Wrap Text
Unaudited condensed consolidated interim results for the six months ended 31 December 2021 and cash dividend
SASFIN HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number 1987/002097/06)
Ordinary share code: SFN ISIN: ZAE000006565
(“Sasfin” or “the Company” or "the Group")
Summarised unaudited condensed consolidated interim results for the six months ended 31 December 2021
and cash dividend
RESULTS
31 December 31 December
Growth %
2021 2020
Total Income (R'000) (1.95) 620,696 633,017
Profit before income tax (R'000) 29.60 73,064 56,378
Headline earnings for the period (R'000) >100 54,833 26,896
Headline earnings per ordinary share (cents) >100 178.19 83.54
Earnings per ordinary share (cents) 44.24 175.25 121.50
Dividend per ordinary share (cents) 100 33.95 -
Net asset value per ordinary share (cents) 5.14 5 009 4 764
Financial performance
Group headline earnings for the six months ended 31 December 2021 grew by 103.9% to R54.8 million
(2020: R26.9 million). This improvement was mainly attributable to improved credit performance. Total
income (including income from associate) reduced by 1.95% to R620.696 million (2020: R633.017million).
This decline is due, in part, to expected margin contraction, additional IFRS 16 interest on our new head
office and income earned in the prior period not recurring. Total costs grew by 12.84% to R503.430 million
(2020: R446.148 million) significantly influenced by a once-off operational loss and additional IFRS 16
depreciation offset by costs in the prior year not recurring. All these factors contributed to the cost-to-
income ratio increasing to 81.11% (2020: 70.48%). Strong credit performance resulted in an improved
credit loss ratio of 123bps (2020: 240bps).
Financial and capital position
The Group’s balance sheet remains strong with core funding increasing by 13.75% to R9.026 billion (2020:
R7.935 billion). While total assets declined 2.74% to R12.211 billion (2020: R12.555 billion), net loans and
advances grew 13.33% to R7.208 billion (2020: R6.360 billion). Total ordinary shareholders equity
increased by 5.13% to R1.618 billion (2020: R1.539 billion). The Group’s capital adequacy ratio
strengthened to 17.50% (2020: 17.07%). The liquidity coverage ratio (LCR) and net stable funding ratio
(NSFR) remain strong. As a result of the improved profitability and the strong capital and liquidity position,
the Company has declared an interim dividend of 33.95 cents (2020: nil) per share.
Segmental overview
Asset Finance operating profit declined by 32.22% to R55.868 million (2020: R82.423 million) off the back
of higher costs and margin contraction. While the staging of the book has improved, following the focused
collections effort, a decision was taken to increase provisions against our Stage 3 portfolio. Core
performance remains strong with new business volumes achieved now higher than during the pre-Covid
comparative period. The newly combined Business and Commercial Banking Pillar is better placed to
provide a holistic client experience and extract efficiencies where appropriate. The Pillar saw a healthy
turnaround, posting an operating profit of R17.224 million (2020: loss of R25.001 million) mainly due to
significant recoveries in the current year and a 9.06% increase in income to R133.645 million (2020:
R122.542 million). Sasfin Wealth’s operating profit declined by 77.74% to R12.639 million (2020: R55.852
million), mainly attributable to the gain on the sale of its stake in Efficient Group in the comparative period
not recurring and the once-off operational loss in the current period. Underlying performance was strong
on account of record growth in assets under advice or management (collectively AUM) to
R62.3 billion (2020: R51.8 billion).
Prospects
While financial performance has improved as we emerge from an extremely tough period for South Africa,
returns remain below our aspirations for the Group. However, Sasfin enters 2022 with several positives:
• Our investment in, and repurposing of, the Business and Commercial Banking Pillar over the last
few years is paying off;
• We have seen healthy growth in our key financial drivers, namely Loans, Deposits (including
Transactional Deposits) and AUM. This growth is the result of the continued investment in our
distribution capabilities and improved customer product offerings across the Group; and
• We have successfully moved into new modern premises at 140 West Street, Sandown where we
have taken less floor space at reduced rental and implemented a hybrid work model.
