| Tue 8 Sep 2009, 10:57 | | SFN / SFNP - Sasfin Holdings - Audited Group Results And Dividend Declarations |
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SFN / SFNP - Sasfin Holdings - Audited Group Results And Dividend Declarations
For The Year Ended 30 June 2009
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)
AUDITED GROUP RESULTS AND DIVIDEND DECLARATIONS
FOR THE YEAR ENDED 30 JUNE 2009
30 June 30 June
2009 2008
Profit for the year R189 million R184 million
Headline earnings R154 million R156 million
Total assets R3,2 billion R3,0 billion
Return on ordinary shareholders` 25% 28%
average equity
Return on total average assets 5% 6%
FINANCIAL HIGHLIGHTS
30 June 30 June
% 2009 2008
Change Audited Audited
Consolidated statement of financial
position
Total assets (Rm`s) 5 3 181 3 016
Total gross loans and advances 1 1 867 1 850
(Rm`s)
Income statement
Headline earnings (Rm`s) (2) 154 156
Earnings attributable to ordinary 1 157 156
shareholders (Rm`s)
Financial performance
Return on ordinary shareholders` (12) 25 28
average equity (%)
Return on total average assets (%) (17) 5 6
Operating performance
Non-interest income to total income 2 75 74
(%)
Efficiency ratio (%) 3 63 61
Non-performing advances to total 100 8 4
gross loans and advances (%)
Share statistics
Headline earnings per ordinary share (3) 560 576
(cents)
Earnings per ordinary share (cents) (1) 571 576
Diluted earnings per ordinary share 0 570 572
(cents)
Diluted headline earnings per (2) 559 572
ordinary share (cents)
Number of ordinary shares in issue 3 28 001 27 288
at end of the period (`000)
Weighted average number of ordinary 1 27 471 27 094
shares in issue (`000)
Diluted weighted average ordinary 1 27 519 27 301
shares in issue (`000)
Dividends per ordinary share (4) 220 228
relating to profit for the year
(cents)
Dividends per preference share 1 072 1 068
relating to profit for the year
(cents)
Of which dividend number 7 - 516
Of which dividend number 8 - 552
Of which dividend number 9 584 -
Of which dividend number 10 488 -
Net asset value per ordinary share 9 2 405 2 204
(cents)
Capital adequacy (unaudited)
Group capital to risk weighted 11 31 28
assets (%)
Sasfin Bank Limited and its 45 32 22
subsidiaries capital to risk
weighted assets (%)
Employees
Permanent staff complement 6 573 542
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 June 30 June
2009 2008
% Audited Audited
Change R`000 R`000
ASSETS
Cash and cash balances 423 671 449 315
Short-term negotiable securities 49 689 55 106
Loans and advances to customers 1 801 485 1 803 516
Other receivables 318 751 327 107
Investment securities 261 211 232 777
Investments in associated companies 56 707 36 196
Investment property 27 999 -
Property, plant and equipment 187 638 94 627
Taxation 12 827 -
Intangible assets and goodwill 33 808 9 417
Deferred tax asset 7 366 7 691
Total assets 5 3 181 152 3 015 752
LIABILITIES
Interbank funding and deposits from 69 777 21 359
banks
Deposits from customers 881 380 1 108 051
Long-term loan 100 000 -
Other payables 262 631 286 092
Debt securities issued 873 735 703 037
Taxation 2 118 3 689
Deferred tax liability 60 777 52 605
Total liabilities 4 2 250 418 2 174 833
EQUITY
Ordinary share capital and share 43 476 27 539
premium
Reserves 629 825 573 941
Preference share capital and share 199 278 199 278
premium
Total equity attributable to equity 9 872 579 800 758
holders of the parent
Minority interest 58 155 40 161
Total equity 930 734 840 919
Total liabilities and equity 5 3 181 152 3 015 752
Commitments and contingent 74 855 216 141
liabilities
CONSOLIDATED INCOME STATEMENT
30 June 30 June
2009 2008
% Audited Audited
Change R`000 R`000
Interest income 371 072 336 054
Interest expense 211 510 180 906
Net interest income 159 562 155 148
Non-interest income 471 680 432 210
Total income 8 631 242 587 358
