| Mon 11 Sep 2006, 12:38 | | Sasfin Holdings Limited - Audited Group Results Fo |
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SFN SFNP
SFN
Sasfin Holdings Limited - Audited Group Results For The Year Ended
30 June 2006 and dividend announcement
Sasfin Holdings Limited
(Incorporated in the Republic of South Africa)
(Ordinary share code: SFN & ISIN: ZAE000006565)
(Preference share code: SFNP & ISIN: ZAE000060273)
("Sasfin" or "the Group" or "the Company")
AUDITED GROUP RESULTS for the year ended 30 June 2006
- Headline earnings per ordinary share - 404 cents UP 23,7%
- Ordinary dividends per share - 161 cents UP 23,8%
- Return on ordinary shareholders" average equity 31,2%
- Return on total average assets 5%
- Efficiency ratio improved from 61,1% to 57,9%
balance sheets at 30 June
Restated
% 2006 2005
change R"000 R"000
ASSETS
Cash and cash balances 130 681 635 296 553
Short-term negotiable securities 24 922 19 377
Loans and advances 9 1 189 078 1 089 708
Other receivables 50 394 783 263 743
Taxation 171 1 885
Investment securities 61 157 53 157
Investments in associated
and joint venture companies 49 413 1 376
Deferred tax asset 463 3 053
Property, plant and equipment 49 376 43 243
Intangible assets and goodwill 9 080 -
Total assets 39 2 460 078 1 772 095
Equity
Ordinary share capital 266 260
Ordinary share premium 23 259 19 554
Reserves 377 186 259 988
Preference share capital 19 10
Preference share premium 199 259 99 636
Total equity attributable to
equity holders of the parent 58 599 989 379 448
Minority interest 68 639 16 997
Total equity 69 668 628 396 445
LIABILITIES AND EQUITY
Liabilities
Deposits from other banks 78 512 35 801
Other deposits 56 626 851 402 020
Other payables 320 900 200 115
Provisions 10 670 8 239
Investment securities 670 830 668 223
Taxation 39 670 15 334
Deferred tax liability 44 017 45 918
Total liabilities 30 1 791 450 1 375 650
Total liabilities and equity 2 460 078 1 772 095
Commitments and contingencies 93 350 55 429
cash flow statements for the year ended 30 June
Restated
% 2006 2005
change R"000 R"000
Cash flows from operating activities 222 462 52 446
Cash flows from investing activities (21 894) (42 915)
Net cash flows from financing activities 147 348 103 757
Net increase in cash and cash equivalents 347 916 113 288
Cash and cash equivalents at
beginning of the year 280 129 166 841
Cash and cash equivalents
at end of the year 628 045 280 129
headline earnings segmental analysis
Business Banking 17 54 697 46 807
Sasfin Capital 44 22 449 15 637
Personal Wealth 35 23 172 17 141
Specialised Services 14 5 732 5 031
Total 25 106 050 84 616
headline earnings reconciliation
Headline earnings are
determined as follows:
Profit attributable to equity
holders of the parent 156 449 85 104
Capital gains (50 399) (488)
Headline earnings 25 106 050 84 616
income statements for the year ended 30 June
Restated
% 2006 2005
change R"000 R"000
Interest income 205 143 196 115
Interest expense 92 552 84 960
Net interest income 112 591 111 155
Impairment losses on loans and advances 7 571 7 154
Net income from
lending activities 105 020 104 001
Other income 73 366 297 211 602
Operating income 49 471 317 315 603
Operating expenses 24 245 444 197 231
Profit from operations 225 873 118 372
Share of associated and joint venture
companies" income 4 277 1 321
Profit before taxation 230 150 119 693
Income tax expense 55 472 28 682
Profit for the period 92 174 678 91 011
Profit attributable to:
Minority interest 10 244 4 890
Preference shareholders 7 985 1 017
Equity holders of the parent 84 156 449 85 104
Profit for the period 174 678 91 011
salient features
Restated
2006 2005
Balance sheet
Total assets (Rm"s) 2 460 1 772
Total gross loans and advances (Rm"s) 1 223 1 115
Non-performing loans and advances (Rm"s) 64 27
Gross loans and advances growth (%) 9,6 12,6
Income statement
Headline earnings (Rm"s) 106 85
Profit attributable to equity
holders of the parent (Rm"s) 156 85
Financial performance
Return on ordinary shareholders" average equity (%) 31,2 33,5
Return on total average assets (%) 5,0 5,4
Operating performance
Net interest margin on interest bearing assets (%) 6,7 8,5
