Saambou Holdings Limited - Trading Statement And C
Saambou Holdings Limited
(Registration number 1987/004170/06)
(Share code: SBO ISIN: ZAE000006409)
("Saambou")
TRADING STATEMENT AND CAUTIONARY ANNOUNCEMENT
The Saambou board of directors advises shareholders that for the six months
ended 30 September 2001:
following a review of the personal loans business, assessing the impact of
changes in the personal loans market, changes in the regulatory environment
and awaiting certainty on Persal , Saambou considered it prudent to limit
the growth of personal loan advances during the period;
the curtailment of the expansion of personal loan advances impacted the new
business flows of the life company and several of Saambou Bank's personal
loan joint ventures; and
the headline earnings have been affected by establishment and launch costs
of R35 million relating to Saambou's online banking initiative 20twenty.
The aforementioned is expected to result in Saambou's headline earnings for
the six months ended 30 September 2001 approximating R65 million, equating
to 40,7 cents per share as compared to the headline earnings for the six
months ended 30 September 2000 of R76 million, equating to 52,0 cents per
share.
Further, to comply with amended regulatory requirements, Saambou has
cancelled its credit insurance policy and has brought its advances provision
on to its balance sheet. Following a review of operations and accounting
estimates, Saambou's provisioning policy relating to personal loans has been
revised to a more conservative basis, resulting in a once off additional
post taxation adjustment of R70 million by increasing general provisions,
which adjustment does not form part of headline earnings.
Saambou's traditional banking and insurance businesses continue to operate
satisfactorily. Saambou is confident that the above mentioned initiatives
will impact positively on the future prospects of the group.
Shareholders are accordingly advised to exercise caution in dealing in their
shares until the results for the six months ended 30 September 2001are
released on or before 31 October 2001.
Pretoria
11 October 2001
Sponsor
ĂInvestec Bank Limited¨
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