Wrap Text
Reviewed preliminary annual results and dividend announcement for the year ended 30 September 2012
AFRICAN BANK INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registered bank controlling company)
(Registration number 1946/021193/06)
Ordinary share code: ABL
ISIN: ZAE000030060
Preference share code: ABLP
ISIN: ZAE000065215
("ABIL" or "the group")
AFRICAN BANK LIMITED
(Incorporated in the Republic of South Africa)
(Registered bank)
(Registration number 1975/002526/06)
Company code: BIABL
("African Bank")
Reviewed preliminary annual results and dividend announcement for the year ended 30 September 2012
Features
- 20% return on equity
- 53% increase in economic profit to R755 million
- 18% growth in headline earnings to R2,8 billion
- 18% growth in HEPS to 342,5 cents
- 33% growth in advances
- 5% growth in ordinary DPS to 195 cents
Financial performance
ABIL's operating results were achieved by engaged employees being focused on effective execution of strategic business initiatives. The continued positive response from customers to the group's credit and retail product offerings, strong efficiency gains and growing margins at EHL, as well as the increased African Bank footprint through the EHL distribution network contributed to further growth in profitability and assets.
ABIL has managed to successfully steer through continued economic volatility in 2012 and remains confident of its ability to entrench its position as the sustainable market leader in a larger, more competitive and rapidly evolving unsecured credit market.
The group increased its return on equity to 20,0% for the year ended 30 September 2012 (2011: 18,4%) in line with its targets and generated a return on average tangible equity of 36,3% (2011: 36,2%). The group grew economic profit, after charging for its cost of equity, by 53% to R755 million (2011: R494 million). Headline earnings increased by 18% to R2 754 million (2011: R2 339 million), as did headline earnings per share to 342,5 cents (2011: 291,0 cents). Basic earnings increased by 17% to R2 742 million (2011:R2 339 million), as did basic earnings per share to 341,0 cents (2011: 291,1 cents). A final ordinary dividend per share of 110 cents (2011: 100 cents) was declared, bringing the total ordinary dividend for the year to 195 cents per share (2011:185 cents).
Headline earnings benefited from the replacement of secondary tax on companies(STC) with a dividend withholding tax by an amount of R69 million. Excluding this benefit, headline earnings would have been 15% higher than 2011.
The Banking unit produced a stable return on equity of 22,9% (2011: 22,9%) and a return on average tangible equity of 35,4%. The unit grew headline earnings by 12% to R2 580 million (2011: R2 302 million) and economic profit by 12% to R945 million. The Bank benefited from robust sales and advances growth particularly in the first quarter, a slower reduction in yield than in recent years and stable asset quality, while cost growth and an elevated bad debt charge adversely affected profitability.
Headline earnings in the Retail unit increased by 35% to R257 million (2011: R190 million), despite difficult economic conditions and modest sales growth, as more efficient operations, strong cost containment and firmer margins from a more robust business model continued to provide operating leverage. The Retail unit generated a return on sales of 5,4%, a return on equity of 9,4% and a return on average tangible equity of 47,7%. It decreased its economic loss to R139 million from R211 million in the previous year.
In terms of the financial objectives set for 2012, the group substantially exceeded the advances growth target and met its return on equity target, while not achieving the merchandise sales growth target.
New credit business volumes for the year increased by 22% to R26,0 billion (2011: R21,3 billion). Gross advances increased by 33% to R53,0 billion (2011: R39,9 billion) on the back of the growth in new business volumes and extension of term. Asset quality remained stable. NPL coverage was maintained at 60,0%, relative to 60,9% in the prior year.
The group and Bank experienced significant balance sheet growth over the past financial year and it is notable that the capital ratios for the both entities are comfortably above regulatory minimum requirements. The group remains well capitalised in line with its credit risk appetite and is well positioned for Basel III.
