| Wed 2 Mar 2005, 14:08 | | Sasfin reports 36% increase |
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Sasfin reports 36% increase In Pre-Tax Profits At Interim Stage
Sasfin Holdings Limited
(Incorporated in the Republic of South Africa)
(`Sasfin` or `the Group` or `the Company`)
(Ordinary share code: SFN ISIN: ZAE000006565)
(Preference share code: SFNP ISIN: ZAE000060273)
Sasfin reports 36% increase in PRE-TAX PROFITS AT INTERIM STAGE
ALL DIVISIONS TRADING PROFITABLY
Banking and financial services group Sasfin reported a 17% increase to 139c
(2004: 118,9c) in headline earnings per share and a 36% increase at the pre-tax
level for the six months to 31 December 2004.
This improvement, off a substantially higher base, follows the 169% increase in
headline earnings per share (HEPS) for the comparative period last year.
CEO Roland Sassoon says a notable feature of the latest interim results is the
much improved performance from the investment advisory and asset management
businesses, which reported earnings of R7,2 million (2004: R344 000) for the six
month period. `We saw a welcome return of confidence to the equity markets in
2004, especially during the second half of the year, and this is reflected in
the growth in assets under management and the substantially higher fees earned
by our investment advisory and asset management businesses,` says Sassoon.
There was also a 35% increase in earnings from the freight business and a 13,6%
pre-tax earnings increase in the bank.
Sassoon says it was particularly gratifying to report that all divisions of the
group traded profitably, specifically Commercial Finance, Stockbroking and Asset
Management, and Freight Services.
There was a 25% increase in net interest income to R55,2 million (2004: R44,2
million) and other income grew 23% to R103 million (2004: R83,7 million).
Pre-tax income was up 36% to R51,6 million (2004: R38,1 million), while earnings
attributable to ordinary shareholders increased by 20% to R35,9 million.
Sasfin has started paying interim dividends by declaring a 41c interim dividend
per ordinary share.
Another notable feature of the results was the R142,8 million net increase in
cash and cash equivalents (2004: R1,8 million) following a R100 million
preference share issue.
The statutory risk-weighted capital adequacy of Sasfin Bank at the end of the
reporting period was 18.3% (2004: 27.6%), which is well above the prescribed
minimum of 10%. Sassoon says the group will consider utilising proceeds from its
recent R100m preference share capital issue to increase the bank`s capital.
The group recorded a 23% increase in total assets to R1,63 billion (2004: R1,32
billion), while net advances grew 12% to R1 billion (2004: R939 million). The
return on average total assets improved marginally to 4,8% (2004: 4,6%).
Sassoon says the ongoing focus on cost containment resulted in an improvement in
the cost-to-income ratio to 63,2% from 68,5% for the previous comparable period.
In January 2005, Sasfin Bank`s wholly-owned subsidiary Sasfin Asia Limited
subscribed for a 50% interest in SasCred Financial Services Limited, a Jersey
registered offshore financial services company, which will undertake trade
finance, asset management and fiduciary services.
Sasfin is making substantial progress in meeting the targets set out in the
Financial Sector Charter.
The Group has acquired a 50% interest in Faranani Asset Management, a black-
empowered company, which will be involved in asset management, once the required
regulatory approvals are received.
Sassoon says the group `is well placed to expand the depth and breadth of its
activities and remains optimistic that earnings will continue to grow at a
satisfactory pace.`
Ends
About Sasfin
The Sasfin Group provides a comprehensive, modular range of banking products and
financial services to corporate, commercial and private clients. Sasfin`s
services include Commercial Banking, Corporate Finance, Financial Advisory
Services, Private Client Services, Treasury and Freight Services.
Its vision is to be the specialised banking and financial services home of
choice for entrepreneurial corporate, commercial and personal clients by
creating, enhancing and preserving wealth through innovative personalised
solutions.
Sasfin was ranked number 9 for the year in Business Times` 2004 Top 100
Companies survey. (Ranked number 88 over five years).
ISSUED FOR : SASFIN HOLDINGS LIMITED
CONTACT : Roland Sassoon Tel: 011 809
7778 / 083 417 1100
FAX NO : 011 887 6167
E-MAIL : rsassoon@sasfin..com
WEBSITE : www.sasfin.com
ISSUED BY : TISH STEWART PR ASSOCIATES
CONTACT : Tish Stewart 011 325 4195 / 082
443 6399
FAX NO : 011 325 4199
E-MAIL : tish@tspr.co.za
DATE : 02 March 2005
