| Thu 21 Feb 2002, 0:00 | | Sasfin Holdings Limited - Unaudited Results |
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SASFIN HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
("Sasfin" or the "Group")
Share code : SFN
ISIN Code : ZAE000006565
Highlights
* Assets exceed R1 billion
* Headline earnings: Up 102%
* Headline earnings per share: Up 92%
Unaudited Interim Results for the six month period ended
31 December 2001
CONSOLIDATED BALANCE SHEET
30 June 2001 31 Dec 2001 31 Dec 2000
Audited Unaudited Unaudited
R'000 R'000 R'000
ASSETS
184,194 Short-term 168,470 119,539
interbank funds
11,826 Short-term 13,873 10,368
negotiable
securities
14,965 Investments 15,438 15,107
553,551 Advances 696,982 467,928
118,884 Accounts 165,041 85,359
receivable
37,494 Property and 41,151 35,219
equipment
920,914 Total assets 1,100,955 733,520
LIABILITIES AND SHAREHOLDERS' FUNDS
65,001 Interbank funding 121,933 89,571
243,215 Deposits 271,962 186,063
354,645 Debentures 403,140 261,859
104,124 Accounts payable 122,689 56,062
16,588 Deferred taxation 20,276 16,275
783,573 Total liabilities 940,000 609,830
7,872 Minority interest 7,716 7,240
Shareholders'
funds
228 Share capital 235 228
15,013 Share premium 15,006 15,013
114,228 Distributable 137,998 101,209
reserves
129,469 153,239 116,450
920,914 Total equity and 1,100,955 733,520
liabilities
46,582 Contingencies and 58,115 39,626
commitments
CONSOLIDATED INCOME STATEMENT
Year ended Six months ended
30 June 2001 31 Dec 2001 31 Dec 2000
Audited Unaudited Unaudited
R'000 R'000 R'000
110,085 Interest income 64,862 49,693
61,772 Interest expense 38,223 27,266
48,313 Net interest 26,639 22,427
income
138,580 Other income 111,852 69,570
- Exceptional other 11,660 -
income
186,893 Total income 150,151 91,997
1,567 Provisions for 5,325 5,149
credit losses
- Exceptional 15,000 -
general risk
provisions
185,326 Net income 129,826 86,848
151,180 Operating expenses 88,799 67,761
34,146 Net income before 41,027 19,087
taxation
5,510 Taxation 7,447 4,103
28,636 Income after 33,580 14,984
taxation
1,460 Minority interest 197 827
27,176 Net income for the 33,383 14,157
period
30,339 Continuing 33,383 16,498
operations
(3,163) Discontinued - (2,341)
operations
Number of shares
in issue (000)
22,768 - at end of the 23,458 22,768
period
22,349 - weighted average 23,166 21,937
135.8 Headline earnings 144.1 75.2
per share (cents)
121.6 Earnings per share 144.1 64.5
(cents)
63 Dividends per - -
share (cents)
STATEMENT OF CHANGES IN SHAREHOLDERS' FUNDS
Year ended Six months ended
30 June 2001 31 Dec 2001 31 Dec 2000
Audited Unaudited Unaudited
R'000 R'000 R'000
228 Share capital 235 228
215 Opening balance 228 215
13 Shares issued 7 13
15,013 Share premium 15,006 15,013
15,026 Opening balance 15,013 15,026
(13) Shares issued (7) (13)
114,228 Distributable 137,998 101,209
reserves
97,221 Opening balance 114,228 89,020
(8,201) Change in - -
accounting policy
89,020 Restated balance 114,228 89,020
27,176 Net income for the 33,383 14,157
period
(1,968) Dividends paid (9,613) (1,968)
129,469 Shareholders' 153,239 116,450
funds at end of
period
CONSOLIDATED CASH FLOW INFORMATION
Year ended Six months ended
30 June 2001 31 Dec 2001 31 Dec 2000
Audited Unaudited Unaudited
R'000 R'000 R'000
Net cash
(outflow)/inflow
from:
(22,616) Operating (111,071) (27,332)
activities
(23,297) Investing (8,032) (16,478)
activities
138,481 Financing 48,494 45,695
activities
Net increase in
cash and
92,568 cash equivalents (70,609) 1,885
Cash and cash
equivalents at
38,451 beginning of 131,019 38,451
period
Cash and cash
equivalents at
131,019 end of period 60,410 40,336
SEGMENTAL NET INCOME ANALYSIS
Year ended Six months ended
30 June 2001 31 Dec 2001 31 Dec 2000
Audited Unaudited Unaudited
R'000 R'000 R'000
22,796 Banking 32,210 8,931
2,189 Freight 296 1,241
Investment
Advisory and
3,145 Asset Management 1,492 1,043
(954) Other (615) 2,942
27,176 33,383 14,157
COMMENTS
Sasfin is a bank-controlling company listed under the "Financial Services"
sector of the JSE Securities Exchange South Africa. The focus of the Group
is to provide a wide range of complementary banking, financial and related
services to its target market of entrepreneurial corporate, commercial and
private clients.