Total funding at R45,7 billion, was 34% higher than 2011, in line with asset growth. The group continued its drive towards funding diversification by significant issuance in the international markets, while also raising funding from several new South African investors both through the treasury desk and under the DMTN program. There is a total of USD 700 million of bonds in issue to investors in Europe and Asia. The group further diversified its funding base through the issuance of CHF 275 million note to Swiss investors. This represented the first issuance of a CHF bond by a South African issuer into the Swiss market in over 20 years.
In the Retail unit, merchandise sales grew by 1,7% to R4,8 billion. Comparable sales increased by 4,7%. Sales per employee, per store and per square metre continued to trend positvely as the efficiency strategies continued to bear results. The logistics network roll out has been one of the key strategic projects in the Retail unit for the past three years. The Boksburg distribution centre went into full scale operation, a further three distribution centres were opened in Gauteng, Eastern Cape and Western Cape, while the Durban unit was completed and has gone live on 1 November 2012 for stock intake. Gross margins increased from 44,2% to 44,5% and operating cost growth at the Retail unit was well contained to 1,5%.
Competitive landscape
The group is comfortable that risk remains well controlled, from the perspective of the economic environment, recent legislative and regulatory developments, as well as credit quality. The sharp increase in unsecured lending in South Africa in the past two years has attracted attention and commentary from regulators, media and investors. ABIL's view is that while it is unlikely that there is an overall unsecured lending credit bubble forming, sustained strong growth in unsecured lending could be of concern. We have been closely monitoring our customer base and the market as a whole and dynamically adjusting our underwriting to take cognisance of changes in the market. It is pleasing to note that the combination of increased regulatory scrutiny and heightened awareness by key players in the market have begun to curb excess supply of credit and that a slowdown of credit extension is evident in the most recent bureau information.
Regulation
The strong regulatory and supervisory oversight that has safeguarded the South African economy and consumer through many of the recent financial crises experienced internationally, as well as the willingness of the banking industry to support sustainable practices, have again manifested strongly during the year. This manifestation came in the form of the intense focus on the unsecured credit market as a result of the high growth, and the active engagement between regulators and market participants to find solutions to highlighted issues.
ABIL welcomes the debates aimed at strengthening the sustainability of the credit industry and supports initiatives that seek to protect the consumer while enabling responsible access to credit.
DIVIDENDS AND DIVIDEND COVER
ABIL has declared a final gross cash dividend of 110 cents (2011: 100 cents) per ordinary share for the year to 30 September 2012, bringing the total dividend for the year to 195 cents per share (2011: 185 cents). The ordinary dividend cover was 1,8 times, which is consistent with the guidance provided at the end of the previous financial year that the group would be increasing its dividend cover to 1,8 - 2,0 times. Ordinary shareholders are being afforded the opportunity to elect the alternative in the form of capitalisation shares. Full details of this election will be announced seperately on SENS with the circular to be posted on about 23 November 2012.
The group has also declared a final gross cash preference share dividend of 327 cents per share (2011: 310 cents). resulting in a full year gross preference share dividend of 668 cents per share (2011: 620 cents).The gross-up of the dividend by 10% due to the implementation of withholding tax on dividends, increased the dividend with effect from 1 April 2012, while the reduction in the repo rate with effect from 20 July 2012 decreased it.
DIRECTORATE AND COMPANY SECRETARY
Gordon Schachat, executive deputy chairman of ABIL, African Bank and Ellerine Holdings Limited retired from these boards with effect from 30 September 2012. It is the end of an era - Gordon was a co-founder of ABIL and has been involved in its development since 1994. He has made an immense contribution to the growth and success of the group and was deeply involved in the many acquisitions that were made over the years to form the ABIL group. ABIL and its boards express their sincere appreciation and gratitude to Gordon for the dedication and insight over this time.
Leeanne Goliath was appointed company secretary to African Bank Investments Limited on 18 October 2012 after Mduduzi Luthuli resigned on 1 August 2012.
