MTL - Mercantile Bank Holdings Limited - Trading statement
MTL
MTL
MTL - Mercantile Bank Holdings Limited - 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.
Mercantile`s earnings and headline earnings per share before taxation are
expected to decrease by 5% to 25% compared to the earnings and headline
earnings per share before taxation reported for the year ended 31 December
2008 due to the negative endowment effect resulting from the significantly
lower interest rate environment in South Africa and the high level of capital
of the Company.
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. Consequently, after
taxation earnings and headline earnings per share for the year ending 31
December 2009 are expected to decrease by 60% to 70% compared to the earnings
and headline earnings per share reported for the year ended 31 December 2008.
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 year ending 31 December 2009 are expected to be published
at the beginning of March 2010.
Johannesburg
5 November 2009
Sponsor: Bridge Capital Advisors (Pty) Limited
Date: 05/11/2009 12:08:01 Produced by the JSE SENS Department.
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