| Tue 20 Feb 2001, 0:00 | | Sasfin Holdings Limited - Results For The Six Mont |
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Unaudited interim results for the six month period ended 31 December 2000
HIGHLIGHTS
* Headline earnings: up 34%
* Headline earnings per share: up 15%
CONSOLIDATED BALANCE SHEET
As at 31 December 2000
Audited Unaudited Unaudited
30 June 2000 31 Dec 2000 31 Dec 1999
R'000 R'000 R'000
ASSETS
105 729 Short-term funds 119 539 58 985
6 427 Short-term negotiable securities 10 368 4 441
15 335 Investments 15 107 14 117
379 053 Advances 477 437 323 557
114 347 Accounts receivable 85 359 47 332
20 972 Property and equipment 35 219 15 715
641 863 Total assets 743 029 464 147
LIABILITIES AND SHAREHOLDERS' EQUITY
73 705 Interbank funding 89 571 114 530
112 672 Deposits 186 063 24 801
216 164 Debentures 261 859 130 163
106 615 ccounts payable 56 062 30 191
13 833 Deferred taxation 16 275 10 340
522 989 Total liabilities 609 830 310 025
6 412 Minority interest 7 240 5 845
Shareholders' funds
112 247 Reserves 125 731 148 085
215 Share capital 228 192
112 462 125 959 148 277
641 863 Total equity and liabilities 743 029 464 147
22 589 Contingencies and commitments 11 605 17 915
CONSOLIDATED INCOME STATEMENT
For the six month period ended 31 December 2000
Audited Unaudited Unaudited
30 June 2000 Six months ended
R'000 31 Dec 2000 31 Dec 1999 %
R'000 R'000 change
80 450 Interest income 46 537 40 653
38 803 Interest expenditure 27 266 17 676
41 647 Net interest income 19 271 22 977
Charge for bad and doubtful
(2 330) advances 5 149 57
43 977 Income from lending
activities 14 122 22 920
90 745 Non-interest revenue 74 035 23 958
134 722 Operating income 88 157 46 878
96 178 Operating expenses 67 761 30 112
38 544 Net income from operations 20 396 16 766 22
7 851 Taxation 4 103 3 105 32
30 693 Income after taxation 16 293 13 661 19
1 042 Minority interest 827 473
29 651 Net income for the period 15 466 13 188 17
29 446 Continuing operations 17 807 13 335 34
205 Discontinuing operations (2 341) (147)
Number of shares in issue (000)
21 460 - at end of the period 22 768 19 153
19 487 - weighted average 21 937 18 813
152.2 Earnings per share (cents) 70.5 70.1 1
151.1 Headline earnings per
share (cents) 81.2 70.9 15
63 Dividend per share (cents) - -
STATEMENT OF CHANGES IN SHAREHOLDERS' FUNDS
For the six month period ended 31 December 2000
Audited Unaudited Unaudited
Year ended Six months ended
30 June 2000 31 Dec 2000 31 Dec 1999
R'000 R'000 R'000
134 200 Shareholders' funds at beginning
of period 112 462 134 200
Movements in share capital and
share premium
30 001 Issue of shares - -
(76 566) Write-off of goodwill - -
Movements in non-distributable reserves
(16 970) Realisation of reserve - (14 320)
191 Write-off of goodwill - -
Movements in distributable reserves
16 970 Realisation of reserve - 16 970
29 651 Net income for the period 15 466 13 188
(362) Capitalisation of reserves - (358)
(4 653) Dividends (1 969) (1 403)
112 462 Shareholders' funds at end
of period 125 959 148 277
CONSOLIDATED CASH FLOW INFORMATION
For the six month period ended 31 December 2000
Audited Unaudited Unaudited
Year ended Six months ended
30 June 2000 31 Dec 2000 31 Dec 1999
R'000 R'000 R'000
Net cash (outflow)/inflow from:
21 238 - operating activities (27 332) (37 384)
(85 048) - investing activities (16 478) 22
115 783 - financing activities 45 695 (220)
51 973 Net increase in cash and
cash equivalents 1 885 (37 582)
Cash and cash equivalents at beginning
(13 522) of period 38 451 (13 522)
Cash and cash equivalents at
38 451 end of period 40 336 (51 104)
COMMENTS
The Group achieved satisfactory results for the period under review taking into
consideration:
* the lack of any meaningful national economic growth,
* the exceptionally low JSE Securities Exchange SA ("JSE") turnover which
negatively impacted on the performance of the stockbroking business,
* losses in a discontinued division,
* significant developmental costs relating to the banking operation and
absorption costs relating to the acquisitions in the previous financial year.
