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This Week’s News
The BFT Online – Standard Bank named Africa’s most valuable Banking Brand – 24/3/2025
Standard Bank, the parent company of Stanbic Bank Ghana, Africa’s biggest bank by assets, has once again been ranked as Africa’s Most Valuable Banking Brand for 2025.
For the complete story, see: https://thebftonline.com/2025/03/24/standard-bank-named-africas-most-valuable-banking-brand/
Business Tech – New R2.8 billion bank launching in South Africa this year – 18/3/2025
Old Mutual is making significant progress on its upcoming bank but expects the new entity to record a startup loss of over R1 billion.
For the complete story, see: https://businesstech.co.za/news/banking/817388/new-r2-8-billion-bank-launching-in-south-africa-this-year/
Daba – Old Mutual Launches Bank with Plans to Break Even in Three Years – 18/3/2025
OM Bank, the latest entrant in South Africa’s competitive banking sector, has received its banking license from the South African Reserve Bank
For the complete story, see: https://www.dabafinance.com/en/news/old-mutual-launches-bank-with-plans-to-break-even-in-three-years
Other Stories
Moneyweb – South Africa’s newest bank aims to break even in three years – 18/3/2025
MSN – African Development Bank approves $1B loan to South Africa's state-owned rail and ports company – 18/3/2025
MSN – Absa Group names Standard Bank South Africa head Kenny Fihla as new CEO – 17/3/2025
Yahoo Finance – Standard Bank forecasts double digit profit growth in medium-term – 13/3/2025
IT Web – Standard Bank’s IT spending tops R22bn – 13/3/2025
Media Releases
No new media release for this week
Latest Research 18/
Renewable energy, banking sector development, and carbon dioxide emissions nexus: A path toward sustainable development in South Africa – By Ahmed Samour, Delani Moyo & Turgut Tursoy
Overviews of Leading Companies
Absa Group Limited (JSE: ABG)
African Bank Limited
Bidvest Bank
Capitec Bank Holdings Ltd (JSE: CPI)
Discovery Limited (JSE: DSY)
First National Bank
Firstrand Limited (JSE: FSR)
Grindrod Bank
Investec Ltd (JSE: INL)
Nedbank Group Ltd (JSE: NED)
Old Mutual Ltd (JSE: OMU)
PSG Group Limited (JSE: PSG)
Remgro Limited (JSE: REM)
RMB Holdings Limited (JSE: RMH)
Sanlam Limited (JSE: SLM)
Sasfin Holdings Limited (JSE: SFN)
Standard Bank Group Limited (JSE: SBK)
TymeBank
Ubank Limited
Associate: Emillia Edwin
News and Commentary
The BFT Online – Standard Bank named Africa’s most valuable Banking Brand – 24/3/2025
Standard Bank, the parent company of Stanbic Bank Ghana, Africa’s biggest bank by assets, has once again been ranked as Africa’s Most Valuable Banking Brand for 2025.
For the complete story, see: https://thebftonline.com/2025/03/24/standard-bank-named-africas-most-valuable-banking-brand/
Business Tech – New R2.8 billion bank launching in South Africa this year – 18/3/2025
Old Mutual is making significant progress on its upcoming bank but expects the new entity to record a startup loss of over R1 billion.
For the complete story, see: https://businesstech.co.za/news/banking/817388/new-r2-8-billion-bank-launching-in-south-africa-this-year/
Daba – Old Mutual Launches Bank with Plans to Break Even in Three Years – 18/3/2025
OM Bank, the latest entrant in South Africa’s competitive banking sector, has received its banking license from the South African Reserve Bank
For the complete story, see: https://www.dabafinance.com/en/news/old-mutual-launches-bank-with-plans-to-break-even-in-three-years
Moneyweb – South Africa’s newest bank aims to break even in three years – 18/3/2025
The new bank will report losses of as much as R1.3bn until it breaks even, Williamson said.
For the complete story, see: https://www.moneyweb.co.za/news/companies-and-deals/south-africas-newest-bank-aims-to-break-even-in-three-years/
MSN – African Development Bank approves $1B loan to South Africa's state-owned rail and ports company – 18/3/2025
The African Development Bank said Thursday it had approved a $1 billion loan to South Africa's state-owned rail and ports company, Transnet.
For the complete story, see:
https://www.msn.com/en-gb/money/topstories/african-development-bank-approves-1b-loan-to-south-africa-s-state-owned-rail-and-ports-company/ar-BB1qdgjY?ocid=finance-verthp-feeds&apiversion=v2&noservercache=1&domshim=1&renderwebcomponents=1&wcseo=1&batchservertelemetry=1&noservertelemetry=1
MSN – Absa Group names Standard Bank South Africa head Kenny Fihla as new CEO – 17/3/2025
South Africa's Absa Group on Monday named former Standard Bank South Africa chief Kenny Fihla as its new CEO, effective June 17.
For the complete story, see: https://www.msn.com/en-us/money/companies/absa-group-names-standard-bank-south-africa-head-kenny-fihla-as-new-ceo/ar-AA1B3JDB?ocid=finance-verthp-feeds
Yahoo Finance – Standard Bank forecasts double digit profit growth in medium-term – 13/3/2025
Standard Bank, Africa's biggest lender by assets, on Thursday forecast headline earnings per share (HEPS) growth of 8-12% over the medium term after its annual profit rose 4%.
For the complete story, see: https://finance.yahoo.com/news/south-africas-standard-bank-reports-062119946.html
IT Web – Standard Bank’s IT spending tops R22bn – 13/3/2025
Standard Bank increased its spending on technology by 2% in 2024, to reach R22.4 billion.
For the complete story, see: https://www.itweb.co.za/article/standard-banks-it-spending-tops-r22bn/rxP3jqBEwebMA2ye
Media Releases
No new media release for this week
Latest Research
Renewable energy, banking sector development, and carbon dioxide emissions nexus: A path toward sustainable development in South Africa
Ahmed Samour, Delani Moyo & Turgut Tursoy
Abstract:
Climate change and global warming create considerable problems for people, such as intense droughts. One of the biggest causes of global warming is the preference for fossil fuels in energy production. In this context, renewable energy has been considered an effective way to promote environmental quality. Several empirical studies have evaluated the impact of economic growth and energy on environmental quality. However, the possible influence of banking development on carbon emissions in South Africa has been ignored. Thus, this study contributes to the extant literature by assessing the impact of banking sector development on the environmental quality in South Africa over the period 1986–2017. For this purpose, the linkage between energy, economic growth, banking sector development and emissions are assessed by using the new technique of bootstrap autoregressive distributed lag. The findings from the ARDL estimations affirm that renewable energy consumption affects negatively emissions. However, the main conclusion of this study is that banking sector development has a negative influence on the environmental quality in South Africa through GDP and energy factors. The finding reveals that an increase in credit from banks to markets will lead to a rise in projects and investments, as well as strengthen risk management systems, potentially affecting economic growth and energy consumption and therefore increasing emissions. Hence, the outcome suggests that policymakers in South Africa must use the growth of the banking sector to enhance environmental quality by promoting investment in energy and production through renewable energy.
https://www.sciencedirect.com/science/article/abs/pii/S096014812200653X
The Industry
South Africa Banking Outlook 2024
Key Takeaways:
- South Africa's structural economic issues and infrastructure gaps are undermining the country's short- and medium-term growth prospects. S&P Global Ratings estimates GDP growth at less than 1.0% in 2023 and 1.5% in 2024.
- Credit conditions will remain tight in 2024, although inflation has slowed to 5.5% since June 2023. We expect inflation to average 5% in 2024, toward the top of the South African Reserve Bank's (SARB's) 3%-6% target range.
- We forecast that growth in credit to the private sector will be subdued at 5% in 2024. However, we expect banks to extend credit to the renewable energy sector because of electricity shortages. Private sector credit to GDP will remain stable, at about 70%. Households’ disposable income will remain under pressure because of high interest rates and elevated food prices.
- We expect that the banking sector's credit loss ratio will remain slightly higher than the historical low of 0.75%, averaging 1.4% of total loans through 2024. Similarly, nonperforming loans will likely remain elevated, at above 4% of systemwide loans in 2024.
- Nonetheless, we anticipate that the sector will maintain strong risk-adjusted returns of 15%-16% on average, supported by net interest margins and transactional revenue. This, in turn, will support banks' internal capital generation.
- The sovereign-bank nexus underpins the limited availability of high-quality liquid assets in the South African capital market, and banks’ appetite for sovereign risk in the weak economic environment.
Key Risks for South African Banks in 2024
Global Liquidity
- While investors' risk-off sentiment toward emerging markets started shifting in 2023, the slow reform momentum, electricity crisis, and upcoming elections in South Africa could affect portfolio flows
- While South African banks are less exposed to external refinancing risks, they are vulnerable to global investor sentiment and external financing conditions, which are tied to U.S. interest rates.
- South Africa remains on the global antimoney laundering and terrorist financing watchdog's grey list. A prolonged stay on the Financial Action Task Force's (FATF's) grey list could further increase financing costs.
Weaker Asset Quality
- Lingering weak economic growth prospects because of chronic under-investment in electricity infrastructure and ports could create long-term setbacks for the South African economy.
- Higher interest rates and inflation will likely affect households and small businesses, weighing on asset quality indicators in 2024 on the back of subdued loan growth.
- Commercial real estate (CRE) performance will remain under pressure amid high interest rates and inflation. Pressure on CRE valuations also stems from high vacancy rates in some city centers.
Policy Choices
- The SARB's monetary stance will remain tight for at least the first half of 2024. This will constrain credit demand but support net interest margins. Inflation is set to decline to about 5% in 2024, toward the top of the 3%- 6% target range.
- Banks’ holdings of government securities increased to about 15% of the sector's total assets in 2023. Banks have the capacity to absorb additional government debt thanks to their liquid balance sheets and positive yields in real terms.
- The adoption of a resolution regime in South Africa will lead to the sustained issuance of capital instruments.
For full report, see: https://www.spglobal.com/_assets/documents/ratings/research/101592098.pdf
Institute of Bankers South Africa
Our Purpose
To capacitate the Financial Services Industry with people who make a difference
Who We Are?
“We are a member-centric professional body that exists for members that seek a career in the Banking and Financial Services sector”
“The Institute of Bankers in SA is the sole professional body for Bankers and Financial Services Professionals in the Financial sector recognised by the South African Qualifications Authority (SAQA)”
“The early vision of the Institute was to form a body to educate bankers, as described by Mr. Mackenzie (the 1st President of IOBSA) as “a kind of Banking Club, where stimulants should be of an intellectual nature; a feast of reason and a flow of soul”.
What We Do?
A Professional Body is an organisation with individual members practicing a profession or occupation in which the organisation maintains an oversight of the knowledge, skills, conduct and practice of that profession or occupation.
A professional association seeks to further a particular profession, the interests of individuals engaged in that profession and the public interest.
Professional bodies offer student registration categories to enable those who are still studying towards a qualification in the field, to join and receive specific benefits such as training, development and networking opportunities
Why?
The face-to-face financial services professions in South Africa has minimal to non-visible structured growth plans for individuals in the sector
Technology driven initiatives lead customer service capabilities of the future
South Africa is a developing country with 29% unemployment rate, operating a 1st World-class highly competitive banking industry which is determined to drive technological changes
https://www.iob.co.za/iobsa-purpose/
Membership
The IOBSA believes that at the core of its membership is the belonging to and being part of an organisation, where members can gain value and obtain benefits professionally and individually.
The Institute of Bankers in South Africa provides members with professional designations, networking, educational, training and information opportunities.
The Institute ensures it delivers a service to its members that is relevant to today’s professional arena. The IOBSA aims to support members in achieving their professional goals and to provide an avenue for members to be connected, informed and qualified.
Why Be a member?
- Membership to the Banking and related Financial Service Sector’s specialist Professional Body, for bankers and financial services specialists.
- Membership demonstrates that you meet professional standards of excellence respected all over the world.
- It confers Professional status through registered designations from NQF level 5 to NQF level 8.
- You can attend a wide selection of seminars, conferences and other events at a discounted members’ rate. The events help you increase your business and financial services knowledge, offer networking opportunities and add to your Continuing Professional Development (CPD).
- Continuing Professional Development: taking part in the IOBSA CPD scheme will demonstrate that you are managing your ongoing professional development.
- Our website will offer members’ only areas to assist with (CPD) compliance which at the same time will be informative and value add.
- Exposure and promotion of members to the broader Banking and related Financial Service Sector’s through the IOBSA owned media vehicles.
Why Members Need to Stay Informed?
- The environment in which financial organisations operate is constantly changing.
- Continual regulation changes make strenuous demands on time and resources.
- Highly astute customers demand better service and increase competition.
- New distribution channels are changing the way services and products are disseminated.
- New entrants into the market – both on and offshore – are challenging market share.
- Niche market opportunities are emerging.
- To understand changes in technology.
- To better service existing customers in order to retain and understand their business.
- To retain intellectual property.
- To enable improvement of skills.
Membership And Designation Categories
The Institute has six (6) membership categories and five (5) registered professional designations in its capacity as Professional Body.
The membership categories are aligned to designations with the one exception to a membership status:
- Member without a designation “non-designated”
- Licentiate of the Institute of Bankers in South Africa (LIBSA)
- Certified Associate of the Institute of Bankers in South Africa (CAIB(SA))
- Associate of the Institute of Bankers in South Africa (AIBSA)
- Professional Banker of the Institute of Bankers in South Africa (PBSA)
- Fellow of the Institute of Bankers in South Africa (FIBSA)
https://www.iob.co.za/member-benefits/
The Banking Association of South Africa
About Us
The Banking Association South Africa (BASA) advances the interests of the industry with its regulators, legislators and stakeholders, to make banking sustainable, profitable and better able contribute to the social and economic development and transformation of the country.
As the national association of domestic and international banks operating in South Africa, BASA:
- Advocates the views of the banks on legislation, regulation, and social and economic issues that affect the industry. BASA canvasses its members through committees and work groups.
- Facilitates the sustainable transformation of the banking industry.
- Promotes inclusive economic growth by working with legislators, regulators, as well as other business associations and stakeholders, to establish a stable, conducive policy and business environment.
- Helps find sustainable solutions to the challenges of poverty, unemployment and inequality by mobilising the skills and resources of the industry.
- Hosts the Southern African Development Community Banking Association (SADC BA), which works with regulators to strengthen the integrity and efficiency of banking services in the region.
As an industry association which represents those banks licenced to operate in South Africa, BASA is not able to resolve customer complaints involving its members. Individual complaints about banking products and services can be referred to the Ombudsman for Banking Services.
https://www.banking.org.za/about-us/
For the list of members, see:
https://www.banking.org.za/about-us/member-banks/
Leading Companies
ABSA GROUP LIMITED (JSE: ABG)
About Us
We are an African group, inspired by the people we serve and determined to be a globally respected organisation of which Africa can be proud.
We’re committed to finding tailored solutions to uniquely local challenges and everything we do is focused on creating shared value.
To this end, we offer a universal set of products and services across retail, business, corporate, investment and wealth banking, as well as investment management and insurance solutions.
Listed on the JSE, the Absa Group is one of Africa’s largest diversified financial services groups with a presence in 14 countries.
We own majority stakes in banks in Botswana, Ghana, Kenya, Mauritius, Mozambique, Seychelles, South Africa, Tanzania (Absa Bank Tanzania and National Bank of Commerce), Uganda and Zambia as well as insurance operations in Botswana, Kenya, Mozambique, South Africa and Zambia. We also have representative offices in Namibia, Nigeria and securities entities in the United Kingdom and the United States.
What is our purpose?
Our purpose is to bring possibilities to life. We believe everyone should have access to the transformative power of financial services to help them plan, dream, and aspire to change their lives for the better. We will find creative ways to deliver innovative technologies and propositions to make more possible, and we will help shape a world that values progress and economic activity to serve the common good. We believe in growth that is sustainable, which serves to benefit generations of our customers, our employees, and our communities on our continent and in the world at large.
Our values
We drive high performance to achieve sustainable results
- We play to win and are accountable for results.
- We innovate, we are decisive, and we act quickly.
- We learn from our failures and we are bold enough to change course.
Our employees are our strength
- We integrate diverse perspectives to invent the future.
- We collaborate with courage, honesty and powerful energy.
- We trust, value and grow our people to achieve their full potential.
We are obsessed with the customer
- We integrate diverse perspectives to invent the future.
- We collaborate with courage, honesty and powerful energy.
- We trust, value and grow our employees to achieve their full potential.
We have an African heartbeat
- We deliver a uniquely Absa experience, across Africa.
- We co-create across Africa to deliver better solutions.
- We actively engage our communities to bring possibilities to life.
https://www.absa.africa/absaafrica/about-us/who-we-are/
19 August 2024
2024 Interim Results
2024 interim results salient points
- Revenue increased 3% to R53.7 billion
- Operating costs increased 8% to R28.3 billion
- Cost-to-income ratio increased to 52.7% from 50.6%
- Pre-provision profit declined 1% to R25.4 billion
- Impairments charge in line with prior year
- Headline earnings decreased 5% to R10.2 billion
- Return on equity declined to 14% from 15.7%
- Group CET 1 ratio of 12.7% remains well above regulatory requirements
- Dividend per share flat at 685 cents
Absa Group reported headline earnings of R10.2 billion for the first half of 2024 and said it expects an improvement in second-half Group performance as its South African retail businesses demonstrated earnings growth across the portfolio in the first six months of the year.
“All of our underlying businesses in the South African retail portfolio reported headline earnings growth, which is indicative of recovery in business performance,” said Arrie Rautenbach, Absa Group Chief Executive Officer. “While economic conditions remain challenging, our delinquency profile has stabilised as a result of the decisive action we have taken. We remain committed to our integrated strategy, a focus on seamless customer experience, and delivering sustainable, balanced growth and value creation.”
The Group’s Product Solutions Cluster (comprising home loans, vehicle asset financing, insurance, advisory and more) in South Africa, reported a 7% increase in headline earnings. Everyday Banking (card, personal loans and transactions in SA) headline earnings grew 9%, while Relationship Banking (SME, commercial and private wealth in SA) headline earnings rose 1%.
The Group’s Absa Regional Operations retail and business banking (ARO RBB) cluster reported a 12% decline in headline earnings as exchange rates negated gains. The business posted an 11% increase in constant currency revenue, underscoring the value of the ARO portfolio as a source of growth and diversification.
The Group’s Corporate and Investment Banking Pan African unit reported headline earnings largely unchanged from a high base a year earlier as higher impairments impacted earnings in the period under view.
Total Group headline earnings declined 5% from a high base a year earlier, after cost increases outpaced revenue growth. The five-year compounded average growth rate in diluted headline earnings per share is 6%.
The Group’s capital and liquidity position remains healthy, with key metrics within the Group’s risk appetite and above the required regulatory minimum levels. The Group’s balance sheet remains robust, with a Common Equity Tier 1 (CET 1) ratio of 12.7%.
“We anticipate a stronger performance in the second half of 2024, also as we see further improvement in our credit losses and stronger non-interest revenue generation,” said Deon Raju, Absa Group Financial Director.
Absa’s active customer base expanded by 3% to 12.5 million in the first half while the number of digitally active customers increased by more than 12% to 4.3 million as the Group drove digital channel usage.