Impairment charges on loans and 18 762 4 299
advances
Net income after impairments 612 480 583 059
Operating costs 11 399 306 360 622
Staff costs 168 153 144 719
Other operating expenses 231 153 215 903
Profit from operations 213 174 222 437
Share of associated companies` 8 167 4 932
income
Profit before income tax 221 341 227 369
Income tax expense 32 332 42 940
Profit for the year 3 189 009 184 429
Profit attributable to:
Minority interest 10 459 9 614
Preference shareholders 21 646 18 723
Equity holders of the parent 156 904 156 092
Profit for the year 3 189 009 184 429
Basic earnings per ordinary share 571 576
(cents)
Diluted earnings per ordinary share 570 572
(cents)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (SUMMARISED)
30 June 30 June
2009 2008
Audited Audited
R`000 R`000
Opening total shareholders` equity 840 919 774 415
Total comprehensive income for the year 147 610 188 616
Profit for the year 189 009 184 429
Property revaluation reserve 2 097 -
Change in foreign currency translation (43 693) 5 016
reserve
Change in available-for-sale reserve 197 (829)
Change in minorities 7 462 (46 052)
Issue of ordinary shares 15 937 1 836
Share-based payments reserve movements (747) -
Preference share dividend (21 646) (18 723)
Ordinary share dividend (58 801) (59 173)
Closing balance 930 734 840 919
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
30 June 30 June
2009 2008
% Audited Audited
Change R`000 R`000
Profit for the year 3 189 009 184 429
Other comprehensive income for the (41 399) 4 187
year net of income tax
Foreign currency translation (43 693) 5 016
reserve
Net gains/(losses) on re- 197 (829)
measurement of available-for-sale
financial assets
Gains/(losses) on re-measurement of 217 (1 032)
available-for-sale financial assets
Income tax effect (20) 203
Net revaluation of investment 2 097 -
property
Revaluation of investment property 2 912 -
Income tax effect (815) -
Total comprehensive income for the (22) 147 610 188 616
year
Attributable to:
Minority interest 10 532 9 308
Preference shareholders 21 646 18 723
Equity holders of the parent 115 432 160 585
Total recognised income and expense (22) 147 610 188 616
for the year
CONSOLIDATED STATEMENT OF CASH FLOWS (SUMMARISED)
30 June 30 June
2009 2008
Audited Audited
R`000 R`000
Net cash flows from operating activities (158 198) 160 238
Net cash flows from investing activities (189 152) (73 879)
Net cash flows from financing activities 262 585 (6 845)
Net increase in cash and cash equivalents (84 765) 79 514
Cash and cash equivalents at beginning of 483 062 400 580
the year
Effect of exchange rate fluctuations on cash 5 287 2 968
held
Cash and cash equivalents at end of the year 403 584 483 062
HEADLINE EARNINGS RECONCILIATION
30 June 30 June
2009 2008
Audited Audited
R`000 R`000
Headline earnings are determined as follows:
Profit attributable to equity holders of the 156 904 156 092
parent
Capital (gains)/loss (3 121) 54
Gross (gains)/loss (3 666) 65
Tax impact 416 (9)
Minority effect 129 (2)
Headline earnings 153 783 156 146
Headline earnings per ordinary share (cents) 560 576
SEGMENTAL ANALYSIS (SUMMARISED)
30 June 30 June
2009 2008
Audited Audited
R`000 R`000
Segment Results
Business Banking 65 460 61 394
Capital 28 072 43 411
Treasury 60 555 34 314
Wealth Management 21 294 32 930
Logistics and Risk Management 13 628 12 380
Profit for the year 189 009 184 429
Segment Revenue
Business Banking 487 122 399 240
Capital 69 782 73 393
Treasury 213 323 197 269
Wealth Management 163 988 188 260
Logistics and Risk Management 73 524 62 715
Group and elimination of intergroup items (164 987) (152 613)
Revenue for the year 842 752 768 264
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
Business environment
- The global economic downturn impacted sharply on emerging markets during the
past year.
