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SASFIN HOLDINGS LIMITED - Sasfin interim results and dividend declaration

Release Date: 11/03/2014 10:20
Code(s): SFN SFNP     PDF:  
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Sasfin interim results and dividend declaration

Sasfin Holdings Limited
Registration number: 1987/002097/06
JSE Ordinary share code: SFN    ISIN: ZAE000006565
JSE Preference share code: SFNP     ISIN: ZAE000060273

UNAUDITED RESULTS
AND DIVIDEND DECLARATIONS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2013

HEADLINE EARNINGS PER
ORDINARY SHARE UP
12% to 222 cents
(Dec 2012: 198 cents)

HEADLINE EARNINGS UP
10% to
R70,4 million
(Dec 2012: R63,9 million)

DIVIDENDS PER
ORDINARY SHARE UP
9% to 65 cents
(Dec 2012: 60 cents)

CREDIT LOSS RATIO UP
40 bps to 80 bps
(Dec 2012: 40 bps)

DEPOSITS UP
50% to R2,7 billion
(Dec 2012: 1,8 billion)

TOTAL GROSS LOANS AND
ADVANCES UP
21% to
R3,8 billion
(Dec 2012: R3,2 billion)

RETURN ON ORDINARY 
SHAREHOLDERS' AVERAGE
EQUITY
13%
(Dec 2012: 13%)

TOTAL FUNDING BASE UP
35% to
R5,4 billion
(Dec 2012: R4,0 billion)

GROUP CAPITAL
ADEQUACY DOWN
by 500 bps to 24%
(Dec 2012: 29%)

FINANCIAL HIGHLIGHTS                                                                                                          
                                                                                        31 December   31 December   30 June   
                                                                                    %          2013          2012      2013   
                                                                               change     Unaudited     Unaudited   Audited   
Consolidated statement of financial position                                                                                  
Total assets (Rms)                                                                 36         7 408         5 461     6 253   
Total gross loans and advances (Rms)                                               21         3 814         3 163     3 416   
Non-performing loans and advances (Rms)                                           (3)           162           167       193   
Income statement                                                                                                              
Earnings attributable to ordinary shareholders (Rms)                               10            70            64       136   
Headline earnings (Rms)                                                            10            70            64       135   
Financial performance                                                                                                         
Return on ordinary shareholders' average equity (%)                                              13            13        14   
Return on total average assets (%)                                                                2             2         2   
Operating performance                                                                                                         
Non-interest income to total income (%)                                                          70            70        71   
Efficiency ratio                                                                                                              
Banking Group (%)                                                                                65            64        62   
Group (%)                                                                                        74            73        72   
Credit loss ratio (bps)                                                                          80            40        70   
Non-performing advances to total gross loans and advances (%)                                   4,2           5,3       5,6   
Share statistics                                                                                                              
Earnings per ordinary share (cents)                                                12           222           198       423   
Headline earnings per ordinary share (cents)                                       12           222           198       421   
Diluted earnings per ordinary share (cents)                                        12           222           198       423   
Diluted headline earnings per ordinary share (cents)                               12           222           198       421   
Number of ordinary shares in issue at end of the period (‘000)                               32 237        32 237    32 237   
Weighted average number of ordinary shares in issue (‘000)                                   31 737        32 237    32 171   
Diluted weighted average ordinary shares in issue (‘000)                                     31 737        32 237    32 171   
Dividends per ordinary share relating to profit for the period (cents)              9         65,34         60,00    168,00   
Preference share dividend number 19 (cents)                                                  353,51             –         –   
Preference share dividend number 18 (cents)                                                       –             –    347,74   
Preference share dividend number 17 (cents)                                                       –        355,65    355,65   
Net asset value per ordinary share (cents)                                          8         3 297         3 056     3 187   
Capital adequacy (unaudited)                                                                                                  
Group capital to risk weighted assets (%)                                                        24            29        26   
Sasfin Bank Limited and its subsidiaries capital to risk weighted assets (%)                     22            24        22   
Employees                                                                                                                     
Permanent staff complement                                                          9           780           713       701   