LOOKING AHEAD
Our core philosophy has always been to build a business that is consistently delivering a valuable proposition to customers through the different macroeconomic cycles. While we will remain vigilant, given the economic environment and increased competition, the group has spent the last few years building a business that we believe is robust and one that can withstand external pressures. Accordingly, ABIL remains focused towards generating sustainable and growing returns rather than expansive growth targets.
The Banking unit will continue to target good sales and advances growth, albeit at a slower pace than in recent years, with stable yields and steady asset quality.
At the Retail unit the focus will shift towards optimising and growing the business, now that the major changes to the operating model and the roll out of the supply chain are largely complete. Over the next two to three years the strategic imperatives will shift to reflect the changes in our objectives and the progress made to date. New strategic imperatives are to grow the retail business in a challenging economic environment and to maximise and optimise financial services value extraction from the Retail unit.
On behalf of the board
Mutle Mogase, Chairman
Leon Kirkinis, Chief executive officer
Condensed segmental income statement
for the year ended 30 September 2012
30 September 2012 (Reviewed)
% ABIL Banking Retail Consolidation
R million change group unit unit adjustments
Gross margin on retail business 2 2 134 - 2 134 -
Interest income on advances 36 9 919 9 823 96 -
Assurance income 29 3 828 3 401 427 -
Non-interest income 12 3 291 3 018 479 (206)
Income from operations 25 19 172 16 242 3 136 (206)
Credit impairment charge 45 (5 197) (5 170) (27) -
Claims paid 49 (912) (918) 6 -
Risk-adjusted income from operations 18 13 063 10 154 3 115 (206)
Product insurance claims (12) (60) - (60) -
Other interest and investment income (35) 219 324 74 (179)
Interest expense 29 (3 680) 3 771) (84) 176
Operating costs 11 (5 467) 2 957) (2 716) 206
Indirect taxation: VAT 7 (72) (72) - -
Profit from operations 14 4 003 3 678 329 (4)
Capital items (>100) (6) - (6) -
Profit before taxation 14 3 997 3 678 323 (4)
Direct taxation: STC (46) (82) (2) - (80)
Direct taxation: Normal 14 (1 112) (1 038) (75) 1
Profit for the year 18 2 803 2 638 248 (83)
Intersegment revenues included in income from operations are for
the Retail unit only and amount to R206 million (2011: R122 million).
30 September 2012 (Reviewed)
% ABIL Banking Retail Consolidation
R million change group unit unit adjustments
Profit for the year (basic earnings) 18 2 803 2 638 248 (83)
Preference shareholders 91 (61) (61) - -
Basic earnings attributable to ordinary 17 2 742 2 577 248 (83)
shareholders
Adjustments for non-headline items: 12 3 9 -
Gross adjustments 17 4 13 -
Tax thereon (5) (1) (4) -
Headline earnings 18 2 754 2 580 257 (83)
Condensed segmental income statement continued
for the year ended 30 September 2012
30 September 2011 (Audited)
ABIL Banking Retail Consolidation
R million group unit unit adjustments
Gross margin on retail business 2 083 - 2 083 -
Interest income on advances 7 308 7 198 110 -
Assurance income 2 962 2 532 430 -
Non-interest income 2 930 2 624 428 (122)
Income from operations 15 283 12 354 3 051 (122)
Credit impairment charge (3 596) (3 527) (69) -
Claims paid (612) (612) - -
Risk-adjusted income from operations 11 075 8 215 2 982 (122)
Product insurance claims (68) - (68) -
Other interest and investment income 339 319 46 (26)
Interest expense (2 850) (2 826) (48) 24
Operating costs (4 931) (2 397) (2 656) 122
Indirect taxation: VAT (67) (67) - -
Profit from operations 3 498 3 244 256 (2)
Capital items 1 1 - -
Profit before taxation 3 499 3 245 256 (2)
Direct taxation: STC (151) 1 - (152)
Direct taxation: Normal (977) (912) (66) 1
Profit for the year 2 371 2 334 190 (153)
Intersegment revenues included in income from operations are for
the Retail unit only and amount to R206 million (2011: R122 million).
