Wrap Text
Uuaudited interim results and interim cash dividend declaration for the six months ended 31 March 2013
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)
UNAUDITED INTERIM RESULTS AND CASH DIVIDEND DECLARATION FOR THE SIX MONTHS ENDED 31 MARCH 2013
Features
- Headline earnings decline by 26% to R1 015 million (H1 2012: R1 370 million)
- Headline earnings per share of 125,7 cents (H1 2012: 170,4 cents)
- Return on equity of 13,9% (H1 2012: 20,3%)
- Economic loss of R47 million (H1 2012: Economic profit of R390 million)
- Ordinary dividends per share of 25 cents (H1 2012: 85 cents)
Highlights
- 25% growth in advances to R59 billion
- 2,7 million customers, growth of 4%
- 1 600 strong distribution network
- African Bank named Bank of the Year for 2012 by The Banker
- African Bank won EMEA Finance's Best Swiss Bond Award
- A range of new innovative products launched
- Strong growth in direct channels
- Call centre expanded to 1 300 agents
Challenges
- Subdued economic outlook
- Slowing consumer demand
- Tough collections environment
- Regulatory uncertainty
- Growing the customer base
- Balancing growth, shareholder returns and capital requirements
- Retail merchandise sales growth in current economic environment
OVERVIEW
Trading environment
The first half of 2013 proved to be a challenging period. The significant increase in unsecured lending by all players in the market during 2012 introduced
unacceptable risk into certain segments of our customer base. ABIL's response was to forego volume growth for risk reduction through lower offer rates, smaller
loan sizes and increased pricing. These measures have substantially curbed credit offers. The demand for credit also reduced as consumers faced high levels of
household debt and our offers became less competitive, which generally led to lower growth in disbursements. It also helped safeguard ABIL to a large extent
against further increases in risk.
The negative impact of slowing credit extension is twofold: Book and revenue growth are affected and credit quality ratios deteriorate as the bad debts from previous
high growth periods flow through. These trends were particularly evident in the current six months, where bad debts increased as a result of collections having come
under pressure. The knock-on effect from the recent strike activity led to increased debt servicing burdens. The group is actively addressing these trends by bolstering
the call centre capacity, implementing additional risk reduction measures, increasing provisions for credit losses and by placing increased emphasis on
assisting customers through rehabilitation efforts.
Trading conditions in the furniture industry deteriorated rapidly during the period, as customers' lower disposable incomes and higher indebtedness affected both
their willingness and ability to spend. Deflationary trends in durable goods continued. Measures implemented by ABIL to reduce high risk credit extension via smaller
parcels of credit adversely impacted the sale of merchandise. Efforts to further reduce costs and maintain firm margins could not fully counter the decline in
merchandise sales. The business is currently carrying duplicate costs from the recent rollout of the centralised distribution network which further affected results.
Financial performance
Commenting on results ABIL said "The drop in earnings was impacted by a combination of a sharper than expected decline in the macro-economic landscape and some once
off business related factors. We made the prudent decision in March to write off an additional amount of NPLs to improve the quality of our loan book in light of
the economic outlook. The in duplum (once off adjustment in respect of capping of arrears interest and fees), increased bad debt charge and retrospective insurance
claims, were also one off charges, all of which should normalise from now on, albeit at slightly higher levels."
Headline earnings and headline earnings per share declined by 26% to R1 015 million (H1 2012: R1 370 million) and 125,7 cents (H1 2012: 170,4 cents), respectively.
The group generated a return on total equity of 13,9% for the six months to 31 March 2013 (H1 2012: 20,3%) and a return on average tangible equity of 23,9%
(H1 2012: 37,5%). ABIL generated an economic loss, after charging for its cost of equity, of R47 million (H1 2012: economic profit of R390 million). An interim
ordinary dividend per share of 25 cents (H1 2012: 85 cents) was declared.
Headline earnings benefited from the replacement of secondary tax on companies (STC) with a dividend withholding tax by an amount of R79 million. Excluding this
benefit, headline earnings would have been 30% lower than the comparable period in 2012.
