The 2009 financial year represents an important milestone for ABIL. Faced with a deteriorating local economy and volatile capital markets, the group’s risk mitigation strategies were tested to the full. In particular, the `realtime` view of the key operating metrics of the business enabled a rapid response to negative external developments, and in this context the financial results, whilst below expectations, reflect the underlying stability of the business as a whole.
The year commenced against the backdrop of an emerging global financial crisis. Within the domestic economy, while the unsecured credit market remained initially stable, demand for durable and semi-durable goods had already begun to weaken. African Bank’s sales in the first quarter increased by 17%, whilst Ellerines sales declined by 24%, the latter exacerbated by significant store closures, stricter underwriting disciplines and the high base of the previous year.
