Wrap Text
Unaudited Consolidated Results For The Six Months Ended 31 August-2012
FINBOND GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2001/015761/06)
Share code: “FGL” ISIN: ZAE00013895
(“Finbond” or “the Company” or “the Group")
UNAUDITED CONSOLIDATED RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST-
2012
Executive Overview
Against the backdrop of a challenging operating environment and weak
global and local macroeconomic conditions, the directors are pleased
to present the financial results of the Finbond Group for the six
months ended 31 August 2012. During the six months under review,
Finbond delivered another set of solid results and made further
progress with regards to the realization of its vision. This included
a number of achievements and significant developments for Finbond:
* Operating profit from continuing operations increased 348.3% to
R13,6 million. (Aug 2011: loss –R5,5 million)
* Profit for the period attributable to owners of the company
increased 298.6% to R9,3 million. (Aug 2011: loss –R4,7 million)
* Earnings before interest, taxation, depreciation and amortization
(EBITDA) increased 275.2% to R26,3 million. (Aug 2011: R7 million)
* Revenue from continuing operations increased 18.1% to R 103,7. (Aug
2011: R87,8)
* Basic earnings per share increased 258.3% to 1.9c (August 2011:
loss -1.2c)
* Headline earnings per share increased 257.0% to 2.0c (Aug 2011:
loss -1.3c)
* Cash generated in operating activities increased 49.5% to R 44 438
834 (Aug 2011 R 29 635 865)
* Value of loans advanced – R203,1 million
* Cash received from customers R281,9 million
* Operating expenses reduced from R68,5 million (Aug 2011) to R64
million (Aug 2012), a saving of R4,5 million (-6.5.%)
* Received formal consent from the Registrar of Banks to establish
and register a mutual bank, namely Finbond Mutual Bank.
* Raised R 35m from its two largest shareholders: R20m by way of a
Rights Issue and R15m by way of shareholder loans.
The six month period ended 31 August 2012 has been pivotal for
Finbond in terms of its evolving strategy to establish and register a
Mutual and Savings Bank in order to provide clients with a full range
of low cost banking services. After due adherence to the South
African Reserve Bank’s conditions of establishment, the Registrar of
Banks has, in terms of Section 14 of the Mutual Bank Act 124 of 1993,
issued Finbond Mutual Bank with a registration certificate and that
Finbond Mutual Bank has been formally registered as a Mutual Bank
with effect from 23 July 2012.
The Group continues to manage for the longer term and to invest in
people, training, information technology and banking systems, as well
as in enhanced collection strategies and systems, in order to build a
sustainable, professional business.
We remain focused on executing on the Group’s strategy and top
business priorities namely optimal capital utilization, earnings
growth, strict upfront credit scoring, good quality sales, effective
collections, cost containment and training and development of staff
members. This enabled us to achieve overall strong operational
results despite the challenging environment.
Micro Finance
Finbond focuses on assisting its clients to gain access to finance
and credit solutions. Finbond targets the unbanked and underserved
market of more than 40% of the adult population in South Africa
actively seeking financial services but remaining largely unattended
and underserviced due to the traditional banks’ focus on higher
income brackets. Finbond operates through 168 branches in South-
Africa. Finbond has 464 employees and provides micro finance loans to
its clients, who typically fall into the LSM 1-7 category.
Finbond offers short term micro loans ranging from R100 - R7,000 with
an average loan size of R2,417 and an average tenure of about 2.45
months. Given the short term nature of Finbond’s products, Finbond’s
loan portfolio is very cash flow generative. The whole loan portfolio
turns approximately 5.5 times per annum.
During the period under review Finbond granted R203,1 million worth
of loans and received cash payments of R281,9m from customers.
Finbond’s Net Impairment as a percentage of expected instalments
amounted to 5.3% (2011: 5.1%) and Net Impairment as a percentage of
cash received (which is more conservative than instalments due) stood
at 5.8% (2011: 5.3%) at the end of August 2012. The best measurement
of arrears and impairments on the short term products is against
instalments due and not outstanding balances, because a large part of
a short term loan is repaid before month-end/year-end and is
therefore not reflected on the balance sheet. Computations based on
the outstanding balance therefore distort this ratio on short term
products.