Headline earnings in the Banking unit declined by 20% to R1 001 million (H1 2012: R1 259 million) and economic profit by 72% to R129 million. The unit produced a
return on equity of 16,6% (H1 2012: 22,9%) and a return on average tangible equity of 24,9%. The Banking unit continued to show positive advances growth and maintained
good control over operating and funding costs. These improvements were, however, negated by:
- A lower yield, partially as a result of higher suspension of income on increased non-performing loans and more so due to a once-off charge as a result of the final
implementation of in duplum for the credit card portfolio. The once-off charge impacted the yield by approximately 50 basis points. Excluding the once-off in duplum
adjustment, the yield was marginally lower than the second half of 2012. The group has also increased pricing over the past year to ameliorate the increased risk and
the current incoming gross yield prior to suspension is higher than in the comparative period.
- An elevated charge for bad and doubtful advances resulting from higher NPL formation in the first few months of the year, exacerbated by ABIL's decision to write off
an additional R445 million of non-performing loans in March. This increased write-off coupled with the group's communicated intent to reduce the value of the previously
written off book had the effect of reducing coverage, and accordingly NPL coverage was increased to recent norms post the write-off. These actions were taken to improve
the quality of the loan book over the long term but in the short term, it affected the income statement particularly negatively.
- Insurance claims and related provisions increased as a result of the group broadening the range of insured events. The charge is retrospective in nature, as ABIL
has previously applied a narrower definition of loss of income through retrenchment.
Headline earnings in the Retail unit decreased to R18 million (H1 2012: R191 million), due to the 11% decline in sales and the high fixed cost nature of the furniture
retail business. Good cost management and slightly firmer margins could not sufficiently counteract the merchandise sales decline. EHL is also currently carrying
duplicate costs from the recent rollout of the centralised distribution network which contributed to the negative result and which is expected to disappear towards
the end of 2014 as leases expire and old warehouses are shut down. The Retail unit generated a return on sales of 0,8%, a return on equity of 1,3% and a return on
average tangible equity of 5,0%. It generated an economic loss of R189 million. EBITDA was R138 million for the period, relative to R350 million for the corresponding
period.
Probe by the National Credit Regulator
The National Credit Regulator (NCR) announced in October 2012 that it was investigating a number of lenders including African Bank for possible reckless lending.
The investigation into African Bank focused on fraudulent activity at one of its branches. The NCR advised African Bank in February 2013 that it has referred the
matter to the National Consumer Tribunal (NCT) and has proposed that the NCT impose a fine of R300 million on the Bank.
African Bank has handed the matter to its attorneys, contests the allegations and believes, based on legal counsel, that the fine is unwarranted given the specific
facts and circumstances. Both parties have submitted their documents to the NCT for review and it is expected that the NCT will review the matter within the next few
months. Accordingly, no provision has been made in these results for any potential fine.
DIRECTORATE
Leeanne Goliath was appointed company secretary to African Bank Investments Limited on 18 October 2012.
There have been no changes to the ABIL board over the reporting period.
LOOKING AHEAD
The lower sales and collections for the first half of the 2013 financial year has put pressure on ABIL's full year results. The group has therefore implemented further
revenue enhancing initiatives, whilst reducing risk and has renewed the impetus to tightly manage collections, operating costs and capital expenditure. Trading
conditions are expected to remain difficult for the remainder of the year and possibly deteriorate slightly in the retail environment. The risk reduction measures of
lower offer rates, smaller loan sizes and increased pricing will continue to impact on sales but will strengthen the quality of the loan book and sustain profitable
growth beyond 2013.
ABIL's advances growth will continue to exceed sales growth as older short term loans pay off and are replaced by longer term loans. New products and changes in the
group's customer offering also bode well for business over the medium term.
The bad debt charge is expected to remain elevated for the rest of the year, but the risk reduction measures implemented should benefit the charge from 2014. At the
same time, the large write-offs have improved the quality of the remaining NPL portfolio.
The higher incoming yield, the fact that the effect of income suspension on the NPL portfolio will reduce and that the retrospective credit card in duplum charge will
not repeat, should support the yield going forward.
Operating and funding cost growth remains well contained and approximately R100 million of duplicate costs is expected to come out of the Retail unit during 2014.
The slowdown in furniture sales growth is expected to endure due to continued pressure on the consumer as a result of rising inflation, lower consumer confidence,
increasing debt burdens and continuing tightening of credit. The challenge lies in assessing how long the slowdown will last and implementing appropriate strategies
given this assessment. The Retail unit will continue to focus on margin management, further cost reduction initiatives to provide maximum operational leverage and
exploring opportunities for profitable growth, while also paying close attention to stock levels, collections, the credit proposition, marketing and effective
operational execution.
On ELH results the group said, "We witnessed a further decline in customers in our furniture outlets, which resulted in us lowering our expectations on customers'
ability to spend even further towards the end of this reporting period. Current duplicate costs further exacerbated the retailers' drop in earnings.