The Group also noted improved client experiences.
Customer experience scores in the South African retail portfolios improved compared to a year earlier. Absa had the lowest number of formal complaints lodged with the Ombudsman in South Africa of the five largest banks in 2023 and reported a decline in the number of complaints.
“Our ongoing investments in digital innovation, customer experience enhancement and our repositioned brand are key drivers for future growth and operational excellence,” said Rautenbach.
Absa has also made significant progress in non-financial performance metrics including sustainability, as the Group continues to deliver against its ambition to be an active force for good. The Group has arranged R96 billion in sustainable finance deals since 2021 and is on track to exceed its target of R100 billion by 2025.
Based on the interventions in place, and excluding major unforeseen macroeconomic, or regulatory developments, Absa expects an increase in full-year revenue by mid-single digits. This will support stronger pre-provision profit growth and, together with a lower credit loss ratio than in the first half, should also support better second-half earnings growth off a low base in the second half of 2023.
https://www.absa.africa/media-centre/media-statements/2024/interim-results/
AFRICAN BANK LIMITED
African Bank Limited, is a retail bank in South Africa, that offers financial products and services. The Bank is licensed as a "locally controlled bank" by the South African Reserve Bank (SARB). Headquartered in Midrand, South Africa, the bank has a countrywide branch distribution network in addition to a full digital channel offering; as well as sales, collections and customer service Contact Centres.
About Us
We are continually innovating financial solutions that are more valuable and more accessible. We call it humanity through banking.
Our Values
WE ARE TRANSPARENT
- In all our interactions, we commit to open and honest communication, whether it be written or verbal.
- We are open to considering different viewpoints and we commit to expressing our own, respectfully.
- We commit to account for our activities and accept responsibility for them.
- We disclose the results of our activities and deliver on our promises.
- We say what we mean and we do what we say.
https://www.africanbank.co.za/en/home/about-us-our-company/#OurValues
27 May 2021
African Bank Holdings Limited and African Bank Limited interim results for 31 March 2021
MILESTONES FOR THE 2021 HALF YEAR
- Group returns to profitability in the six months, with 196% increase to R152 million
- Robust balance sheet with a strong liquidity profile and high available cash resources of R8.0 billion to support growth strategy
- High equity capital levels of R10.8 billion, resulting in a total group capital adequacy ratio of 43.6%
- Retail deposit growth of 126% year-on-year, resulting in R8.6 billion deposit book
- Rated best Contact Centre and Branch Network in the 2020 independent South African Customer Satisfaction Index (SA-csi) released in 2021
CUSTOMER ADVANCES
- Gross advances R27.115 billion; 8% lower year-on-year
- Provisioning coverage increased to 38.1%
- New loans disbursed show 32% increase in H1 21 compared to last six months ended 30 Sept’20. Conservative credit granting continues, however credit criteria relaxed of late.
- Improved credit loss ratio of 6.1%, from 12.9% a year ago.
EARNINGS
- Group profit after tax of R152 million (H1 20: R158 million loss)
- Resulting in positive 2.9% return on equity for the half year (H1 20: negative 3.0%)
For the full report, see:
https://www.africanbank.co.za/media/54215/african-bank-commentary-booklet-web-view-27-may-20213.pdf
BIDVEST BANK
About Us
A wholly owned subsidiary of The Bidvest Group Limited, Bidvest Bank is a leading second tier South African bank whose goal is to change the way people and businesses view financial solutions, turning every opportunity into a success.
We pride ourselves in offering our customers the latest Foreign Exchange, Fleet, Business and Personal financial solutions and services. As a proudly South African company, we believe in the importance of transformation that Broad Based Black Economic Empowerment (B-BBEE) brings. Our positive investment and contribution is a testament to our commitment as a level 4 B-BBEE contributor.
https://www.bidvestbank.co.za/about-us/our-company
12 November 2020
Bidvest Bank Annual Report
Year Ended 30 June 2020
Impacts of COVID-19
The economic environment under COVID-19 has presented increased risks in terms of credit, defaults and fraud. We have been investing in our risk cluster in terms of staffing over the past few years, and have appointed new heads of Anti Money Laundering, our Investigation Unit, and Compliance function, and have also strengthened our fraud controls.
We expect a new Chief Risk Officer to be appointed early in the 2021 financial year.
In order to assist our customers to weather the effects of COVID-19, we deferred repayments for 65% of our lending book, and for 25% of our leasing customers, for a typical period of three months. This translated into higher impairments based on economic indicators, which are a big driver of our impairment models. As a result, we had to ramp up provisions to higher levels but still remaining lower than industry averages, but which were above what we have been accustomed to. Based on the information available since July, our proactive approach has been successful in allowing the majority of our customers to trade through the crisis.
Other than these deferments, the single biggest COVID-19-related impact was the return of 1 155 unproductive Telkom fleet vehicles, which impacted rental income.
Corporate and personal travel came to a standstill due to border closures, business restraints and the economic environment, which had a large impact on foreign exchange flows and income as World Currency Card usage, and exchanges taking place at our branches, were drastically reduced.
We had intended to launch an online foreign exchange offering for our individual customers during 2020, but this launch was delayed due to COVID-19. We used the delay as an opportunity to enhance the platform’s functionality, and we look forward to launching in the next financial year.
COVID-19 also had a severe impact on Bidvest Merchant Services, with turnover significantly affected. Our acquiring business came to a virtual standstill over the lockdown period due to business closures and a lack of point-of-sale transactions. This has since recovered to 90% of pre-COVID turnover levels, though the rate of recovery varies between sectors.
Our employees performed admirably over the lockdown period. More than 500 employees worked remotely at the height of the lockdown, and approximately 250 continue to do so. We continued to pay employees and delay the impact of the lockdown so far as we could. We established a moratorium on new hires in order to contain costs with the exception of critical roles.
Highlights
- South African banks received downgraded Moody’s deposit ratings as a result of the agency’s downgrade of South Africa’s sovereign rating.
- Bidvest Bank placed fifth among South African Banks in this year’s Forbes ‘The World’s Best Banks’ list, alongside Capitec, Tymebank, First National Bank and Nedbank
- Bidvest Bank secured and began delivery on a contract tender with Transnet which will help offset the COVID-related decline in leases
- Our contract with Telkom has been extended by two years
- We launched our new Bidvest Bank website which brings our brand to life and allows visitors to the site to easily discover more about our products and services
- Our Money Transfer platform saw growth through the crisis. We went live with the functionality to allow Western Union money transfers via our app during lockdown, and we saw increasing volumes of MoneyGram and Western Union transfers taking place via the app and via call centres over the lockdown period.
- Our Corporate Social Investment activities continued through 2020 in line with our strategic focus on supporting education and job creation, and we extended a number of projects to include support for employees and online programmes for beneficiaries.
- We anticipate a B-BBEE rating of level 4 for 2020. Our goal of reaching a level 3 rating was made more difficult by our response to COVID-19, but it remains a near-term objective.
- We have increased the number of our ATMs to 137 and have seen an increase in the number of ATM transactions. Our customers are also able to transact at 1 152 ATM Solutions machines, and 155 from Old Mutual
Outlook
The lingering impact of COVID-19 on the South African and global economies and consumers will continue to influence our operating environment.
Our focus remains on maintaining a strong balance sheet, preserving liquidity and capital adequacy, and on finalising the details of our restructuring. Our remaining physical branches currently produce 50% of our revenue and will continue to be supported, even as we seize the opportunity to expand usage of digital platforms and products.
Our existing alliances and partnerships remained firm or were expanded in the year under review. Expanding our partnerships will be a strong focus going forward, and there are exciting opportunities in that regard.
Our strong balance sheet puts us ahead of many of our peers, positions us well moving forward, and will allow us to pursue acquisitive and other opportunities on a case-by-case basis.
For the full report, see:
https://bidvestbank-site-downloads.s3.eu-central-1.amazonaws.com/bidvestbank-site-downloads/Bidvest+Bank+-+Annual+Report+year+ended+June+2020.pdf
CAPITEC BANK HOLDINGS LTD (JSE: CPI)
Capitec Bank is a South African retail bank. As of August 2017, the bank was the second largest retail bank in South Africa, based on number of customers, with 120,000 customers opening new accounts per month.
Key facts
- Established: 1 March 2001
- Listed on JSE: 18 February 2002
- Registration: SA Reserve Bank
- Active clients: 14.7 million
- Branches: 852*
- Employees: over 14 029*
- Shareholders’ funds: R25 billion*
- International payments partners: MasterCard and Visa
- Auditors: PricewaterhouseCoopers Inc.
- Registered address: 5 Neutron Road, Techno Park, Stellenbosch
*Financial results for the year ended 28 February 2020
https://www.capitecbank.co.za/about-us/
30 September 2021
Unaudited financial results for the 6 months ended 31 August 2021
Key performance indicators
|
6 months ended August |
August 2021/2020 % |
Year ended February 2021 |
|||
|---|---|---|---|---|---|
|
2021 |
2020 |
||||
|
Profitability |
|||||
|
Interest income on loans |
R’m |
6 572 |
6 712 |
(2) |
13 401 |
|
Interest income on investments |
R’m |
1 908 |
1 692 |
13 |
3 143 |
|
Total interest income |
R’m |
8 480 |
8 404 |
1 |
16 544 |
|
Net loan fee income |
R’m |
468 |
468 |
– |
898 |
|
Net insurance income |
R’m |
571 |
498 |
15 |
965 |
|
Total lending, investment and insurance income less loan fee expense |
R’m |
9 519 |
9 370 |
2 |
18 407 |
|
Interest expense |
R’m |
(2 317) |
(2 652) |
(13) |
(4 985) |
|
Net lending, investment and insurance income |
R’m |
7 202 |
6 718 |
7 |
13 422 |
|
Net transaction income |
R’m |
5 150 |
3 870 |
33 |
8 708 |
|
Net foreign currency income |
R’m |
73 |
47 |
55 |
111 |
|
Other income |
R’m |
24 |
7 |
>100 |
114 |
|
Funeral plan income |
R’m |
366 |
350 |
5 |
650 |
|
Income from operations |
R’m |
12 815 |
10 992 |
17 |
23 005 |
|
Credit impairments |
R’m |
(2 068) |
(6 086) |
(66) |
(7 825) |
|
Net income |
R’m |
10 747 |
4 906 |
>100 |
15 180 |
|
Operating expenses(1) |
R’m |
(5 716) |
(4 319) |
32 |
(9 463) |
|
Share of net profit/(loss) of associates and joint ventures |
R’m |
11 |
(20) |
(7) |
|
|
Impairment of investments |
R’m |
– |
(29) |
(122) |
|
|
Operating profit before tax |
R’m |
5 042 |
538 |
>100 |
5 588 |
|
Income tax expense |
R’m |
(1 124) |
86 |
(1 130) |
|
|
Profit after tax for the period |
R’m |
3 918 |
624 |
>100 |
4 458 |
|
Preference dividend |
R’m |
(2) |
(2) |
– |
(4) |
|
Discount on repurchase of preference shares |
R’m |
– |
(1) |
(2) |
|
|
Earnings attributable to ordinary shareholders |
|||||
|
Basic |
R’m |
3 916 |
621 |
531 |
4 452 |
|
Headline |
R’m |
3 987 |
650 |
513 |
4 586 |
|
Net transaction income and funeral plan income to net income |
% |
51 |
86 |
62 |
|
|
Net transaction income and funeral plan income to operating expenses(1) |
% |
97 |
98 |
99 |
|
|
Cost-to-income ratio(1) |
% |
45 |
39 |
41 |
|
|
Return on ordinary shareholders’ equity |
% |
27 |
5 |
17 |
|
|
Earnings per share |
|||||
|
Attributable |
cents |
3 387 |
537 |
531 |
3 850 |
|
Headline |
cents |
3 447 |
562 |
513 |
3 966 |
|
Diluted attributable |
cents |
3 383 |
537 |
530 |
3 848 |
|
Diluted headline |
cents |
3 444 |
562 |
513 |
3 963 |
|
Dividends per share |
|||||
|
Interim |
cents |
1 200 |
– |
– |
|
|
Final |
cents |
1 600 |
|||
|
Total |
cents |
1 600 |
|||
|
Dividend cover |
times |
2.9 |
2.5 |
||
|
Assets |
|||||
|
Net loans and advances |
R’m |
59 486 |
55 517 |
7 |
57 189 |
|
Cash and financial investments(2) |
R’m |
93 165 |
74 545 |
25 |
84 625 |
|
Other |
R’m |
14 096 |
14 458 |
(3) |
14 693 |
|
Total assets |
R’m |
166 747 |
144 520 |
15 |
156 507 |
|
Liabilities |
|||||
|
Deposits and wholesale funding |
R’m |
129 191 |
113 049 |
14 |
120 908 |
|
Other |
R’m |
5 600 |
5 377 |
4 |
5 684 |
|
Total liabilities |
R’m |
134 791 |
118 426 |
14 |
126 592 |
|
Equity |
|||||
|
Shareholders’ funds |
R’m |
31 956 |
26 094 |
22 |
29 915 |
|
Capital adequacy ratio |
% |
37 |
30 |
37 |
|
|
Net asset value per ordinary share |
cents |
27 637 |
22 511 |
23 |
25 872 |
|
Share price |
cents |
189 770 |
83 500 |
>100 |
133 875 |
|
Market capitalisation |
R’m |
219 425 |
96 549 |
>100 |
154 796 |
|
Number of shares in issue |
’000 |
115 627 |
115 627 |
– |
115 627 |
|
Share options |
|||||
|
Number outstanding |
’000 |
554 |
496 |
12 |
552 |
|
Number outstanding to shares in issue |
% |
0.5 |
0.4 |
0.5 |
|
|
Average strike price |
cents |
101 424 |
83 368 |
22 |
91 395 |
|
Average time to maturity |
months |
33 |
28 |
30 |
|
|
6 months ended August |
August 2021/2020 % |
Year ended February 2021 |
|||
|---|---|---|---|---|---|
|
2021 |
2020 |
||||
|
Operations |
|||||
|
Branches |
852 |
863 |
(1) |
857 |
|
|
Employees |
14 789 |
14 738 |
14 672 |
||
|
Active clients |
’000 |
16 811 |
14 681 |
15 |
15 829 |
|
ATMs, DNRs (dual note recyclers) and CNRs (coin and note recyclers) |
|||||
|
Own |
2 823 |
2 379 |
19 |
2 660 |
|
|
Partnership |
4 264 |
3 378 |
26 |
4 065 |
|
|
Total |
7 087 |
5 757 |
23 |
6 725 |
|
|
Capital expenditure |
R’m |
469 |
494 |
(5) |
837 |
|
Credit sales |
|||||
|
Value of credit card disbursements/drawdowns |
R’m |
5 460 |
4 701 |
16 |
10 039 |
|
Value of access facility disbursements/drawdowns |
R’m |
6 235 |
1 479 |
>100 |
6 398 |
|
Value of term loans advanced (net of loan consolidations) |
R’m |
8 437 |
6 303 |
34 |
14 262 |
|
Value of credit facility disbursements/drawdowns |
R’m |
– |
178 |
206 |
|
|
Value of mortgage loans advanced |
R’m |
611 |
458 |
33 |
1 553 |
|
Value of business loans advanced |
R’m |
531 |
134 |
>100 |
674 |
|
Value of overdraft disbursements/drawdowns(3) |
R’m |
22 146 |
20 722 |
7 |
45 120 |
|
Value of total loans advanced |
R’m |
43 420 |
33 975 |
28 |
78 252 |
|
Credit book |
|||||
|
Gross loans and advances |
R’m |
77 681 |
73 853 |
5 |
75 026 |
|
Up-to-date Stage 1 |
R’m |
49 478 |
46 288 |
7 |
47 696 |
|
Up-to-date with significant increase in credit risk (SICR) Stage 2 |
R’m |
6 426 |
2 036 |
>100 |
4 349 |
|
Forward-looking SICR(4) Stage 2 |
R’m |
4 566 |
2 662 |
72 |
4 564 |
|
Total up-to-date |
R’m |
60 470 |
50 986 |
19 |
56 609 |
|
Arrears Stage 2 |
R’m |
1 207 |
701 |
72 |
1 034 |
|
Arrears Stage 3 |
R’m |
1 536 |
2 057 |
(25) |
1 904 |
|
Total arrears |
R’m |
2 743 |
2 758 |
(1) |
2 938 |
|
Application for debt review within 6 months Stage 3 |
R’m |
155 |
74 |
>100 |
137 |
|
COVID-19 reschedules Stage 2 |
R’m |
798 |
5 387 |
(85) |
1 267 |
|
COVID-19 reschedules Stage 3 |
R’m |
35 |
485 |
(93) |
61 |
|
Up-to-date that rescheduled from up-to-date (not yet rehabilitated)(5) Stage 2 |
R’m |
148 |
216 |
(31) |
172 |
|
Up-to-date that rescheduled from up-to-date (not yet rehabilitated)(5) Stage 3 |
R’m |
1 503 |
2 880 |
(48) |
2 105 |
|
Up-to-date that rescheduled from arrears (not yet rehabilitated)(5) Stage 2 |
R’m |
83 |
86 |
(3) |
92 |
|
Up-to-date that rescheduled from arrears (not yet rehabilitated)(5) Stage 3 |
R’m |
1 827 |
2 359 |
(23) |
2 403 |
|
Total up-to-date that rescheduled (not yet rehabilitated)(5) |
R’m |
4 394 |
11 413 |
(62) |
6 100 |
|
More than 3 months in arrears and legal status Stage 3 |
R’m |
9 919 |
8 622 |
15 |
9 242 |
|
Total provision for credit impairment |
R’m |
(18 195) |
(18 336) |
(1) |
(17 837) |
|
Net loans and advances |
R’m |
59 486 |
55 517 |
7 |
57 189 |
|
Total provision for credit impairments to stage 3 and stage 2 (excluding SICR) coverage |
% |
106 |
80 |
97 |
|
|
Gross credit impairment charge on loans and advances |
R'm |
2 531 |
6 561 |
(61) |
8 757 |
|
Bad debts recovered |
R'm |
502 |
475 |
6 |
932 |
|
Net credit impairment charge on loans and advances(6) |
R'm |
2 029 |
6 086 |
(67) |
7 825 |
|
Net credit impairment charge on loans and advances to average gross loans and advances (credit loss ratio) |
% |
2.7 |
8.1 |
10.4 |
|
|
Total lending and insurance income (excluding investment income)(7) |
R’m |
7 624 |
7 706 |
(1) |
15 335 |
|
Net credit impairment charge on loans and advances to total lending and insurance income (excluding investment income)(7) |
% |
26.6 |
79.0 |
51.0 |
|
|
Deposits and wholesale funding |
|||||
|
Wholesale funding |
R’m |
1 340 |
2 683 |
(50) |
2 376 |
|
Call savings |
R’m |
83 378 |
70 094 |
19 |
78 113 |
|
Fixed savings |
R’m |
42 968 |
39 326 |
9 |
39 176 |
|
Foreign currency deposits |
R’m |
1 505 |
946 |
59 |
1 243 |
Commentary
Due to the unusual circumstances during the past 18 months, the commentary for the period to August 2021 references both the comparative period to August 2020 and the immediately preceding 6-month period to February 2021
The impact of the COVID-19 pandemic on the South African economy during the past 18 months was challenging but has also presented opportunities to enhance our clients’ experience with new digital solutions. Our digital offering expanded and our continued commitment to personal service was demonstrated by our branch network and call centres.