Loan loss reserve, also referred to as the risk coverage ratio (Loan
loss reserves [impairment provision]/ PaR90) remains conservative at
94.6% (2011: 82.3%), which is an indication of a microfinance
institution’s ability to cope with estimated loan losses.
Finbond’s gross debtors book remains geared at less than one and half
times, well below industry average.
Finbond’s liquidity position at the end of August 2012 reflects R26,6
million cash in bank (2011: R29,2 million) and undrawn funding
facilities of R 22,3 million.
Total segment revenue from Finbond’s Micro Finance activities, made
up of interest, fee and insurance income (portfolio yield) increased
by 14% to R99,2 million (2011: R87 million).
Over the past six months Finbond continued to improve on and apply
strict upfront credit scoring criteria. The scores on the various
products are monitored on a monthly basis and adjusted upwards or
downwards. This upfront credit scoring is supported by robust
collection strategies and processes to achieve improved default rates
going forward. 100% of Finbond’s book is collected by way of advance
debit orders on the Nupay system.
Finbond is well positioned for the implementation of its growth plans
in the Micro Finance and Mutual Banking markets in South Africa.
Mortgage Origination
For the period under review Mortgage Origination contributed less
than 1% to Finbond’s revenue. All of Finbond’s mortgage origination
activities have been outsourced and Finbond now mainly focuses on its
Micro Finance and Mutual Bank business. Effective 1 March 2011,
Finbond received 0,01% commission on all transactions originated
through its origination channels without having to spend any
management time, physical expense or effort on the various channels.
Property Investments
Two Independent valuations by professional valuers registered with
the South African Institute of Valuers were again obtained as at 29
February 2012, as required by IAS 40.
The Independent Valuations revalued Finbond’s property portfolio at
R229,6 million (2011: R 207m).
The R229 million in development properties on Finbond’s Balance sheet
are held as passive long term investments. The intention is to
realize a profit over the medium to long term and to invest the cash
realized into the Micro Finance Business. A portion of the Investment
Property is currently used as security to fund the micro finance
operations.
Strategic Initiatives
Strategic initiatives under way include:
* Establishing a Mutual Bank namely Finbond Mutual Bank in terms of
the Mutual Banks Act after receiving the necessary approval from
the South African Reserve Bank in order to provide Finbond
clients with full range of low cost banking services through
existing branch infrastructure.
* Becoming a member of SAMOS, The Banking Association of South
Africa, VISA, PASA and its various clearing houses which will
enable Finbond Mutual Bank to participate in the National Payment
Streams and to open Finbond Mutual Bank bank accounts for all its
micro finance clients in six to twelve months.
* Further diversification of the funding base through inter alia
raising term deposits.
* Implementing the Finbond Mutual Bank deposit taking system that
was developed by BankservAfrica’s wholly owned subsidiary BSVA
Integrated Services.
* Increased sale of short term products, specifically 30 day and
90 day loans.
* Conservative expansion of the branch network in high growth
areas.
Prospects
The challenging macro-economic environment as well as the adverse
market conditions in the markets within which Finbond operates, are
not expected to abate in the short and medium term. However, we
remain confident that we have the required resources and depth in
management to successfully confront and overcome these various
challenges facing Finbond.
We are positive about our prospects for the future due to Finbond’s:
• Improvement achieved in earnings and profitability,
• Improvement achieved in cash generated from operating
activities,
• Mutual Banking License and the establishment of Finbond Mutual
Bank;
• Management expertise;
• Low Gearing;
• Strong Cash Flow;
• Liquidity position;
• Uniquely positioned 168 Branch Network
• Access to funding; and
• Untapped potential in the Micro Finance and Mutual Banking
markets.
