|
JSE IBLP
IBLP
Imperial Bank - Financial results for the six months ended 30 June 2006
IMPERIAL BANK
Preference share code: IBLP
ISIN: ZAE000081675
FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2006
OVERVIEW
Imperial Bank is a 50.1% subsidiary of Nedbank Limited with the remaining 49.9%
being held by Imperial Holdings Limited. These financial results are published
to provide information to the holders of Imperial Bank"s listed non-redeemable,
non-cumulative preference shares.
The bank has had an excellent six months, benefiting from a favourable economic
environment. Gross advances increased 36.0% from R17.7bn to R24bn and net
profit after tax increased 55.9% from R114.2m to R178m. Net interest income
grew by 37.3% and expenses grew by 13.5%, resulting in the efficiency ratio
improving from 42.8% to 34.7% and the return on ordinary shareholders" equity
improving from 20.2% to 24.6%. This performance reflects the initial benefits
of the restructuring and refocusing of the business undertaken in the second
half of 2005.
All divisions performed well, with Motor Finance, Property Finance and Medical
Finance all achieving strong growth in advances. In line with the strategy,
Supplier Asset Finance maintained advances at approximately the same level as
the prior year as the bank focused on returning the Aviation, Corporate and
Supplier Finance units to profitability.
Impairments have increased 61.7% largely as a result of recoveries in Property
Finance being lower than 2005. In addition, impairments in the Motor Finance
Division are returning to more normalised levels following the benign
conditions of 2005.
CAPITAL MANAGEMENT
During the period Imperial Bank restructured its capital base to improve
returns to shareholders and to allow for future growth. The bank issued a
subordinated (Tier 2) bond (IBL2) for R500 million priced at 117 basis points
above the benchmark R153 rate and preference share capital amounting to R300
million yielding 70% of prime. Imperial Bank also bought back R300 million of
ordinary shares during the period.
PROSPECTS
The outlook for the second half of the year remains positive, although further
increases in interest rates are likely to dampen demand for finance, while
impairments are expected to continue at the more normalised levels experienced
in the first six months.
CHANGES TO BOARD OF DIRECTORS
During the reporting period the following changes were made to the Imperial
Bank board:
- Zoe Banchetti resigned as a non-executive director (19 April 2006);
- Daan van der Linde resigned as an executive director (19 April 2006);
- Rob Shuter resigned as a non-executive director (19 April 2006); and
- Mustaq Enus-Brey was appointed as a non-executive director (19 April 2006).
ACCOUNTING POLICIES
The accounting policies applied for the first half of the year have been
consistent with those of the prior year. Imperial Bank"s financial results have
been prepared in accordance with IAS 34: Interim Financial Reporting.
IMPERIAL BANK NON-REDEEMABLE, NON-CUMULATIVE PREFERENCE SHARES
The first dividend will be declared for the period 22 June 2006 (issue date) to
31 December 2006 and will be paid during March 2007.
For and on behalf of the board
W G Lynch R van Wyk
Chairman Chief Executive
1 August 2006
Registered office: Imperial Bank, 24 Achter Road, Paulshof, Sunninghill, 2191.
PO Box 6093, Rivonia, 2128
Transfer secretaries: Computershare Investor Services 2004 (Pty) Ltd, 70
Marshall Street, Johannesburg, 2001.