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

                                                                    31 December   31 December     30 June   
                                                                %          2013          2012        2013   
All figures in R'000                                       change     Unaudited     Unaudited     Audited   
ASSETS                                                                                                      
Cash balances and short-term negotiable securities             47     2 095 198     1 427 262   1 595 084   
Loans and advances to customers                                21     3 724 385     3 069 587   3 309 235   
Financial assets held for trading                                       482 383             –     284 372   
Other receivables                                                       502 824       419 526     482 668   
Investment securities                                                   358 676       301 003     338 247   
Investments in associated companies                                     111 662        93 661     107 353   
Property, plant and equipment                                            53 258        56 317      53 801   
Taxation                                                                  3 219           819       3 114   
Intangible assets and goodwill                                           69 733        83 007      71 822   
Deferred tax asset                                                        6 673         9 822       7 098   
Total assets                                                   36     7 408 011     5 461 004   6 252 794   
LIABILITIES                                                                                                 
Interbank funding                                                       167 794        64 474     143 819   
Deposits from customers                                        50     2 748 096     1 834 491   2 161 141   
Debt securities issued                                         17     1 613 726     1 378 493   1 378 691   
Long-term loans                                                         688 179       538 249     538 247   
Financial liabilities held for trading                                  465 336             –     280 942   
Other payables                                                          394 891       381 291     455 929   
Taxation                                                                  8 214        16 331       4 626   
Deferred tax liability                                                   59 744        61 494      62 695   
Total liabilities                                              44     6 145 980     4 274 823   5 026 090   
EQUITY                                                                                                      
Ordinary share capital and share premium                                144 327       162 732     144 327   
Reserves                                                                918 426       822 377     883 099   
Preference share capital and share premium                              199 278       199 278     199 278   
Total equity attributable to equity holders of the Group              1 262 031     1 184 387   1 226 704   
Non-controlling interest                                                      –         1 794           –   
Total equity                                                          1 262 031     1 186 181   1 226 704   
Total liabilities and equity                                   36     7 408 011     5 461 004   6 252 794   
Commitments and contingent liabilities                                  283 023       273 655     378 273   

CONDENSED CONSOLIDATED INCOME STATEMENT

                                                                31 December   31 December   30 June   
                                                            %          2013          2012      2013   
All figures in R'000                                   change     Unaudited     Unaudited   Audited   
Interest income                                                     292 518       240 507   473 686   
Interest expense                                                    164 432       129 416   253 479   
Net interest income                                        15       128 086       111 091   220 207   
Non-interest income                                        15       292 128       254 370   533 562   
Total income                                               15       420 214       365 461   753 769   
Impairment charges on loans and advances                 >100        15 731         6 381    22 376   
Net income after impairments                                        404 483       359 080   731 393   
Operating costs                                                     315 707       270 385   561 046   
Staff costs                                                24       169 671       136 968   299 244   
Other operating expenses                                   10       146 036       133 417   261 802   
Profit from operations                                               88 776        88 695   170 347   
Share of associated companies' income                                 7 968         6 948    20 453   
Profit before income tax                                             96 744        95 643   190 800   
Income tax expense                                                   19 628        21 938    38 226   
Profit for the period                                                77 116        73 705   152 574   
Profit attributable to:                                                                               
Non-controlling interest                                                  –         2 988     2 860   
Preference shareholders                                               6 679         6 773    13 472   
Equity holders of the Group                                10        70 437        63 944   136 242   
Profit for the period                                                77 116        73 705   152 574   
Earnings per ordinary share (cents)                        12           222           198       423   
Diluted earnings per ordinary share (cents)                12           222           198       423   
Headline earnings per ordinary share (cents)               12           222           198       421   
Diluted headline earnings per ordinary share (cents)       12           222           198       421   

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

                                                                        31 December   31 December    30 June   
                                                                               2013          2012       2013   
All figures in R'000                                                      Unaudited     Unaudited    Audited   
Profit for the period                                                        77 116        73 705    152 574   
Other comprehensive income for the period, net of income tax                  (225)       (1 258)      4 337   
Items that are or may be subsequently reclassified to profit or loss:                                          
Net gains on remeasurement of available-for-sale financial assets               323         1 138        900   
Foreign exchange differences on translation of foreign operation             12 028         5 184     33 428   
Net loss on hedge of net investment in foreign operation                   (12 576)       (7 580)   (27 894)   
Loss on hedge of net investment in foreign operation                       (17 467)      (10 528)   (38 742)   
Income tax effect                                                             4 891         2 948     10 848   
Items that will never be reclassified to profit or loss:                                                       
Derecognition of revaluation reserve upon sale of property companies              –             –    (2 097)   
Total comprehensive income for the period                                    76 891        72 447    156 911   
Total comprehensive income attributable to:                                                                    
Non-controlling interest                                                          –         2 988      2 860   
Preference shareholders                                                       6 679         6 773     13 472   
Equity holders of the Group                                                  70 212        62 686    140 579   
Total comprehensive income for the period                                    76 891        72 447    156 911   

