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SAAMBOU HOLDINGS LIMITED
Registration number 1987/004170/06
GROUP RESULTS AND DECLARATION OF DIVIDEND
Audited results for the year ended 31 March 2001
Headline earnings per share grew by 42%
Total assets increased by 33%
Shareholders' funds increased by 36%
Return on equity improved to 25%
CONSOLIDATED INCOME STATEMENT 31 March 31 March
Change 2001 2000
% Rm Rm
Net interest income 39.9 734.2 524.8
Non-interest income 84.2 569.7 309.3
Operating income 56.3 1 303.9 834.1
Expenses (971.8) (601.3)
Operating expenses 60.9 (618.4) (384.3)
Provisions and cost of insurance cover 62.9 (353.4) (217.0)
Net income before tax and income
from equity accounted investments 42.7 332.1 232.8
Income from equity accounted investments 3.5 12.3
Net income before tax 36.9 335.6 245.1
Tax 16.5 (101.6) (87.2)
Net income after tax 48.2 234.0 157.9
Minority interest (14.7) -
Net income 38.9 219.3 157.9
Adjustments for:
Loss / (profit) on
revaluation of property 3.1 (2.8)
Loss / (profit) on
sale of property and equipment 0.7 (0.1)
Profit on sale of investment (3.3) -
Attributable to preference shares (10.3) (8.4)
Goodwill written off 3.7 -
Headline earnings 45.4 213.2 146.6
CONSOLIDATED BALANCE SHEET
ASSETS
Property and equipment 216.3 85.7
Goodwill 38.5 -
Intangible assets 22.7 7.2
Investments 1 301.7 887.1
Other assets 369.3 193.6
Deferred tax 4.4 -
Advances 17.9 15 348.1 13 021.3
Liquid assets 2 988.2 1 074.7
Total assets 32.9 20 289.2 15 269.6
SHAREHOLDERS' FUNDS AND LIABILITIES
Ordinary shareholders' funds 1 016.4 707.7
Preference shares 141.1 141.1
Total shareholders' interest 36.4 1 157.5 848.8
Minority interest (0.7) -
Long-term loans 1 024.7 903.8
Insurance funds 435.6 294.2
Deferred tax - 31.8
Deposits and current accounts 28.5 16 379.6 12 748.9
Other liabilities and provisions 1 292.5 442.1
Total shareholders' funds and liabilities 20 289.2 15 269.6
SALIENT FEATURES 31 March 31 March
Change 2001 2000
% Rm Rm
Headline earnings per share (cents) 42.1 145.7 102.5
Diluted headline earnings
per share (cents) 37.0 140.1 102.3
Earnings per share (cents) 36.7 142.9 104.5
Diluted earnings per share (cents) 32.1 137.6 104.2
Number of issued ordinary shares
(millions) 8.8 155.4 142.8
Weighted average number of shares
(millions) + 2.3 146.3 143.0
Fully diluted number of shares
(millions) 9.8 166.3 151.4
Dividend per share (cents) * 38.1 29.0 21.0
Dividend cover (times) * # - 5.0 5.0
Headline earnings/average assets (%) 9.1 1.2 1.1
Headline earnings/average equity (%) 8.8 24.7 22.7
Net asset value per share (cents) 32.0 654.1 495.6
Operating expenses to total income (%) 2.8 47.4 46.1
Non-interest income to total income (%) 17.8 43.7 37.1
+ Adjusted for the effects of capitalisation issues
* Capitalisation dividends
# Calculated on headline earnings per share
SEGMENT REPORT
Net income 219.3 157.9
Bank related 85.3 68.9
Non-bank related 134.0 89.0
CONSOLIDATED CASH FLOW STATEMENT
Cash flow from operating activities 1 942.9 (521.9)
Cash received 2 910.7 2 304.8
Cash paid (2 795.3) (2 188.6)
Cash from non-banking companies 387.6 229.0
Increase in income-producing assets (2 895.9) (3 437.8)
Increase in deposits and other liabilities 4 416.0 2 680.3
Tax paid (80.2) (109.6)
Cash flow from investment activities (227.6) (104.2)
Cash flow from financing activities 198.2 761.8
Cash and cash equivalents
Net increase in funds 1 913.5 135.7
Balance at beginning of the year 1 074.7 939.0
Balance at end of the year 2 988.2 1 074.7
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' FUNDS
Shareholders' funds at beginning of the year 848.8 583.8
Issue of shares 127.5 318.5
Goodwill written off against share premium - (84.7)
Share issue expenses written off (1.1) (3.2)
Reclassification of liability portion
of preference shares - (113.6)
Capitalisation share awards (33.8) (22.7)
Unrealised profits on investments (2.9) 7.7
Change in other non-distributable reserves 10.0 13.5
Net income 219.3 157.9
Preference share dividend (10.3) (8.4)
Shareholders' funds at end of the year 1 157.5 848.8
NOTE TO THE FINANCIAL INFORMATION
Accounting policies
The accounting policies adopted for the purposes of this announcement are
consistent with those of the previous year, with the exception of goodwill
which is now treated in accordance with the accounting statement on business
combinations. In the prior year goodwill was written off against share
premium.