Our results reflect the success of our digitalisation journey. Recent developments include the capability for any prospective client to download our retail banking app, scan their face and identity document and open a Global One account in realtime, as well as the option to have their card delivered within 3 working days. Virtual Global One cards with no transaction fees, designed for safer online shopping, can now be created via our app. The volume of transactions using the Scan to pay functionality across all major QR codes continues to grow. Enhancements were also made to internet banking for our Business bank clients. The success of our innovations resulted in Capitec winning the Internet Banking and Mobile Banking categories of the SITEisfaction® 2021 survey and we were voted South Africa’s best digital bank for 2021. We were also recently voted the Coolest Bank by South Africa’s youth in the 2021 Sunday Times Generation Next Awards.
The challenges created by the COVID-19 pandemic and the recent civil unrest in South Africa were met with resilience and determination by our branch employees. Our innovators responded with agility, and we are incredibly proud of the continued contribution and commitment of all our employees. We thank every employee for the part they continue to play in realising our vision of being the preferred retail and business bank in South Africa.
The business proved its ability to adapt rapidly to prevailing circumstances. Following the civil unrest that resulted in the temporary unavailability of some branches in KwaZulu-Natal and Gauteng, the services offered by our call centres were bolstered by the multi-skilled employees from the affected branches. The capacity of our online lending team was strengthened and clients can now apply for credit cards and access facilities telephonically.
The business’ client-centric vision remains unchanged by the ongoing uncertain global and local conditions, and we thank our clients for their continued confidence in Capitec as their bank of choice.
Headline earnings
Headline earnings increased to R3.987 billion for the 6 months ended August 2021 from R650 million for the comparative period (February 2021*: R3.936 billion). During the past 18 months, the drivers of the group’s results were impacted differently by socio-economic conditions during each 6-month period.
Headline earnings for the first half of the 2021 financial year was driven by the necessity to meet the challenges of the COVID-19 pandemic and the hard lockdowns in South Africa. The period was characterised by the assistance offered to clients impacted by the shutdown of some sectors of the economy, a change in clients’ transacting behaviour, the tightening of credit granting criteria and a focus on cost containment.
The focus during the second half of the 2021 financial year was on ensuring that clients and the business reaped benefits from the opportunities for innovation that were presented by the lockdowns. Transaction volumes recovered and as restrictions eased, lending criteria were managed proactively based on the socio-economic climate. We exceeded our target of achieving headline earnings similar to the 6 months ended February 2020, by 18%.
The results for the 6-month period ended August 2021 reflect the continuing impact of the 2020 lockdowns, the third wave of the pandemic and the status of the vaccination campaign during the period. There was a shift in client behaviour
towards digital and point-of-sale (POS) transactions and a gradual return to pre-pandemic lending criteria. Headline earnings stabilised at the level seen for the 6 months ended February 2021. The composition of the results was, however, significantly different to the comparative 6 months ended August 2020.
Throughout the past 18 months, the growth in active client numbers was consistent and contributed to the recovery in headline earnings after August 2020. As at the end of August 2021, our active client base numbered 16.8 million (August 2020: 14.7 million; February 2021: 15.8 million).
Credit income, credit impairments and loan book
Interest income on loans
Interest income on loans decreased by 2% to R6.6 billion (August 2020: R6.7 billion; February 2021*: R6.7 billion).
Retail bank
Interest income on loans for the period ended August 2021 decreased by 3% to R6.1 billion (August 2020: R6.3 billion; February 2021*: R6.3 billion). The decrease was attributable to a number of factors.
Decrease in the repo rate
Lending rates were impacted by the decrease in the repo rate during the course of 2020. The Retail bank’s lending business is subject to the maximum interest rate on unsecured lending as prescribed by the National Credit Regulator.
The incremental
decreases in the repo rate resulted in decreases in the maximum prescribed interest rate that cascaded through our risk-based interest rates on new loans and disbursements. The repo rate decreased from 6.25% per annum in March 2020 to 3.5% per annum at the end of July 2020.
Loan sales and disbursements
Loan sales and disbursements for the 2021 financial year decreased by 25% compared to the previous financial year due to the impact of the COVID-19 pandemic. This decrease impacted the annuity income earned from the loan book during the current period. Improved loan sales during the 6 months ended August 2021 partially mitigated this impact.
At the start of the COVID-19 pandemic, increased credit risk was addressed by applying significant credit granting restrictions on specific industries and to smaller-sized employers. Measured relaxation of credit granting criteria back to pre- COVID-19 levels is in progress. We are monitoring industries such as tourism and hospitality that are still impacted by the pandemic as well as those impacted by the civil unrest during July 2021.
Total loan sales and disbursements increased by 68% to R19.7 billion (August 2020: R11.7 billion; February 2021*: R17.6 billion). The increase was mainly due to the proactive management of credit granting criteria throughout the pandemic. Criteria were continually adjusted based on the expected impact of the pandemic on industry, employer and client income groups.
The rapid success of our access facility product since it was launched in May 2020 changed the sales mix. Term loan sales were impacted by clients’ preference for the access facility which is granted at significantly lower interest rates than a term loan. The change in the composition of loan sales and disbursements is illustrated in the table below.
|
6 months ended |
|||
|
% |
August 2021 |
February 2021 |
August 2020 |
|
Term loans |
41 |
43 |
47 |
|
Access facilities |
32 |
28 |
13 |
|
Credit cards |
27 |
29 |
39 |
|
Credit facilities |
– |
– |
1 |
|
100 |
100 |
100 |
|
Term loan sales grew to R8.2 billion (August 2020: R5.5 billion; February 2021*: R7.5 billion). Access facility disbursements were R6.2 billion (August 2020: R1.5 billion; February 2021*: R4.9 billion). Credit card disbursements, also affected by the access facility, grew to R5.3 billion compared to February 2021* (August 2020: R4.5 billion;
February 2021*: R5.1 billion).
We are building our purpose lending portfolio by continually negotiating new partnerships. Clients can apply for finance for home improvements at CTM, vehicle finance at WeBuyCars and MotoData, medical treatment at Mediclinic and education at Stadio. Purpose loans are granted at better interest rates than the rates that are applicable to term loans, with some rates as low as the prime lending rate.
Lending clients totalled 1.1 million (August 2020: 1.0 million; February 2021: 1.1 million).
Credit impairments
Group net credit impairments on loans and advances decreased by 67% to R2.0 billion (August 2020: R6.1 billion; February 2021*: R1.7 billion) as the full impact of the COVID-19 pandemic was accounted for in the first half of the 2021 financial year. Loan book performance did not indicate that additional impairments were required.
Retail bank
The gross credit impairment charge was R2.4 billion (August 2020: R6.3 billion; February 2021*: R2.0 billion).
The table below reflects the change in write-off, movement in credit impairment provision and bad debts recovered on loans and advances.
|
6 months ended |
|||
|
R’m |
August 2021 |
February 2021 |
August 2020 |
|
Bad debts written off |
2 958 |
3 427 |
2 884 |
|
Movement in provision for credit impairments |
(525) |
(1 434) |
3 412 |
|
Gross credit impairment charge |
2 433 |
1 993 |
6 296 |
|
Bad debts recovered |
(496) |
(454) |
(475) |
|
Net credit impairment charge |
1 937 |
1 539 |
5 821 |
During the 6 months ended August 2020, COVID-19-related reschedules (including payment breaks) were granted on R7.5 billion in balances. Higher expected credit loss (ECL) provisions are held on up-to-date rescheduled loans than on up-to-date loans in stage 1 and loans in stage 2 that show significant increases in credit risk (SICR), and this contributed to the high gross credit impairment charge for the period. Good payment behaviour on the COVID-19-related reschedules contributed to the decrease in the gross credit impairment charge for the last 6 months of the 2021 financial year.
The gross credit impairment charge for the 6 months ended August 2021 reflects the increase in loan sales and disbursements as well as changes in the composition of the loan book. Credit disbursed grew by R8.0 billion compared to the 6 months ended August 2020 and by R2.1 billion compared to February 2021*, increasing the impairment charge. The 12-month ECL on new credit is charged at an average of between 5% and 7% in the month in which it is originated.
The composition of the loan book had a positive impact on the credit impairment charge as the book shifted from stage 3 towards stages 1 and 2 as reflected in the table below.
|
At the end of |
|||
|
R’m |
August 2021 |
February2021 |
August 2020 |
|
Stage 1 |
40 090 |
38 711 |
37 257 |
|
Stage 2 |
11 811 |
10 184 |
10 269 |
|
Stage 3 |
14 194 |
15 091 |
15 871 |
|
Total gross loan book |
66 095 |
63 986 |
63 397 |
As at the end of August 2021, the stage 1 loan book was impaired by 12%, the stage 2 book by 26% and the stage 3 book by 69% (August 2020: 9%, 30% and 72%, respectively). Within balances in arrears by up to 3 months, there was a higher proportion that was only 1 month in arrears than was previously the case. The default book grew as the number of clients going into debt review increased. Clients in debt review are impaired at a lower percentage than other clients in default as recoveries on debt review clients are higher, and therefore the provision percentage decreased compared to the 6 months ended August 2020.
The impact of forward-looking information is taken into consideration when determining ECLs. Our forward-looking view of the South African economy led to a credit impairment charge of R4.2 billion in the period ended August 2020 based on our assessment of the impact of the lockdowns on the different sectors of the economy.
Our view at the end of February 2021 was based on independently sourced economic data and the remaining uncertainty surrounding the timing of future defaults related to the pandemic’s impact on the economy. This resulted in a release of R1.7 billion of the forward-looking impairment charge. The full year credit impairment charge for the 2021 financial year included R2.5 billion related to our forward-looking view of the economy.
As at the end of August 2021, although South Africa has passed the third wave of COVID-19 infections and the roll-out of vaccinations has accelerated, the socio-economic climate is still uncertain. We continually assess the impact of forward- looking macroeconomic information on ECLs. The unemployment rate is one of our main considerations because the Retail bank lends exclusively to individuals. The Quarterly Labour Force Survey for the second quarter of 2021, released by Statistics South Africa, showed that unemployment is at a record high at 34.4% (Q1 2021: 32.6%). This, together with the outlook for other macroeconomic indicators, prompted us to maintain a conservative approach to ECLs during the period. The forward-looking ECL provision remained at R3.2 billion as reported at the end of February 2021.
Loan book
The group’s gross loans and advances grew by 5% to R77.7 billion (August 2020: R73.9 billion; February 2021: R75.0 billion). ECL provisions totalled R18.2 billion (August 2021: R18.3 billion; February 2021: R17.8 billion). The Business bank gross loan book grew by 11% to R11.6 billion. Business bank ECL provisions increased to R711 million (August 2020: R570 million; February 2021: R653 million).
Retail bank
The gross loan book grew by 4% to R66.1 billion (August 2020: R63.4 billion; February 2021: R64.0 billion) as a result of the gradual increase in loan sales and disbursements as credit criteria were relaxed.
The up-to date gross loans and advances book (excluding balances showing signs of SICR) represents 61% of the total gross retail loan book and increased to R40.0 billion (August 2020: R37.3 billion; February 2021: R38.7 billion). The coverage ratio is currently at 11.8% (August 2020: 8.9%; February 2021: 9.4%). The higher coverage ratio results from the higher proportion of rehabilitated rescheduled loans included in the book due to the rehabilitation of COVID-19-related reschedules. The ECL provision on these loans is higher than on a loan that has not been rescheduled.
Up-to-date loans with SICR (including clients that applied for debt review less than 6 months ago) grew by R4.2 billion to R6.1 billion compared to the period ended August 2020 (August 2020: R1.9 billion; February 2021: R4.2 billion).
The increase arose due to loan balances rolling out of the COVID-19-related categories into up-to-date.
All the COVID-19 reschedules have moved into other stages of the book (August 2020: R5.5 billion;
February 2021: R416 million). Of the R7.5 billion loan balances that were rescheduled, 59% are rehabilitated and up-to-date or were settled, 11% were rescheduled again and have not yet made 6 consecutive payments, 15% were in arrears and 15% were either handed over, in debt review or written off at the end of August 2021.
As clients increasingly move into debt review from loans rescheduled from arrears (not yet rehabilitated), the better performing clients make up a greater proportion of this loan category. The ECL coverage percentage is therefore lower than the ECL coverage percentage on rescheduled from up-to-date (not yet rehabilitated) loans.
Balances in arrears for more than 3 months (including debt review and handed-over loans) amounted to R9.3 billion (August 2020: R8.1 billion; February 2021: R8.7 billion). The coverage ratio on these loans decreased to 80.6% from 88.9% at the end of August 2020 (February 2021: 82.0%) as the number of clients in debt review included in this category continued to increase as a proportion of the total.
Net investment income
Group interest income on investments as well as interest expenses were impacted by the decrease in the repo rate from 6.25% per annum in March 2020 to 3.5% per annum as at the end of July 2020.
Interest income on investments
Group interest income on investments grew by 13% to R1.9 billion compared to the 6 months ended August 2020 (August 2020: R1.7 billion; February 2021*: R1.4 billion). The impact of the decrease in the repo rate on income was mitigated by growth in the average investment portfolio as well as by adjusting the composition of the portfolio.
Interest expense
Group interest expenses decreased by 13% to R2.3 billion (August 2020: R2.7 billion; February 2021*: R2.3 billion).
Deposits grew by 16% (February 2021: 8%) and totalled R127.9 billion (August 2020: R110.4 billion; February 2021: R118.5 billion). The group’s clients earned R2.1 billion (August 2020: R2.3 billion; February 2021*: R2.0 billion) in interest on call, fixed deposit and credit card balances for the period.
Wholesale funding decreased to R1.3 billion (August 2020: R2.7 billion; February 2021: R2.4 billion) as funding matured. As a result, the interest expense on wholesale funding decreased to R0.2 billion (August 2020: R0.4 billion;
February 2021*: R0.3 billion).
Net transaction income
Net transaction income for the group grew by 33% to R5.2 billion (August 2020: R3.9 billion; February 2021*: R4.8 billion).
The Retail bank contributed R4.8 billion, an increase of 33% compared to the prior period of R3.6 billion (February 2021*: R4.5 billion).
Retail bank
The composition of transaction volumes was the main driver of net transaction income for the past 18 months. The changes in the proportions of branch, cash, digital and POS volumes are illustrated in the table below.
|
6 months ended |
|||
|
% |
August 2021 |
February2021 |
August 2020 |
|
Transacting channel |
|||
|
Digital |
41 |
41 |
44 |
|
POS |
41 |
39 |
36 |
|
Cash |
16 |
18 |
18 |
|
Branch |
2 |
2 |
2 |
|
100 |
100 |
100 |
|
For the 6 months ended August 2020, net transaction income growth was minimal. Net transaction income was impacted by the assistance offered to clients in the form of reduced fees on certain transactions. The composition of transaction volumes changed as clients banked from home during the lockdown. The proportion of digital transactions grew while the proportion of POS volumes decreased.
During the 6 months ended February 2021, net transaction income grew by 25% compared to the 6 months ended August 2020. Total transaction volumes grew by 21% compared to the previous 6 months. Income grew by more than
transaction volumes due to another shift in transacting behaviour. As lockdown restrictions eased, POS transaction volumes grew by 33% and digital transactions decreased by 4% compared to the 6 months ended August 2020.
Transaction fee price increases during March 2021 were not the main driver of net transaction fee income for the 6 months ended August 2021 since digital transaction fees, debit order fees and the monthly administration fee were not increased, and the cost of immediate payments was decreased. Total transaction volumes increased by 29% to 3.1 billion from 2.4 billion for the period ended August 2020 (February 2021*: 2.9 billion). The composition of transaction volumes shifted towards what will become the ‘new normal’. The proportion of cash transactions was affected by the civil unrest that occurred during July 2021.
Clients are encouraged to perform transactions on the banking app or on other digital channels to enable consultants to spend time on transactions that require personal interaction.
Active digital users of the banking app, USSD channel, the internet or a combination of digital channels increased from 7.3 million at the end of August 2020 to 8.9 million at the end of August 2021, an increase of 22% (February 2021*: 8.6 million). As at the end of August 2021, there were 6.0 million active banking app users (August 2020: 4.1 million; February 2021: 5.3 million). Clients performed 623 million digital transactions for the period (August 2020: 516 million; February 2021*: 576 million).
As part of our Live Better programme, we partner with Dis-Chem, Educate24, GetSmarter, Hello Doctor, JOOX, Rentalcars.com, Shell and Travelstart. By simply activating their Live Better savings account, at no cost, and paying with a Capitec card, clients receive cash back or discounts. Within 3 months of the launch, 2.2 million clients had activated their Live Better savings accounts and cash backs amounting to R19.4 million were paid. Clients also benefited from R2.2 million in discounts.
Live Better savings accounts encourage clients to use optional automatic savings tools, round-up and interest sweep, and benefit from a higher interest rate. With round-up, each purchase is rounded up to the nearest R2, R5 or R10 and the difference between the actual purchase and the round-up is transferred to the Live Better savings accounts. Interest earned on the client’s main transactional savings account is transferred into their Live Better savings account by interest sweep, allowing the client to earn even higher interest. By the end of August 2021, our clients had saved R55.6 million using the automatic savings tool.
Insurance income
Net insurance income
Net insurance income from credit life policies increased by 15% to R571 million (August 2020: R498 million; February 2021*: R467 million) as a result of the increase in rates implemented during May 2020.
Currently, no reinsurance is held on the policies and Capitec is responsible for retrenchment, death and disability claims. Total claims paid for the 6 months amounted to R519 million (August 2020 (before reinsurance): R503 million; February 2021*: R940 million). Of the claims paid, R285 million related to retrenchment (August 2020: R381 million; February 2021*: R619 million). The remainder of the claims relate to death and disability.
Funeral plan income
The Capitec Funeral plan income increased by 5% to R366 million (August 2020: R350 million; February 2021*: R300 million). Active policies increased to 1.5 million (August 2020: 979 000; February 2021: 1.2 million).
Persistency is calculated using the number of policies that remain active 3 months after commencement date. The calculation is based on all policies that were issued since inception. Persistency as at the end of August 2021 was 40% (August 2020: 42%; February 2021: 41%).
The average premium remained at a satisfactory level and collection rates were as expected. An increase in claims was experienced during the third wave of COVID-19. During the third wave, on average, 93% of the reinsurance premium was paid out in claims. Prior to the third wave, the 6-month rolling average was 77%.
Operating expenses
Operating expenses increased by 32% to R5.7 billion (August 2020: R4.3 billion; February 2021*: R5.2 billion).
The cost-to-income ratio was 45% (August 2020: 39%; February 2021*: 43%). During the past 18 months, the ratio was impacted significantly by the COVID-19 pandemic and the recent civil unrest.
Employee costs (including incentives) increased by R986 million compared to the period ended August 2020, and by R694 million compared to the 6 months ended February 2021. As at the end of August 2021, we had 14 789 employees (August 2020: 14 738; February 2021: 14 672).