- In South Africa, economic activity declined significantly, resulting in
increasing unemployment and lower consumer spending, and consequently credit
stress in all sectors of the economy.
Financial overview
- The Group achieved profit for the year of R189 million (2008: R184 million),
an increase of 3% on the corresponding period of 2008, whilst headline earnings
decreased by 2% from R156 million to R154 million on a relatively flat asset
base.
- The significant factors impacting the results were:
- in response to tough trading conditions and the credit and liquidity crises,
the Group focused on managing liquidity and tightened its credit and investment
criteria;
- net interest income of R160 million remained at a level comparable with the
previous year (R155 million), which aligns with the level of loans and advances
at R1,9 billion, which is also comparable with the prior year of R1,8 billion;
- an increase in impairment charges to R18,8 million (2008: R4,3 million), which
represents an impairment charge of 1% per annum compared to 0,3% per annum in
2008;
- operating costs increased by 11% over 2008, which is largely attributable to
the broadening of the Group`s operating activities and infrastructure, and
additional compliance costs associated with new regulations;
- net gains on foreign exchange translation realised on the Group`s offshore
operations, and quoted financial instruments and derivatives; and
- a reduced tax charge arising from realised gains in the private and property
equity portfolios, which are subject to capital gains tax, and an increased
contribution to earnings from its foreign-sourced operations which are based in
lower tax jurisdictions.
- Total assets grew by 5% to R3,2 billion (2008: R3,0 billion), primarily due
to the Group`s investment in its new premises, as reflected in Property, plant
and equipment.
- Although deposits decreased year on year by 20%, the Group has maintained
comfortable liquidity levels in a market constrained by liquidity shortages.
- The statutory risk-weighted capital adequacy of the Group is 31%, and that of
Sasfin Bank Limited and its subsidiaries 32%, which are well above the
prescribed minimum requirement.
SIGNIFICANT DEVELOPMENTS
There were a number of significant developments in the year under review, the
more important of which are listed hereunder:
- A successful refinance of the Group`s securitisation notes in November 2008
at favourable rates in severely constrained capital markets. This included the
issue of a further tranche of R200 million equipment rentals paper, all
underpinned by exceptional asset quality.
- The Group completed the development of its new premises in Waverley,
Johannesburg, at a cost of approximately R170 million, which was partly funded
by a long term loan of R100 million, and took occupation with effect from 30
June 2009. This is in line with the policy of investment in infrastructure,
technology and operations to lay the foundations for growth.
- The Group established a strategic partnership with the International Finance
Corporation ("IFC"), a member of the World Bank Group, which was announced on 7
July 2009 and comprised the following:
- a US$10 million trade finance facility for its Business Banking unit;
- a specific issue of shares to the IFC for cash amounting to approximately the
Rand equivalent of US$10 million, subject to shareholder approval; and
- a subordinated loan agreement with Sasfin Bank Limited for a loan intended to
qualify as Tier 2 capital in the amount of R82,45 million.
THE FINANCIAL SECTOR CHARTER
Whilst there is uncertainty about the status of this Charter, Sasfin has
consistently improved its scorecard and has again been awarded an "A" rating for
black economic empowerment by the Financial Sector Charter Council.
PROSPECTS
The Group expects to benefit from its relationship with the IFC and its enlarged
capital base, albeit in a challenging economic environment.
BASIS OF PREPARATION AND PRESENTATION OF ANNUAL FINANCIAL STATEMENTS
Statement of compliance
The audited summarised provisional consolidated financial statements have been
prepared in accordance with the recognition and measurement criteria of
International Financial Reporting Standards, its interpretations adopted by the
International Accounting Standards Board, the presentation and the disclosure
requirements of International Accounting Standards statement IAS 34 - "Interim
Financial Reporting", the Listings Requirements of the JSE and the requirements
of the South African Companies Act.