We have reduced our credit offering and do not foresee an improvement in our customers' disposable incomes and ability to spend, in the near future.
While we are doing everything operationally to reduce the impact of lower sales, we anticipate a challenging year ahead for this business."
ABIL remains profitable and well-funded, with a solid capital position. The existing loan book continues to generate strong cash flows and our conservative funding
approach continues to enable the Bank to withstand volatile economic cycles.
While the outlook for the short term is for continuing challenging conditions, we have spent the past few years building a group that is financially and operationally
robust and resilient and can withstand downturns in the economy and in credit markets. ABIL remains confident of its ability to entrench its position as the market
leader in a larger, more competitive and fast changing unsecured credit market, despite the challenging outlook.
The information in this announcement has not been reviewed nor audited and reported on by ABIL's external auditors.
On behalf of the board
Mutle Mogase Leon Kirkinis
Chairman Chief executive officer
20 May 2013
DIVIDEND DECLARATION
Ordinary dividend declaration and capitalisation share alternative
Ordinary shareholders are advised that the board of directors has declared an interim gross cash dividend of 25 cents per ordinary share (21,25000 cents net of
dividend withholding tax) for the six months to 31 March 2013 (the cash dividend). No secondary tax on companies (STC) credits were applied to this dividend
declaration. 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 25 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 30 May 2013.
The cash dividend will be paid out of the company's distributable profits while the issue price of the capitalisation shares (which will equal the volume weighted
average price of ABIL's ordinary shares traded on the JSE for the 9 day period ending on Thursday, 30 May 2013) will be settled by the company utilising a portion
of the company's share premium reserves of R9 324 million but the share premium will only be utilised to the extent of the par value of the capitalisation shares
(being 2,5 cents each) and the balance of the issue price shall be paid for through the capitalisation of distributable profits. The capitalisation shares will,
upon their issue, rank pari passu in all respects with the other ordinary shares then in issue.
Details of the ratio will be released on the Securities Exchange News Services (SENS) of the JSE by no later than 11:00 on Friday, 31 May 2013 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 shareholder's entitlement to new ordinary shares calculated in accordance with the above formulae 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 Friday, 24 May 2013.
Timetable for ordinary shares
Share code ABL
ISIN ZAE000030060
Company registration number 1946/021193/06
Company tax reference number 9850164717
Dividend number 25
Gross cash dividend per share 25 cents
Net dividend amount represented as cents per share 21,25000 cents
Issued shares as at declaration date 810 232 118
Declaration date Monday, 20 May 2013
Circular and form of election posted to shareholders on Friday, 24 May 2013
Finalisation announcement released on SENS Friday, 31 May 2013
Finalisation announcement published in the press Monday 3 June 2013
Last date to trade to be eligible for the cash
dividend/capitalisation shares Friday, 7 June 2013
Shares commence trading ex-cash dividend/capitalisation shares Monday, 10 June 2013
Listing of maximum possible number of ordinary shares from Monday, 10 June 2013
Last date to elect to receive the capitalisation issue instead
of the cash dividend. Forms of election to reach the transfer
secretaries by 12:00 on Friday, 14 June 2013
Record date in respect of cash dividend/capitalisation shares Friday, 14 June 2013
Dividend payment date Tuesday, 18 June 2013
Results of capitalisation issue released on SENS Tuesday, 18 June 2013
Share listing adjusted Wednesday, 19 June 2013
Share certificates may not be dematerialised or rematerialised between Monday, 10 June 2013 and Friday, 14 June 2013, both dates inclusive.
Tax implications
The cash dividend and the capitalisation issues 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. 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 agreement (DTA) 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 fall within the
CGT regime, the base cost of such shares will be deemed to be zero 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 will be zero).
Preference dividend declaration
Preference shareholders are advised that the board of directors has declared an interim gross cash dividend of 322 cents per ordinary share (273,70000 cents net of DWT).
The dividends have been declared from income reserves.
A dividend withholding tax of 15% will be applicable to all shareholders who are not exempt from the tax, or liable to lower tax rates due to any DTA.