Salary increases were granted during the current 6 months and the period ended August 2020. During the current period, provision was made for bonuses due to the recovery in headline earnings. Provisions were not made during the period ended August 2020. Our investment in building the Business bank and the focus on innovation included the appointment of more senior employees. This contributed to the increase in salary costs. Share appreciation rights costs increased due to the recovery in the share price from R835.00 at the end of August 2020 to R1 897.70 at the end of August 2021 (February 2021: R1 338.75).
The recent civil unrest experienced in South Africa resulted in damage to 79 branches and 272 cash devices. Damage ranged from minor to significant damage requiring a complete rebuild of a branch. Cash losses amounted to R36 million. Damaged and stolen assets with a book value of R104 million were impaired.
An insurance assessor has been appointed and we have submitted our claims to the South African Special Risks Insurance Association (SASRIA). The recoverable amount was not included in the results for the period.
Credit ratings
On 21 May 2021, S&P Global affirmed the South African sovereign rating together with the ratings of Capitec and other South African banks with a stable outlook. We have a global long-term rating of BB- and a short-term global rating of B. The South African long-term national scale rating is zaAA and the short-term rating is zaA-1+.
Capital and liquidity
We remain well capitalised with a capital adequacy ratio of 37.4% for the group compared to 30.4% at the end of August 2020 (February 2021: 36.7%).
We comfortably comply with the Basel 3 liquidity coverage ratio (LCR) as well as the net stable funding ratio (NSFR). Our LCR is 2 908% and the NSFR is 241%. The regulatory required minimum NSFR is 100% and the LCR requirement which was temporarily relaxed by the Prudential Authority is 80%.
Prospects
The number of clients opting to transact using our Global One product offering continued to grow during the past 6 months and our digital channels were utilised by 1.6 million more clients. We plan to enhance client experience in all areas of our business.
Our innovation capability will be enhanced by the recruitment of approximately 300 employees in areas such as business science, artificial intelligence, data engineering and computer analysis during the next few months.
Digitalisation is a key strategic objective. Our aim is to become the number 1 digital bank for both Retail bank and Business bank clients. We have established a dedicated and focused team to provide a digital ecosystem of solutions that will enable efficient commerce between businesses and individuals. Growing our QR offering into the leading payment method is a focus area.
Purpose lending, which offers clients lower interest rates and performs better because it is linked to a purpose (home improvements, medical expenses, vehicle purchases and education), will be entrenched and more purpose lending partners will be added. We will monitor the socio-economic situation and amend credit granting criteria accordingly. Our focus remains on decreasing the cost of credit for our clients.
The Live Better benefit programme will be expanded. We will enter into partnerships with more businesses that share our client-centric vision and want to serve our 16.8 million clients. Our clients will have more opportunities to get even more cash back as well as immediate discounts.
Business bank generated an after-tax profit of R126 million for the 6 months ended August 2021. The rebranding of the Business bank offering planned for late next year will accelerate the growth in client numbers that has already begun. The integration of the Business bank into all areas of the organisation is at an advanced stage.
Organisational culture is of vital importance to our success. Despite the unusual circumstances during the past 18 months, our unique culture of innovation, agility and collaboration between all areas of the organisation remains strong. A return to office work is being carefully planned to promote team and organisational cohesion and we look forward to the remainder of the financial year together.
As an organisation, we will continue to focus on improving our clients’ financial lives.
For the full report, see: https://www.capitecbank.co.za/globalassets/pages/investor-relations/financial-results/2022/interim-results/cpihy22.pdf
DISCOVERY LIMITED (JSE: DSY)
Discovery Limited is a South Africa-based financial services group that is listed on the Johannesburg Stock Exchange (JSE) with its headquarters in Sandton.
Discovery Limited engages in long and short-term insurance, asset management, savings, investment and employee benefits through its various brands. The Group has subsidiaries in South Africa, the United Kingdom, the United States, China, Singapore, and Australia.
About Us
- Discovery is a shared value insurance company whose purpose and ambition are achieved through a pioneering business model that incentivizes people to be healthier, and enhances and protects their lives.
- Our shared value insurance model delivers better health and value for clients, superior actuarial dynamics for the insurer, and a healthier society.
- Our unique approach has underpinned our success globally, with substantial new business growth and an impressive increase in normalized operating profit and headline earnings.
Our Values
- Great people
- Liberating the best in people
- Intellectual leadership
- Drive, tenacity and urgency
- Innovation and optimism
- Business astuteness and prudence
- Customer, customer, customer
- Integrity, honesty and fairness
- Force for good
https://www.discovery.co.za/corporate/our-business
19 September 2024
Discovery’s strategy for long-term growth delivers robust annual financial performance
Discovery today presented its full-year financial results to the investor community. Group Chief Executive, Adrian Gore, provided context to how the Group’s long-term strategy performed in a complex macro-economic environment. “The full-year reporting period continued to be characterised by complexities in the macro-economic environment, including heightened consumer pressure due to cumulative interest rate increases, constrained economic growth, and political uncertainties on many fronts. Within this context, Discovery remained focused on delivering strong growth in earnings, value, cash generation and capital resilience,” he said.
At a Group level, Discovery delivered increases in normalised operating profit (up 17% to R11 604 million), headline earnings (up 7% to R7 202 million), normalised headline earnings (up 15% to R7 329 million), and core new business annual premium income (API) (up 18% to R26 667 million).
The key financial highlights include:
- Discovery South Africa (Discovery Health, Discovery Bank, Discovery Life, Discovery Invest, Discovery Insure): normalised profit from operations increased by 16% to R9 717 million, and core new business API increased by 19%.
- Vitality UK: normalised profit from operations declined 14%, impacted by two specific issues: claims experience in VitalityHealth and a basis strengthening for the back book under VitalityLife. New business API grew strongly by 17% to R4 444 million.
- Vitality Global: normalised profit from operations increased by 57%. Core new business API for Ping An Health Insurance’s (PAHI) own licence increased by 14% to R2 486 million. Notably, PAHI achieved a key milestone over the period, paying its maiden shareholder dividend, with a payout ratio of 30% of the 2023 calendar year’s distributable profits. Discovery’s share, after withholding tax, was R255 million.
Gore provided an update on the Group’s long-term strategy as the Group enters a new phase in its lifecycle. “Over the past eight years, we have been through a cycle of significant investment, with a focus on globalising the Group’s capabilities, footprint, and scale, as well as building new ventures such as Discovery Bank. This investment cycle was aimed at creating new avenues for long-term growth and we are confident that the business is positioned well to capitalise on this investment,” he explained.
Discovery has rigorously intensified its focus on scaling the emerging businesses and the initiatives that can meaningfully impact the Group, while closing those with marginal benefits over the past two years.
Discovery’s banking business passed key milestones earlier than anticipated, with the Bank increasingly enabling all the South African businesses as a full-service digital bank. The Bank expanded its lending suite through launching a Revolving Credit Facility and a new Home Loans product. Operating losses before new business acquisition costs improved by 89%, with the total client base growing 36% and recently reaching the one million client mark.
The rest of the South African businesses delivered equally positive results, with Discovery Health increasing operating profit by 7% and promising growth in non-medical scheme products now representing 15% of total revenue. The life insurance arm, Discovery Life, grew profits by 9% with a better-than-expected overall claims experience and favourable trends in lapses and premium income.
Discovery Invest increased operating profit by 20% with assets under management expanding by 11%. A higher growth in margins offshore and structured products drove higher fee income. Discovery Insure delivered strong profit growth with a dramatic recovery in the second half of the year after the severe impact of extreme weather events in the first half of the year.
On the performance of its health insurance business in the UK, Gore commented, “VitalityHealth is delivering strong new business growth in the context of increased demand for private medical insurance, given the backlogs experienced by the National Health Service (NHS). Operating profit declined by 52% to £18.5 million as there was a concomitant increase in claims during the reporting period which negatively impacted earnings by £30 million. Given the lag of premium increases, Vitality Health corrected pricing in line with the market, with little impact on lapses. Claim levels are also adjusting with margins expected to recover strongly in the next reporting period.
Post the reporting period, Discovery announced a restructure in its international businesses, combining Vitality UK and Vitality Global into a single global business of scale with significant organic growth potential. Gore commented, “The scale of each of these underlying businesses, which have developed at different paces, given the prevailing considerations for each, underpin the creation of a powerful shared-value life and health insurance composite. Vitality Limited will leverage the opportunity for consistent IP and technology, centralise our product innovation and drive a unified product strategy to deliver value for, and grow, our global partner network.”
Discovery expects the medium-term growth in profit from operations to exceed the longer-term target of CPI+10%, without recourse to further external capital. In line with Discovery’s dividend policy, the Group has declared its final ordinary dividends for the period at 152 cents per share, representing an annual cover ratio of 5 times.
Gore concluded: “Over the past few years our focus has been on investing in emerging and new initiatives. Having entered a new distinct phase of capitalising on our long-term investment and growth strategy, we are now well positioned for sustained growth through two powerful and focused structures; Discovery SA and Vitality Limited.”
https://www.discovery.co.za/corporate/news-room
FIRST NATIONAL BANK
First National Bank (FNB; Afrikaans: Eerste Nasionale Bank (ENB)) is one of South Africa's "big five" banks. It is a division of FirstRand Limited, a large financial services conglomerate, which trades on the Johannesburg Securities Exchange (JSE), under the symbol: FSR. FNB is also listed on the Botswana Stock Exchange under the symbol FNBB and is a constituent of the BSE Domestic Company Index
About Us
FNB is the oldest bank in South Africa, and can be traced back to the Eastern Province Bank formed in Grahamstown in 1838. Today, FNB trades as a division of FirstRand Bank Limited. When looking at FNB's history, two things in particular stand out. The first is a story of survival - different circumstances in South Africa have posed many great challenges in our history, all of which FNB has successfully met. This track record provides a strong foundation for our future challenges. The second is a story of people - our history has always been firmly influenced by the needs of the people we serve.
The Acacia tree in our brand logo is a suitable representation of our history. Our roots run deep in South Africa, and we have grown thanks to our commitment to serving the needs of our clients and communities.
A landmark development in FNB's history took place in 1998 when the financial services interests of Rand Merchant Bank Holdings and Anglo American were merged to form FirstRand Limited. In the process, FNB was delisted from the JSE on 22 May 1998 to become a wholly-owned subsidiary of FirstRand, which was listed on the JSE on 25 May 1998. On 30 June 1999, the banking interests of FirstRand formally merged into a single entity to form FirstRand Bank. FNB, WesBank and RMB now trade as divisions of FirstRand Bank.
https://www.fnb.co.za/about-fnb/about-us.html
FIRSTRAND LIMITED (JSE: FSR)
About Firstrand
FirstRand Limited, through its portfolio of integrated financial services businesses, operates in South Africa, certain markets in sub-Saharan Africa, the UK, and India.
The group’s track record of delivering superior returns to shareholders has been achieved through a combination of organic growth, acquisitions, innovation and the creation of completely new businesses.
Listed on the Johannesburg Stock Exchange (JSE) and the Namibian Stock Exchange (NSX), FirstRand Limited is the largest financial institution by market capitalization in Africa.
FirstRand can provide its customers with differentiated and competitive value propositions due to its unique and highly flexible model of leveraging the most appropriate brand, distribution channel, licence and operating platform available within the portfolio. This approach, which is underpinned by the disciplined allocation of financial resources and enabled by disruptive digital and data platforms, allows the group to fully optimize the franchise value of its portfolio. This has resulted in a long track record of consistent growth in high quality earnings, and superior and sustainable returns for shareholders.
As demonstrated in the schematic below, the group’s strategic framework accommodates a broad set of growth opportunities across the financial services universe from a product, market, segment and geographic perspective.
https://www.firstrand.co.za/the-group/about-firstrand/
12 September 2024
FIRSTRAND CONTINUES TO DELIVER GROWTH AND SUPERIOR RETURNS
FirstRand Limited today announced results for the year to 30 June 2024.
FirstRand delivered a strong operational performance, which was particularly evident in the second six months of the financial year. This performance allowed the group to absorb an accounting provision raised for the FCA’s motor commission review underway in the UK motor finance sector.
Commenting on the results FirstRand CEO Mary Vilakazi commented:
“Despite a tough operating environment, a standout feature of these results is the operational outperformance delivered by FirstRand’s portfolio in the second half of the year.he year. “This allowed the group to absorb a R3.0 billion accounting provision raised for the UK motor commission review, and still produce robust growth in normalised earnings of 4% and an ROE of 20.1%, which is well within its target range. “Excluding this provision, normalised earnings grew 10% and the ROE of 21.3% moved to the top of the stated range. This is testament to the quality of the group’s operating franchises, FNB, RMB, WesBank and Aldermore, and its disciplined approach to allocating financial resources to deliver superior shareholder value. “Pleasingly the group’s high ROE and ongoing capital generation provided the capacity to grow its dividend 8%, which is significantly higher than earnings growth.”
FirstRand’s performance, in particular the composition and quality of its earnings and high return profile, continues to directly correlate to the consistent and disciplined execution on strategies designed to maximise shareholder value. In addition, the strength of the customer-facing businesses in FirstRand’s portfolio has enabled the group to continue to capitalise on profitable growth opportunities across all markets, sectors and segments despite the challenging macroeconomic environment.
FirstRand remained discerning in pursuing advances growth, given competitive actions in the market and the higher interest rates, and believes it is still capturing a higher share of quality risk business whilst satisfying the needs of customers.
Growth in certain retail advances portfolios has slowed given customer affordability pressures but, on a yearon-year basis, still delivered healthy increases, with retail advances up 6% at both FNB and WesBank.
Advances growth from FNB’s commercial segment (+12%), RMB (+11%) and FNB broader Africa (+7%), reflect a consistent origination strategy to focus on sectors showing above-cycle growth and which are expected to perform well even in an inflationary and high interest rate environment. FNB also grew advances to SME’s 18% and is now the largest lender to SMEs in South Africa.
The muted growth of 1% in UK operations’ advances (in pound terms) reflects the challenging inflationary and interest rate environment, despite resilient new business production from the property portfolio which grew faster than competitors.
Across the portfolio, deposits and transactional balances increased strongly, both of which have provided an underpin to the return profile. FNB remains the largest custodian of retail and commercial deposits in the country.
Overall, the group’s origination strategies, combined with its focus on growing deposits, have resulted in a well-struck balance sheet. This is a direct outcome of the group’s financial resource management strategy and demonstrates the group’s growth vs returns thesis.
Total group NIR (+6%) reflects a number of one-off positive and negative movements period-on-period. At a business unit level, FNB’s total NIR increased 5%, driven by customer growth (+5%), and healthy growth in activity levels and transactional volumes across all channels.
The relatively muted growth in FNB’s fee and commission income due to sub-inflation fee increases across both retail and commercial accounts. In addition, with the introduction of PayShap, FNB reviewed its pricing structures for low-value real-time payments and took the decision to reduce all related fees and absorb the entire impact of the repricing in one financial year. This resulted in nearly R1 billion in fee reductions. The resultant 34% increase in real-time payment volumes that FNB has already experienced since the repricing action demonstrates this is the correct outcome for customers.
Some mitigation to this reduction resulted from FNB’s insurance activities, which continued to contribute to NIR diversification and growth, with growth in pretax profits of 13%.
RMB’s delivered excellent growth in NIR (+16%) this was mainly driven by good growth in private equity annuity income and further realisations. Knowledge-based fee income also grew strongly (+44%).
The group’s credit performance continued to play out better than expected. The credit loss ratio at 81 bps is still below the midpoint of the through the cycle (TTC) range of 80 bps – 110 bps.
This performance reflects the benefit of the group’s approach to origination, particularly post the pandemic when new business was weighted towards the low- and medium-risk categories and was achieved despite the current pressures from high inflation and interest rates.
Total group operating expenses were tightly managed in particular at FNB where costs only increased 1% which is an excellent outcome. This was, however, offset by ongoing elevated investment spend at RMB as it continues to build out its digital offerings and geographic expansion.
Commenting on prospects Ms Vilakazi said that the group expects the macroeconomic environment in the jurisdictions where it operates to remain challenging in the year ahead.
“Whilst absolute advances growth from the South African franchises is expected to exceed the year under review, this growth will continue to be tilted too commercial and corporate. Retail advances growth will remain muted until households begin to feel the benefits of lower inflation and lower rates. The UK is expected to deliver advances growth slightly higher than the second half of the year under review. All of the above, will result in weaker NII growth. However, NIR growth is likely to be significantly stronger as fee and commission income will bounce back from fee reductions. There are some potential private equity realisation opportunities, and insurance income is expected to continue to contribute strongly. The group’s credit loss ratio will trend up but is expected to remain below the midpoint of its TTC range. In SA the retail books will continue to experience strain until the lower rate cycle is felt by households.”
https://www.firstrand.co.za/media/investors/financial-results/firstrand-bank-annual-report-2024.pdf
GRINDROD BANK
About Us
Grindrod Bank is a registered Financial Services (FSP 6317) and Credit Provider (NCRCP25), regulated by the South African Reserve Bank and Financial Services Conduct Authority, authorized to offer a range of products and services.
We operate within the bounds of good corporate governance and ethical business practice, that is informed by King IV, making sure that our strategy and operations are also aligned with the requirements and guidelines set in the Basel III framework.
We at Grindrod Bank are proud of our well-established and entrenched corporate culture that demands the highest of ethical standards for our employees.
Our Services
With dedication and focus on our client offering, Grindrod Bank is able to provide and facilitate tailor-made product sets and personalized service to our clients. We continue to enjoy a consistent client base that has grown year-on-year, with a significant number of our clients have been with Grindrod Bank since its inception. We pride ourselves on the close, personal relationship we have with all our clients while recognizing our role in making a meaningful contribution to the South African economy through both job-creation and investment opportunities.