Non-interest income to total income (%) 76,5 65,6
Efficiency ratio (%) 57,9 61,1
Non-performing loans and advances to total
gross loans and advances (%) 5,2 2,4
Share statistics
Headline earnings per ordinary share (cents) 404 326
Earnings per ordinary share (cents) 596 328
Diluted earnings per ordinary share (cents) 577 316
Dividends per ordinary share relating to income
for the year (cents) 161 130
Dividends per preference share (cents) 790 503
Net asset value per ordinary share (cents) 1 507 1 075
Capital adequacy
Group capital to risk weighted assets (%) 36,6 37,0
Sasfin Bank Limited capital to
risk weighted assets (%) 28,3 25,7
statements of changes in equity for the year ended 30 June
Share-
Ordinary Distri- based
share capital butable payment
and premium reserve reserve
R"000 R"000 R"000
Balance at 30 June 2004 16 976 206 280 -
Adjustment on adoption of IFRS - 184 329
Restated balance at 30 June 2004 16 976 206 464 329
Available-for-sale portfolio
fair value adjustment - - -
Profit for the period - 86 121 -
Total income and expense for the period 86 121 -
-
Issue of shares 2 838 - -
Equity-settled share-based payments - - 413
Transfer to regulatory
general credit-risk reserve - (3 400) -
Preference share dividends - (1 017) -
Ordinary share dividends - (35 071) -
Balance at 30 June 2005 19 814 253 097 742
Available-for-sale portfolio
fair value adjustment - - -
Profit for the period - 164 434 -
Total income and
expense for the period - 164 434 -
Issue of shares 3 711 - -
Change in shareholding
of subsidiaries - - -
Equity-settled share-based payments - - 367
Transfer to regulatory
general credit-risk reserve - (600) -
Preference share dividends - (7 985) -
Ordinary share dividends - (39 686) -
Balance at 30 June 2006 23 525 369 260 1 109
Regulatory
general Total
Available credit- ordinary
for-sale risk shareholders"
reserve reserve equity
R"000 R"000 R"000
Balance at 30 June 2004 628 1 000 224 884
Adjustment on adoption of IFRS - - 513
Restated balance at 30 June 2004 628 1 000 225 397
Available-for-sale portfolio
fair value adjustment 1 121 - 1 121
Profit for the period - - 86 121
Total income and expense for the period 1 121 - 87 242
Issue of shares - - 2 838
Equity-settled share-based payments - - 413
Transfer to regulatory
general credit-risk reserve - 3 400 -
Preference share dividends - - (1 017)
Ordinary share dividends - - (35 071)
Balance at 30 June 2005 1 749 4 400 279 802
Available-for-sale portfolio
fair value adjustment 68 - 68
Profit for the period - - 164 434
Total income and
expense for the period 68 - 164 502
Issue of shares - - 3 711
Change in shareholding
of subsidiaries - - -
Equity-settled share-based payments - - 367
Transfer to regulatory
general credit-risk reserve - 600 -
Preference share dividends - - (7 985)
Ordinary share dividends - - (39 686)
Balance at 30 June 2006 1 817 5 000 400 711
Preference
share Total
capital and Minority shareholders"
premium interest equity
R"000 R"000 R"000
Balance at 30 June 2004 - 12 378 237 262
Adjustment on adoption of IFRS - 342 855
Restated balance at 30 June 2004 - 12 720 238 117
Available-for-sale portfolio
fair value adjustment - 747 1 868
Profit for the period - 4 890 91 011
Total income and expense for the period 5 637 92 879
-
Issue of shares 99 646 - 102 484
Equity-settled share-based payments - - 413
Transfer to regulatory
general credit-risk reserve - - -
Preference share dividends - - (1 017)
Ordinary share dividends - (1 360) (36 431)
Balance at 30 June 2005 99 646 16 997 396 445
Available-for-sale portfolio
fair value adjustment - 30 98
Profit for the period - 10 244 174 678
Total income and
expense for the period - 10 274 174 776
Issue of shares 99 632 - 103 343
Change in shareholding
of subsidiaries - 41 968 41 968
Equity-settled share-based payments - - 367
Transfer to regulatory
general credit-risk reserve - - -
Preference share dividends - - (7 985)
Ordinary share dividends - (600) (40 286)
Balance at 30 June 2006 199 278 68 639 668 628
reconciliation of previous SA GAAP to IFRS
These are the Group"s first consolidated financial statements prepared in
accordance with IFRS.