30 September 2011 (Audited)
ABIL Banking Retail Consolidation
R million group unit unit adjustments
Profit for the year (basic earnings) 2 371 2 334 190 (153)
Preference shareholders (32) (32) - -
Basic earnings attributable to ordinary 2 339 2 302 190 (153)
shareholders
Adjustments for non-headline items: - - - -
Gross adjustments - - - -
Tax thereon - - - -
Headline earnings 2 339 2 302 190 (153)
Condensed segmental statement of financial position
as at 30 September 2012
30 September 2012 (Reviewed)
% ABIL Banking Retail Consolidation
R million change group unit unit adjustments
Assets
Short term deposits and cash (4) 3 070 3 394 92 (416)
Statutory assets - bank and insurance 56 4 322 3 533 605 184
Inventories (2) 871 - 871 -
Other assets 50 1 310 971 411 (72)
Other assets - intragroup - 464 184 (648)
Taxation 108 27 - 27 -
Net advances 31 46 013 46 130 363 (480)
Deferred tax asset 64 762 323 437 2
Policyholders' investments (100) - - - -
Property and equipment 35 1 152 627 531 (6)
Intangible assets (10) 683 - 683 -
Goodwill 5 472 4 000 755 717
Total assets 26 63 682 59 442 4 959 (719)
Liabilities and equity
Short term funding 175 4 587 4 111 476 -
Short term funding - intragroup - 184 459 (643)
Other liabilities 4 2 201 1 003 1 689 (491)
Other liabilities - intragroup - 66 - (66)
Taxation 31 94 79 15 -
Deferred tax liability (6) 216 - 216 -
Life fund reserve (100) - - - -
Bonds and other long term funding 26 37 320 37 300 20 -
Subordinated bonds 38 3 831 3 831 - -
Total liabilities 32 48 249 46 574 2 875 (1 200)
Ordinary shareholders' equity 8 14 303 11 738 2 084 481
Preference shareholders' equity 57 1 130 1 130 - -
Total equity (capital and reserves) 11 15 433 12 868 2 084 481
Total liabilities and equity 26 63 682 59 442 4 959 (719)
Condensed segmental statement of financial position continued
as at 30 September 2012
30 September 2011 (Audited)
ABIL Banking Retail Consolidation
R million group unit unit adjustments
Assets
Short term deposits and cash 3 198 3 288 62 (152)
Statutory assets - bank and insurance 2 775 2 524 251 -
Inventories 885 - 885 -
Other assets 872 669 256 (53)
Other assets - intragroup - 126 221 (347)
Taxation 13 - 13 -
Net advances 35 099 35 047 312 (260)
Deferred tax asset 465 125 339 1
Policyholders' investments 1 1 - -
Property and equipment 852 511 343 (2)
Intangible assets 761 - 761 -
Goodwill 5 472 4 000 755 717
Total assets 50 393 46 291 4 198 56
Liabilities and equity
Short term funding 1 666 1 175 491 -
Short term funding - intragroup - 221 119 (340)
Other liabilities 2 013 817 1 456 (260)
Other liabilities - intragroup - 60 - (60)
Taxation 72 55 17 -
Deferred tax liability 229 - 229 -
Life fund reserve 1 1 - -
Bonds and other long term funding 29 672 29 672 - -
Subordinated bonds 2 775 2 775 - -
Total liabilities 36 428 34 776 2 312 (660)
Ordinary shareholders' equity 13 246 10 796 1 886 564
Preference shareholders' equity 719 719 - -
Total equity (capital and reserves) 13 965 11 515 1 886 564
Total liabilities and equity 50 393 46 291 4 198 56
Condensed statement of comprehensive income
for the year ended 30 September 2012
30 September 30 September
2012 2011
(Reviewed) (Audited)
% ABIL ABIL
R million change group group
Profit for the year 18 2 803 2 371
Other comprehensive income
Exchange differences on translating foreign operations (>100) (4) 5
Movement in cash flow hedge reserve >100 (200) (2)
IFRS 2 reserve transactions 17 (7) (6)
Other comprehensive income for the year, net of tax >100 (211) (3)
Total comprehensive income for the year 9 2 592 2 368
Condensed group statement of changes in equity
for the year ended 30 September 2012
Share Share based
capital and Distributable payment
R million premium reserves reserve
Balance at 30 September 2010 (audited) 9 151 2 672 813