Grindrod Bank believes that in order to bring in new players into the economy, the products and services available in the financial sector should be adapted to meet the unique challenges faced by SMEs and entrepreneurs from previously disadvantaged communities.
https://www.grindrodbank.co.za/Pages/GrindrodBankOverview
30 April 2021
GRINDROD BANK LIMITED ANNUAL FINANCIAL STATEMENTS
for the year ended 31 December 2020
Statement Of Financial Position At 31 December 2020
|
Assets |
||||
|
Cash and short-term funds 1 |
923 536 |
3 572 496 |
923 536 |
3 572 496 |
|
Negotiable securities 2 |
2 469 396 |
2 478 941 |
2 469 396 |
2 482 109 |
|
Loans and advances 3 |
8 167 160 |
7 416 453 |
8 167 160 |
7 416 453 |
|
Preference shares linked to trust participatory |
||||
|
contributions 4 |
– |
1 727 444 |
– |
– |
|
Investment securities 5 |
9 198 |
9 177 |
9 198 |
9 177 |
|
Current tax asset |
11 795 |
– |
11 795 |
– |
|
Other assets 6 |
75 332 |
94 071 |
75 332 |
79 853 |
|
Property and equipment 7 |
14 828 |
18 031 |
14 828 |
18 031 |
|
Deferred tax asset 8 |
47 931 |
24 947 |
47 931 |
24 947 |
|
Total assets |
11 719 176 |
15 341 560 |
11 719 176 |
13 603 066 |
|
Liabilities |
||||
|
Deposits and funding instruments 9 |
9 965 473 |
11 957 109 |
9 965 473 |
11 965 170 |
|
Trust participatory contributions 4 |
– |
1 724 276 |
– |
– |
|
Derivative instruments 10 |
73 046 |
22 249 |
73 046 |
22 249 |
|
Current tax liability |
– |
206 |
– |
206 |
|
Provisions 11.1 |
14 990 |
18 425 |
14 990 |
18 425 |
|
Other liabilities 11.2 |
54 459 |
64 085 |
54 459 |
41 806 |
|
Total liabilities |
10 107 968 |
13 786 350 |
10 107 968 |
12 047 856 |
|
Equity |
||||
|
Ordinary share capital 12 |
650 |
650 |
650 |
650 |
|
Share premium 13 |
347 929 |
347 929 |
347 929 |
347 929 |
|
Preference share capital 14 |
285 000 |
285 000 |
285 000 |
285 000 |
|
Retained earnings |
977 629 |
921 631 |
977 629 |
921 631 |
|
Total equity |
1 611 208 |
1 555 210 |
1 611 208 |
1 555 210 |
|
Total liabilities and equity |
11 719 176 |
15 341 560 |
11 719 176 |
13 603 066 |
Statement Of Comprehensive Income For the year ended 31 December 2020
|
Interest and similar income 15 |
783 363 |
1 004 028 |
721 548 |
863 089 |
|
|
Interest and similar expense 16 |
(592 980) |
(873 483) |
(537 348) |
(756 368) |
|
|
Net interest and similar income |
190 383 |
130 545 |
184 200 |
106 721 |
|
|
Non-interest revenue 17 |
250 866 |
266 177 |
257 049 |
290 001 |
|
|
Fee income |
17.1 |
56 676 |
55 347 |
56 676 |
55 347 |
|
Gains and losses on financial instruments |
17.2 |
194 190 |
210 830 |
194 190 |
122 334 |
|
Dividend income |
17.3 |
– |
– |
6 183 |
112 320 |
|
Total revenue |
441 249 |
396 722 |
441 249 |
396 722 |
|
|
Impairment losses on financial assets 18 |
(101 522) |
(25 114) |
(101 522) |
(25 114) |
|
|
Operating income |
339 727 |
371 608 |
339 727 |
371 608 |
|
|
Operating expenses 19 |
(263 347) |
(288 945) |
(263 347) |
(288 945) |
|
|
Profit before tax |
76 380 |
82 663 |
76 380 |
82 663 |
|
|
Income tax (expense)/benefit 20 |
(646) |
3 883 |
(646) |
3 883 |
|
|
Profit for the year |
75 734 |
86 546 |
75 734 |
86 546 |
|
|
Other comprehensive income |
– |
– |
– |
– |
|
|
Total comprehensive income for the year |
75 734 |
86 546 |
75 734 |
86 546 |
|
Statement Of Changes in Equity for the year ended 31 December 2020
|
Group Balance at 31 December 2018 |
650 |
247 929 |
285 000 |
847 832 |
1 381 411 |
|
Total comprehensive income for the year |
– |
– |
– |
86 546 |
86 546 |
|
Profit for the year |
– |
– |
– |
86 546 |
86 546 |
|
Issue of ordinary share capital |
– |
100 000 |
– |
– |
100 000 |
|
Preference share dividends |
– |
– |
– |
(12 747) |
(12 747) |
|
Balance at 31 December 2019 |
650 |
347 929 |
285 000 |
921 631 |
1 555 210 |
|
Total comprehensive income for the year |
– |
– |
– |
75 734 |
75 734 |
|
Profit for the year |
– |
– |
– |
75 734 |
75 734 |
|
Preference share dividends |
– |
– |
– |
(19 736) |
(19 736) |
|
Balance at 31 December 2020 |
650 |
347 929 |
285 000 |
977 629 |
1 611 208 |
Company
|
Balance at 31 December 2018 650 |
247 929 |
285 000 |
847 832 |
1 381 411 |
|
Total comprehensive income for the year – |
– |
– |
86 546 |
86 546 |
|
Profit for the year – |
– |
– |
86 546 |
86 546 |
|
Issue of ordinary share capital – |
100 000 |
– |
– |
100 000 |
|
Preference share dividends – |
– |
– |
(12 747) |
(12 747) |
|
Balance at 31 December 2019 |
650 |
347 929 |
285 000 |
921 631 |
1 555 210 |
|
Total comprehensive income for the year |
– |
– |
– |
75 734 |
75 734 |
|
Profit for the year |
– |
– |
– |
75 734 |
75 734 |
|
Preference share dividends |
– |
– |
– |
(19 736) |
(19 736) |
|
Balance at 31 December 2020 |
650 |
347 929 |
285 000 |
977 629 |
1 611 208 |
STATEMENT OF CASH FLOWS For the Year Ended 31 December 2020
|
Cash flows from operating activities Cash receipts from customers* Cash paid to customers, employees and suppliers |
1 067 865 (858 361) |
1 323 643 (1 172 509) |
982 073 (780 450) |
1 194 548 (1 113 255) |
|
|
Cash generated from operations* 21 |
209 504 |
151 134 |
201 623 |
81 293 |
|
|
(Increase)/decrease in operating assets: |
|||||
|
(Increase)/decrease in loans and advances to |
|||||
|
customers |
(815 021) |
176 103 |
(815 021) |
(269 845) |
|
|
Sale/(Purchase) of preference shares linked to trust |
|||||
|
participatory contributions |
1 727 444 |
(336 444) |
– |
– |
|
|
(Increase)/decrease in deposits held for regulatory |
|||||
|
purposes |
(9 079) |
55 562 |
(9 079) |
55 562 |
|
|
Other negotiable securities |
8 583 |
346 344 |
11 751 |
421 382 |
|
|
Increase/(decrease) in operating liabilities: |
|||||
|
(Decrease)/increase in deposits from customers |
(1 991 636) |
936 623 |
(1 999 697) |
937 988 |
|
|
(Redemption)/raising of trust participatory |
|||||
|
contributions |
(1 724 276) |
10 152 |
– |
– |
|
|
Dividends paid on preference shares |
(10 846) |
(12 747) |
(10 846) |
(12 747) |
|
|
Income tax paid |
(35 632) |
(22 213) |
(35 632) |
(22 213) |
|
|
Net cash (used in)/from operating activities* |
(2 640 959) |
1 304 514 |
(2 656 901) |
1 191 420 |
|
|
Cash flows from investing activities |
|||||
|
Acquisition of property and equipment |
(3 879) |
(2 042) |
(3 879) |
(2 042) |
|
|
Proceeds from sale of property and equipment |
5 |
– |
5 |
– |
|
|
Dividends income* |
– |
– |
15 942 |
113 094 |
|
|
Acquisition of investment securities |
(221) |
(524) |
(221) |
(524) |
|
|
Net cash (used in)/from investing activities* |
(4 095) |
(2 566) |
11 847 |
110 528 |
|
|
Cash flows from financing activities |
|||||
|
Issue of ordinary share capital |
– |
100 000 |
– |
100 000 |
|
|
Payment of lease liabilities 22.1 |
(12 839) |
(12 681) |
(12 839) |
(12 681) |
|
|
Net cash (used in)/from financing activities |
(12 839) |
87 319 |
(12 839) |
87 319 |
|
|
Net (decrease)/increase in cash and short- term funds |
(2 657 893) |
1 389 267 |
(2 657 893) |
1 389 267 |
|
|
Cash and short-term funds at 1 January |
3 363 698 |
1 974 431 |
3 363 698 |
1 974 431 |
|
|
Cash and short-term funds at 31 December |
22.2 |
705 805 |
3 363 698 |
705 805 |
3 363 698 |
For the full report, see:
https://www.grindrodbank.co.za/DBFile/Files/855dd14e-640f-4312-a576-88a0d31bfdeb/Document
INVESTEC LTD (JSE: INL)
Investec is an Anglo-South African international banking and wealth management group. It provides a range of financial products and services to a client base in Europe, Southern Africa, and Asia-Pacific. Investec is dual-listed on the London Stock Exchange and the Johannesburg Stock Exchange.[5] It is a constituent of the FTSE 250 index.
Corporate Governance
Integrity and trust
Integrity is our core value and determines everything we do. This is because we understand and respect the need to promote and maintain trust in our business.
Our board sets the tone through the manner in which it conducts itself, and oversees the structures and framework for our corporate governance.
Equally, each business area and every employee of the group is responsible for acting in accordance with our values. We conduct our business and measure behaviour and practices against these values.
We operate under a dual-listed companies (DLC) structure, and consider the corporate governance principles and regulations of both the UK and South Africa before adopting the appropriate standards for the group, which comply with requirements in both jurisdictions.
All international business units operate in accordance with the above determined corporate governance principles, in addition to those of their jurisdiction, but with clear adherence at all times to group values and culture.
https://www.investec.com/en_int/welcome-to-investec/about-us/corporate-governance.html
18 March 2022
Investec Group pre-close trading update and trading statement
Investec today announces its scheduled pre-close trading update for the year ending 31 March 2022 (FY2022). Commentary on the Group’s financial performance in this pre-close trading update represents the 11 months ended 28 February 2022 and compares forecast FY2022 to FY2021 (31 March 2021).
FY2022 earnings update and guidance
The Group is pleased to update the FY2022 adjusted earnings per share guidance to between 51p and 55p, from the 48p to 53p range guided in November 2021.
For the year ending 31 March 2022, the Group expects:
- Adjusted operating profit before tax between £642 million and £683 million (FY2021:
- £377.6 million).
- The Southern African business’ adjusted operating profit to be at least 30% ahead of prior year in Rands (FY2021: R5 510 million, £251.6 million).
- The UK business’ adjusted operating profit to be at least 120% higher than prior year (FY2021: £126.0 million).
- Adjusted earnings per share between 51p and 55p (or 76% to 90% ahead of prior year) (FY2021: 28.9p).
- Basic earnings per share between 48p and 52p (or 90% to 106% ahead of prior year) (FY2021: 25.2p).
- Headline earnings per share between 49p and 53p (or 84% to 99% ahead of prior year) (FY2021: 26.6p).
The above expectations are predicated on the following year to date performance:
Group operating performance is above the pre-COVID comparative period, benefitting from strategic execution and post-pandemic economic recovery.
- Pre-provision adjusted operating profit increased, supported by continued client acquisition, growth in funds under management (FUM) and higher average advances.
- The revenue momentum experienced in the first half of the financial year continued into the second half. Net interest income benefitted from lower funding costs and higher average lending books. Increased client activity, higher lending turnover and supportive market conditions underpinned the growth in non-interest revenue over the period.
- Fixed operating expenditure was well contained in line with the Group’s focus on cost efficiencies, while variable remuneration grew in line with revenue. The cost to income ratio improved as revenue grew faster than costs.
- Expected credit loss impairment charges were significantly lower given limited default experience and certain recoveries. Post-model overlays have been maintained.
- On average, the Rand/Pounds Sterling exchange rate appreciated by c.5% over the period.
For the period ended 28 February 2022:
- The Wealth & Investment business grew FUM by 6.6% to £61.9 billion, driven by net inflows of £2.0 billion and positive market conditions. Current market volatility may impact FUM at 31 March 2022.
- Within Specialist Banking, core loans grew by 8.9% to £28.8 billion, driven by corporate lending and residential mortgage growth in both geographies.
The Group is well capitalised with strong liquidity, above Board approved minimums, and is well positioned to pursue identified growth opportunities.
The Group has no material direct or indirect exposure to Russia or Ukraine; however, the outlook may be affected by uncertainty arising from the likely impacts of the Russian invasion of Ukraine on the global economy and financial markets.
For the full financial report, see: https://www.investec.com/content/dam/investor-relations/presentations-and-announcements/investor-briefing/march-2022/Investec-FY2022-Pre-close-trading-update-18-Mar-2022F.pdf
NEDBANK GROUP LTD (JSE: NED)
Group Overview
Nedbank Group is incorporated in the Republic of South Africa and our registration number is 1966/010630/06. Our ordinary shares have been listed on JSE Limited (the JSE) since 1969 under the share code: NED and on the Namibian Stock Exchange since 2007 under the share code: NBK. Our ISIN is ZAE000004875.
We offer the following solutions through our frontline clusters, Nedbank Corporate and Investment Banking, Nedbank Retail and Business Banking, Nedbank Wealth and Nedbank Africa Regions:
- A wide range of wholesale and retail banking services.
- A growing insurance, asset management and wealth management offering.
Our presence
- Nedbank Group's primary market is South Africa; however, we are continuing to expand into the rest of Africa.
- Outside South Africa we operate in five countries in Southern African Development Community (SADC), through subsidiaries and banks in Lesotho, Mozambique, Namibia, eSwatini (Swaziland) and Zimbabwe.
- In Central and West Africa, we have a strategic alliance with Ecobank Transnational Incorporated (ETI) and we have representative offices in Angola and Kenya.
- Outside Africa we have a presence in key global financial centres to provide international financial services for Africa-based multinational and high-net-worth clients, in Guernsey, Isle of Man, Jersey and London, and we have a representative office in Dubai.
Key facts about Nedbank Group at 31 December 2020
- Total assets: R1,2 trillion
- Assets under management: R375 billion
- Headline earnings: R5 440 million
- CET1 ratio: 10,9%
- Tier 1 CAR: 12,1%
- Wholesale-biased business model
- Outlets: 633 (including Africa Regions)
- ATMs: 4 417 (including Africa Regions)
- Employees: 28 324
- Clients: 7,6 million (including Africa Regions)
- Digitally active clients: 2,2 million
- Digital sales up to 49% (2019: 21%) on total sales
- Payment relief to 400 000 clients under D3/2020: R121bn
- Market leading digital innovations
- Top tier client satisfaction metrics NPS 41%
- Country presence: 39 in Africa through our Ecobank alliance
- BBBEE contributor status: Level 1
- Carbon-neutral operations
- MSCI ESG Rating: AA
https://www.nedbank.co.za/content/nedbank/desktop/gt/en/aboutus/about-nedbank-group/Group-overview.html
6 August 2024
Nedbank delivers a strong first half performance in a difficult operating environment
Salient features
- Headline earnings increased by 8% to R7,9bn, with DHEPS up 12%
- ROE increased to 15,0% (H1 2023: 14,2%)
- Strong capital and liquidity ratios with CET1 capital ratio of 13,3%
- Interim dividend of 971, up 11,5%
- Strong growth in digital clients and volumes
Nedbank Group delivered a relatively strong financial performance for the six months to 30 June 2024 amid a challenging operating environment as headline earnings (HE) increased by 8% yoy to R7,9bn, and return on equity (ROE) increased to 15,0% (H1 2023: 14,2%). The increase in HE was underpinned by good non-interest revenue (NIR) growth, a lower impairment charge and targeted expense management, partially offset by muted net interest income (NII) growth and lower associate income.
The operating environment in the first half of 2024 was challenging as economic activity remained weak, said Nedbank CE Jason Quinn. “In addition to geopolitical uncertainty, persistent inflation, high interest rates and uncertainty ahead of the national elections in South Africa (SA) impacted domestic activity negatively.
“We remain cautiously optimistic around the potential benefits associated with SA's Government of National Unity and expect better macroeconomic conditions in the second half of 2024 and into the medium-to-long term. While trading conditions improved noticeably as some of the most pressing structural constraints on the economy eased as a result of stabilised electricity supply, progress in resolving some of the other infrastructure constraints remained limited.
“Our relatively strong financial performance in H1 2024, including the progress made in executing on our strategy and better economic prospects, give us confidence in making progress towards our medium-term targets and our aim to increase our ROE to 17% by 2025 and above 18% in the long term.”
The group’s headline earnings per share (HEPS) increased by 11% to 1 699 cents, diluted HEPS (DHEPS) increased by 12% to 1 650 cents and basic earnings per share (EPS) increased by 12% to 1 700 cents, ahead of the HE growth of 8%, as a result of the R5bn capital optimisation initiative that was materially completed in H1 2023.
The group’s balance sheet remained very strong. CET1 and tier 1 capital ratios of 13,3% and 14,7% were well above board-approved target ranges and SARB minimum requirements. Following a solid performance and strong capital and liquidity positions, the group declared an interim dividend of 971 cents per share, up by 11,5% (June 2023: 871 cents per share) at a payout ratio of 57%.
Digital Gains
The group’s world-class technology platform, delivered through our Managed Evolution (ME) programme, has now reached 95% completion. This has supported ongoing strong growth in digital-related metrics; client satisfaction scores at the top end of the South African banking peer group; good main-banked client growth; higher levels of cross-sell; market share gains in areas that create most value, including retail deposits, home loans, vehicle finance and overdrafts; and efficiency gains as we delivered on our Target Operating Model (TOM) 2.0 target of R2,5bn. As we finalise the ME programme, our focus shifts to commercialising our technology platform to simplify and rationalise our product range, make banking easier and more affordable for our clients by migrating existing accounts onto new products.
Nedbank Money app active clients increased to 2,6 million in H1 2024, up by 16%. Transaction volumes on the Money app increased by 13% yoy and transaction values increased by 19%. Revenue from value-added services grew by 28% yoy across prepaid data, voucher, and electricity purchases, and the sending of money to cellphones. The Nedbank Money app (Africa), which offers convenience, a wide range of functionality and great user experiences for our NAR clients, reported a 19% yoy increase in app users.
Our digital initiatives helped us to increase the number of digitally active retail clients in SA by 9% yoy to 3 million, representing 70% of retail main-banked clients (H1 2023: 69%). Retail digital transaction volumes and values in SA both increased by 7%. Digitally active clients across the NAR business increased from 60% to 67% of its total active client base.
Since its launch in 2020, the Avo super app (SuperShop) has signed up 2,7 million clients (up by 19% yoy), with over 24 000 businesses registered to offer their products and services on this e-commerce platform.
In recognition of our market-leading digital positioning, Nedbank was recently recognised as the Best Digital Bank in Africa at the 2024 Euromoney Awards, number one in Net Promotor Score among South African banks in 2022 and 2023 (Kantar survey) and received the Forrester EMEA 2024 Customer-Obsessed Enterprise Award.
Demonstrating our purpose
We remain committed to fulfilling our purpose of using our financial expertise to do good and contribute to the well-being and growth of the societies in which we operate.
Our commitment to deliver against the United Nations (UN) Sustainable Development Goals (SDGs) and the progress we have made on our sustainable development finance (SDF) is evident. At 30 June 2024 we had exposures of R154bn (December 2023: R145bn) that support SDF, representing 17% of the group’s gross loans and advances (December 2023: 16%). In support of our net-zero 2050 commitment to have zero fossil fuel exposure by 2045, in March 2024 we became the first South African bank to publish sectoral glidepaths which inform our exit from the thermal coal and oil and gas sectors over time.
In support of our 7,5 million clients, we continue to focus on enhancing client experiences and providing access to financing through the advancement of new loans to enable them to finance their homes, vehicles, and education and grow their businesses.
Outlook
Global growth is expected to improve modestly during the remainder of this year, before gaining slightly stronger momentum throughout 2025. The IMF forecasts world growth at a steady 3,2% for 2024, strengthening marginally to 3,3% in 2025. Most advanced and developing countries are likely to accelerate interest rate reductions throughout 2025 as inflation returns to targeted levels.