The accounting policies have been applied in preparing the financial
statements for the year ended 30 June 2006, the comparative information
presented in these financial statements for the year ended 30 June 2005 and
in the preparation of an opening balance sheet at 1 July 2004, being the
Group"s date of transition.
In preparing its opening IFRS balance sheet, the Group has adjusted amounts
reported previously in financial statements prepared in accordance with GAAP.
An explanation of how the transition from previous SA GAAP to IFRS has
affected the Group"s financial position and financial performance is set out
in the following tables.
30 June 2005 30 June 2004
R"000 R"000
ORDINARY SHAREHOLDERS" EQUITY
As previously reported under SA GAAP 279 265 224 884
Adjustments 537 513
As reported under IFRS 279 802 225 397
MINORITY INTEREST
As previously reported under SA GAAP 16 639 12 378
Adjustments 358 342
As reported under IFRS 16 997 12 720
PROFIT ATTRIBUTABLE TO EQUITY
HOLDERS OF THE PARENT
As previously reported under SA GAAP 85 493 60 237
Adjustments (389) (184)
As reported under IFRS 85 104 60 053
RECONCILIATION OF ASSETS
As previously reported under SA GAAP 1 770 446 1 382 428
Adjustments 1 649 1 565
As reported under IFRS 1 772 095 1 383 993
RECONCILIATION OF LIABILITIES
As previously reported under SA GAAP 1 374 896 1 145 166
Adjustments 754 710
As reported under IFRS 1 375 650 1 145 876
Commentary
NATURE OF BUSINESS
Sasfin is a bank-controlling company listed under the "Financials: Investment
Services" sector of JSE Limited. Sasfin"s subsidiaries provide a wide range
of complementary banking, financial and related services.
BUSINESS REVIEW
The Group is making good progress in its objective of being recognised as the
preferred banking and financial services group for the entrepreneur.
Headline earnings per ordinary share for the financial year under review
increased by 23,7% (2005: 38%) as compared with the restated headline
earnings for the previous financial year.
All business units performed well and made meaningful contributions to Group
headline earnings.
The efficiency ratio improved to 57,9% from 61,1% year on year.
Total Group assets increased to R2,5 billion (2005: R1,7 billion) which is
reflective of the increased level of activity in all business units.
Return on ordinary shareholders" average equity decreased to 31,2% (2005:
33,5%).
The statutory risk-weighted capital adequacy of Sasfin Bank Limited ("the
Bank"), currently a 90% owned subsidiary of the Company, is 28,3% (2005:
25,7%).
The Group disposed of its shares in JSE Limited, which gave rise to a capital
gain of R49 million, net of Capital Gains Tax. This amount is excluded from
the computation of headline earnings per share.
As announced on 10 May 2006, Sasfin has entered into an agreement for the
Bank, through its Hong Kong registered subsidiary Sasfin Asia Limited, to
acquire SBM Nedbank International Limited, a specialist bank registered in
the Republic of Mauritius, from Nedbank Group Limited. Approval of this
acquisition is being considered by the regulatory authorities.
THE FINANCIAL SECTOR CHARTER
In January 2006, the Bank issued shares to its black-owned associate,
InnoVent Investment Holdings (Pty) Limited resulting in it owning 10% of the
Bank.
The Group has submitted its 2005 empowerment scorecard to the Financial
Sector Charter Council and is pleased to report that its empowerment
programme is ahead of schedule. The Group is well placed to achieve the 2008
Charter targets.