Dividends paid - (1 488) -
Issue of preference shares - - -
Loss incurred on group employees acquiring ABIL Share Trust
shares less dividends received - 1 -
Shares purchased into the ABIL Employee Share Trust less share
issued to employees (cost) - - -
Transfer from share based payment reserve 726 (726)
Transfer to insurance contingency reserve - 13 -
Total comprehensive income for the year - 2 339 (6)
Balance at 30 September 2011 (audited) 9 151 4 263 81
Dividends paid - (1 488) -
Issue of preference shares - - -
Loss incurred on group employees acquiring ABIL Share Trust
shares less dividends received - 3 -
Shares purchased into the ABIL Employee Share Trust less share
issued to employees (cost) - - -
Transfer from share based payment reserve - 77 (77)
Transfer to insurance contingency reserve - (4) -
Total comprehensive income for the year - 2 742 (7)
Balance at 30 September 2012 (reviewed) 9 151 5 593 (3)
Condensed group statement of changes in equity continued
for the year ended 30 September 2012
Ordinary Preference
shareholder share capital
R million Other equity and premium Total
Balance at 30 September 2010 (audited) (240) 12 396 483 12 879
Dividends paid - (1 488) (32) (1 520)
Issue of preference shares - - 236 236
Loss incurred on group employees acquiring ABIL Share
Trust shares less dividends received - 1 - 1
Shares purchased into the ABIL Employee Share Trust less
share issued to employees (cost) 1 1 - 1
Transfer from share based payment reserve - - - -
Transfer to insurance contingency reserve (13) - - -
Total comprehensive income for the year 3 2 336 32 2 368
Balance at 30 September 2011 (audited) (249) 13 246 719 13 965
Dividends paid - (1 488) (61) (1 549)
Issue of preference shares - - 411 411
Loss incurred on group employees acquiring ABIL Share Trust
less dividends received - 3 - 3
Shares purchased into the ABIL Employee Share Trust less
share issued to employees (cost) 11 11 - 11
Transfer from share based payment reserve - - - -
Transfer to insurance contingency reserve 4 - -
Total comprehensive income for the year (204) 2 531 61 2 592
Balance at 30 September 2012 (reviewed) (438) 14 303 1 130 15 433
Notes
30 September 30 September
2012 2011
1.Treasury shares (Reviewed) (Audited)
Treasury shares at cost R million - 11
Number of shares held million - 0,5
Average cost per share Rand - 23,24
2.Number of ordinary shares at 30 September 2012 Total Weighted
Number of shares in issue at the beginning
of the year 804 175 200 804 175 200
Treasury shares on hand - (166 577)
804 175 200 804 008 623
Condensed group statement of cash flows
for the year ended 30 September 2012
30 September 30 September
2012 2011
R million (Reviewed) (Audited)
Cash generated from operations 9 558 7 746
Cash received from lending and insurance activities and cash reserves 21 917 18 329
Recoveries on advances previously written off 300 213
Cash paid to funders, staff, suppliers and insurance beneficiaries (12 659) (10 796)
Increase in gross advances (16 274) (13 605)
Decrease in working capital (344) (398)
Decrease/(increase) in inventories 14 (34)
Increase in other assets (438) (577)
Increase in other liabilities 80 213
Indirect and direct taxation paid (1 486) (1 288)
Cash inflow from equity accounted incentive transactions 14 2
Cash outflow from operating activities (8 532) (7 543)
Cash outflow from investing activities (1 304) (1 252)
Acquisition of property and equipment (to maintain operations) (568) (483)
Disposal of property and equipment 31 80
Disposal of investment - 1
Other investing activities (767) (850)
Cash inflow from financing activities 10 487 8 688
Cash inflow from funding activities 11 625 9 972
Issue of preference shares 411 236
Preference shareholders' payments and transactions (61) (32)
