| Tue 30 Jan 2007, 7:00 | | ABL - African Bank Investments Limited - Trading u |
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ABL ABLP
ABL
ABL - African Bank Investments Limited - Trading update
African Bank Investments Limited
(Incorporated in the Republic of South Africa)
(Registered bank controlling company)
(Registration number 1946/021193/06)
(Ordinary share code: ABL) (ISIN: ZAE000030060)
(Preference share code: ABLP) (ISIN: ZAE000065215)
("ABIL")
Trading update for the first quarter ending 31 December 2006
The environment over the past quarter has been positive for ABIL, with
demand for credit remaining strong. The group continued to shift the credit
quality of its portfolio to lower risk clients through larger, longer-term
loans at lower prices, while curtailing loan sizes and terms to the higher
risk end of the market. As a result, the main feature of this quarter was
that the growth in advances, driven by an increasing average duration,
exceeded the growth in sales and this trend will remain intact for the
foreseeable future.
Sales of new loans granted for the three months to 31 December 2006 were
dampened by the tighter credit rules and accordingly grew by 14% to R1,7
billion over the equivalent period last year. In October 2006 the group
introduced its next generation of lower priced risk-based products, which
included the new 48 and 60-month loan offerings (comprising 12% of new
loans granted in December 2006). Accordingly the average term of new loans
granted increased from 22 months in January 2006 to 26 months by December
2006. Consequently, advances grew by 10% in the quarter from R7,7 billion
to R8,5 billion and 24% in the 12 months to 31 December 2006.
Asset quality has improved over the past quarter with vintages continuing
to perform within the group`s targeted range. NPLs, as a percentage of
gross advances as at 31 December 2006, were 28,0% (Sept 06: 28,6%) and NPL
coverage was 65,5% (Sept 06: 64,8%). Write-offs at an annualised 5,9%
remained below long-term averages as a result of the high level of cash
recoveries and the resultant rehabilitation of previously written-off
loans.
Tight cost management continued to keep operating costs in line with
expectations.
The strategy of reducing the price of loans to our customers continues to
translate into better affordability and increased volumes and accordingly,
further price reductions will be implemented by June 2007.
On behalf of the board
30 January 2007
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
This announcement, together with a short presentation, is available on the
African Bank Investments Limited website at http://www.africanbank.co.za.
CONFERENCE CALL
Leon Kirkinis, CEO, will conduct a conference call for investors, fund
managers and analysts on Tuesday 30 January 2007. The conference call will
take the form of a short presentation, followed by questions. Interested
parties are invited to download the presentation from our website prior to
the conference call.
CONFERENCE CALL TIMES
South Africa: 16:00pm
United States: 09:00am Eastern Time
United Kingdom: 14:00pm
Access numbers for participants dialling from their country:
South Africa Toll 011 535 3600
Toll Free 0800 200 648
United States Toll 1 412 858 4600
Toll Free 1800 860 2442
United Kingdom Toll Free 0800 917 7042
Canada Toll Free 1 866 519 5086
PLAYBACK
A replay of the recording will be available for 48 hours until 01 February
2007 should you be unable to participate in the call and wish to listen to
the announcement.
To access the replay please call:
South Africa +27 11 305 2030
Code 2134#
USA 1 412 317 0088
Code 2134#
UK 0808 234 6771
Code 2134#
Board of directors
AS Mabogoane (Chairman), G Schachat* (Deputy Chairman), L Kirkinis* (Chief
Executive Officer), DB Gibbon, BD Goba, R Naidoo, A Fourie*, TM Sokutu*,
BPF Steele, GZ Steffens (German), DFG Tembe (Mozambican), A Tugendhaft, DF
Woollam*.
* Executive
Group Secretary: S Martin
Registered office: 59 16th Road, Midrand, 1685
Share transfer secretaries: Link Market Services South Africa (Pty)
Limited, 11 Diagonal Street, Johannesburg, 2001.
Date: 30/01/2007 07:00:02 Produced by the JSE SENS Department.