In August 2006, the Bank welcomed Mrs DD Mokgatle and Mr MS Rylands as non-
executive directors.
SUBSEQUENT EVENTS
Other than as stated in the business review, no subsequent events have
arisen.
PROSPECTS
The Group provides a diverse range of niche financial products and services
targeted primarily at entrepreneurially-minded clients. As such, future
performance will be influenced by the level of economic activity in general,
interest rate patterns and the performance of the stock exchange.
Indications are that the current level of business activity being experienced
by the Group will be sustained for the forthcoming financial year. Recent
interest rate increases have not had any significant adverse effects and new
business inflows continue to be strong.
The Group"s operations are supported by a high level of capital adequacy and
are benefiting from the ongoing investments made in recent years in human
resources, support systems and brand development.
BASIS OF PREPARATION AND PRESENTATION OF ANNUAL FINANCIAL STATEMENTS
The Group"s annual financial statements are prepared in accordance with
International Financial Reporting Standards.
PREFERENCE SHARE DIVIDEND
Notice is hereby given that preference dividend number 4 amounting to 392,77
cents per preference share ("preference dividend") has been declared for the
period 1 January 2006 to 30 June 2006, on one million preference shares
issued at R100,00 each and on nine hundred and five thousand preference
shares issued at R110,49 each. The preference dividend is payable to holders
of preference shares recorded in the register of the Company at the close of
business on Friday, 13 October 2006.
The salient dates relating to the preference dividend are as follows:
Last day to trade cum the preference dividend Friday, 6 October 2006
Preference shares commence trading ex the
preference dividend Monday, 9 October 2006
Preference dividend record date Friday, 13 October 2006
Payment of preference dividend Monday, 16 October 2006
Preference shares may not be dematerialised or rematerialised between
Monday, 9 October 2006 and Friday, 13 October 2006, both days inclusive.
FINAL ORDINARY SHARE DIVIDEND
Notice is hereby given that a final ordinary share dividend for the financial
year ended 30 June 2006, amounting to 99 cents per share (2005: 89 cents) per
share ("ordinary dividend"), has been declared. The ordinary dividend is
payable to shareholders recorded in the register of the Company at the close
of business on Friday, 20 October 2006.
Together with the interim ordinary dividend of 62 cents declared on 2 March
2006, the total ordinary dividends for the financial year amount to 161 cents
per share (2005: 130 cents per share).
The salient dates relating to the ordinary dividend are as follows:
Last day to trade cum the ordinary dividend Friday, 13 October 2006
Ordinary shares commence trading ex the
ordinary dividend Monday, 16 October 2006
Ordinary dividend record date Friday, 20 October 2006
Payment of ordinary dividend Monday, 23 October 2006
Ordinary shares may not be dematerialised or rematerialised between
Monday, 16 October 2006 and Friday, 20 October 2006, both days inclusive.
For and on behalf of the Board.
MB GLATT RDEB SASSOON
Chairman Chief Executive Officer
11 September 2006
This announcement and additional information is available on our website:
www.sasfin.com
Chairman: MB Glatt (Non-Executive)
Executive directors: RDEB Sassoon * (Chief Executive Officer)
AW Greenstein (Managing Director)
M Segal
*British
Non-executive directors: CN Axten, ETB Blight, D Paizes, ML Smith
Company secretary: S Jackson
Registered office: Sasfin Place, 13-15 Scott Street, Waverley,
2090, Johannesburg
Tel: +27 11 809-7500
Fax: +27 11 887-6167/2489
Websites: www.sasfin.com
www.sfpsecurities.com
Transfer secretaries: Computershare Investor Services
2004 (Pty) Limited
70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
Company registration no.: 1987/002097/06
Lead sponsor: KPMG Services (Pty) Limited
Joint sponsor: Sasfin Capital (a division of Sasfin Bank
Limited)
KPMG Inc"s and PKF (JHB) Inc"s unmodified auditors" reports included in the
annual financial statements and on the summarised financial statements
contained in this abridged report are available for inspection at the
company"s registered address.
Date: 11/09/2006 12:39:10 PM Produced by the JSE SENS Department