PO Box 61051, Marshalltown, 2107
Directors: W G Lynch: Chairman (Irish), R van Wyk: Chief Executive
Officer*, O S Arbee, C J W Ball, H R Brody, R G Cottrell,
M J Croucamp, M A Enus-Brey, P C W Hibbit*, P A Wessels
*Executive
Company Secretary: P Hassim
KEY RATIOS
As at June June December
2006* 2005* 2005**
R"000 R"000 R"000
Net interest income to
average interest-earning
banking assets % 4.42 4.31 4.38
Impairments charge to average advances % 0.95 0.79 0.66
Non-interest revenue to total income % 8.08 5.66 6.84
Efficiency ratio % 34.70 42.80 41.25
Return on ordinary shareholders" equity % 24.55 20.19 23.22
Return on total assets % 1.51 1.30 1.52
Bank capital adequacy ratio
- Tier 1 % 6.19 6.78 7.07
- Total % 11.31 10.34 10.20
Share statistics
Number of shares in issue
- Ordinary shares m 288.2 340.0 358.9
- Preference shares m 3.0 - -
Weighted average number
of ordinary shares m 355.8 321.1 332.9
Basic earnings per ordinary share cents 500 356 885
Headline earnings per ordinary share cents 500 356 885
Preference share traded price
(closing) rands 103 - -
Sponsors: Nedbank Capital, Deloitte & Touche Sponsor Services (Pty) Ltd
Reg no: 1995/012641/06, Incorporated in the Republic of South Africa
Preference share code: IBLP
ISIN: ZAE000081675
These results are available on our website: www.imperialbank.co.za
OPERATING DIVISIONS % OF NET PROFIT (JUNE 2006)
19% Supplier Asset Finance
4% Medical Finance
32% Property Finance
45% Motor Finance
INCOME STATEMENT
For the period ended June June December
2006* 2005* 2005**
R"000 R"000 R"000
Interest and similar income 1 286 511 1 191 251 2 438 341
Interest expense and similar charges 792 347 831 316 1 634 177
Net interest income 494 164 359 935 804 164
Impairment losses on loans
and advances 101 532 62 781 114 589
Income from lending activities 392 632 297 154 689 575
Non-interest income 34 536 17 831 50 668
Total income 427 168 314 985 740 243
Operating expenses 183 471 161 673 352 637
Indirect taxes 10 385 8 316 14 099
Profit from operations before
direct taxation 233 312 144 996 373 507
Direct taxes 55 333 30 775 79 024
Net profit for the period 177 979 114 221 294 483
BALANCE SHEET
As at June June December
2006* 2005* 2005**
R"000 R"000 R"000
Assets
Cash and cash equivalents 148 281 19 146 11 189
Other short-term securities 742 342 360 829 569 465
Derivative financial instruments 101 612 242 454 217 177
Government and other securities 384 951 454 641 450 356
Loans and advances to customers 23 275 559 16 836 654 19 697 107
Other assets 239 926 182 303 239 166
Current taxation
Investment securities 8 243 30 756 8 693
Non-current assets held for sale 13 395
Deferred taxation 14 041 23 717 9 643
Property and equipment 128 316 62 275 134 512
Mandatory deposits with central
bank 548 425 396 983 463 296
Total assets 25 591 696 18 609 758 21 813 999
Equity and liabilities
Share capital 2 882 3 399 3 589
Share premium 348 802 573 825 648 285
Reserves 1 048 910 690 668 870 930
Total ordinary equity 1 400 594 1 267 892 1 522 804
Preference share capital and
premium 299 902 - -
Total shareholders" equity 1 700 496 1 267 892 1 522 804
Total liabilities 23 891 200 17 341 866 20 291 195
Derivative financial instruments 126 820 243 218 219 120
Amounts owed to depositors 22 416 305 16 306 618 19 229 181
Other liabilities 253 619 191 755 209 293
Current taxation 54 277 17 004 53 119
Long-term debt instruments 1 040 179 583 271 580 482
Total equity and liabilities 25 591 696 18 609 758 21 813 999
Guarantees on behalf of
customers excluded
from assets 690 132 674 819 868 765
CASH FLOW STATEMENT
For the period ended June June December
2006* 2005* 2005**
R"000 R"000 R"000
Generated by operating activities 387 155 221 878 457 132
Change in funds for
operating activities (610 952) (294 676) (446 426)