Attributable income for the period increased by 17% to R15,5 million (1999:
R13,2 million). Headline earnings for the period increased by 34% to R17,8
million (1999: R13,3 million). Headline earnings per share increased by 15% to
81,2 cents (1999: 70,9 cents).
The Group's securitisation vehicle, Sasfin Asset Securitisation (Pty) Limited
("SAS"), has been consolidated in compliance with Accounting Statement AC412.
The comparative figures as well as those at 30 June 2000 have been restated.
Accordingly, securitised advances of R293, 6 million (1999: R149 million) and
long-term funding in the form of unsecured debentures of R262 million (1999:
R130 million) are included in the Company's Balance Sheet as at 31 December
2000. This consolidation has no effect on the reported earnings of the Group as
the income of SAS was previously equity accounted. Other than the above, all
accounting policies have been consistently applied when compared with the
previous period.
General provisions for bad and doubtful advances remain conservative and stand
at 2,9% (1999: 3,3%) of total Group advances. In addition, advances are largely
credit enhanced by third party insurance. Included in the charge for bad and
doubtful advances in the current period is an amount of R2,1 million in respect
of additional general provisions raised as a result of a 48% growth in Group
advances to R477 million (1999: R324 million). The provisions at current levels
exceed the requirements in terms of the South African Reserve Bank's new
regulations.
The Banking Activities' cost to revenue ratio relating to continuing operations
for the period under review is 56,3% (1999: 63,8%).
It is Company policy to declare an annual dividend at the financial year-end.
SHAREHOLDERS' FUNDS AND KEY RETURNS
At 31 December 2000, the statutory risk-weighted capital adequacy ratio of
Sasfin Bank Limited was 41,6 % (1999: 55,9%).
Return on average shareholders funds increased to 22,6% (1999:19,1%) and return
on average assets decreased to 5,1% (1999: 7,0%) primarily due to the
consolidation of SAS as mentioned above.
DISCONTINUED OPERATION
The Treasury Outsourcing division of Sasfin Bank Limited has been closed. The
directors consider that adequate provision has been made to cover any losses
relating to the closure of this operation.
PROSPECTS
The economy is showing positive signs of a minor recovery as evidenced by
increased activity at the JSE, as well as the demand shown for the Group's
range of product offerings. An increase in income for the second half of the
financial year depends, to a large degree, on the performance of the
stockbroking business.
For and on behalf of the Board.
RDEB Sassoon H Zarca
Group Managing Director Group Financial Director
20 February 2001
PRESIDENT: SE Sassoon**,
DIRECTORS: MB Glatt* (Chairman), RDEB Sassoon** (Managing), CN Axten*, ETB
Blight*, D Paizes*, ML Smith*, H Zarca (Financial)
**British *Non-Executive
GROUP SECRETARY: SK Erasmus
REGISTERED OFFICE: Sasfin Place, 13 - 15 Scott Street, Waverley, 2090. Tel:
(011) 809 7500, Fax: (011) 887-2489/6167, Website: www.sasfin.com
TRANSFER SECRETARIES: Mercantile Registrars Limited, 7th Floor, 11 Diagonal
Street, Johannesburg, 2001. PO Box 1053, Johannesburg, 2000
COMPANY REGISTRATION NO: 1987/002097/06