We believe that the evolution from a Micro Finance Institution to a
Mutual and Savings Bank in the implementation of our strategic action
plan will ensure that we achieve results in the medium and long term.
References to future financial performance included anywhere in this
announcement have not been reviewed or reported on by the group’s
external auditors.
Dividend
No interim dividend has been declared
UNAUDITED CONSOLIDATED RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST-
2012
Figures in Rand Interim Interim Growth Full year
unaudited 31 unaudited 31 % audited 29
August 2012 August 2011 Feb 2012
Condensed consolidated
statement of financial
position
Assets
Cash and cash
equivalents 26 622 375 29 231 039 (8.9%) 53 232 659
Other financial assets
20 744 474 6 819 355 204.2% 8 607 373
Loans and advances 101 865 147 82 620 863 23.3% 89 548 617
Maximum exposure to
credit risk (Gross 140 301 206 114 663 092 22.4% 122 631 125
book)
Deferred future income
(26 655 326) (17 236 826) (54.6%) (22 288 563)
Allowance for
impairment to loans (11 780 732) (14 805 403) 20.4% (10 793 945)
and advances
Other receivables
12 342 974 9 537 846 29.4% 10 009 544
Property, plant and
equipment 15 984 631 21 146 973 (24.4%) 19 058 249
Investment property
229 727 571 207 081 002 10.9% 229 620 000
Goodwill
61 262 303 61 262 303 0.0% 61 262 303
Deferred tax
- - 0.0% 5 783 928
Total Assets
468 549 475 417 699 381 12.2% 477 122 673
Equity and liabilities
Equity
Share capital and
premium 221 042 475 201 793 187 9.5% 201 775 944
Reserves
4 080 219 8 091 179 (49.6%) 7 022 371
Accumulated profit
51 177 570 21 667 129 136.2% 38 839 975
Equity attributible to
owners of the Company 276 300 264 231 551 495 19.3% 247 638 290
Non-controlling
interest (824 052) (496 394) (66.0%) (570 054)
Total equity
275 476 212 231 055 101 19.2% 247 068 235
Liabilities
Trade and other
payables 13 181 300 18 038 787 (26.9%) 12 911 381
Current tax payable
3 683 692 1 781 187 106.8% 3 053 422
Finance lease
obligation 743 799 3 852 242 (80.7%) 2 702 079
Other financial
liabilities 159 390 642 155 434 066 2.5% 174 441 821
Shareholders loans
5 000 000 8 000 000 (37.5%) 20 000 000
Deferred tax
11 073 830 (462 002) 2496.9% 16 945 735
Total liabilities
193 073 263 186 644 280 3.4% 230 054 438
Total equity and
liabilities 468 549 475 417 699 381 12.2% 477 122 673
Condensed Consolidated Statement of
Comprehensive Income
Interest income
25 263 895 26 561 817 (4.9%) 47 382 983
Interest expense
(10 322 406) (8 296 461) 24.4% (16 801 690)
Net interest income
14 941 489 18 265 356 (18.2%) 30 581 294
Fee income
47 411 324 49 322 068 (3.9%) 92 305 545
Other microfinance
income 30 357 026 11 312 610 168.3% 33 707 775
Fair value
adjustments 5 100 - 100% 22 435 160
Net commission
income (280 724) 137 565 (304.1%) (39 127)
Net impairment
charge on loans and (14 771 323) (16 048 739) 8.0% (23 719 091)
advances
Operating expenses
(64 023 479) (68 482 555) 6.5% (127 042 430)
Operating
profit/(loss) 13 639 413 (5 493 695) 348.3% 28 229 125
Profit/(loss)
before taxation 13 639 413 (5 493 695) 348.3% 28 229 125
Taxation
(4 620 788) 770 868 (699.4%) (14 805 247)
Profit/(loss) for
the period 9 018 625 (4 722 827) 291.0% 13 423 878
Other comprehensive
income net of - - -
taxation
Foreign currency
translation - - -
differences for
foreign operations
Total comprehensive
(loss)/ income for 9 018 625 (4 722 827) 291.0% 13 423 878
the period
Total comprehensive
(loss)/ income
attributable to:
Owners of the
company 9 272 622 (4 668 189) 298.6% 13 552 177