RESULTS
For the comparable period under review, the Group's income statement
reflects almost a doubling of its headline earnings per share to 144.1
cents. The results include the positive impact of the significant
devaluation of the Rand in December 2001. The Rand exchange rate has since
firmed, resulting in a reversal of a portion of the translation gain which
is included as exceptional other income for the period. The results further
include a net amount of R26 million of currency gains after accounting for
the exceptional general risk provision, which the directors consider prudent
in the current uncertain business environment.
Despite the poor global economic climate, the Group increased its assets
year on year by 50% to R1.1 billion (2000: R734 million), of which advances
grew by 49% to R697 million (2000: R468 million). The advances are
substantially securitised to the Group's securitisation vehicle, Sasfin
Asset Securitisation (Pty) Limited ("SAS"), which is structured with funding
matched in terms of maturity to the advances.
SAS has been consolidated in compliance with Accounting Statement AC412,
taking into account the new securitisation regulations published in December
2001. Where necessary, comparative figures and the retained income for prior
years have been restated. Further changes to the structure of the
securitisation vehicle may be necessary before the end of the financial
year, due to these new regulations.
It is noteworthy that the deposit base has been particularly sound. This is
due to deposits being sourced mainly from clients with long-standing
personal relationships with Sasfin. This has obviated a need to source or
rely on deposits from the wholesale money market or the broader retail
market. In addition, the Group has no exposure to the micro-lending market
and is not involved in any derivative trading.
ACCOUNTING POLICIES
The results were prepared in accordance with the Statements of Generally
Accepted Accounting Practices and are consistent with the Group's accounting
policies.
DIVIDEND POLICY
It is the Group's policy to declare an annual dividend at year-end.
SHAREHOLDERS' FUNDS AND KEY RATIOS
Return on average shareholders' funds is 24.8% (2000: 11.0%) and return on
average assets 3.6% (2000: 2.4%). The statutory risk-weighted capital
adequacy ratio of Sasfin Bank Limited is 28.5% (2000: 41.6%), which is well
above the prescribed minimum of 10%.
The cost to revenue ratio is 64.1% (2000: 73.7%).
General provisions for bad and doubtful advances remain conservative at 2.6%
(2000: 2.8%) of total Group advances and exclude the exceptional general
risk provision. In addition, the bulk of advances are credit enhanced by
third party insurance.
PROSPECTS
The Group is improving efficiencies in its commercial banking division and
streamlining its stockbroking and financial advisory services units. The
exit of various banks from market segments in which the Group is active will
also offer Sasfin growth opportunities.
Sasfin is focusing on developing and expanding its international business
and is exploring opportunities in this regard.
For and on behalf of the board
MB Glatt RDEB Sassoon
Chairman Managing Director
20 February 2002 PRESIDENT: SE Sassoon* CHAIRMAN: MB Glatt (non-
executive)
EXECUTIVE DIRECTORS: RDEB Sassoon* (Managing Director), AW Greenstein
NON-EXECUTIVE DIRECTORS: CN Axten, ETB Blight, D Paizes, ML Smith
SECRETARY: SK Erasmus *British
REGISTERED OFFICE: Sasfin Place, 13-15 Scott Street, Waverley, 2090, Tel:
+27 11 809-7500, Fax: +27 11 887-2489/6167 Websites: www.sasfin.com
www.sfpsecurities.co.za
TRANSFER SECRETARIES: Mercantile Registrars Limited, 7th Floor, 11 Diagonal
Street, Johannesburg, 2001. PO Box 1053, Johannesburg, 2000
COMPANY REGISTRATION NUMBER: 1987/002097/06