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                                                                      31 December   31 December     30 June   
                                                                             2013          2012        2013   
All figures in R'000                                                    Unaudited     Unaudited     Audited   
Opening total shareholders' equity                                      1 226 704     1 180 215   1 180 215   
Total comprehensive income for the period                                  76 891        72 447     156 911   
Profit for the period                                                      77 116        73 705     152 574   
Other comprehensive income for the period                                                                     
Available-for-sale reserve                                                    323         1 138         900   
Property revaluation reserve                                                    –             –     (2 097)   
Foreign currency translation reserve                                       12 028         5 184      33 428   
Hedging reserve                                                          (12 576)       (7 580)    (27 894)   
Transactions with owners recorded directly in equity                                                          
Movement in non-controlling interest                                            –      (19 435)    (21 101)   
Acquisition of non-controlling interest without a change in control             –      (11 897)           –   
Treasury shares                                                                 –             –    (18 405)   
Derecognition of revaluation reserve                                            –             –       2 097   
Changes in ownership interests in subsidiaries                                  –             –    (11 735)   
Preference share dividend                                                 (6 679)       (6 773)    (13 472)   
Ordinary share dividend                                                  (34 885)      (28 376)    (47 806)   
Closing balance                                                         1 262 031     1 186 181   1 226 704   

CONDENSED HEADLINE EARNINGS RECONCILIATION

                                                                     31 December   31 December   30 June   
                                                                 %          2013          2012      2013   
All figures in R'000                                        change     Unaudited     Unaudited   Audited   
Earnings are determined as follows:                                                                        
Earnings attributable to equity holders of the Group            10        70 437        63 944   136 242   
Headline adjustable items                                                   (81)             –     (787)   
Profit on sale of property and equipment – IAS 16                           (81)             –      (14)   
Gross                                                                      (112)             –      (19)   
Tax impact                                                                    31             –         5   
Gain on the disposal of businesses and divisions – IAS 27                      –             –     (773)   
Headline earnings                                               10        70 356        63 944   135 455   
Headline earnings per ordinary share (cents)                    12           222           198       421   

CONDENSED SEGMENTAL ANALYSIS

                                       31 December   31 December       30 June   
                                              2013          2012          2013   
All figures in R'000                     Unaudited     Unaudited       Audited   
Segment result                                                                   
Business Banking                            47 302        48 112        89 844   
Capital                                      5 268         5 490         9 422   
Treasury                                     6 628         1 795        10 006   
Wealth Management                           22 085        15 554        46 155   
Commercial Solutions                        15 344        16 661        33 798   
Group and Inter-segment eliminations      (19 511)      (13 907)      (36 651)   
Profit for the period                       77 116        73 705       152 574   
Segment revenue                                                                  
Business Banking                           303 239       259 712       523 186   
Capital                                     33 898        33 887        76 695   
Treasury                                   129 864        91 264       188 398   
Wealth Management                          102 032        72 723       168 485   
Commercial Solutions                        95 256        94 167       182 545   
Group and Inter-segment eliminations      (71 675)      (49 928)     (111 608)   
Total segment revenue                      592 614       501 825     1 027 701   
Segment assets                                                                   
Business Banking                         4 153 278     3 363 147     3 603 255   
Capital                                    517 049       469 521       470 097   
Treasury                                 3 211 071     2 329 564     2 640 345   
Wealth Management                          689 589       170 729       537 888   
Commercial Solutions                       277 225       239 326       244 489   
Group and Inter-segment eliminations   (1 440 201)   (1 111 283)   (1 243 280)   
Total segment assets                     7 408 011     5 461 004     6 252 794   
Segment liabilities                                                              
Business Banking                         3 810 264     3 081 103     3 257 444   
Capital                                    445 488       398 624       395 516   
Treasury                                 3 214 732     2 342 473     2 630 338   
Wealth Management                          612 696       117 527       457 083   
Commercial Solutions                       151 668       119 727       109 610   
Group and Inter-segment eliminations   (2 088 868)   (1 784 631)   (1 823 901)   
Total segment liabilities                6 145 980     4 274 823     5 026 090   