Non controlling
interest (253 997) (54 638) (364.9%) (128 298)
Profit/(loss) for
the period
attributable to:
Owners of the
company 9 272 622 (4 668 189) 298.6% 13 552 177
Non controlling
interest (253 997) (54 638) (364.9%) (128 298)
Earnings/(loss) per
share:
Basic
earnings/(loss) per 1.9 (1.2) 258.7% 3.5
share (cents)
Diluted
earnings/(loss) per 1.9 (1.2) 258.7% 3.5
share (cents)
Total number of
ordinary shares 582 025 250 382 025 250 52.4% 382 025 250
outstanding
Weighted average
number of ordinary 478 200 113 382 025 250 25.2% 382 025 250
shares outstanding
Reconciliation of
headline
profit/(loss) per
share:
Profit/(loss)
attributable to 9 272 622 (4 668 189) 298.6% 13 552 177
owners of the
company
Adjusted for:
Profit on disposal
of property, plant 140 800 (122 026) 215.4% (131 774)
and equipment
Re-measurement of
items of a capital (18 223 117)
nature:
Fair value
adjustment of - - (22 435 160)
investment
properties included
in basic earnings
Tax effect on re-
measurement of - - 4 212 043
items of a capital
nature
Headline
profit/(loss) 9 413 422 (4 790 215) 296.5% (4 802 715)
Less changes in tax
rate: effect on - - 7 726 426
opening deferred
tax balances
related to
previously recorded
fair value gains*
Normalised Headline 9 413 422 (4 790 215) 296.5% 2 923 712
profit/(loss)*
Headline
profit/(loss) per
share:
Basic headline
earnings/(loss) per 2.0 (1.3) 257.0% (1.3)
share (cents)
Normalised headline
earnings per share 2.0 (1.3) 257.0% 0.8
(cents)*
Diluted headline
earnings/(loss) per 2.0 (1.3) 257.0% (1.3)
share (cents)
Condensed
consolidated
statement of cash
flows
Cash flows from
operating
activities
Cash receipts from
customers 66 814 627 77 866 894 (14.2%) 143 238 735
Cash paid to
suppliers and (22 375 793) (48 231 029) 53.6% (85 221 786)
employees
Cash generated in
operating 44 438 834 29 635 865 49.9% 58 016 949
activities
Increase in net
loans and advances (34 734 388) (9 415 234) (268.9%) (31 019 869)
Interest paid
(10 322 406) (8 296 461) 24.4% (15 545 062)
Interest received
on cash and cash 963 647 569 811 69.1% 1 356 862
equivalents
Taxation paid
(4 085 460) (3 136 295) (30.3%) (6 396 638)
Net cash from
operating (3 739 773) 9 357 686 (100.0%) 6 412 243
activities
Cash flows from
investing
activities
Property, plant and
equipment acquired 244 199 (820 406) 129.8% (3 450 801)
Proceeds on
disposals of 3 351 891 - 100.0% 1 257 330
property, plant and
equipment
Investment
properties acquired - - 0.0% -
Dividends received
- - 0.0% -
(Decrease)/
increase in loans - 80 850 (100.0%) 11 944 701
from/ (to) group
companies
Increase in
financial assets (12 137 101) (542 168) (2138.6%) (2 315 071)
Expenditure to
maintain and expand (8 541 011) (1 281 724) (566.4%) 7 436 158
operating capacity
Contingent 0.0%
consideration - - -
settled in cash
Business 0.0%
combinations and - - -
disposals
Expenditure for 0.0%
expansion - - -
Net cash from
investing (8 541 011) (1 281 724) (566.4%) 7 436 158
activities
Cash flows from
financing
activities
Repurchase of own
shares held as - - -
treasury shares
Finance lease
payments (1 958 280) (716 802) (173.2%) (1 927 339)
Rights Issue
20 000 000 - 100.0% -
Funding (other
financial (15 000 000) - (100.0%) 42 000 000
liabilities) raised
Funding (other
financial (16 637 751) (15 066 323) (10.4%) (37 609 360)
liabilities) repaid
Share premium
expenses (733 468) - (100.0%) (17 244)
Net cash from
financing (14 329 500) (15 783 125) 9.2% 2 446 057
activities
Increase/
(Decrease) in cash (26 610 284) (7 707 163) (245.3%) 16 294 458
and cash
equivalents