Timetable for preference shares
Share code ABLP
ISIN ZAE000065215
Company registration number 1946/021193/06
Company tax reference number 9850164717
Dividend number 17
Gross cash dividend per share 322 cents
Net dividend amount represented as cents per share 273,70000 cents
Issued shares as at declaration date 13 523 029
Declaration date Monday, 20 May 2013
Last date to trade cum-dividend Friday, 7 June 2013
Shares commence trading ex-dividend Monday, 10 June 2013
Record date Friday, 14 June 2013
Dividend payment date Tuesday, 18 June 2013
Share certificates may not be dematerialised or rematerialised between Monday, 10 June 2013 and Friday, 14 June 2013, both dates inclusive.
OTHER DISCLOSURES
Basis of preparation
The preparation of these group condensed interim financial statements was supervised by the chief financial officer, Nithia Nalliah CA(SA).
These condensed group interim financial statements have been prepared in accordance with the framework concepts and the measurement and recognition requirements of
the International Financial Reporting Standards (IFRS) adopted by the International Accounting Standards Board, Interpretations issued by the International Financial
Reporting Interpretations Committee (IFRIC) of the IASB, IAS 34 Interim Financial Reporting, the AC 500 Standards as issued by the Accounting Practices Board, the
requirements of the Companies Act 71 of 2008 as well as the Listings Requirements of the JSE Limited.
The group has adopted the following standards and interpretations during the financial year, which did not have a material impact on the reported results:
- IAS 1 Presentation of Items of Other Comprehensive Income; and
- IAS 12 Measurement of Deferred Tax Asset.
The group has a contingent liability in respect of the proposed fine by the National Credit Regulator. There is no provision as it is not practical to estimate the
outcome of the matter.
The accounting policies and their application are consistent with those used for the group's 2012 annual financial statements.
CONDENSED SEGMENTAL INCOME STATEMENT
for the six months ended 31 March 2013
31 March 2013 (Unaudited) 31 March 2012 (Unaudited) 30 September 2012 (Audited)
Consoli- Consoli- Consoli-
R million ABIL Banking Retail dation ABIL Banking Retail dation ABIL Banking Retail dation
% change Group unit unit adjustments Group unit unit adjustments Group unit unit adjustments
Gross margin on retail business (11) 1 042 1 042 1 172 1 172 2 134 2 134
Interest income on advances 25 5 680 5 630 50 4 557 4 509 48 9 919 9 823 96
Assurance income 26 2 491 2 274 217 1 976 1 749 227 3 828 3 401 427
Non-interest income 1 1 632 1 475 235 (78) 1 616 1 465 259 (108) 3 291 3 018 479 (206)
Income from operations 16 10 845 9 379 1 544 (78) 9 321 7 723 1 706 (108) 19 172 16 242 3 136 (206)
Credit impairment charge 45 (3 463) (3 441) (22) (2 385) (2 375) (10) (5 197) (5 170) (27)
Claims paid > 100 (801) (801) (395) (394) (1) (912) (918) 6
Risk-adjusted income from operations 1 6 581 5 137 1 522 (78) 6 541 4 954 1 695 (108) 13 063 10 154 3 115 (206)
Product insurance claims (24) (32) (32) (42) (42) (60) (60)
Other interest and investment income 23 177 180 36 (39) 144 141 37 (34) 219 324 74 (179)
Interest expense 25 (2 199) (2 181) (52) 34 (1 762) (1 753) (43) 34 (3 680) (3 771) (84) 176
Operating costs 7 (2 982) (1 606) (1 457) 81 (2 795) (1 516) (1 387) 108 (5 467) (2 957) (2 716) 206
Indirect taxation: VAT 60 (69) (66) (3) (43) (43) (72) (72)
Profit from operations (28) 1 476 1 464 17 (5) 2 043 1 783 260 4 003 3 678 329 (4)
Capital items (100) (6) (6) (6) (6)
Profit before taxation (28) 1 476 1 464 17 (5) 2 037 1 783 254 3 997 3 678 323 (4)
Direct taxation: STC (100) (79) 1 (80) (82) (2) (80)
Direct taxation: Normal (26) (419) (421) 1 1 (569) (502) (67) (1 112) (1 038) (75) 1
Profit for the period (24) 1 057 1 043 18 (4) 1 389 1 282 187 (80) 2 803 2 638 248 (83)
Reconciliation of headline earnings
Profit for the period (basic earnings) (24) 1 057 1 043 18 (4) 1 389 1 282 187 (80) 2 803 2 638 248 (83)
Preference shareholders 91 (44) (44) (23) (23) (61) (61)
Basic earnings attributable to
ordinary shareholders (26) 1 013 999 18 (4) 1 366 1 259 187 (80) 2 742 2 577 248 (83)
Adjustment for non-headline items: (50) 2 2 4 4 12 3 9
Gross 2 2 6 6 17 4 13
Tax thereon (2) (2) (5) (1) (4)
Headline earnings (26) 1 015 1 001 18 (4) 1 370 1 259 191 (80) 2 754 2 580 257 (83)
Intersegment revenues included in income from operations are for the Retail unit only and amounted to R78 million (H1 2012: R108 million).