Basis of preparation
The annual financial statements are prepared in thousands of South African Rand
("R`000") on the historical cost basis, except for certain derivative financial
instruments which are recognised at fair value.
The accounting policies are those presented in the annual financial statements
for the year ended 30 June 2009 and have been applied consistently to the
periods presented in these audited summarised provisional consolidated financial
statements and with those of the previous financial year, and by all Group
entities.
The audited summarised provisional consolidated financial statements comprise a
consolidated statement of financial position at 30 June 2009, a consolidated
income statement, a consolidated statement of comprehensive income, a summarised
statement of changes in equity, a summarised cash flow statement and a
summarised segmental analysis report for the year ended 30 June 2009.
Reports of the independent auditors
The unmodified audit reports of KPMG Inc. and PKF (Jhb) Inc., the independent
auditors, on the annual financial statements and the summarised provisional
financial statements contained herein for the year ended 30 June 2009, dated 2
September 2009, are available for inspection at the Company`s registered office.
PREFERENCE SHARE DIVIDEND
Notice is hereby given that preference dividend number 10 amounting to 448,12
cents per preference share ("preference dividend") has been declared for the
period 1 January 2009 to 30 June 2009, on1 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, 2 October 2009.
The salient dates relating to the preference dividend are as follows:
Last day to trade cum the preference Friday, 25 September 2009
dividend
Preference shares commence trading ex Monday, 28 September 2009
the preference dividend
Preference dividend record date Friday, 2 October 2009
Payment date of preference dividend Monday, 5 October 2009
Preference share certificates may not be dematerialised or rematerialised
between Monday, 28 September 2009 and Friday, 2 October 2009, both days
inclusive.
FINAL ORDINARY SHARE DIVIDEND
Notice is hereby given that a final ordinary share dividend for the financial
year ended 30 June 2009, amounting to 149 cents per share (2008: 144 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 of Friday, 9 October 2009.
Together with the interim ordinary dividend of 71 cents declared on 5 March
2009, the total ordinary dividends for the financial year amount to 220 cents
per share (2008: 228 cents per share).
The salient dates relating to the ordinary dividend are as follows:
Last day to trade cum the ordinary Friday, 2 October 2009
dividend
Ordinary shares commence trading ex the Monday, 5 October 2009
ordinary dividend
Ordinary dividend record date Friday, 9 October 2009
Payment date of ordinary dividend Monday, 12 October 2009
Ordinary share certificates may not be dematerialised or rematerialised between
Monday, 5 October 2009 and Friday, 9 October 2009, both days inclusive.
NOTICE OF ANNUAL GENERAL MEETING AND POSTING OF ANNUAL REPORT
The annual general meeting of Sasfin will be held at 29 Scott Street, Waverley,
Johannesburg on Thursday, 3 December 2009 at 14h00.
The annual report will be posted to shareholders on or about 26 October 2009.
BOARD CHANGES
Alan Greenstein, the Group Managing Director, resigned on 3 December 2008.
For and on behalf of the Board
MB GLATT RDEB SASSOON
Chairman Chief Executive Officer
8 September 2009
This announcement and additional information is available on the website:
www.sasfin.com
Registered Office
29 Scott Street, Waverley, 2090, Johannesburg
Tel: +27 11 809 7500
Fax: +27 11 887 6167/2489
Websites: www.sasfin.com
Non-Executive ChairmanMB Glatt
Executive DirectorsRDEB Sassoon* (Chief Executive Officer)
M Segal (Financial Director)
* British
Non-Executive Directors
CN Axten
ETB Blight
DD Mokgatle
MS Rylands
ML Smith
Group Secretary
S Jackson
Transfer Secretaries
Computershare Investor Services (Pty) Limited
70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
Lead Sponsor
KPMG Services (Pty) Limited
Joint Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Joint Auditors
KPMG Inc. and PKF (Jhb) Inc.
Business Banking Capital Wealth Management Treasury Logistics and
Risk Management
Date: 08/09/2009 10:57:36 Produced by the JSE SENS Department.
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