Inflationary pressures for SA are forecast to ease further, ending 2024 at 4,4% and averaging 4,9% for the entire 2024. The Nedbank Group Economic Unit expects monetary policy easing to begin in September 2024, with a cumulative 50 bps reduction in interest rates in the second half of the year, taking the prime lending rate down to 11,25% by the end of 2024, followed by cuts of a further 75 bps in 2025.
Nedbank expects SA’s economy to fare better in the second half of 2024 and throughout 2025 if the recent improvements in electricity supply and confidence are sustained. Exporters should benefit from more reliable energy supply, firmer global growth, and the anticipated upturn in commodity prices as US interest rates decline and the US dollar softens. Consumer spending will also recover as inflation falls further, real household incomes return to growth, and debt service costs decline on lower interest rates.
Conclusion
“Since joining Nedbank as CE, I’ve experienced tremendous support from employees, our clients, the investment community, regulators, and all other stakeholders and I am aligned with the board and executive teams, which has enabled us to continue running our business smoothly.
“Improving performance is a key priority and I have adopted Nedbank’s medium-term performance targets as my own. I am extremely comfortable with the strong foundations that Nedbank has built, including capital and liquidity levels and an improving financial performance, as well as the group’s strong and vibrant culture, its focus on transformation, leading ESG credentials and significant investments in technology. We will continue to build on these strong foundations as we evolve and continuously refresh our strategy in response to an everchanging operating environment,” said Quinn.
For full financial report, see: https://www.nedbank.co.za/content/dam/nedbank/site-assets/AboutUs/Information%20Hub/Financial%20Results/Interim%20Results/2024/2024%20Nedbank%20Group%20Interim%20Financial%20Statements.pdf
OLD MUTUAL LTD (JSE: OMU)
About Us
Our Group was established in Cape Town in 1845 as South Africa’s first mutual life insurance company, offering financial security in uncertain times.
Our purpose is to help our customers thrive by enabling them to achieve their lifetime financial goals, while investing their funds in ways that will create a positive future for them, their families, their communities and broader society. In this way, we significantly contribute to improving the lives of our customers and their communities while ensuring a sustainable future for our business.
We now employ more than 30 000 people and operate in 14 countries across two regions Africa (South Africa, Namibia, Botswana, Zimbabwe, Kenya, Malawi, Tanzania, Nigeria, Ghana, Uganda, Rwanda, South Sudan and eSwatini) and Asia (China)
What we do
We provide financial solutions to individuals, small and medium-sized businesses, corporates and institutions across several market segments and geographies in South Africa, the Rest of Africa and certain other emerging markets.
Savings and protection: Innovative life assurance-based product solutions, addressing both protection and savings needs, as well as short term insurance solutions through Old Mutual Insure.
Investments: Growing our customers’ savings and wealth, whether through active and direct asset management through the Old Mutual Investment Group or the selection of funds for customers to invest in through multi-managers.
Lending: Old Mutual offers personal loans and debt consolidation loans tailored to the individual needs of our customers. All loan products are provided through Old Mutual Finance, a licensed financial services and registered credit provider.
Banking: The Money Account is both a low-cost transactional account and a one-of-a-kind unit trust savings account. This innovative banking product is offered by Old Mutual Transaction Services (Pty) Ltd in association with Bidvest Bank Ltd and Old Mutual Investment Administrators, a licensed financial services provider.
https://www.oldmutual.com/about
10 September 2024
OLD MUTUAL TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2024
Investors are advised that Old Mutual is currently in the process of finalising its interim results for the six months ended 30 June 2024, which will be released on the Stock Exchange News Service of the JSE Limited on Thursday, 26 September 2024. This trading statement provides an indication of a range for headline earnings per ordinary share (HEPS) and earnings attributable to equity holders of the Group per ordinary share (EPS) in terms of paragraph 3.4(b) of the JSE Limited Listings Requirements compared to the six months ended 30 June 2023.
Strong operational performance in Old Mutual Insure, Old Mutual Corporate and Mass and Foundation Cluster was offset by lower life profits in Personal Finance, primarily driven by an increased number of large claims, and higher central costs compared to the prior period but in line with our expectations as we continue to invest in our future capabilities.
Adjusted headline earnings (AHE) and adjusted headline earnings per share (AHEPS) growth was bolstered by increased shareholder investment returns as a result of improved performance in South African equities.
We exclude the Zimbabwe profits from AHE as the economy is currently hyperinflationary and there are barriers to access capital by way of dividends. The main contributor to the higher level of growth in headline earnings (HE) relative to AHE is higher shareholder portfolio profits in the Zimbabwean business.
The movement between IFRS profit after tax attributable to equity holders of the parent (IFRS profit) and HE was primarily driven by the loss recognised on the disposal of our Nigeria business.
Results from operations (RFO) per share, AHEPS, HEPS and EPS growth benefitted from the share repurchase programme implemented in 2023 which contributed to a reduction in the weighted average number of ordinary shares to 4 359 million at 30 June 2024 (4 503 million at 30 June 2023).
Investors are advised that the Group’s key profit measures are expected to be within the ranges outlined below:
|
Key Performance Indicators (R million unless stated otherwise) |
Estimated % change |
Estimated 30 June 2024 |
Unaudited results for the six months ended 30 June 2023 |
|
RFO |
-8% to 2% |
4017 to 4453 |
4366 |
|
RFO per share (cents) |
-5% to 5% |
90.1 to 99.9 |
95.1 |
|
AHE |
-2% to 8% |
3097 to 3413 |
3160 |
|
AHEPS (cents) |
2% to 12% |
70.2 to 77.1 |
68.8 |
|
HE |
29% to 39% |
5622 to 6508 |
4358 |
|
HEPS (cents) |
33% to 43% |
128.7 to 138.4 |
96.8 |
|
IFRS Profit |
15% to 25% |
5007 to 5443 |
4354 |
|
Basic EPS (cents) |
19% to 29% |
115.1 to 124.7 |
96.7 |
https://www.oldmutual.com/v3/assets/blt566c98aeecc1c18b/bltfa0af841fc181f05/66e02294ac0a25608e8f1c72/Old_Mutual_Trading_Statement_for_the_six_months_ended_30_June_2024.pdf
PSG GROUP LIMITED (JSE: PSG)
Corporate Information
PSG is an investment holding company consisting of underlying investments that operate across a diverse range of industries including banking, education, financial services and food and related business, as well as early-stage investments in selected growth sectors.
https://psggroup.co.za/
Corporate Social Investment
PSG subscribes to the notion that a great company can never be a burden on society. We contribute to the development and upliftment of South Africans by creating jobs and contributing financially by way of paying our taxes, donations and sponsorships. The group’s contribution to society through the payment of salaries, taxes and dividends amounted to approximately R17bn during the past financial year.
We also embrace the principle that companies should contribute additionally to the success of the country as a whole. The corporate social investment (“CSI”) section of the annual report deals with PSG’s CSI projects. It is by no means a comprehensive list, but illustrates our dedication to making South Africa a better place.
https://psggroup.co.za/corporate-social-investment-2/
25 April 2022
REVIEWED RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2022
HIGHLIGHTS
- Major restructuring proposed as value-unlocking initiative
OVERVIEW
PSG Group Ltd (“PSG Group” or “the Company”) is an investment holding company consisting of underlying investments that operate across a diverse range of industries, which include financial services, education and food and related business, as well as early-stage investments in select growth sectors.
PSG Group’s objective remains to create long-term wealth for its shareholders through capital appreciation, investment income or both, and accordingly the key benchmark used by PSG Group to measure performance is its sum-of-the-parts (“SOTP”) value per share.
MAJOR RESTRUCTURING
PSG Group shareholders are advised to take note of the Detailed Cautionary Announcement published on SENS on 1 March 2022, as well as the Firm Intention Announcement published on SENS on 25 April 2022 which advised that the board of PSG Group has resolved to pursue a major restructuring as value-unlocking initiative for the benefit of PSG Group shareholders through an indivisible transaction comprising the following (the “PSG Group Restructuring”):
- The unbundling of PSG Group’s shareholding in JSE-listed PSG Konsult Ltd (“PSG Konsult”), Curro Holdings Ltd (“Curro”), Kaap Agri Ltd (“Kaap Agri”) and CA Sales Holdings Ltd (“CA&S”), as well as 25,1% of the total issued shares in Stadio Holdings Ltd (“Stadio”) (collectively, the “Unbundlings”);
- The repurchase of PSG Group shares from exiting PSG Group shareholders (“Specific Repurchase”), being PSG Group shareholders other than predominantly the executive management of PSG Group and PSG Alpha Investments (Pty) Ltd (“PSG Alpha”), the founders of PSG Group and their immediate family members, for a cash consideration of R23,00 per share; and
- The delisting of PSG Group from the JSE.
The table below illustrates the anticipated value to be unlocked for exiting PSG Group shareholders by way of the PSG Group Restructuring, calculated as at the close of business on the reporting date of 28 February 2022, as well as at 21 April 2022 –representing a significant premium of 41,3% to the ruling PSG Group share price immediately before the announcement was made on SENS on 1 March 2022 –
|
28 Feb 2022 |
21 Apr 2022 |
||||
|
Unbundling ratio for every |
Closing |
Indicative value per PSG Group |
Closing |
Indicative value per PSG Group |
|
|
Unaudited |
PSG Group share held |
share price R |
share R |
share price R |
share R |
|
PSG Konsult |
3,86921 |
13,74* |
53,16 |
13,75* |
53,20 |
|
Curro |
1,81597 |
13,45* |
24,42 |
10,50* |
19,07 |
|
Kaap Agri |
0,12364 |
51,20* |
6,33 |
44,50* |
5,50 |
|
CA&S |
1,03650 |
4,79** |
4,96 |
4,70** |
4,87 |
|
Stadio |
1,02216 |
3,64* |
3,72 |
4,00* |
4,09 |
|
Value of shares received pursuant to the Unbundlings*** |
92,59 |
86,73 |
|||
|
Cash received pursuant to the Specific Repurchase |
23,00 |
23,00 |
|||
|
Total anticipated value |
115,59 |
109,73 |
|||
|
PSG Group share price |
81,83^ |
98,05^^ |
|||
|
Premium |
41,3% |
||||
The PSG Group Restructuring remains subject to the required exiting PSG Group shareholder and regulatory approvals being obtained, as well as the fulfilment or waiver of certain other conditions precedent, as detailed in aforesaid Firm Intention SENS announcement.
SOTP
The calculation of PSG Group’s SOTP value requires limited subjectivity as approximately 91% of the investment value is calculated using exchange-listed share prices, while other investments are included at internal valuations, of which more detail is available at www.psggroup.co.za/sotp. At 28 February 2022, the SOTP value per PSG Group share (which does not yet account for the proposed PSG Group Restructuring, as well as all the associated tax and restructuring costs) was R127,88, representing an increase of 36% when compared to the R94,24 per share as at 28 February 2021.
|
Asset/(liability) |
Audited 28 Feb 2021 Rm |
Reviewed 28 Feb 2022 Rm |
|
PSG Konsult* |
7 282 |
11 130 |
|
Curro* |
3 588 |
4 826 |
|
Capitec* |
2 190 |
|
|
Zeder* |
1 983 |
2 672 |
|
PSG Alpha |
3 842 |
4 508 |
|
Stadio* |
865 |
1 324 |
|
CA&S** |
1 126 |
1 057 |
|
Evergreen^ |
869 |
988 |
|
Optimi^ |
296 |
502 |
|
Energy Partners^ |
305 |
379 |
|
Other investments^ |
446 |
337 |
|
Less : Minority shareholding held by PSG Alpha management |
(65) |
(79) |
|
Dipeo^ |
2 020 |
3 636 |
|
Other net assets (cash, prefs, loans, provisions, etc.)^^ |
||
|
Total assets |
20 905 |
26 772 |
|
Perpetual pref funding* |
(1 132) |
|
|
Total SOTP value |
19 773 |
26 772 |
|
Shares in issue (net of treasury shares) (m) |
209,8 |
209,4 |
|
SOTP value per share (R) |
94,24 |
127,88 |
|
Share price (R) |
66,51 |
81,83 |
MAJOR CORPORATE ACTION
During the year under review, the following major corporate action was undertaken:
- PSG Group disposed of its remaining 1,6m shares (or 1,4%) in Capitec Bank Holdings Ltd (“Capitec”) for R2,5bn cash.
- PSG Financial Services Ltd (“PSG Financial Services”), a wholly-owned subsidiary and the only directly-held asset of PSG Group, repurchased all its JSE-listed cumulative, non-redeemable, non-participating preference shares in issue for R1,5bn cash. PSG Group accordingly no longer has any funding obligations.
PSG KONSULT (61,5%)
PSG Konsult is a financial services company focused on providing wealth management, asset management and insurance solutions to clients.
It reported a 32% increase in recurring headline earnings per share for the year under review following strong performance from the Asset Management division in particular, and solid performance from the Wealth and Insure divisions.
During the year under review, PSG Group accounted for a fair value gain of R3 848m following an increase in PSG Konsult’s listed share price since 28 February 2021, and earned dividend income of R215m in respect of this investment.
PSG Konsult has its primary listing on the JSE, with secondary listings on the Namibian Stock Exchange and Mauritian Stock Exchange, and its comprehensive results are available at www.psg.co.za.
CURRO (60,0%)
Curro is the largest provider of private school education in southern Africa.
It reported an 8% increase in recurring headline earnings per share for the year ended 31 December 2021.
During the year under review, PSG Group accounted for a fair value gain of R1 238m following an increase in Curro’s listed share price since 28 February 2021.
Curro is listed on the JSE and its comprehensive results are available at www.curro.co.za.
ZEDER (48,6%)
Zeder Investments Ltd (“Zeder”) is an investor in the broad agribusiness industry.
During the year under review, PSG Group accounted for a fair value gain of R689m following an increase in Zeder’s listed share price since 28 February 2021, and earned dividend income of R150m in respect of this investment.
Subsequent to 28 February 2022:
- Zeder unbundled its entire interest in Kaap Agri to shareholders and the interest so obtained by PSG Group will be distributed as part of the proposed PSG Group Restructuring, if successfully concluded; and
- Zeder declared a special dividend of 92,5 cents per share pursuant to the disposal of its investment in The Logistics Group, payable during May 2022 with PSG Group’s share thereof amounting to R692m cash.
PSG ALPHA (98,3%)
PSG Alpha serves as incubator to identify and help build the businesses of tomorrow. Its major investments as at 28 February 2022 included shareholdings in Stadio (private higher education – 42,9%), CA&S (FMCG distribution – 47,9%), Evergreen Retirement Holdings (Pty) Ltd (“Evergreen”) (developer and operator of retirement lifestyle villages – 50%), Optimi Holdings (Pty) Ltd (“Optimi”) (innovative and accessible education solutions to schools, tutors, parents and learners – 96,0%) and Energy Partners Holdings (Pty) Ltd (“Energy Partners”) (manufacturer, owner and operator of energy assets – 56,7%).
During the year under review, PSG Group accounted for a fair value gain of R666m in respect of its investment in PSG Alpha following an increase in its SOTP value since 28 February 2021.
DIPEO (49%)
Dipeo Capital (RF) (Pty) Ltd (“Dipeo”), a BEE investment holding company, is 51%-owned by the Dipeo BEE Education Trust of which all beneficiaries are black individuals. The trust will use its share of any value created in Dipeo to fund black students’ education.
Dipeo’s investments as at 28 February 2022 included shareholdings in Curro (3,6%), Stadio (3,3%) and Kaap Agri (20%).
During the financial year ended 28 February 2019, Dipeo’s SOTP value turned negative (i.e. liabilities exceeded assets) following a decline in the value of its investment portfolio, which had a negative impact on PSG Group’s SOTP value through reducing its investment in Dipeo to zero and impairing PSG Group’s pref share investment in Dipeo to the extent required. During the year under review, PSG Group recognised an impairment reversal of R221m following an increase in the value of Dipeo’s investment portfolio. The accumulated impairment of PSG Group’s pref share investment in Dipeo amounted to R625m as at 28 February 2022.
PROSPECTS
PSG Group remains focused on its objective to create wealth for shareholders on a per share basis. The significant discount at which PSG Group has been trading to its SOTP value in recent years, has necessitated a strategic rethink in order to do what is best for PSG Group shareholders by unlocking such discount to the extent possible. For this reason, the PSG Group board has resolved to undertake the PSG Group Restructuring, which if approved, should result in significant value being unlocked for PSG Group shareholders.
DIVIDEND
PSG Group’s policy is to pay ad hoc dividends as and when deemed appropriate. With due consideration to the PSG Group Restructuring, the directors have resolved to not declare an ad hoc dividend for the year ended 28 February 2022.
For the full financial result, see: https://www.psggroup.co.za/ReviewedResultsFeb2022.pdf
REMGRO LIMITED (JSE: REM)
About Remgro
Originally established in the 1940s by the late Dr Anton Rupert, Remgro’s investment portfolio has evolved substantially and currently includes investee companies across seven platforms. The Company is listed on the Johannesburg Securities Exchange (JSE), operated by the JSE Limited in South Africa under the “Financials – Financial Services – Investment Banking and Brokerage Services – Diversified Financial Services” sector, with the share code “REM”. Our interests consist mainly of investments in the financial services, healthcare, consumer products, industrial, infrastructure and media and sport industries.
https://www.remgro.com/about-remgro/our-business/
25 March 2021
Results Press Release for the six months ended 31 December 2020
REMGRO SHOWS RESILIENCE AMIDST COVID-19 HEADWINDS
- Headline earnings per share from continuing operations: down by 52.7% from 522.5 cents to 247.4 cents
- Total headline earnings per share: down by 67.1% from 750.9 cents to 247.4 cents
- Earnings per share: down by 71.1% to 221.2 cents
- Interim dividend per share: 30 cents
- Intrinsic net asset value per share as at 31 December 2020: up by 4.9% to R161.98
The second wave of Covid-19 in the second half of 2020 hit South Africa harder than expected, bringing with it a new variant with higher infection rates and greater severity of symptoms. This led to the imposition of further lockdown measures in order to slow down the spread of the disease and ease pressure on the healthcare system.
Managing within this crisis continues to be Remgro and its investee companies’ single biggest priority. Remgro’s focus is on the factors within its control, the health and well-being of its people, ensuring that its investments have the most robust financial positions to support business continuity and ensuring that the underlying investee companies that are in a position to offer help to the country, are empowered to do so. As a response to the call for the support of all social partners in finding effective solutions for a vaccination programme, Remgro, together with its investee companies in the medical and logistics sectors have been actively assisting Government in its efforts to urgently establish and execute an effective vaccination programme for all South Africans.
The results for the six months to 31 December 2020 are not directly comparable with the six months to 31 December 2019, which related to a pre-Covid-19 period. Headline earnings for the period under review were significantly affected by the decreased contribution of Mediclinic International plc (Mediclinic) (down by 80.2%), which includes the full impact of the Covid-19-related lockdown measures on its results for the six months to 30 September 2020. Furthermore, due to the accounting reclassification of FirstRand Limited (FirstRand) from an equity accounted investment to an investment at fair value through other comprehensive income, no earnings from FirstRand were accounted for in the period under review, whereas R548 million was included in the comparative period. As a result of the Covid-19 pandemic, FirstRand did not pay any dividends during the period under review. Excluding Mediclinic and FirstRand, the rest of Remgro’s investment portfolio had a resilient performance during the Covid-19 pandemic with their contribution to Remgro’s headline earnings decreasing by only 7.7%.