CONDENSED SEGMENTAL STATEMENT OF FINANCIAL POSITION
as at 31 March 2013
31 March 2013 (Unaudited) 31 March 2012 (Unaudited) 30 September 2012 (Audited)
Consoli- Consoli- Consoli-
R million ABIL Banking Retail dation ABIL Banking Retail dation ABIL Banking Retail dation
% change Group unit unit adjustments Group unit unit adjustments Group unit unit adjustments
Assets
Short term deposits and cash (1) 4 672 5 011 92 (431) 4 733 4 886 78 (231) 3 070 3 394 92 (416)
Statutory assets bank and
insurance 43 5 133 4 292 642 199 3 586 3 045 541 4 322 3 533 605 184
Inventories 3 872 872 847 847 - 871 871
Other assets > 100 2 369 2 216 211 (58) 1 006 685 391 (70) 1 310 971 411 (72)
Other assets intragroup - 770 199 (969) 324 156 (480) 464 184 (648)
Taxation 27 33 33 - 26 26 27 27
Net advances 24 50 842 50 973 396 (527) 41 014 41 085 348 (419) 46 013 46 130 363 (480)
Deferred tax asset 37 732 192 537 3 534 175 358 1 762 323 437 2
Property and equipment 34 1 286 605 692 (11) 962 575 390 (3) 1 152 627 531 (6)
Intangible assets (10) 647 647 718 718 683 683
Goodwill 5 472 4 000 755 717 5 472 4 000 755 717 5 472 4 000 755 717
Total assets 22 72 058 68 059 5 076 (1 077) 58 898 54 775 4 608 (485) 63 682 59 442 4 959 (719)
Liabilities and equity
Short term funding 27 5 577 5 109 468 4 393 3 955 438 4 587 4 111 476
Short term funding intragroup 199 691 (890) 156 319 (475) 184 459 (643)
Other liabilities 14 2 100 1 194 1 405 (499) 1 841 724 1 541 (424) 2 201 1 003 1 689 (491)
Other liabilities intragroup 58 107 (165) 70 (70) 66 (66)
Taxation (75) 26 22 4 - 105 64 41 94 79 15
Deferred tax liability (6) 206 206 219 219 216 216
Bonds and other long term funding 28 43 742 43 654 88 34 200 34 173 27 37 320 37 300 20
Subordinated bonds 40 4 355 4 355 3 105 3 105 3 831 3 831
Total liabilities 28 56 006 54 591 2 969 (1 554) 43 863 42 247 2 585 (969) 48 249 46 574 2 875 (1 200)
Ordinary shareholders' equity 7 14 922 12 338 2 107 477 13 905 11 398 2 023 484 14 303 11 738 2 084 481
Preference shareholders' equity - 1 130 1 130 1 130 1 130 1 130 1 130
Total equity (capital and reserves) 7 16 052 13 468 2 107 477 15 035 12 528 2 023 484 15 433 12 868 2 084 481
Total liabilities and equity 22 72 058 68 059 5 076 (1 077) 58 898 54 775 4 608 (485) 63 682 59 442 4 959 (719)
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 31 March 2013
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
R million % change 31 Mar 2013 31 Mar 2012 30 Sep 2012
Profit for the period (24) 1 057 1 389 2 803
Other comprehensive income comprising of items that are
or may subsequently be reclassified to profit or loss
Exchange differences on translating foreign operations > (100) 5 (4) (4)
Movement in cash flow hedge reserve > 100 324 44 (200)
IFRS 2 reserve transactions (employee incentives) > (100) (31) 46 (7)
Other comprehensive income for the period, net of tax > 100 298 86 (211)
Total comprehensive income for the period (8) 1 355 1 475 2 592
CONDENSED STATEMENT OF CASH FLOWS
for the six months ended 31 March 2013
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
R million 31 Mar 2013 31 Mar 2012 30 Sep 2012
Cash generated from operations 5 703 4 860 9 558
Cash received from lending, insurance activities, sale
of merchandise and cash reserves 12 253 10 825 21 917
Recoveries on advances previously written off 110 98 300
Cash paid to funders, staff, suppliers and insurance beneficiaries (6 660) (6 063) (12 659)
Increase in gross advances (8 352) (8 352) (16 274)
Increase in working capital (1 421) (321) (344)
(Increase)/decrease in inventories (1) 38 14
Increase in other assets (1 211) (115) (438)
(Decrease)/increase in other liabilities (209) (244) 80
Indirect and direct taxation paid (589) (808) (1 486)
