MTL
MTL
MTL - Mercantile - Trading Statement
Mercantile Bank Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1989/000164/06)
Share code: MTL & ISIN: ZAE000064721
("Mercantile" or "the company")
TRADING STATEMENT
This trading statement is issued in compliance with paragraph 3.4(b) of the
Listings Requirements of the JSE Limited.
During the second half of 2008, a deferred taxation asset of R162 million was
raised, which resulted in after taxation profits increasing by such amount
whereas for 2009 taxation will be charged against income. This will have a
significant direct effect on earnings and headline earnings per share for the
year ending 31 December 2009 when compared to the year ended 31 December 2008.
Mercantile`s earnings before taxation are expected to be relatively flat for the
six months ending 30 June 2009 as compared to the six months ended 30 June 2008
due to the negative endowment effect resulting from the rapidly declining
interest rate environment in South Africa and the high level of capital of the
company. However, earnings and headline earnings per share for the six months
ending 30 June 2009 are expected to decrease by 25% to 45% and 20% to 40%,
respectively, compared to the earnings and headline earnings per share reported
for the six months ended 30 June 2008. This decrease is mainly attributable to
the taxation charge for the six months ending 30 June 2009 whereas for the six
months ended 30 June 2008 there was no taxation recognised.
The financial information on which this trading statement is based has not been
reviewed or reported on by the company`s auditors.
The results for the six months ending 30 June 2009 are expected to be published
towards the end of July 2009.
Johannesburg
28 May 2009
Sponsor: Bridge Capital Advisors (Pty) Limited
Date: 28/05/2009 12:15:02 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
