| Tue 16 Apr 2002, 0:00 | | Psg Investment Bank - Audited Results |
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PSG Investment Bank
Share Code : PGH
ISIN Code : ZAE000018818
Audited results for the year ended 28 February 2002
Attributable earnings R316,2m, up 25,7%
Total dividend 25 cps (8 cps ordinary, 17 cps special)
Total assets R3 341,5m, up 12,6%
Capital adequacy ratio 54%
Return on equity 21,4%
Financial highlights
- Headline earnings increases 15% to R301,6m (22,2 cps)
- Advances grew 17% to R1 002,6m
- Deposits grew 16% to R1 339,3m
- NAV 111 cents per share after 27 cps unbundling of
Capitec Bank
- RAD contributes R106m tax credit and R103m
negative goodwill (cash assets acquired at a discount)
- Operating income after tax, excluding the RAD tax credit
and exceptional items, amount to ca R200m
- Cash and assets with a maturity date of less than 30 days
as a % of total loans and deposits amount to 114%
Operational highlights
- Group structure simplified - one banking licence soon
- Axiam (TBBH) minorities bought out and delisted
- Growth in new ventures - Trade Finance R240m assets under management
- Australian business expanded - AU$1,6m maiden profit
- Real Africa Durolink (RAD) acquired and integrated
- Capitec Bank Holdings (Capitec) unbundled and listed
- Weathered liquidity contraction without any bridging or
standby finance
Salient features
Audited Audited
28 February 28 February %
2002 2001 change
Income statement
Basic earnings per share (cents) 23,2 20,7 12,1
Headline earnings per share (cents) 22,2 21,5 3,3
Distribution per share (cents) 25,0 16,6 50,6
Selected ratios
Return on opening
shareholders' funds (%) 21,4 16,4 30,5
Return on average total assets (%) 10,0 8,7 14,9
Non-interest income
to total income (%) 79,3 70,9 11,8
Expense-to-income ratio (%) 27,7 30,8 (10,1)
Bad debt charge/advances
(average) (%) 2,2 2,0 10,0
Provision for bad debts/advances (%) 3,6 1,9 89,5
Capital
Capital adequacy ratio (%) 54 68 (20,6)
Net asset value per share (cents) 111 138 (19,6)
Net tangible asset value
per share (cents) 100 129 (22,5)
Share statistics
Year-end share price (cents) 46,0
Capitec unbundling (cents per share) 27,0
Capital distribution iro 2001
(cents per share) 16,6
Adjusted year-end share
price (cents) 89,6 90,0 (0,4)
Number of shares in issue ('m) 1 431,9 1 216,3
Weighted average shares
in issue ('m) 1 360,1 1 216,3
Price-earnings ratio (historical) 2,0 4,4
Market capitalisation (R'm)
(after unbundling and distribution) 658,7 1 094,7 (39,8)
Average volume traded
per day ('000) 1 047,8 1 352,4
Average value traded
per day ('000) 962,0 1 306,4
Highest share price traded (cents) 118,0 136,0
Lowest share price traded (cents) 40,0 77,0
Average share price traded (cents) 92,0 97,0
STATEMENT OF CHANGES IN OWNERS' EQUITY
Audited Audited
12 months 12 months
ended ended
28 February 28 February
(Rm) 2002 2001
ISSUED ORDINARY SHARE
CAPITAL AND SHARE PREMIUM
Share capital and share
premium at the beginning of the year 1 234,4 1 349,7
Movements in capital:
Unbundling - Capitec (385,0) -
Capital distribution
(8,6 cents per share) (104,6) -
Share issue - RAD 169,0 -
Share issue expenses (0,1) -
Specific share repurchase - (115,3)
Share capital and share premium
at the end of the year 913,7 1 234,4
NON-DISTRIBUTABLE RESERVES
Non-distributable reserves at
the beginning of the year 14,7 4,4
Movement in non-distributable reserves:
Exchange differences on translation
of financial
statements of foreign entities 11,9 11,0
RAD compulsory convertible
debenture (CCD) 6,8 -
Other 0,8 (0,7)
Non-distributable reserves at the
end of the year 34,2 14,7
ACCUMULATED PROFITS
Accumulated profits at the
beginning of the year 429,9 178,3
Movement in accumulated profits:
Net income for the period 316,2 251,6
Dividends (97,3) -
Transfer to non-distributable reserves
- RAD CCD (6,8) -
Accumulated profits at the
end of the year 642,0 429,9
ORDINARY SHARE CAPITAL AND RESERVES
AT THE END OF THE YEAR 1 589,9 1 679,0
CONSOLIDATED INCOME STATEMENT
Audited Audited
12 months 12 months
ended ended
28 February28 February
(Rm) 2002 2001
INCOME
Net interest income 83,0 126,1
Non-interest income 251,8 265,0
Contribution from proprietary
consolidated investments 44,2 -
Total income 379,0 391,1
EXPENSES
Bad debt provision 21,4 14,6
Operating expenses 168,5 122,6
Profit from operations 189,1 253,9
Income from associates 21,9 41,8
Net income before exceptional items 211,0 295,7
Exceptional items - investment banking 14,6 (10,5)
Net income before taxation 225,6 285,2
Taxation (105,9) 33,2
Net income after taxation 331,5 252,0
Attributable to outside shareholders 15,3 0,4
Earnings attributable to shareholders 316,2 251,6
CONSOLIDATED BALANCE SHEET
Audited Audited
28 February28 February
(Rm) 2002 2001
ASSETS
Fixed assets 7,6 10,3
Net intangible assets (4,5) (27,0)
Deferred taxation 174,6 145,7
Assets of proprietary
consolidated investments 261,8 -
Investment in associates 181,4 115,7
Investment and trading securities 655,8 648,1
Loans and advances 1 002,6 857,8
Short-term money market assets 656,4 668,8
Other assets 79,0 129,4
Cash and near cash 326,8 420,1
Total assets 3 341,5 2 968,9
EQUITY AND LIABILITIES
