315
Short-term negotiable 57 469 43 781 55 106
securities
Loans and advances to 1 851 469 1 676 362 1 803 516
customers
Other receivables 281 548 276 878 327 107
Investment securities 294 553 210 375 232 777
Investments in 33 352 67 909 36 196
associated companies
Property, plant and 133 864 58 182 94 627
equipment
Intangible assets and 16 902 6 974 9 417
goodwill
Taxation 7 285 - -
Deferred tax asset 9 405 4 890 7 691
Total assets 10 3 043 188 2 754 757 3 015 752
LIABILITIES
Interbank funding and 203 330 17 882 21 359
deposits from banks
Deposits from customers 935 814 952 343 1 108 051
Other payables 165 564 213 016 286 092
Debt securities issued 815 082 700 695 703 037
Taxation - 18 504 3 689
Deferred tax liability 56 647 41 659 52 605
Total liabilities 12 2 176 437 1 944 099 2 174 833
EQUITY
Ordinary share capital 27 744 26 005 27 539
and share premium
Reserves 599 670 509 549 573 941
Preference share 199 278 199 278 199 278
capital and share
premium
Total equity 13 826 692 734 832 800 758
attributable to equity
holders of the parent
Minority interest 40 059 75 826 40 161
Total equity 866 751 810 658 840 919
Total liabilities and 10 3 043 188 2 754 757 3 015 752
equity
Commitments and 85 604 75 543 216 141
contingent liabilities
CONSOLIDATED INCOME STATEMENT
31 Dec 31 Dec 30 June
% 2008 2007 2008
change Unaudited Unaudited Audited
R`000 R`000 R`000
Interest income 202 085 155 943 336 054
Interest expense 126 423 78 784 180 906
Net interest income 75 662 77 159 155 148
Other income 228 104 196 384 432 210
Total income 11 303 766 273 543 587 358
Impairment charges on 11 132 1 254 4 299
loans and advances
Net income after 292 634 272 289 583 059
impairments
Operating costs 23 193 077 157 089 360 622
Staff costs 86 103 69 759 144 719
Other operating 106 974 87 330 215 903
expenses
Profit from operations 99 557 115 200 222 437
Share of associated 2 357 1 700 4 932
companies` income
Profit before income (13) 101 914 116 900 227 369
tax
Income tax expense 20 682 24 296 42 940
Profit for the period (12) 81 232 92 604 184 429
Profit attributable to:
Minority interest 5 342 8 205 9 614
Preference shareholders 10 516 8 901 18 723
Equity holders of the 65 374 75 498 156 092
parent
Profit for the period (12) 81 232 92 604 184 429
Basic earnings per (15) 239 280 576
ordinary share (cents)
Diluted earnings per (13) 238 274 572
ordinary share (cents)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
31 Dec 31 Dec 30 June
2008 2007 2008
Unaudited Unaudited Audited
R`000 R`000 R`000
Profit for the period 81 232 92 604 184 429
Other comprehensive income for 2 271 (2 214) 4 640
the period, net of income tax
Translation gains and losses 2 509 (2 143) 5 016
for foreign operations
Losses on re-measurement of (330) (99) (522)
available-for-sale financial
assets
Income tax on other 92 28 146
comprehensive income
Total comprehensive income for 83 503 90 390 189 069
the period
Attributable to:
Minority interest 5 505 7 964 9 977
Preference shareholders 10 516 8 901 18 723
Equity holders of the parent 67 482 73 525 160 369
Total comprehensive income for 83 503 90 390 189 069
the period
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONDENSED)
31 Dec 31 Dec 30 June
2008 2007 2008
Unaudited Unaudited Audited
R`000 R`000 R`000
Opening total shareholders` 840 919 774 415 774 415
equity
Total comprehensive income for 83 503 90 390 189 069
the year
Change in minorities (5 536) (9 312) (46 505)
Issue of shares 205 317 1 836
Preference share dividend (10 516) (8 901) (18 723)
Ordinary share dividend (41 824) (36 251) (59 173)
Closing balance 866 751 810 658 840 919
CONSOLIDATED STATEMENT OF CASH FLOWS (CONDENSED)
31 Dec 31 Dec 30 June
2008 2007 2008
Unaudited Unaudited Audited
R`000 R`000 R`000
Net cash flows from operating (294 733) 67 775 166 941
activities
Net cash flows from investing (191 163) (59 572) (73 879)
activities
Net cash flows from financing 212 149 26 022 (13 548)
activities
Net (decrease)/increase in cash (273 747) 34 225 79 514
and cash equivalents
Cash and cash equivalents at 483 062 400 580 400 580
beginning of the year
Effect of exchange rate 2 165 500 2 968
fluctuations on cash held
Cash and cash equivalents at 211 480 435 305 483 062
end of the period
HEADLINE EARNINGS RECONCILIATION
31 Dec 31 Dec 30 June
2008 2007 2008
Unaudited Unaudited Audited
R`000 R`000 R`000
Headline earnings are
determined as follows:
Profit attributable to equity 65 374 75 498 156 092
holders of the parent
Capital gains/(loss) (8) (12) 54
Gross gain/(loss) (10) (16) 65
Tax impact 2 2 (9)
Minority effect - 2 (2)
Headline earnings 65 366 75 486 156 146
Headline earnings per ordinary 239 280 576
share (cents)
SEGMENTAL ANALYSIS (CONDENSED)
31 Dec 31 Dec 30 June
2008 2007 2008