Cash (utilised)/generated
by operating activities
before taxation (223 797) (72 798) 10 706
Taxation paid (62 204) (14 335) (19 731)
Net cash utilised by operating
activities (286 001) (87 133) (9 025)
Cash flows from/(utilised in)
investing activities 8 511 (3 447) (97 848)
Cash flows from financing activities 499 711 139 999 214 648
Net increase in cash and
cash equivalents 222 221 49 419 107 775
Cash and cash equivalents at
beginning of period 474 485 366 710 366 710
Cash and cash equivalents including
mandatory deposits with the
central bank 696 706 416 129 474 485
STATEMENT OF CHANGES IN SHAREHOLDERS" EQUITY
For the period ended
Number of Ordinary Ordinary
ordinary share share
shares capital premium
R"000* R"000*
Balance as at 31 December 2004 301 998 332 3 020 434 205
Transfer (to)/from reserves
Net profit for the period
Share issues 37 955 343 380 139 620
Share issue expenses (1)
Balance as at 30 June 2005 339 953 675 3 400 573 824
Transfer (to)/from reserves
Net profit for the period
Share issues 18 980 812 189 74 811
Share issue expenses (350)
Balance as at 31 December 2005 358 934 487 3 589 648 285
Transfer (to)/from reserves
Net profit for the period
Ordinary shares bought back (70 711 888) (707) (299 293)
Preference shares issued
Share issue expenses (190)
Balance as at 30 June 2006 288 222 599 2 882 348 802
General
Revaluation risk Accumulated
reserve reserve profit
R"000* R"000* R"000*
Balance as at 31 December 2004 2 863 70 826 502 758
Transfer (to)/from reserves (20) 8 905 (8 885)
Net profit for the period 114 221
Share issues
Share issue expenses
Balance as at 30 June 2005 2 843 79 731 608 094
Transfer (to)/from reserves (20) 17 880 (17 860)
Net profit for the period 180 262
Share issues
Share issue expenses
Balance as at 31 December 2005 2 823 97 611 770 496
Transfer (to)/from reserves (2 823) 72 831 (70 008)
Net profit for the period 177 979
Ordinary shares bought back
Preference shares issued
Share issue expenses
Balance as at 30 June 2006 - 170 442 878 467
Total Preference
ordinary share capital Total
shareholders" and shareholders"
equity premium equity
R"000* R"000* R"000*
Balance as at 31 December 2004 1 013 672 - 1 013 672
Transfer (to)/from reserves - -
Net profit for the period 114 221 114 221
Share issues 140 000 140 000
Share issue expenses (1) (1)
Balance as at 30 June 2005 1 267 892 - 1 267 892
Transfer (to)/from reserves - -
Net profit for the period 180 262 180 262
Share issues 75 000 75 000
Share issue expenses (350) (350)
Balance as at 31 December 2005 1 522 804 - 1 522 804
Transfer (to)/from reserves - -
Net profit for the period 177 979 177 979
Ordinary shares bought back (300 000) (300 000)
Preference shares issued - 300 000 300 000
Share issue expenses (190) (98) (288)
Balance as at 30 June 2006 1 400 594 299 902 1 700 496
SEGMENTAL ANALYSIS BY OPERATION
For the period ended Total assets (Rbn)
June June December
2006* 2005* 2005**
Motor Finance 14.6 9.7 12.1
Property Finance 4.1 3.5 3.3
Medical Finance 2.4 1.6 2.0
Supplier Asset Finance 3.2 2.7 2.9
Treasury and Eliminations 1.3 1.1 1.5
Total 25.6 18.6 21.8
Total income (Rm)
June June December
2006* 2005* 2005**
Motor Finance 226.1 151.8 359.6
Property Finance 119.7 94.0 209.5
Medical Finance 31.2 17.3 43.1
Supplier Asset Finance 77.9 36.9 125.1
Treasury and Eliminations (27.7) 15.0 2.9
Total 427.2 315.0 740.2
Net profit (Rm)
June June December
2006* 2005* 2005**
Motor Finance 86.4 47.5 124.2
Property Finance 62.5 43.6 99.0
Medical Finance 7.5 (0.1) 3.0
Supplier Asset Finance 37.8 4.8 42.8
Treasury and Eliminations (16.2) 18.4 25.5
Total 178.0 114.2 294.5
*Unaudited **Audited
Date: 01/08/2006 02:05:08 PM Produced by the JSE 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. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