In 2022 we aim to:
• Strengthen our platforms to enable growth and improve client service and efficiencies;
• Invest in distribution to drive scale;
• Focus on developing our human capital approach to deal with the changing work realities; and
• Continue to contribute to society by supporting business growth and savers.
Changes in directorship
As previously announced on SENS on 29 November 2021, Mr Tienie van der Mescht was appointed as an
independent non-executive director of the Company. He has been an independent non-executive director
of Sasfin Wealth (Proprietary) Limited, a subsidiary of the Company, since 2017. The Board welcomes
Tienie and looks forward to his contribution. As announced on SENS on Tuesday, 11 January 2022, our
Financial Director, Ms. Angela Pillay, will be leaving us next month. Over the last few years Angela has
played a significant role in the development of our business as a whole and in enhancing our finance
function. The Board thanks Angela for her excellent contribution and wishes her all the best in her future
endeavours.
Conclusion
While the business credit environment remains challenging, we are starting to see increased activity and
demand for credit. We expect this to gather momentum and remain committed to enabling business
growth by supporting our clients to take advantage of opportunities that will present themselves. We
recognise the global political tensions and increasing inflationary pressures which are creating new
challenges for Central Banks around the world after a long period of stimulatory monetary policy. This
creates a new set of challenges for investors, particularly clients in Sasfin Wealth, and we are
committed to working with them to grow their global wealth in the uncertain market conditions ahead.
Dividend
Interim Ordinary share cash dividend
The Directors have declared a gross ordinary share cash dividend for the half year ended 31 December
2021 (“interim dividend”) of 33.95026 cents (2020: nil cents) per share.
The following further information is provided to shareholders with regards to the interim dividend
declaration:
• The interim dividend has been declared from income reserves.
• The applicable tax rate levied in terms of the Income Tax Act, Act 59 of 1962, as amended
(“dividend withholding tax”) is 20%, and a net interim dividend of 27.16021 cents (2020: nil cents)
per share is to be paid to those shareholders who are not exempt from dividend withholding tax.
• Sasfin’s income tax reference number is 9300204717.
• The issued number of ordinary shares at declaration date is 32 301 441 (2020: 32 301 441).
• The issued number of ordinary shares excluding treasury shares as at declaration date is 30 772
847 (2020: 32 196 882).
The interim dividend is payable to holders of ordinary shares recorded in the register of the Company
at the close of business on Friday, 25 March 2022.
The salient dates relating to the ordinary dividend are as follows:
Last day to trade "cum" the interim dividend Tuesday, 22 March 2022
Ordinary shares commence trading "ex" the interim dividend Wednesday, 23 March 2022
Interim dividend record date Friday, 25 March 2022
Payment date of interim dividend Monday, 28 March 2022
Ordinary share certificates may not be dematerialised or rematerialised between Wednesday, 23
March 2022 and Friday, 25 March 2022, both days inclusive.
The above dates and times are subject to amendment. Any such amendment will be published on SENS.
Full Announcement
This short-form announcement is the responsibility of the Directors of the Company and is a summary of
the information in the full announcement which is available for viewing on the following websites:
Company’s website: https://www.sasfin.com/investor-relations/#results-and-reports
JSE website: https://senspdf.jse.co.za/documents/2022/jse/isse/sfn/sfn2022.pdf
Any investment decision by investors and/or shareholders should be based on consideration of the full
announcement, copies of which are also available for inspection at our offices and our sponsors' offices
on workdays during business hours, at no charge. Copies can also be requested from Sasfin’s company
secretary at charissa.dejager@sasfin.com.
On behalf of the Board
Mr GP de Kock Mr MEE Sassoon
Chair Group Chief Executive Officer
Johannesburg
3 March 2022
Sponsor: Questco Corporate Advisory Proprietary Limited
Sponsor: Deloitte & Touche Sponsor Services Proprietary Limited
Date: 03-03-2022 09:55:00
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