Cash inflow from equity accounted incentive transactions 11 14
Cash outflow from operating activities (4 659) (4 610) (8 532)
Cash outflow from investing activities (687) (618) (1 304)
Acquisition of property and equipment (to maintain operations) (185) (227) (568)
Disposal of property and equipment 57 13 31
Other investing activities (559) (404) (767)
Cash inflow from financing activities 7 200 7 169 10 487
Cash inflow from funding activities 7 936 7 585 11 625
Issue of preference shares 411 411
Preference shareholders' payments and transactions (44) (23) (61)
Ordinary shareholders' payments and transactions (692) (804) (1 488)
Increase in cash and cash equivalents 1 854 1 941 651
Cash and cash equivalents at the beginning of the period 4 260 3 609 3 609
Cash and cash equivalents at the end of the period 6 114 5 550 4 260
Made up as follows:
Short term deposits and cash 4 672 4 733 3 070
Statutory cash reserves insurance 1 442 817 1 190
6 114 5 550 4 260
CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY
for the six months ended 31 March 2013
Ordinary shares
Share Share- Ordinary Preference
capital Distri- based share- share
and butable payment holders' capital and
R million premium reserves reserve Other equity premium Total
Balance at 30 September 2011 (audited) 9 151 4 263 81 (249) 13 246 719 13 965
Dividends paid (804) (804) (23) (827)
Issue of preference shares 411 411
Profit on group employees acquiring ABIL Share Trust shares
less dividends received 3 3 3
Shares purchased into the ABIL Employee Share Trust less
shares issued to employees (cost) 8 8 8
Transfer to insurance
contingency reserve (4) 4
Total comprehensive income
for the period 1 366 46 40 1 452 23 1 475
Balance at 31 March 2012 (unaudited) 9 151 4 824 127 (197) 13 905 1 130 15 035
Dividends paid (684) (684) (38) (722)
Shares purchased into the ABIL Employee Share Trust less
shares issued to employees (cost) 3 3 3
Transfer from share-based
payment reserve 77 (77)
Total comprehensive income
for the period 1 376 (53) (244) 1 079 38 1 117
Balance at 30 September 2012 (audited) 9 151 5 593 (3) (438) 14 303 1 130 15 433
Dividends paid (692) (692) (44) (736)
Shares issued in terms of the scrip distribution announced on
30 November 2012 193 (193)
Total comprehensive income
for the period 1 013 (31) 329 1 311 44 1 355
Balance at 31 March 2013 (unaudited) 9 344 5 721 (34) (109) 14 922 1 130 16 052
NOTES
1. Number of ordinary shares at 31 March 2013
Total Weighted
Number of shares in issue at the beginning of the year 804 175 200 804 175 200
Shares issued during the period 6 056 918 3 461 096
810 232 118 807 636 296
CORPORATE INFORMATION
Board of directors
Non-executive: MC Mogase (Chairman), N Adams, Advocate MF Gumbi, JDMG Koolen#,
NB Langa-Royds, S Sithole*, RJ Symmonds
Executive: L Kirkinis (CEO), A Fourie, N Nalliah, TM Sokutu
* Zimbabwean # Dutch
Company secretary: L Goliath
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)
Registered office
59 16th Road
Midrand, South Africa, 1685
Private Bag X170, Midrand,
South Africa,
1685
Investor relations and shareholder details
Lydia du Plessis Chiquita Schram
Telephone: +27 11 564 6991 +27 11 256 9523
Email: investor.relations@africanbank.co.za
Sponsor
Rand Merchant Bank (a division of FirstRand Bank Limited)
1 Merchant Place, cnr Fredman Drive and Rivonia Road, Sandton, 2196
Share transfer secretaries
Link Market Services South Africa (Pty) Limited
13th Floor, Rennie House, 19 Ameshoff Street, Braamfontein
PO Box 4844, Johannesburg, 2000
Telephone +27 11 713 0800
Telefax: +27 86 674 4381
www.abil.co.za
Date: 20/05/2013 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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