Mercantile Lisbon Bank Holdings Limited - Trading Update And Cautionary
Announcement
Mercantile Lisbon Bank Holdings Limited ("Mercantile" or "the company")
(Incorporated in the Republic of South Africa)
(Registration number 1989/000164/06)
Share code: MTL
ISIN CODE : ZAE000027082
TRADING UPDATE AND CAUTIONARY ANNOUNCEMENT
Notice is hereby given to shareholders that the company has incurred a
substantial loss for the year ended 31 March 2002. The loss arises primarily
from the need to make substantial provisions against non-performing advances
and includes further provisions since the announcement of the interim
results. These additional provisions arose from a further downgrading of non-
performing advances as a result of better management information. This
enabled a more accurate assessment of the probability of recovery and
security applicable to these advances.
In line with the general market conditions being experienced by small banks
ongoing trading conditions remain difficult. The situation has however
stabilised over the last six months and, in particular, liquidity remains
high and has been very stable.
Full details will be disclosed upon release of the annual results expected
by 27 June 2002 but it is likely that there will be a need for a further
enhancement of capital. The company is considering various options in this
regard.
Mercantile depositors and other customers are assured of the continued
support of the controlling shareholder, Caixa Geral de Dep"sitos` (CGD) who
confirm as follows:
"CGD is willing to safeguard the financial soundness and stability of
Mercantile, including the maintenance of capital adequacy."
CGD is the largest financial group in Portugal, with assets in excess of EUR
62 billion (R580 billion) and with an equity base of over EUR 3 billion (R28
billion). CGD holds the highest rating of all Portuguese banking groups,
being rated (Aa3/P-1) by Moody`s, (A+/A-1) by S&P and (AA-/F1+ by Fitch
IBCA.
Shareholders are advised to exercise caution in dealing in their shares
until a further announcement is made.
Bridge Capital Services (Pty) Ltd
Sponsor
21 May 2002
Date: 21/05/2002 09:03:28 AM Produced by the SENS Department
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