Ordinary shareholders' payments and transactions (1 488) (1 488)
Increase/(decrease) in cash and cash equivalents 651 (107)
Cash and cash equivalents at the beginning of the year 3 609 3 716
Cash and cash equivalents at the end of the year 4 260 3 609
Made up as follows:
Short-term deposits and cash 3 070 3 198
Statutory cash reserves - insurance 1 190 411
4 260 3 609
Review report
The accompanying financial information of the group has been reviewed by the group's independent auditors, Deloitte & Touche. The review was conducted in accordance with ISRE 2410 "Review of Interim Financial Information performed by the Independent Auditor of the Entity". A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable Deloitte to obtain assurance that they would become aware of all significant matters that might be identified in an audit. An unmodified report has been issued. The full review report is available for inspection at the company's registered office. Any reference to future financial performance included in this announcement, has not been reviewed or reported on by the group's auditors.
Basis of preparation
The preparation of these group consolidated financial statements was supervised by the chief financial officer, Nithia Nalliah CA (SA).
These condensed group financial statements have been prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS) and AC 500 Standards as issued by the Accounting Practices Board and the information required by International Accounting Standard 34 'Interim Financial Reporting', the South African Companies Act (Act 71 of 2008) and the Listing Requirements of the JSE Limited.
The accounting policies and their application are:
- In compliance with International Financial Reporting Standards and interpretations issued by the International Financial Reporting Interpretations Committee of the International Accounting Standards Board; and
- Consistent with those used for the group's 2011 annual financial statements, except for the adoption of the following standards and interpretations during the financial year, which did not have any impact on the reported results:
- IFRIC 14 - Prepayment of a Minimum Funding Requirement;
- IFRS 7 - Financial Instruments Disclosure: Transfers of financial assets; and
- IAS 24 - Revised definition of Related Parties.
Dividend declaration
Shareholders are advised of the following dividend declarations in respect of ordinary shares and preference shares.
Ordinary dividend Ordinary shareholders are advised that the board of directors has declared a final gross cash dividend of 110 cents per ordinary share (93,500 cents net of dividend withholding tax) for the twelve months to 30 September 2012, (the cash dividend). The dividend has been declared as a cash distribution but with an opportunity for ordinary shareholders to elect capitalisation shares to provide flexibility for shareholders wishing to increase their holding in the company given recent changes to dividend tax in South Africa.
Ordinary shareholders will be entitled to elect to receive ordinary shares of 2,5 cents each in the company as capitalisation shares in lieu of the cash dividend (the capitalisation issue), to be determined by the ratio that 110 cents bears to the volume weighted average price of the company's ordinary shares on the exchange operated by the JSE Limited (JSE) during the nine-day trading period ending 29 November 2012. No secondary tax on companies (STC) credits were utilised as part of the ordinary cash dividend declaration.
The cash dividend will be paid out of profits of the company while the new ordinary shares to be issued pursuant to the capitalisation issue will be done from the company's share premium reserves but limited to the par value of 2,5 cents per share.