Unaudited Unaudited Audited
R`000 R`000 R`000
Segment result
- Business Banking 20 155 25 801 59 411
- Capital 21 874 24 280 43 319
- Treasury 7 750 6 922 14 051
- Personal Wealth 10 150 13 949 31 442
- Specialised Services 5 437 4 534 7 923
65 366 75 486 156 146
Segment revenue
- Business Banking 103 956 102 583 201 684
- Capital 42 819 37 351 71 815
- Treasury 40 460 32 036 70 222
- Personal Wealth 83 687 71 515 187 384
- Specialised Services 37 619 33 310 62 204
- Elimination of inter-group (4 775) (3 252) (5 951)
items and other
303 766 273 543 587 358
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 ("the JSE"). Sasfin and its subsidiaries provide a wide range of
complementary banking, financial and related services.
BUSINESS REVIEW: GROUP PERFORMANCE
Business environment
The collapse in global financial markets has led to a significant economic
slowdown in economies around the world, including South Africa.
In response to increased credit pressure and business failures in South Africa,
the Group tightened its credit policies, resulting in lower levels of new
business.
Financial overview
Sasfin has continued to build on its core business activities and all divisions
made a positive contribution to headline earnings.
The Group achieved solid results in these difficult conditions, with headline
earnings of R65 million (2007: R75 million), which represents a decrease of 13%
on the corresponding period in 2007. On a normalised earnings basis, the Group
achieved headline earnings of R74 million (2007: R80 million), an 8% decrease on
the corresponding period of last year.
Impairment losses, which increased significantly from a low base in 2007 due to
recoveries in that period, represent an annualised impairment charge of 1,2% on
average loans and advances, which is considered satisfactory under these
conditions.
The increase in operating costs is largely attributable to the broadening of the
base of the Group`s operating activities, additional compliance costs associated
with the new regulations, and includes non-recurring items amounting to
approximately R11 million.
Total assets grew by 10% to R3,0 billion (2007: R2,8 billion), underpinned by
moderate growth in loans and advances.
Although deposits decreased marginally year on year, the Group has comfortable
liquidity levels in a market constrained by liquidity shortages.
In spite of the severe tightening in the capital markets, in November 2008
Sasfin not only successfully refinanced its securitisation notes at favourable
rates, but securitised a further tranche of R200 million of equipment rental
agreements. This is indicative of the exceptional quality of these assets.
The statutory risk-weighted capital adequacy of the Group is 31% (2007: 30%) and
that of Sasfin Bank Limited is 22% (2007: 24%), which is well above the
prescribed minimum requirement of 9,75%.
PROSPECTS
Sasfin is well positioned as a banking and financial services provider focusing
on the entrepreneurial market.
The Group recently secured a trade finance guarantee facility from the
International Finance Corporation, a member of the World Bank Group, on
favourable terms, which will create opportunities for future growth and
development.
Notwithstanding the uncertainty and difficult economic conditions, the Group
expects to continue at current levels of performance into the second half of the
financial year.
BASIS OF PREPARATION AND PRESENTATION OF ANNUAL 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 2008 annual financial statements. The
"Statement of Comprehensive Income" in terms of IAS 1, is effective for
financial years commencing 1 January 2009 - early adoption has been elected by
the Group.
PREFERENCE SHARE DIVIDEND
Notice is hereby given that preference dividend number 9 amounting to 584,28
cents (2007: 515,55 cents) per preference share ("preference dividend") has been
declared for the period 1 July 2008 to 31 December 2008 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, 27 March 2009.
The salient dates relating to the preference dividend are as follows:
Last day to trade cum the preference dividend Friday, 20 March 2009
Preference shares commence trading ex the Monday, 23 March 2009
preference dividend
Preference dividend record date Friday, 27 March 2009
Payment of preference dividend Monday, 30 March 2009
Preference shares may not be dematerialised or rematerialised between Monday, 23
March 2009 and Friday, 27 March 2009, both days inclusive.
INTERIM ORDINARY SHARE DIVIDEND
The Group has a stated policy of declaring interim and final ordinary share
dividends equal in aggregate to 40% of headline earnings. In accordance with
this policy, the Board of Sasfin has resolved to pay an interim dividend as set
out below.