COMMENTS
Review
The Board of Saambou Holdings Limited is pleased to report that headline
earnings per share increased by 42.1% to 145.7 cents per share (2000: 102.5
cents per share) for the year ended 31 March 2001.
Improved contributions from higher margin lending products resulted in an
increase of 40% in net interest income to R734.2m (2000: R524.8m). The ratio
of non-interest income as a percentage of total income continued its
improvement from 39.3% at the interim stage to 43.7% at year-end (2000:
37.1%). This increase resulted from the expansion of the group's retail
banking activities as well as improved contributions from insurance
operations.
The cost of insurance cover and provisions was increased by 62.9% to R353.4m
(2000: R217.0m) for the year due to expansion into comparatively higher risk
lending products. This represents 2.5% of average advances (2000: 1.9%).
Continued application of conservative cover para-meters has resulted in
total available cover against credit losses of R694.6m (2000: R557.0m), or
4.5% of advances (2000: 4.3%). Cover comfortably exceeds minimum
provisioning requirements in terms of regulations to the Banks Act.
The cost to income ratio increased marginally in the short-term to 47.4%
(2000: 46.1%) for two reasons: the develop-ment of enhanced technology infra-
structure and systems; and increased capacity required to prudently manage
operational risks, which arose with the increase in business volumes due to
the expansion of the group's retail banking activities. The long-term
downward trend in this ratio will not be disrupted.
Prudent liquidity management has resulted in the intentional containment of
advances growth to 17.9% compared with the 33.2% achieved in the prior year.
A very stable liquidity position has been established as a result of the
increase in liquid assets relative to the level of deposits. This is
particularly significant considering that 80% (2000: 80%) of total depositor
funding is procured on a term basis.
A return on average equity (based on headline earnings per share) of 25% is
the culmination of a year of highly satisfactory performance for
shareholders.
Prospects
The Board expects positive earnings growth for the forthcoming financial
year in the absence of any material decline in economic conditions.
DIVIDEND
The Board has resolved to award capitalisation shares in lieu of a cash
dividend to ordinary shareholders registered in the books of the Company at
the close of business on 8 June 2001.
Shareholders will be given the opportunity to decline the award of
capitalisation shares in respect of all or part of their shareholding and to
receive instead a cash dividend of 20.0 cents per share.
The terms of the award of the capitalisation shares will be published on 4
June 2001 and a circular and election form will be posted to shareholders on
or about 15 June 2001.
On behalf of the Board
A I Basserabie J P Myburgh
Chairman Group Chief Executive
24 May 2001
Registered office
Saambou Park, Alkantrant Road Lynnwood Manor, Pretoria 0081
PO Box 74127, Lynnwood Ridge 0040
Share Transfer Secretaries
Mercantile Registrars Limited
11 Diagonal Street, Johannesburg, 2001
PO Box 1053 Johannesburg 2000
Directors
A I Basserabie* (Chairman), J L van den Berg* (Deputy Chairman),
J P Myburgh (Group Chief Executive), J A Barrow*, Dr B P Botha*
D H Botha, C M Edwards, K J Hlongwane* Prof N I Morgan*, S J Rudd,
M I Sacks* J G Venter
* Non-executive
Results are available on our website: www.saambou.co.za
Date: 24/05/2001 02:00:00 PM Produced by the SENS Department
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