Cash and cash
equivalents at 53 232 659 36 938 202 44.1% 36 938 201
beginning of period
Cash and cash
equivalents at end 26 622 375 29 231 040 (8.9%) 53 232 659
of the period
Cash generated in
operating
activities
Profit/(loss)
before taxation 13 639 413 (5 493 695) 348.3% 28 229 125
Adjustments for:
Depreciation and
amortisation 1 911 653 2 549 825 (25.0%) 5 037 717
Loss on sale of
assets (140 800) (113 894) 23.6% (183 020)
Gain on a bargain
purchase - - 0.0% -
Acquirer's excess
of net asset - - 0.0% -
purchased
Interest received
on cash and cash (963 647) (569 811) 69.1% (1 356 862)
equivalents
Finance costs
10 322 406 8 296 461 24.4% 15 680 919
Fair value
adjustments (5 100) - (100.0%) (22 435 160)
Other non cash
items (702 892) (847 562) 17.1% 229 404
Movement in
impairment charge 22 417 856 22 515 273 0.4% 37 192 155
and bad debts
written off
Impairment of
intangibles -
Share option costs
- 686 154 (100.0%) (1 433 120)
Loss on sale of
subsidiary - - 0.0% -
Impairment of other
financial assets - - 0.0% -
Changes in working
capital:
Trade and other
receivables (2 309 975) 115 591 (2098.4%) (340 296)
Trade and other
payables 269 920 2 497 523 (89.2%) (2 603 916)
Cash generated in
operating 44 438 834 29 635 865 49.9% 58 016 949
activities
Share Share Treasury Total Share Reserves
Capital premium shares Capital
For the six months
ended 31 August
2012
Balance at 1 March
2012 382 211 256 956 (9 481 395) 201 775 944 7 022 371
Loss for the period
- - - - -
Other comprehensive
income - - - - -
Total comprehensive
income for the - - - - -
period
Transactions with
owners, recorded
directly in equity
Contributions by
and distributions
to owners
Rights issue
- 20 000 000 - 20 000 000 -
Costs related to
rights issue - (733 469) - (733 469) -
Transfer from
contingency reserve (2 942 152)
Own shares
purchased - - - - -
Transactions with
Joint Venture, - - - - -
recorded directly
in equity
Total transactions
with owners - 19 266 531 - 19 266 531 (2 942 152)
Balance at 31
August 2012 382 230 523 488 (9 481 395) 221 042 475 4 080 219
For the six months
ended 31 August
2011
Balance at 1 March
2011 382 211 274 200 (9 481 395) 201 793 187 7 439 436
Loss for the period
- - - - -
Other comprehensive
income - - - - -
Total comprehensive
income for the - - - - -
period
Transactions with
owners, recorded
directly in equity
Contributions by
and distributions
to owners
Share based payment
transactions - - - - -
Transfer to
contingency reserve - - - - -
Own shares
purchased - - - - 651 742
Transactions with
Joint Venture, - - - - -
recorded directly
in equity
Total transactions
with owners - - - - 651 742
Balance at 31
August 2011 382 211 274 200 (9 481 395) 201 793 187 8 091 178
For the year ended
29 February 2012
Balance at 1 March
2011 382 211 274 200 (9 481 395) 201 793 187 7 439 436
Profit for the
period - - - - -
Other comprehensive
income - - - - -
Total comprehensive
income for the - - - - -
period
Own shares
transferred based - -
on contingent
consideration
Share based payment
transactions - - - - (1 433 120)
Transfer to
contingency reserve - - - - 1 016 055
Own share purchased
- - - - -
Disposal of
interest in - - - - -
subsidiary
Costs associated
with rights issue - (17 243) - (17 243) -
Transaction with
Joint Venture, - - - - -
recorded directly
in equity
- - - - -
Total transactions
with owners - (17 243) - (17 243) (416 055)
Balance at 29
February 2012 382 211 256 957 (9 481 395) 201 775 944 7 022 371
Total
Foreign Attributabl
currency Accumulated e to equity Non-
