AFRICAN BANK LIMITED - Curatorship update

Curatorship update

AFRICAN BANK LIMITED 
(Incorporated in the Republic of South Africa) 
(Registered bank) 
(Registration number 1975/002526/06) 
Company code: BIABL 
(“African Bank” or “the Bank”) 
 
African Bank Limited Curatorship update, including release of the audited annual financial 
statements for the year ended 30 September 2014 and trading update for the six months ended  
31 March 2015 
 
Stakeholders are referred to the statement regarding the Curatorship of African Bank ("the 
Curatorship") made by the then Governor of the South African Reserve Bank ("SARB"), Ms. Gill 
Marcus, on 10 August 2014 ("the SARB statement") and to the SENS announcements released by 
African Bank Investments Limited ("ABIL") and African Bank on 26 September 2014,  
10 December 2014, 3 March 2015 and 31 March 2015, and by African Bank on 28 and  
29 May 2015 ("the Restructuring SENS Announcements"). 
The SARB statement confirmed that Mr. Tom Winterboer was appointed as Curator of African Bank 
("the Curator") in terms of the Banks Act No. 94 of 1990 (as amended) on 10 August 2014.  At the 
same time the SARB statement set out a proposal for the restructuring of African Bank, which 
entailed the creation of a new "Good Bank" ("the Good Bank Restructuring Proposal"). Further 
detail about the Good Bank Restructuring Proposal has been communicated to stakeholders in the 
Restructuring SENS Announcements. 
 
The Curator is pleased to give an update regarding the Curatorship of African Bank.  Stakeholders are 
referred to http://africanbank.investoreports.com/ to access the published information. 
       
The update includes: 
1. a progress report of the Good Bank Restructuring Proposal together with the targeted execution 
   timeline;  
2. the publication of audited financial statements of the Bank for the year ended 30 September 
   2014; and 
3. a trading update of the Bank for the six months to 31 March 2015.  
            
1.    Update on Good Bank Restructuring Proposal 
      The Curator would like to provide the following additional updates not included in the 
      Restructuring SENS announcements. 
      Subsequent to the release of the results for the six months ended 31 March 2015, which is 
      expected during June 2015, the Curator will release an Information Memorandum (“IM”) 
      detailing the intended restructuring approach to African Bank. The Curator expects to release 
      the IM during July 2015. The IM will be made publicly available and its expected publication date 
      and outline will be communicated in a SENS announcement in due course. 
      The Curator will then allow approximately four weeks for affected parties to review the IM and 
      provide comments, after which he will reflect on the intended restructuring approach. 
      If, following the receipt of comment from affected parties, the Good Bank Restructuring 
      Proposal remains the optimal approach, then, provided that the Banks Amendment Act has 
      come into force, the Curator expects to make a formal offer to affected creditors of African Bank 
      in an Offer Document (“the Offer Document”). Such an offer would be subject to the approval 
      of the Minister of Finance. The expected date for the submission of the Offer Document in these 
      circumstances to affected creditors is August 2015. 
      Should the Good Bank Restructuring Proposal remain the optimal approach, then subject to 
      achieving the required level of affected creditors consent, the Curator is targeting the 
      implementation of the Good Bank Restructuring Proposal by 1 October 2015, subject to any 
      modification agreed by affected stakeholders. Given the number of internal and external 
      dependencies that drive the execution timetable, the Curator wishes to alert that there is a risk 
      that the final implementation date could be delayed. 
      
2.    Financial results for the year ended 30 September 2014 
      The loss for the year increased by 58% from the prior period to R9 299 million (2013 R5 901 
      million restated). 
      The loss for financial year 2013 was restated to R5 901 million compared to a previously 
      reported loss of R4 535 million. 
      Detailed explanations regarding the restatements are made in the audited financial statements 
      for the year ended 30 September 2014. 
      
3.    Trading update 
      Disbursements of new loans and credit cards have stabilised at lower levels of approximately 
      R600 million per month, from levels of slightly above R1.2 billion per month from October 2013 
      to July 2014, before Curatorship. These levels of disbursements exclude disbursements for 
      furniture loans on sales of merchandise by Ellerine Furnishers, now in Business Rescue as per 
      the SENS announcement released by ABIL and African Bank on 7 August 2014 (Notice of 
      application for business rescue of Ellerine Furnishers Proprietary Limited and cautionary 
      update). 
      Collections are stable at over R2 billion per month and in line with expectations on post 
      Curatorship business. 
      Early indications are that post Curatorship business is showing the best trend of risk emergence 
      since 2012. 
      African Bank expects to report a loss for the six months ended 31 March 2015 between R2.3 and 
      R2.8 billion, and expects to release the reviewed results for this period during June 2015. 
 
The Curator will make further announcements related to the financial results, operations and 
restructuring of African Bank in due course. 
 
On behalf of the Curator of the Bank  

Midrand 
11 June 2015 
 
Sponsor 
RAND MERCHANT BANK (A division of FirstRand Bank Limited) 
 
Footnote : T Winterboer was appointed as Curator of African Bank Limited on 10 August 2014 by the 
Minister of Finance of the Republic of South Africa and pursuant to the Banks Act No. 94 of 1990 (as 
amended) to manage the affairs of African Bank Limited subject to the supervision of the Registrar 
of Banks.  Please note that Mr. Winterboer acts in the aforesaid capacity. 
 

Date: 11/06/2015 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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