For the period under review, total headline earnings decreased by 67.0% from R4 242 million to R1 398 million, while total headline earnings per share (HEPS) decreased by 67.1% from 750.9 cents to 247.4 cents. Headline earnings from continuing operations decreased by 52.6% from R2 952 million to R1 398 million, while HEPS from continuing operations decreased by 52.7% from 522.5 cents to 247.4 cents. The decrease in headline earnings from continuing operations is mainly due to lower contributions by Mediclinic and FirstRand as well as lower interest income, due to the 300-basis points reduction in interest rates since January 2020.
Total earnings decreased by 71.1% to R1 250 million (2019: R4 329 million), mainly due to the decrease in the headline earnings from continuing operations (down by R1 554 million) and the equity accounted earnings of RMB Holdings Limited (RMH) in the comparative period amounting to R1 322 million.
Commentary on the performance of each of the underlying reporting platforms is set out in the unaudited summary results for the six months ended 31 December 2020 released herewith.
Remgro’s intrinsic net asset value per share increased by 4.9% from R154.47 at 30 June 2020 to R161.98 at 31 December 2020. The closing share price at 31 December 2020 was R96.20 (30 June 2020: R99.90) representing a discount of 40.6% (30 June 2020: 35.3%) to the intrinsic net asset value.
For the six months ended 31 December 2020, an interim gross dividend of 30 cents per share was declared out of income reserves in respect of both the ordinary shares of no par value and the unlisted B ordinary shares of no par value. The interim dividend was adjusted downwards to take into account the unbundling by Remgro of its 28.2% interest in RMH during June 2020 and the impact of the Covid-19 pandemic.
Jannie Durand, CEO of Remgro, concluded: “While Covid-19 continues to put pressure on our economy, the healthcare system and our wellbeing in general, I am encouraged by the commitment and resolve that our people continue to show amidst the various personal challenges being faced both at home and in the workplace. It has enabled our portfolio to put up a resilient performance in this period and has reaffirmed my confidence in our position to weather this storm and overcome the unique challenges that this crisis presents. I specifically want to express my sincerest gratitude to all the healthcare workers in our country and within our Group that have played and continue to play a vital part in combatting this pandemic. We remain committed to the wellbeing of our people as our biggest priority and have confidence that we will come through this together and be stronger on the other side.”
https://www.remgro.com/pdf/eng/2021/Remgro_Press_Release_for_the_year_ended_31_December_2020.pdf
RMB Holdings Limited (JSE: RMH)
RMB Holdings Limited (RMBH), previously known as Rand Merchant Bank Holdings, is a South African diversified financial service holding company. RMB Holdings is listed on the JSE with its headquarters in Sandton, South Africa.
Corporate structure
RMH’s property investments are housed in a majority-owned subsidiary, RMH Property Holdings Proprietary Limited (RMH Property), managed by a dedicated investment team.
Investment strategy
RMH, through RMH Property, positions itself as an active, long-term, value-adding, stable and aspirational shareholder.
RMH has and will continue to play its role as a supportive, committed and enabling shareholder, through the cycle, to RMH Property and its underlying portfolio companies in their various growth phases. RMH Property acquires significant equity interests in unlisted property development companies, with attractive net asset value growth return profiles. RMH Property’s investment strategy is to partner with leading and best-in-class development partners and enhance the value of its portfolio companies by leveraging its value-add engagement model to monetise these investments over time and create enduring shareholder value.
Dividend policy
Given the structure and stage of development of the RMH Property portfolio companies and its approach to capital management, RMH does not have a fixed ordinary dividend policy.
https://rmh.co.za/about-us/#groupStructure
SANLAM LIMITED (JSE: SLM)
About Us
Sanlam was established as a life insurance company in South Africa but has since transformed into a diversified financial services group operating across Africa, India and selected other emerging and developed markets, with listings on the Johannesburg, A2X and Namibian stock exchanges.
The Group has been operating for more than 100 years, most of which as a mutual insurer. Sanlam demutualized and listed on the Johannesburg and Namibian stock exchanges in 1998.
https://www.sanlam.com/about/Pages/default.aspx
14 November 2024
Sanlam reports robust operational update for the nine-month period ended 30 September 2024
Sanlam today announced its operational update for the nine-month period ending 30 September 2024, maintaining the positive performance seen in the first half of the year, with continued doubledigit growth on most key earnings and new business metrics.
Performance highlights included:
- Net result from financial services (NRFFS) growth remained robust with satisfactory performance across all lines of business. NRFFS increased by 15% for the reporting period.
- Net operational earnings increased by 17%, benefiting from higher investment returns on the shareholder capital portfolio.
- Life insurance new business volumes were 12% higher, with good sales growth recorded in all regions across the group’s portfolio.
- Life insurance net value of new business increased by 13%, with the new business margin remaining robust at 2,81%. General insurance new business trends were satisfactory with continued strong growth in Asia and good growth in South Africa.
- The group continues to attract significant asset flows, with net client cash inflows more than doubling to R40 billion, improving across all lines of business.
- The group remains well capitalised and within its solvency capital ratio target range.
- Discretionary capital decreased from R3,8 billion on 30 June 2024 to R841 million on 30 September 2024, due to the R2,6 billion outflow regarding the acquisition of a 25% stake in Africa Rainbow Capital Financial Services Holdings and other minor activity.
- In October 2024, the group received inflows to discretionary capital of R2,3 billion from the integration of its Namibia holdings into SanlamAllianz; and in November, R1,4 billion (net of tax) in respect of the Capitec reinsurance recapture fee
The Assupol Holdings Limited (Assupol) acquisition was finalised on 7 October 2024 and Sanlam is focused on integrating Assupol into the group’s operations. The group anticipates significant synergies to arise over time following from this integration.
OUTLOOK
Concluding, Mr Hanratty said: “We are pleased with the excellent performance for the reporting period, which is testimony to the commitment of our people, the diversity of our operations and solid execution of our strategy across the emerging markets we are focused on. Our performance and continued strategic execution in the first nine months of 2024 supports our optimism for the remainder of the year.”
https://www.sanlam.com/pdf/media-releases/2024/nine-month-operational-update-14112024.pdf
SASFIN HOLDINGS LIMITED (JSE: SFN)
About Us
Sasfin came from humble beginnings. But, for over 70 years, we’ve challenged ourselves to create tailor-made products and solutions that not only meet our clients’ needs but go Beyond a bank to offer a wide range of personalized financial services and products.
Sasfin Holdings Limited listed on the JSE in 1987. Sasfin and its subsidiaries, provide a comprehensive range of specialist financial products and services for Business and Wealth clients focusing on the needs of entrepreneurs, corporates, institutions and high-net-worth individuals. Its countrywide footprint and comprehensive range of products and services, form a strong basis for growth in loans and advances to select businesses, and assets under management and advisement for investors, as we assist our growing client base while achieving acceptable returns on investment.
https://www.sasfin.com/about-sasfin/
30 September 2020
Annual Financial Statements for the year ended 30 June 2020
CONSOLIDATED AND SEPARATE STATEMENTS OF FINANCIAL POSITION AT 30 JUNE 2020
|
Accounting policy |
Note |
2020 R’000 |
20191 R’000 Restated2 |
2020 R’000 |
20191 R’000 Restated2 |
|
|
ASSETS |
||||||
|
Cash and cash balances |
1.10 |
4. |
1 698 350 |
1 314 414 |
1 442 103 |
1 079 459 |
|
Negotiable securities |
1.12 |
5. |
3 126 595 |
3 077 519 |
3 126 595 |
3 077 519 |
|
Trading assets |
1.12 |
6. |
85 172 |
39 007 |
84 537 |
38 997 |
|
Trade and other receivables |
1.12 |
7. |
354 059 |
270 955 |
286 414 |
315 775 |
|
Non-current assets held for sale |
8. |
6 700 |
– |
– |
– |
|
|
Loans and advances2 |
1.12 |
9. |
6 609 237 |
7 499 418 |
3 244 723 |
3 937 360 |
|
Current taxation asset |
1.15 |
16 991 |
20 130 |
– |
– |
|
|
Investment securities2 |
1.12 |
10. |
154 221 |
142 060 |
154 071 |
141 839 |
|
Loans to entities in the Group |
208 824 |
130 490 |
541 407 |
476 038 |
||
|
Property, equipment and right-to- |
||||||
|
use assets2 |
1.5 |
12. |
85 422 |
45 740 |
82 947 |
45 639 |
|
Investment property |
1.3 |
13. |
– |
8 900 |
– |
– |
|
Intangible assets and goodwill |
1.4 |
14. |
194 709 |
215 800 |
140 353 |
156 676 |
|
Deferred tax asset |
1.15 |
11. |
2 210 |
2 139 |
– |
– |
|
Investments in subsidiaries and |
||||||
|
structured entities |
– |
– |
255 859 |
255 859 |
||
|
Total assets |
12 542 490 |
12 766 572 |
9 359 009 |
9 525 161 |
||
|
LIABILITIES |
||||||
|
Funding under repurchase |
||||||
|
agreements and interbank |
1.12 |
15. |
1 882 806 |
2 271 610 |
1 803 712 |
2 197 422 |
|
Trading liabilities |
1.12 |
6. |
101 438 |
40 436 |
85 856 |
35 171 |
|
Current taxation liability |
1.15 |
1 344 |
– |
– |
– |
|
|
Trade and other payables |
1.12 |
16. |
684 667 |
743 310 |
458 476 |
438 384 |
|
Bank overdraft |
1.10 |
4. |
151 462 |
46 008 |
30 462 |
– |
|
Provisions |
1.7 |
17. |
20 291 |
38 189 |
16 343 |
28 591 |
|
Lease liabilities2 |
1.8 |
18. |
65 284 |
– |
62 705 |
– |
|
Deposits from customers |
1.12 |
19. |
5 327 015 |
5 146 236 |
5 748 643 |
5 561 971 |
|
Debt securities issued |
1.12 |
20. |
2 743 823 |
2 753 521 |
– |
– |
|
Long-term loans |
1.12 |
21. |
121 649 |
245 715 |
116 360 |
240 215 |
|
Deferred tax liability |
1.15 |
11. |
90 469 |
136 213 |
25 728 |
45 623 |
|
Loans from entities in the Group |
– |
– |
15 384 |
8 210 |
||
|
Total liabilities |
11 190 248 |
11 421 238 |
8 363 669 |
8 555 587 |
||
|
EQUITY |
||||||
|
Ordinary share capital |
1.9 |
22. |
3 600 |
3 600 |
3 600 |
3 600 |
|
Ordinary share premium |
1.9 |
23. |
459 876 |
459 876 |
459 876 |
459 876 |
|
Reserves |
1.9 |
888 766 |
881 858 |
531 864 |
506 098 |
|
|
Total equity |
1 352 242 |
1 345 334 |
995 340 |
969 574 |
||
|
Total liabilities and equity |
12 542 490 |
12 766 572 |
9 359 009 |
9 525 161 |
||
CONSOLIDATED AND SEPARATE STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2020
|
Accounting policy |
Note |
2020 R’000 |
2019 R’000 Restated1 |
2020 R’000 |
2019 R’000 Restated1 |
|
Interest and similar income 1.13 |
25. |
1 235 604 |
1 269 362 |
801 348 |
813 754 |
|
Interest and similar income calculated |
|||||
|
using the effective interest rate method |
1 233 266 |
1 271 948 |
786 244 |
808 702 |
|
|
Other interest income |
2 338 |
(2 586) |
15 104 |
5 052 |
|
|
Interest and similar expense |
26. |
(719 461) |
(763 304) |
(507 320) |
(538 973) |
|
Interest expense calculated using the |
|||||
|
effective interest method 1.13 |
(718 117) |
(762 378) |
(499 365) |
(533 323) |
|
|
Other interest expense 1.13 |
(1 344) |
(926) |
(7 955) |
(5 650) |
|
|
Net interest income |
516 143 |
506 058 |
294 028 |
274 781 |
|
|
Non-interest income |
317 731 |
341 262 |
450 756 |
446 250 |
|
|
Net fee and commission income 1.13 |
27. |
98 443 |
105 992 |
265 821 |
279 630 |
|
Fee and commission income |
140 010 |
191 447 |
290 084 |
295 656 |
|
|
Fee and commission expense 1.13 |
(41 567) |
(85 455) |
(24 263) |
(16 026) |
|
|
Gains and losses on financial instruments |
106 935 |
127 333 |
180 429 |
163 486 |
|
|
Net gains or losses on the |
|||||
|
derecognition of financial |
|||||
|
instruments at amortised cost 1.13 Other gains or losses on financial |
28. |
28 334 |
52 129 |
12 884 |
25 401 |
|
instruments |
28. |
78 601 |
75 204 |
167 545 |
138 085 |
|
Other income |
29. |
112 353 |
107 937 |
4 506 |
3 134 |
|
Total income |
833 874 |
847 320 |
744 784 |
721 031 |
|
|
Credit impairment charges 1.12.4 & 2.1.1 |
39.3.6 |
(255 560) |
(80 291) |
(139 333) |
(19 820) |
|
Net income after impairments |
578 314 |
767 029 |
605 451 |
701 211 |
|
|
Total operating costs |
(615 968) |
(583 967) |
(589 585) |
(561 640) |
|
|
Staff costs 1.14 |
30. |
(340 297) |
(321 098) |
(284 776) |
(256 516) |
|
Other operating expenses |
31. |
(259 020) |
(256 814) |
(288 158) |
(299 069) |
|
Impairment of non-financial assets 1.11 |
32. |
(16 651) |
(6 055) |
(16 651) |
(6 055) |
|
(Loss)/profit before income tax |
(37 654) |
183 062 |
15 866 |
139 571 |
|
|
Income tax expense 1.5 |
33. |
13 249 |
(47 675) |
19 899 |
(21 309) |
|
(Loss)/profit for the year Other comprehensive income for the year net of tax effects Items that may subsequently be reclassified to profit or loss: Foreign exchange differences on |
(24 405) |
135 387 |
35 765 |
118 262 |
|
|
translation of foreign operations |
41 313 |
4 877 |
– |
– |
|
|
Total comprehensive income for |
|||||
|
the year |
16 908 |
139 371 |
35 765 |
118 262 |
CONSOLIDATED AND SEPARATE STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2020
|
Ordinary Share Capital and premium R’000 |
Distributable reserves R’000 |
Foreign currency translation reserve R’000 |
Hedging reserve R’000 |
Total ordinary share- holders’ equity R’000 |
Total share- holders’ equity R’000 |
|
|---|---|---|---|---|---|---|
|
Consolidated |
||||||
|
2020 |
||||||
|
Opening balance at 1 July 2019 |
463 476 |
908 762 |
80 198 |
(107 099) |
1 345 337 |
1 345 337 |
|
Changes on initial application of IFRS 9 |
– |
– |
– |
– |
– |
– |
|
Restated balance at 1 July 2019 |
463 476 |
908 762 |
80 198 |
(107 099) |
1 345 337 |
1 345 337 |
|
Transfers |
– |
5 658 |
(5 658) |
– |
– |
– |
|
Total comprehensive income for the year |
– |
(24 408) |
41 313 |
– |
16 906 |
16 906 |
|
Profit for the year |
– |
(24 408) |
– |
– |
(24 408) |
(24 408) |
|
Other comprehensive income net of |
||||||
|
income tax for the year |
– |
– |
41 313 |
– |
41 313 |
41 313 |
|
Foreign exchange differences on |
||||||
|
translation of foreign operations |
– |
– |
41 313 |
– |
41 313 |
41 313 |
|
Dividends to ordinary shareholders |
– |
(10 000) |
– |
– |
(10 000) |
(10 000) |
|
Balance at 30 June 2020 |
463 476 |
880 012 |
115 853 |
(107 099) |
1 352 242 |
1 352 242 |
|
2019 |
||||||
|
Opening balance at 1 July 2018 |
463 476 |
903 475 |
75 321 |
(107 099) |
1 335 173 |
1 335 173 |
|
Changes on initial application of IFRS 9 |
– |
(66 103) |
– |
– |
(66 103) |
(66 103) |
|
Restated balance at 1 July 2018 |
463 476 |
837 372 |
75 321 |
(107 099) |
1 269 070 |
1 269 070 |
|
Transfers |
– |
– |
– |
– |
– |
– |
|
Total comprehensive income for the year |
– |
135 387 |
4 877 |
– |
140 264 |
140 264 |
|
Profit for the year |
– |
135 387 |
– |
– |
135 387 |
135 387 |
|
Other comprehensive income net of |
||||||
|
income tax for the year |
– |
– |
4 877 |
– |
4 877 |
4 877 |
|
Foreign exchange differences on translation of foreign operations |
– |
– |
4 877 |
– |
4 877 |
4 877 |
|
Dividends to ordinary shareholders |
– |
(64 000) |
– |
– |
(64 000) |
(64 000) |
|
Balance at 30 June 2019 |
463 476 |
908 759 |
80 198 |
(107 099) |
1 345 334 |
1 345 334 |
|
Ordinary share capital and premium R’000 |
Distributable reserves R’000 |
Foreign currency trans lation reserve R’000 |
Hedging reserve R’000 |
Total ordinary share- holders’ equity R’000 |
Total share- holders’ equity R’000 |
|
|
Separate |
||||||
|
2020 |
||||||
|
Opening balance at 1 July 2019 |
463 476 |
613 197 |
– |
(107 099) |
969 574 |
969 574 |
|
Transfers |
– |
– |
– |
– |
– |
– |
|
Total comprehensive income for the year |
– |
35 766 |
– |
– |
35 766 |
35 766 |
|
Profit for the year |
– |
35 766 |
– |
– |
35 766 |
35 766 |
|
Dividends to ordinary shareholders |
– |
(10 000) |
– |
– |
(10 000) |
(10 000) |
|
Balance at 30 June 2020 |
463 476 |
638 963 |
– |
(107 099) |
995 340 |
995 340 |
|
2019 |
||||||
|
Opening balance at 1 July 2018 |
463 476 |
608 531 |
– |
(107 099) |
964 908 |
964 908 |
|
Changes on initial application of IFRS 9 |
– |
(49 596) |
– |
– |
(49 596) |
(49 596) |
|
Restated balance at 1 July 2018 |
463 476 |
558 935 |
– |
(107 099) |
915 312 |
915 311 |
|
Transfers |
– |
– |
– |
– |
– |
– |
|
Total comprehensive income for the year |
– |
118 262 |
– |
– |
118 262 |
118 262 |
|
Profit for the year |
– |
118 262 |
– |
– |
118 262 |
118 262 |
|
Dividends to ordinary shareholders |
– |
(64 000) |
– |
– |
(64 000) |
(64 000) |
|
Balance at 30 June 2019 |
463 476 |
613 197 |
– |
(107 099) |
969 574 |
969 574 |
DIVIDEND PER SHARE
|
2020 Cents per share |
2019 Cents per share |
2020 Cents per share |
2019 Cents per share |
|
|
Ordinary shares |
||||
|
Interim dividend |
2.78 |
10.00 |
2.78 |
10.00 |
|
Final dividend |
– |
7.78 |
– |
7.78 |
CONSOLIDATED AND SEPARATE STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2020
|
2019 |
2019 |
|||
|---|---|---|---|---|
|
2020 |
R’000 |
2020 |
R’000 |
|
|
Note |
R’000 |
Restated1 |
R’000 |
Restated1 |
|
Cash flows from operating activities |
||||
|
Interest received |
1 235 304 |
1 269 362 |
801 348 |
813 754 |
|
Interest paid |
(719 461) |
(763 304) |
(507 320) |
(538 973) |
|
Fee and commission income received |
140 010 |
191 477 |
290 084 |
295 656 |
|
Fee and commission expense paid |
(41 567) |
(85 455) |
(24 263) |
(16 026) |
|
Net trading and other income/(expenses) |
114 502 |
64 934 |
4 458 |
20 483 |
|
Cash payments to employees and suppliers |
(520 895) |
(444 216) |
(496 169) |
(517 495) |
|
Cash inflow from operating activities 35.1 |
208 193 |
232 798 |
68 138 |
57 399 |
|
Dividends received |
10 257 |
11 901 |
97 503 |
71 404 |
|
Taxation paid 35.2 |
(28 086) |
(45 206) |
– |
1 721 |
|
Dividends paid 35.3 |
(10 000) |
(64 000) |
(10 000) |
(64 000) |
|
Cash flows from operating activities before |
||||
|
changes in operating assets and liabilities |
180 364 |
135 493 |
155 641 |
66 524 |
|
Changes in operating assets and liabilities |
239 014 |
(499 278) |
305 598 |
(437 241) |
|
(Increase)/Decrease in loans and advances |
787 937 |
(33 668) |
617 692 |
(424 322) |
|
(Increase)/Decrease in trading assets |
(16 036) |
133 584 |
(8 388) |
202 525 |
|
(Increase)/Decrease in negotiable securities |
(74 470) |
(1 094 723) |
(74 470) |
(1 094 723) |
|
Increase/(Decrease) in other receivables |
(84 760) |
89 949 |
27 758 |
21 126 |
|
Increase/(Decrease) in deposits |
180 778 |
540 661 |
186 672 |
406 394 |
|
Increase/(Decrease) in long-term funding |
(124 067) |
(178 886) |
(123 855) |
(184 401) |
|
Increase/(Decrease) in funding under repurchase |
||||
|
agreements and interbank |
(388 804) |
348 366 |
(393 710) |
677 750 |
|
Increase/(Decrease) in trading liabilities |
61 002 |
(63 808) |
50 685 |
(136 390) |
|
Increase/(Decrease) in debt securities |
(9 698) |
(361 911) |
– |
– |
|
Increase/(Decrease) in trade and other payables |
(76 423) |
113 971 |
37 833 |
89 170 |
|
Increase/Decrease in provisions |
(16 445) |
7 187 |
(14 619) |
5 630 |
|
Net cash from operating activities |
419 378 |
(363 785) |
461 239 |
(370 717) |
|
Cash flows from investing activities |
(121 116) |
(209 977) |
(103 355) |
(128 867) |
|
Proceeds from the disposal of property and |
||||
|
equipment |
29 |
5 514 |
34 |
– |
|
Proceeds from the disposal of investment securities |
– |
– |
– |
(17 917) |
|
Acquisition of property and equipment |
(12 268) |
(23 907) |
(12 268) |
(21 293) |
|
Acquisition of intangible assets |
(29 077) |
(61 094) |
(29 078) |
(58 295) |
|
Advances made to entities in the Group |
(79 800) |
(130 490) |
(62 043) |
(31 362) |
|
Net cash flows from financing activities Repayment of lease liabilities |
(26 206) |
– |
(25 702) |
– |
|
(26 206) |
– |
(25 702) |
– |
|
|
Net increase/(decrease) in cash and cash balances |
272 056 |
(573 762) |
332 182 |
(499 584) |
|
Cash and cash balances at beginning of the year 4. |
1 268 406 |
1 838 645 |
1 079 459 |
1 579 043 |
|
Effect of exchange rate movements on cash and |
||||
|
cash balances |
6 426 |
3 523 |
– |
– |
|
Cash and cash balances at the end of the year 4. |
1 546 888 |
1 268 406 |
1 411 641 |
1 079 459 |
For the full report, see:
https://www.sasfin.com/media/byopyjuv/sasfin-bank-limited-annual-financial-statements-2020.pdf
STANDARD BANK GROUP LIMITED (JSE: SBK)
The Group at a glance
Standard Bank Group is a financial institution that offers banking and financial services to individuals, businesses, institutions and corporations in Africa and abroad.