translatio profit/ holders of controlling
n reserve (loss) the company interest Total equity
For the six
months ended 31
August 2012
Balance at 1
March 2012 - 38 839 975 247 638 290 (570 054) 247 068 236
Loss for the
period - 9 272 623 (9 272 623) (253 997) 9 018 626
Other
comprehensive - - - - -
income
Total
comprehensive
income for the
period - 9 272 623 9 272 623 (253 997) 9 018 626
Transactions with
owners, recorded
directly in
equity
Contributions by
and distributions
to owners
Rights issue
- - 20 000 000 - 20 000 000
Costs related to
rights issue - - (733 469) - (733 469)
Transfer from
contingency
reserve 2 942 152
Own shares
purchased - - - - -
Transactions with
Joint Venture,
recorded directly
in equity - - - - -
Total
transactions with
owners - 2 942 152 19 266 531 - 19 266 531
Balance at 31
August 2012 - 51 054 750 276 177 444 (824 051) 275 353 394
For the six
months ended 31
August 2011
Balance at 1
March 2011 - 26 303 854 235 536 477 (441 756) 235 094 721
Loss for the
period - (4 722 827) (4 722 827) (54 638) (4 777 465)
Other
comprehensive
income - - - - -
Total
comprehensive
income for the
period - (4 722 827) (4 722 827) (54 638) (4 777 465)
Transactions with
owners, recorded
directly in
equity
Contributions by
and distributions
to owners
Share based
payment
transactions - - - - -
Transfer to
contingency
reserve - - - - -
Own shares
purchased - 34 412 686 154 - 686 154
Transactions with
Joint Venture,
recorded directly
in equity - - - - -
Total
transactions with
owners - 34 412 686 154 - 686 154
Balance at 31
August 2011 - 21 615 438 231 499 804 (496 394) 231 003 410
For the year
ended 29 February
2012
Balance at 1
March 2011 - 26 303 854 235 536 477 (441 756) 235 094 721
Profit for the
period - 13 552 177 13 552 177 (128 298) 13 423 879
Other
comprehensive
income - - - - -
Total
comprehensive
income for the -
period - 13 552 177 13 552 177 128 298 13 423 879
Own shares
transferred based
on contingent
consideration - - -
Share based
payment
transactions - - (1 433 120) - (1 433 120)
Transfer to
contingency
reserve - (1 016 055) - - -
Own share
purchased - - - - -
Disposal of
interest in
subsidiary - - - - -
Costs associated
with rights issue - - (17 243) - (17 243)
Transaction with
Joint Venture,
recorded directly
in equity - - - - -
- - - - -
Total
transactions with
owners - (1 016 055) (1 450 363) - (1 450 363)
Balance at 29
February 2012 - 38 839 976 247 638 291 (570 054) 247 068 237
Finbond Group
Limited
Condensed
consolidated
segmental
analysis
Figures in Microfinance Property Mortgage Reconciling Consolidated
Rand Investment Originatio
n
Unaudited six
months ended
31 August
2012
Interest
income 24 926 076 - 15 236 322 583 25 263 895
Interest
expense (8 537 538) (219 099) - (1 565 769) (10 322 406)
Net interest
income 16 388 538 (219 099) 15 236 (1 243 186) 14 941 489
Fee income
47 411 324 - - - 47 411 324
Net
commission (713 207) - 431 694 789 (280 724)
income
Other
microfinance 26 873 674 - - 3 483 352 30 357 026
income
Fair Value
adjustment - - - 5 100 5 100
Net
impairment (14 771 323) - - - (14 771 323)
charge on
loans and
advances
Operating
expenses (62 540 283) (466 144) (271 417) (745 634) (64 023 479)
Operating
(loss)/ 12 648 722 (685 243) 175 513 1 500 421 13 639 413
profit
Excess of
acquirers' - - - - -
interest in
net assets
(Loss)/
profit before 12 648 722 (685 243) 175 513 1 500 421 13 639 413
taxation
Taxation
(5 143 268) - (124 206) 646 686 (4 620 788)
(Loss)/
profit for 7 505 454 (685 243) 51 307 2 147 107 9 018 625
the period
(Loss)/
profit for
the period