Details of the ratio will be released on the Securities Exchange News Service of the JSE (SENS) by no later than 11:00 on 30 November 2012 and published in the South African press the following business day. Trading in the Strate Limited environment does not permit fractions and fractional entitlements. Accordingly, where an ordinary shareholders' entitlement to new ordinary shares calculated in accordance with the above formula gives rise to a fraction of a new ordinary share, such fraction of a new ordinary share will be rounded up to the nearest whole number where the fraction is greater than or equal to 0,5 and rounded down to the nearest whole number where the fraction is less than 0,5.
A circular relating to the cash dividend and the alternative capitalisation issue will be posted to ordinary shareholders on or about 23 November 2012 and the salient dates and times will be published on SENS.
Share code ABL
ISIN ZAE000030060
Company registration number 1946/021193/06
Company tax reference number 9850164717
Dividend number 24
Gross cash dividend per share 110 cents
Net dividend amount represented as cents per share 93,500 cents
Issued share capital as at declaration date 804 175 200
Declaration date Monday, 19 November 2012
Finalisation announcement released on SENS Friday, 30 November 2012
Finalisation announcement published in the press Monday, 3 December 2012
Last date to trade to be eligible for the cash Friday, 7 December 2012
dividend/capitalisation shares
Shares commence trading ex-cash Monday, 10 December 2012
dividend/capitalisation shares
Last day to elect to receive the Capitalisation Friday, 14 December 2012
Issue instead of the Cash Dividend, Forms of
Election to reach the Transfer Secretaries
by 12h00 noon on
Record date in respect of cash Friday, 14 December 2012
dividend/capitalisation shares
Payment date Tuesday, 18 December 2012
Tax implications
The cash dividend and the capitalisation issue are likely to have tax implications for both resident and non-resident shareholders. Shareholders are therefore encouraged to consult their professional tax advisers should they be in any doubt as to the appropriate action to take.
In terms of the Income Tax Act, the cash dividend will, unless exempt, be subject to dividend withholding tax (DWT) that was introduced with effect from 1 April 2012. South African resident shareholders that are liable for DWT, will be subject to DWT at a rate of 15% 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 93,500 cents per share. Non-resident shareholders may be subject to DWT at a rate of less than 15% depending on their country of residence and the applicability of any double tax treaty between South Africa and their country of residence.
The capitalisation issue is not subject to DWT in terms of the Income Tax Act, but the subsequent disposal of shares obtained as a result of the capitalisation Issue is likely to have income tax or capital gains tax (CGT) implications. Where any future disposals of shares obtained as a result of the capitalisation issue falls within the CGT regime, the base cost of such shares will be regarded as nil in terms of the Income Tax Act (or the value at which such shares will be included in the determination of the weighted average base cost method be zero).
Preference dividend
Preference shareholders are advised that the board of directors has declared a gross final cash preference share dividend of 327 cents per share (277,950 cents net of dividend withholding tax), bringing the total preference share dividend for the year to 668 cent per share. The dividends have been declared from income reserves and no secondary tax on companies credits have been used.
A dividend withholding tax of 15% will be applicable to all shareholders who are not exempt from the tax.
Preference shares
Share code ABLP
ISIN ZAE000065215
Company registration number 1946/021193/06
Company tax reference number 9850164717
Dividend number 16
Gross cash dividend per share 327 cents
Net dividend amount represented as cents per share 277,950 cents
Issued share capital as at declaration date 13 523 029
Declaration date Monday, 19 November 2012
Last date to trade cum-dividend Friday, 07 December 2012
Shares commence trading ex-dividend Monday, 10 December 2012
Record date Friday, 14 December 2012
Dividend payment date Tuesday, 18 December 2012
Share certificates may not be dematerialised or rematerialised between Monday, 10 December 2012 and Friday, 14 December 2012, both dates inclusive.
Queries:
Investor Relations:
Lydia du Plessis on 27 11 564 6991 or investor.relations@africanbank.co.za
Media Relations: Louise Brugman on 27 83 504 1186
Midrand
19 November 2012
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 19/11/2012 07:05:00 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 