Cash dividend and scrip dividend alternative
The directors have resolved to pay an interim cash dividend of 71 cents (2007:
84 cents) per ordinary share to ordinary shareholders recorded in the books of
the Company at the close of business on Thursday, 9 April 2009 ("the record
date").
Shareholders may elect to receive a scrip dividend in lieu of a cash dividend in
respect of all or part of their shareholding. As the Company will pay the
Secondary Tax on Companies ("STC"), the base cost for capital gains tax purposes
will be the volume weighted average trading price of an ordinary share of the
Company on the JSE for the three days ending Wednesday, 25 March 2009 ("the
issue price").
The rounded number of shares to which a shareholder will be entitled in terms of
the scrip dividend alternative will be determined by multiplying the number of
ordinary shares held by the shareholder by seventy one cents and then dividing
by the issue price ("the ratio"). This ratio will be announced on SENS on
Thursday, 26 March 2009 and in the press on Friday, 27 March 2009.
Trading in the Strate environment does not permit fractions and fractional
entitlements. Accordingly, where a shareholder`s entitlement to new ordinary
shares calculated in accordance with the above formula gives rise to a fraction
of a new ordinary share, such fraction will be rounded up to the nearest whole
number, where the fraction is greater than or equal to 0,5 and rounded down to
the nearest whole number, where the fraction is smaller than 0,5.
The last day to trade the Company`s shares on the JSE to ensure a purchaser
appears as an owner on the record date will be Thursday, 2 April 2009.
Uncertificated securities in terms of the scrip dividend entitlement can be
traded from Friday, 3 April 2009.
A circular and form of election dealing with the scrip dividend alternative and
election will be posted to shareholders who have not yet dematerialised their
shares ("certificated shareholders") on or about Friday, 20 March 2009.
Certificated shareholders who wish to receive the scrip dividend alternative
should complete the form of election and deliver/post it to the transfer
secretaries so that it is received by them by no later than 12h00 on Thursday, 9
April 2009. Dematerialised shareholders must advise their Central Securities
Depository Participant ("CSDP") or broker regarding their election in terms of
the agreement in existence between the dematerialised shareholder and the CSDP
or broker.
Application will be made to the JSE for the maximum number of shares to be
listed with effect from the commencement of business on Friday, 3 April 2009
when the price of the Company`s securities will be quoted "ex" the dividend. It
is expected that dividend cheques or share certificates (where required) in
respect of new ordinary shares will be posted to certificated shareholders on or
about Tuesday, 14 April 2009. Dematerialised shareholders will have their safe
custody accounts held at their CSDP or broker credited or updated on Tuesday, 14
April 2009.
Summary of the salient dates relating to the interim ordinary dividend are as
follows:
Circular and form of election posted to Friday, 20 March 2009
shareholders
Three business day price determination Wednesday, 25 March 2009
ends
Ratio announced on SENS Thursday, 26 March 2009
Ratio announced in the press Friday, 27 March 2009
Last day to trade in order to Thursday, 2 April 2009
participate in the cash and scrip
dividend alternative
Shares trade ex-cash and scrip dividend Friday, 3 April 2009
alternative and trade in entitlement
shares commences
Maximum number of shares listed Friday, 3 April 2009
Scrip dividend alternative closes for Thursday, 9 April 2009
election at 12h00
Record date Thursday, 9 April 2009
Share certificates or dividend cheques Tuesday, 14 April 2009
posted and CSDP accounts
credited/updated
Results announcement published on SENS Tuesday, 14 April 2009
Results announcement published in the Wednesday, 15 April 2009
press
Adjustment of number of shares listed Wednesday, 15 April 2009
on or about
Share certificates may not be dematerialised or rematerialised between, Friday,
3 April 2009 and Thursday, 9 April 2009, both days inclusive.
The above dates and times are subject to amendment. Any such amendment will be
released on SENS and published in the press.
For and on behalf of the Board.
MB GLATT RDEB SASSOON
Chairman Chief Executive Officer
5 March 2009
This announcement and additional information is available on the website:
www.sasfin.com
Non-executive : MB Glatt
chairman
Executive directors : RDEB Sassoon* (Chief Executive Officer), M Segal,
*British
Non-executive : CN Axten, ETB Blight, DD Mokgatle, MS Rylands, ML
directors 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 : Computershare Investor Services (Pty) Limited, 70
secretaries Marshall Street, Johannesburg, 2001, PO Box 61051,
Marshalltown, 2107
Company : 1987/002097/06
registration number
Lead sponsor : KPMG Services (Pty) Limited
Joint sponsor : Sasfin Capital (a division of Sasfin Bank Limited)
Corporate law : Edward Nathan Sonnenbergs Inc.
advisors
Date: 05/03/2009 10:53:17 Produced by the JSE SENS Department.
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