attributable
to:
Owners of the
company 7 759 452 (685 243) 51 307 2 147 107 9 272 622
Non
controlling (253 997) - - - (253 997)
interest
Segment
assets 233 834 124 229 727 571 3 602 106 1 385 675 468 549 475
Investment
property - 229 727 571 - - 229 727 571
Loans and
advances 101 865 148 - - - 101 865 147
Cash and cash
equivalents 25 698 650 - 923 725 - 26 622 375
Segment
liabilities 159 959 408 21 637 713 (357 323) 11 833 466 193 073 263
Unaudited six
months ended
31 August
2011
Interest
income 26 372 008 - 15 811 173 998 26 561 817
Interest
expense (7 526 212) (219 099) - (551 151) (8 296 461)
Net interest
income 18 845 796 (219 099) 15 811 (377 153) 18 265 356
Fee income
49 322 068 - - - 49 322 068
Net
commission - - 136 776 789 137 565
income
Other
microfinance 11 312 610 - - 0 11 312 610
income
Net
impairment (16 048 739) - - - (16 048 739)
charge on
loans and
advances
Operating
expenses (65 348 889) (466 144) 273 202 2 940 724) (68 482 555)
Operating
(loss)/ (1 917 154) (685 243) 425 788 (3 317 087) (5 493 695)
profit
Excess of
acquirers' - - - - -
interest in
net assets
(Loss)/
profit before (1 917 154) (685 243) 425 788 (3 317 087) (5 493 695)
taxation
Taxation
(2 876 439) - (118 512) 3 765 819 770 868
(Loss)/
profit for (4 793 593) (685 243) 307 276 448 732 (4 722 827)
the period
(Loss)/
profit for
the period
attributable
to:
Owners of the
company (4 738 955) (685 243) 307 276 448 732 (4 668 189)
Non
controlling (54 638) - - - (54 638)
interest
Segment
assets 209 626 578 207 081 002 991 801 - 417 699 381
Investment
property - 207 081 002 - - 207 081 002
Loans and
advances 82 620 863 - - - 82 620 863
Cash and cash
equivalents 28 239 238 - 991 801 - 29 231 039
Segment
liabilities 164 954 443 21 689 837 - - 186 644 280
Audited year
ended 29
February 2012
Interest
income 46 831 260 - 88 813 462 910 47 382 983
Interest
expense (14 917 704) (375 847) - (1 508 139) (16 801 690)
Net interest
income 31 913 556 (375 847) 88 813 (1 045 229) 30 581 293
Fee income
92 305 545 - - - 92 305 545
Net
commission (899 409) - 886 456 (26 174) (39 127)
income
Other
microfinance 20 183 457 - - 13 524 318 33 707 775
income
Fair value
adjustments - 22 431 842 - 3 318 22 435 160
Net
impairment (23 719 091) - - - (23 719 091)
charge on
loans and
advances
Operating
expenses (125 270 320) (855 224) (457 499) 4 578 330 (122 004 713)
Operating
(loss)/ (10 523 979) 21 200 771 517 770 17 034 563 28 229 125
profit
(Loss)/
profit before (10 523 979) 21 200 771 517 770 17 034 563 28 229 125
taxation
Taxation
(6 771 097) - (171 950) (7 862 200) (14 805 247)
(Loss)/
profit for (17 295 076) 21 200 771 345 820 9 172 363 13 423 878
the period
(Loss)/
profit for -
the period
attributable
to:
Owners of the
company (17 166 778) 21 200 771 345 820 9 172 363 13 552 176
Non
controlling (128 298) - - - (128 298)
interest
Segment
assets 198 862 745 229 620 000 3 651 882 39 204 117 471 338 745
Investment
property - 229 620 000 - - 229 620 000
Loans and
advances 89 548 616 - - - 89 548 617
Cash and cash
equivalents 25 260 249 - 908 269 27 064 141 53 232 659
Segment
liabilities 204 132 893 - (225 939) 20 363 556 224 270 509
Notes to the condensed consolidated interim financial statements
Finbond Group Limited is a company domiciled in South Africa. The
condensed consolidated interim financial statements of the Company as
at and for the six months ended 31 August 2012 comprise the Company
and its subsidiaries (together referred to as the “Group”) and the
Group’s interests in associates and jointly controlled entities.