ORDINARY SHARE CAPITAL AND RESERVES
Issued ordinary share capital
and share premium 913,7 1 234,4
Non-distributable reserves 34,2 14,7
Accumulated profits 642,0 429,9
1 589,9 1 679,0
Minority interest 72,3 16,0
TOTAL EQUITY 1 662,2 1 695,0
LIABILITIES
Loans and deposits 1 339,3 1 153,7
Deferred taxation 0,9 3,2
Other liabilities and provisions 169,0 117,0
Liabilities of proprietary
consolidated investments 170,1 -
TOTAL LIABILITIES 1 679,3 1 273,9
TOTAL EQUITY AND LIABILITIES 3 341,5 2 968,9
CASH FLOW STATEMENT
Audited Audited
12 months 12 months
ended ended
28 February28 February
(Rm) 2002 2001
Cash flows from operating activities (71,1) 177,4
Receipts from customers 435,6 332,2
Cash paid to customers,
employees and suppliers (309,3) (258,1)
Dividends received 66,8 109,8
Dividends paid (97,3) (54,1)
Net increase/(decrease) in
income earning assets, net of
deposits and liabilities (126,1) 56,1
Taxation paid (40,8) (8,5)
Net cash used in investing activities 86,5 27,0
Net cash used in financing activities (108,7) (20,4)
Net (decrease)/increase in cash
and short-term funds (93,3) 184,0
Cash and short-term funds at
beginning of period 420,1 236,1
Cash and short-term funds
at end of period 326,8 420,1
Notes
1. Accounting policies
The accounting policies adopted for the purpose of this report comply in all
material respects with South African Statements of Generally Accepted
Accounting Practice (GAAP) as well as with applicable legislation. These
accounting policies are also consistent with those of the previous year.
Proprietary consolidated investments, whose businesses are not related to
that of the rest of the group, were not consolidated on the conventional
basis, but as a single line under the assets, liabilities and profit before
tax in the balance sheet and income statement respectively. Full disclosure
is made in the notes to the financial statements.
2. Foreign currency translations
The financial treatment of the Mauritian foreign operation was changed to
that of an integrated foreign operation, according to GAAP. The net effect
of such treatment has resulted in an income statement gain of R23m.
3. Taxation
Provision for income tax and value added tax amounts to R25m. Temporary
differences have allowed for the creation of a deferred tax asset of R132m.
Included in the latter amount is a deferred tax asset of R106m, resulting
from the RAD acquisition, not previously recognised.
Audited Audited
28 February28 February
(Rm) 2002 2001
4. Exceptional items
Negative goodwill on acquisition
of subsidiary 103,3 -
Positive goodwill impaired (87,7) -
Positive goodwill amortised (1,0) (0,4)
Regulatory provision against other assets - (4,1)
Loss on realisation of share
incentive trust loan - (6,0)
14,6 (10,5)
5. Segmental analysis
Asset finance 1,8 8,5
Capital account and corporate services* 115,5 30,2
Corporate finance and proprietary
investments 133,3 142,6
Funds management - (4,1)
Proprietary consolidated investments 18,8 -
Risk management international (6,0) (8,2)
Structured and project finance 49,5 73,6
Trade and commodity finance 1,4 -
Treasury and trading 0,2 5,2
Treasury outsourcing 1,7 3,8
Earnings attributable to shareholders 316,2 251,6
* Including RAD deferred tax asset of R106m
6. Maturity analysis of advances
On demand to one month 420,4 299,7
One month to six months 83,4 133,3
Six months to one year 14,6 12,7
Greater than one year 521,6 428,8
General and specific provisions (37,4) (16,7)
1 002,6 857,8
7. Net intangible assets
Positive goodwill 17,5 19,1
Negative goodwill (22,0) (46,1)
(4,5) (27,0)
8. Maturity analysis of deposits
On demand to one month 827,4 756,9
One month to six months 337,6 321,2
Six months to one year 23,3 43,6
Greater than one year 151,0 32,0
1 339,3 1 153,7
Dividend
The directors have declared an ordinary dividend of 8 cents per share, and a
special dividend of 17 cents per share for a total dividend of 25 cents per
share (2001: 16,6 cents per share).
To comply with the requirements of STRATE, the following dates are
applicable:
Last day to trade cum-dividend Friday, 7 June 2002
Trading ex-dividend commences Monday, 10 June 2002
Record date Friday, 14 June 2002
Day of payment Tuesday, 18 June 2002
Share certificates may not be dematerialised between Monday, 3 June 2002 and
Friday, 14 June 2002, both days inclusive.
By order of the board
Jannie Mouton (Chairman)
Andre la Grange (Group Chief Executive)
Johannesburg
16 April 2002
An announcement which includes more detail is available on the PSG
Investment Bank website at www.psgib.com
The annual report will be available mid-May 2002
PSG Investment Bank Holdings Limited ("PSGBH") (Registration number
1998/017358/06)
Registered office: Albion Spring, 183 Main Road, Rondebosch 7700 (PO Box
24024, Claremont 7735) Transfer secretaries: Computershare Services Limited,
4th Floor, Edura House, 41 Fox Street, Johannesburg 2001 (PO Box 61051,
Marshalltown 2107)
Directors: J F Mouton (Chairman), A B la Grange* (Group Chief Executive),
Prof P J du Pre le Roux, Dr M Mostert*, J Naidoo, C A Otto, G B Rubenstein,
C F Turner*, Dr J van Zyl Smit * Executive directors Company secretary: P
W Bester