OUR STRATEGY
Technology has changed the way we live and work, and financial services are no different. The expectations our stakeholders have of us are changing radically and quickly, and our strategy needs to respond to these expectations. We are strengthening our digital capabilities and integrating our business to transform client experiences and to drive operational efficiency for a radically different world.
We have updated our strategic priorities to align to the operating environment and our strategic positioning to clarify what we need to do to deliver our purpose.
These strategic priorities are:
- Transform client experience
- Execute with excellence
- Drive sustainable growth and value
In transforming the group, we will become:
- Truly human – Providing services, solutions and opportunities that our clients and employees need to achieve growth, prosperity and fulfilment.
- Truly digital – Serving clients predominantly online, processing in the cloud, embracing open innovation underpinned by data and insights.
https://www.standardbank.com/sbg/standard-bank-group/who-we-are/our-group-at-a-glance
11 March 2022
Results announcement for the year ended 31 December 2021
RESULTS OVERVIEW
“The group’s earnings rebounded to R25 billion in 2021, driven by a recovery in client activity, an improvement in client balance sheets, as well as growth in our franchise.” - Sim Tshabalala, Group Chief Executive Officer
Group Results
Standard Bank Group Limited (SBG or group) headline earnings for the twelve months to 31 December 2021 (FY21) rebounded by 57% to R25.0 billion, driven by a recovery in client activity, an improvement in client balance sheets and real growth in our underlying franchise. Return on equity (ROE) improved to 13.5% (FY20: 8.9%). Revenue grew by 5% and pre-provision operating profit grew by 5%, both with double digit growth in the second half of the year (2H21 on 2H20). Net asset value grew by 13% and the group ended the year with a common equity tier one ratio of 13.8% (31 December 2020: 13.2%). The Board approved a final dividend of 511 cents per share. This equates to a dividend payout ratio of 55% for the full year.
Despite the pandemic-related disruptions, the group made significant strategic progress across several areas in 2021. The group’s three client segments delivered client franchise growth, expanded their leading market positions and delivered an improved client experience. Our Banking solutions recorded a strong recovery, with headline earnings up 62% year on year. Our Investment and Insurance solutions grew headline earnings by 11% and by 3% respectively, supported by assets under management and policy base growth. The group retained its position as the third largest asset manager on the continent. We made good progress in building out our new revenue streams and scaling our digital payments, platforms and partnerships. We continued to simplify our business and invest in our people, our systems, our digital solutions and our data management, all while maintaining good cost discipline. The Liberty Holdings Limited (Liberty) minority buyout, announced in July 2021, was successfully completed and Liberty delisted on 1 March 2022.
Standard Bank Activities’ (group excluding ICBC Standard Bank Plc (ICBCS) and Liberty) revenue grew by 5% year on year and by 12% in the second six months of the year (2H21 on 2H20). Pressure on net interest income (NII) from negative endowment faded, activity-related fees continued to recover, and trading revenue remained robust. Revenue growth exceeded cost growth, resulting in positive jaws of 54 basis points. Credit impairment charges declined by 52% but remained above pre-pandemic levels. Standard Bank Activities recorded headline earnings growth of 59% to R24.9 billion and ROE recovered to 14.7% (FY20: 9.6%).
Liberty showed progress operationally but was negatively impacted by excess claims and a pandemic provision top-up. ICBCS benefited from attractive market conditions and client flows.
The group’s South African business, The Standard Bank of South Africa Limited, bounced back strongly. Headline earnings increased by 172% and ROE recovered to 12.5%. Revenue grew double digits, boosted by higher trading and other revenues up 31% and 67% respectively. Credit charges more than halved and costs were well contained to deliver positive jaws of 198 basis points. Our Africa Regions franchise delivered strong top line growth in local currency terms. Inflation and weaker currencies in key markets dampened translated earnings growth. Revenue growth from ongoing client acquisition, balance sheet growth and improved activity was offset by higher costs driven by inflation and investment in our digital lending and payment solutions.
Africa Regions headline earnings declined by 2% (grew by 6% in constant currency) and ROE remained accretive at 18.2%. Africa Regions’ contribution to FY21 group headline earnings was 36%. The top six contributors to Africa Regions’ headline earnings remained Angola, Ghana, Kenya, Mozambique, Nigeria and Uganda.
Prospects
In 2022, global growth is expected to remain above trend and financing conditions are expected to tighten. The International Monetary Fund is forecasting global real GDP growth of 4.4% and 3.7% in Sub-Saharan Africa. Pent-up consumer demand should fuel spending and support trade. In many sub-Saharan economies, debt levels are high, and there will need to be a balance between fighting inflation and supporting the economic recovery. A broad hawkish bias is expected, with interest rate increases expected in Botswana, Eswatini, Ghana, Lesotho, Mauritius, Namibia, South Africa, Uganda and Zambia and possibly Angola.
South Africa’s economic rebound is expected to continue, albeit at a slower rate (SBG Research forecasts 2022 real GDP growth to be 2.0%) as policy stimulus fades and terms of trade retreat from the recent record highs. Inflation is expected to moderate, supporting a gradual rate hiking cycle. We expect three further 25 basis point increases over the course of the year. Persistent idiosyncratic risks remain, particularly electricity disruptions and high levels of unemployment. If structural reforms were accelerated, it could boost confidence, investment and drive faster growth.
Geopolitical tensions, particularly the developments in Ukraine, present risks to this outlook. The situation in Russia and Ukraine is complex and constantly evolving. We are actively monitoring these events in order to comply with all relevant local and international laws and guidelines. The group has limited direct exposure to Russia and Ukraine through its controlled operations. We are however, giving due consideration to the potential secondary impacts across our countries of operation, for example financial markets, trade, transport logistics, commodity and food prices.
ICBCS, as an emerging markets and commodities business, has exposure to certain entities which are being impacted, directly and indirectly, by the developments in Ukraine and Russia. ICBCS is responding to developments in line with its contingency plans. At this stage, given the uncertainties and fluid nature of the developments, it is not possible for ICBCS to assess the impact on its 2022 result.
In 2022, we expect higher average interest rates to support margins, which, together with higher average balance sheets, will support net interest income growth. Non-interest revenue will continue to grow as our larger client franchise and higher activity-related fees offset potentially lower trading revenues. We will maintain a continued focus on costs, in line with our “save to invest” principle, with the objective of delivering positive jaws. CIB’s credit impairment charges are expected to normalise. BCC’s credit loss ratio is expected to move down into its through-the-cycle range. The group’s credit loss ratio is expected to remain at the lower end of the group’s through-the-cycle range of 70 to 100 basis points. Deliberate resource allocation to higher ROE businesses, and further capital optimisation, will support a further recovery in group ROE.
The risks we face as a business are varied and complex, including climate risk. After extensive consultation internally and externally, we have a board-approved climate policy which will be published shortly. The policy includes short, medium and long-term targets and is aligned to our commitment to net zero by 2050. We recognise Africa’s social, economic and environmental development challenges and the need for a just transition and are purposeful in delivering a positive impact.
Together, Liberty and Standard Bank, represent a formidable competitor on the continent, with over 1.4 trillion in AUM and R73 billion in gross written premium across our short and long-term businesses. In 2022, our focus will be on integration. We have a plan and will be executing against it with urgency.
We are sincerely grateful to everyone across the Standard Bank Group, including our colleagues at Liberty, who have continued to serve our clients with excellence in challenging circumstances. We have come through this crisis stronger, more resilient, more agile, and more competitive than ever.
2022 has started with strong business momentum. We are confident we are on track to deliver against the 2025 targets laid out at our Strategic Update in August 2021.
The forecast financial information above is the sole responsibility of the board and has not been reviewed and reported on by the group’s auditors.
FINANCIAL STATISTICS
|
Change (%) |
2021 |
2020 |
|
Financial indicator (Rm) |
||
|
Headline earnings 57 |
25 021 |
15 945 |
|
Total income 8 |
132 982 |
123 667 |
|
Cents per ordinary share |
||
|
Earnings per ordinary share more than 100 |
1 563.2 |
777.0 |
|
Headline earnings per ordinary share 57 |
1 573.0 |
1 002.6 |
|
Total dividend per ordinary share more than 100 |
871 |
240 |
|
Net asset value per ordinary share 13 |
12 493 |
11 072 |
|
Financial performance |
||
|
ROE (%) |
13.5 |
8.9 |
DECLARATION OF FINAL DIVIDENDS
Shareholders of Standard Bank Group Limited (the company) are advised of the following dividend declarations out of income reserves in respect of ordinary shares and preference shares.
Ordinary shares
Ordinary shareholders are advised that the board has resolved to declare a final gross cash dividend No. 104 of 511.00 cents per ordinary share (the cash dividend) to ordinary shareholders recorded in the register of the company at the close of business on Friday, 8 April 2022. The last day to trade to participate in the dividend is Tuesday, 5 April 2022. Ordinary shares will commence trading ex-dividend from Wednesday, 6 April 2022.
The salient dates and times for the cash dividend are set out in the table that follows.
Ordinary share certificates may not be dematerialized or rematerialized between Wednesday, 6 April 2022, and Friday, 8 April 2022 both days inclusive. Ordinary shareholders who hold dematerialized shares will have their accounts at their Central Securities Depository Participant (CSDP) or broker credited on Monday, 11 April 2022.
Where applicable, dividends in respect of certificated shares will be transferred electronically to shareholders’ bank accounts on the payment date.
Preference shares
Preference shareholders are advised that the board has resolved to declare the following final dividends:
- 6.5% first cumulative preference shares (first preference shares) dividend No. 105 of 3.25 cents (gross) per first preference share, payable on Monday, 4 April 2022, to holders of first preference shares recorded in the books of the company at the close of business on the record date, Friday, 1 April 2022. The last day to trade to participate in the dividend is Tuesday, 29 March 2022. First preference shares will commence trading ex-dividend from Wednesday, 30 March 2022.
- Non-redeemable, non-cumulative, non-participating preference shares (second preference shares) dividend No. 35 of 273.98195 cents (gross) per second preference share, payable on Monday, 4 April 2022, to holders of second preference shares recorded in the books of the company at the close of business on the record date, Friday, 1 April 2022. The last day to trade to participate in the dividend is Tuesday, 29 March 2022. Second preference shares will commence trading ex-dividend from Wednesday, 30 March 2022.
The salient dates and times for the preference share dividend are set out in the table that follows.
Preference share certificates (first and second) may not be dematerialised or rematerialised between Wednesday, 30 March 2022, and
Friday, 1 April 2022, both days inclusive. Preference shareholders (first and second) who hold dematerialised shares will have their accounts at their CSDP or broker credited on Monday, 4 April 2022.
Where applicable, dividends in respect of certificated shares will be transferred electronically to shareholders’ bank accounts on the payment date.
Tax implications
The cash dividend received under the ordinary shares and the preference shares is likely to have tax implications for both resident and non-resident ordinary and preference shareholders. Such shareholders are therefore encouraged to consult their professional tax advisers.
In terms of the South African Income Tax Act, 58 of 1962, the cash dividend will, unless exempt, be subject to dividends tax. South African resident ordinary and preference shareholders that are not exempt from dividends tax, will be subject to dividends tax at a rate of 20% of the cash dividend, and this amount will be withheld from the cash dividend with the result that they will receive a net amount of 408.80 cents per ordinary share, 2.60 cents per first preference share and 219.18556 cents per second preference share. Non-resident ordinary and preference shareholders may be subject to
dividends tax at a rate of less than 20% depending on their country of residence and the applicability of any Double Tax Treaty between South Africa and their country of residence.
Shares in Issue
The issued share capital of the company, as at the date of declaration, is as follows:
- 1 619 976 537 ordinary shares at a par value of 10 cents each
- 8 000 000 first preference shares at a par value of R1 each
- 52 982 248 second preference shares at a par value of 1 cent each and subscription price of R100.
https://thevault.exchange/?get_group_doc=18/1646978492-SBG2021AnnualResultsSNESAnnoucementShortForm.pdf
TYMEBANK
TymeBank is an exclusively digital retail bank based in South Africa. Headquartered in Rosebank, Johannesburg, TymeBank does not have any physical bank branches and relies on an Android banking App, an Internet Banking site and a partnership with two retail chains, Pick n Pay and Boxer, to host a national network of self-service kiosks that facilitate the account opening process.
The Prudential Authority of the South African Reserve Bank (SARB), granted permission for TymeBank to operate exclusively online on 28 September 2017.
Our purpose
To empower mang ka mang mo Mzansi to take back control of their money.
Our mission
To help you understand how money really works by giving you a clear picture of every Rand and cent you have. This helps you make decisions about your money today that has the power to grow into a secure financial future.
TymeBank is all about 3 key things
1. Simplicity
Our products, services and tools are designed to be easy to use and easy to find.
Because there is a TymeBank kiosk in most Pick n Pay and Boxer stores and you can deposit and withdraw money at every Pick n Pay and Boxer till point, you can bank where you shop.
Our banking app and online banking is ready for you neng kapa neng and our services like SendMoney for example, lets you send money to someone else, kae kapa kae mo Mzansi, even if that person doesn’t have a bank account.
2. Transparency
Banking doesn’t have to be complicated. There’s no need for larney words or hidden costs.
We make sure that you know exactly what is free, what banking you pay for (and how much) and we keep our fees and charges super-simple.
3. Affordability
Abomalume, soccer moms, truck drivers, managers, Mzansi-preneurs and umpakathi as a whole, have the right to accessible and affordable banking.
Because we are a digital bank, the money we save by not having branches – coupled with our partnership with Pick n Pay and Boxer retail stores, means that we can offer you a lot more at a lot less cost to you.
https://www.tymebank.co.za/about/
UBANK LIMITED
About Us
Ubank has a long and rich history of providing basic financial services to mineworkers and their families for more than 40 years. In 1975, when other financial institutions largely ignored this sector of the market, Teba Cash Financial Services was formed to provide mineworkers with basic financial services. These included facilitating the remittance of funds to families and dependents in the rural and labour sending areas using a linked account facility. In the early 1990s, as South Africa was undergoing fundamental political change as a country, the Godsell Motlatsi Commission was formed. This led to the transition from a savings fund into a commercial bank. In June 2000, Ubank (then Teba Bank) was granted a banking license, although its ownership remained in a trust managed by trustees elected by the National Union of Mineworkers and the South African Chamber of Mines. The beneficiaries of the trust are the bank’s customers. In 2007, Ubank welcomed a new vision, mission, set of values, and strategy. Essentially, this saw Ubank set itself up to become the Worker’s Bank of Choice.
In October 2010, the name of the bank was changed to Ubank and launched to the public. Since the birth of the new brand and strategy, various initiatives to improve and expand the business have been undertaken.
https://www.ubank.co.za/about/who-we-are/
ACQ_REF: IS/48515/20250325/ZAF/62/3
ACQ_AUTHOR: Associate/Emillia Edwin
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