These condensed consolidated interim financial statements have been
prepared in accordance International Financial Reporting Standards,
the AC500 standards, IAS 34 Interim Financial Reporting, the
Companies Act and the JSE Listings Requirements. They do not include
all of the information required for full annual financial statements,
and should be read in conjunction with the consolidated financial
statements of the Group as at and for the year ended 29 February
2012.
These unaudited interim results have been prepared under the
supervision of GT Sayer, CA(SA).
These condensed consolidated interim financial statements were
approved by the Board of Directors on 19 October 2012.
Significant accounting policies
The accounting policies applied by the Group in these condensed
consolidated interim financial statements are the same as those
applied by the Group in its consolidated financial statements as at
and for the year ended 29 February 2012.
Estimates
The preparation of interim financial statements requires management
to make judgments, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets
and liabilities, income and expense. Actual results may differ from
these estimates.
In preparing these condensed consolidated interim financial
statements, the significant judgments made by management in applying
the Group’s accounting policies and the key sources of estimation
uncertainty were the same as those that applied to the consolidated
financial statements as at and for the year ended 29 February 2012.
* Normalised Headline Earnings of R2,923,712 (0.8c per share) at 29
February 2012 excluded the effect on opening deferred tax balances
related to previously recorded fair value gains totaling R7,726,427,
which is in line with the new calculation of Headline Earnings per
Share in terms of SAICA's circular 3/2012 - Headline Earnings.
However, since the circular only changed the calculation of Headline
Earnings per Share after 29 February 2012, the Headline Earnings
reported at 29 February 2012 are included as comparatives for
consistency.
For and on behalf of the Board
Dr. Malesela Motlatla Dr. Willie van Aardt
22 October 2012
--------------------------------------------------------------------
Directors
Chairman:Dr MDC Motlatla* (BA, DCom (Unisa)); Chief Executive
Officer:Dr W van Aardt (BProc (Cum Laude), LLM (UP), LLD (PU CHE)
Admitted Attorney of The High Court of South Africa, QLTT (England
and Wales), Solicitor of the Supreme Court of England and Wales);
Chief Compliance Officer:HJ Wilken-Jonker (BComHons (Unisa)); Chief
Financial Officer: GT Sayers (CA (SA), BCom (Hons) (UNP), BCompt
(Hons) (Unisa)); DC Pentz* (CA (SA), BComHons); Adv J Noeth* (B
Iuris LLB); Adv. N Melville* (B Law, LLB(Natal) LLM(cum
laude)(Natal)SEP(Harvard) RN Xaba* (CA (SA) BCompt, BCompt (Hons)
(Unisa)) *Non-Executive. Secretary: CD du Plessis – Sekretari
Transfer secretaries
Link Market Services South Africa (Proprietary) Limited
(Registration number 2000/007239/07)
11 Diagonal Street, Johannesburg, 2001
(PO Box 4844, Johannesburg, 2000)
Date: 22/10/2012 10:22:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