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

                                                       31 December   31 December     30 June   
                                                              2013          2012        2013   
All figures in R'000                                     Unaudited     Unaudited     Audited   
Cash flows from operating activities                        52 962        54 639      88 586   
Movement in operating assets and liabilities               445 386     (154 544)    (52 790)   
Change in loans and advances                             (429 743)     (241 548)   (497 191)   
Change in funding                                          384 967        78 700      80 376   
Change in other receivables                               (22 139)        35 179     (6 958)   
Change in financial assets held for trading              (198 011)             –   (284 372)   
Change in deposits                                         586 955        47 191     373 841   
Change in financial liabilities held for trading           184 394             –     280 942   
Change in other payables                                  (61 037)      (74 066)         572   
Net cash flows from operating activities                   498 348      (99 905)      35 796   
Net cash flows from investing activities                  (26 399)        53 600      19 416   
Net cash flows from financing activities                         –             –    (18 405)   
Net increase in cash and cash equivalents                  471 949      (46 305)      36 807   
Cash and cash equivalents at beginning of the period     1 451 265     1 408 987   1 408 987   
Effect of exchange rate fluctuations on cash held            4 190           106       5 471   
Cash and cash equivalents at end of the period           1 927 404     1 362 788   1 451 265   
Cash and cash equivalents comprise:                                                            
Cash and cash balances                                   2 095 198     1 427 262   1 595 084   
Interbank funding                                        (167 794)      (64 474)   (143 819)   
Cash and cash equivalents at end of the period           1 927 404     1 362 788   1 451 265   

FINANCIAL INSTRUMENTS
Fair values of financial assets and financial liabilities
The carrying amount of the financial assets and financial liabilities is a reasonable approximate of fair value.

The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial
statements as at and for the year ended 30 June 2013.

Financial hierarchy
The table below analyses financial instruments carried at fair value, by level of fair value hierarchy. The different levels are based
on the inputs used in the calculation of fair value of the financial instruments. The levels have been defined as follows:

Level 1 – fair value is based on quoted market prices (unadjusted) in active markets for identical instruments.
Level 2 – inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 – unobservable inputs for the asset or liability.

All figures in R'000                                  Level 1   Level 2   Level 3     Total   
Financial assets held for trading                     482 383         –         –   482 383   
Investment securities                                  56 010         –   302 666   358 676   
Other receivables                                           –    29 951         –    29 951   
Total financial assets carried at fair value          538 393    29 951   302 666   871 010   
Financial liabilities held for trading                465 336         –         –   465 336   
Other payables                                              –    33 663         –    33 663   
Total financial a liabilities carried at fair value   465 336    33 663         –   498 999   

Fair values of financial assets and financial liabilities that are traded in active markets are based on quoted market prices or
dealer price quotations. For all other financial instruments the Group determines fair values using valuation techniques.

The Group recognises transfers between levels of the fair value hierarchy as of the end of the reporting period during which the
transfer has occurred. There were no transfers between Level 1, 2 and 3 of the fair value hierarchy during the six months to
31 December 2013.

All figures in R'000                                                    Investment securities   
Balance at 1 July 2013                                                                283 711   
Unrealised gains and losses for the period included in profit or loss                   6 307   
Net investments/settlements                                                            12 648   
Balance at 31 December 2013                                                           302 666   

The valuations in Level 3 were based on detailed discounted cash flow methodologies, which were sanity checked against
implied price/earnings multiples, and where applicable benchmarked to proxies of listed entities in similar industries. This
valuation methodology is allowed per the international SAVCA guidelines.

COMMENTARY

NATURE OF BUSINESS
Sasfin Holdings Limited ("Sasfin" or "the Group" or "the Company") is a bank-controlling company listed in the
"Financials: Investment Services" sector of the JSE Limited ("the JSE"). Sasfin and its subsidiaries provide a wide
range of complementary banking, financial and related services.

BUSINESS REVIEW: GROUP PERFORMANCE
Business environment:

- The fragile South African economy, with its twin deficits, faced a challenging environment with high
  levels of labour unrest and unemployment across many sectors. Amid pressure inflicted by quantitative
  easing and possible sovereign downgrade issues, rand depreciation has escalated, with a concomitant
  rise in interest rates, affecting the growth levels required to reduce unemployment. Along with other
  affected emerging markets, the South African economy remains soft, as capital flows shift to developed
  economies.

- Notwithstanding the above, the banking sector remains resilient, helped by the strong capital
  levels held by local banks, despite the increasing concern around consumer over-indebtedness in a
  worsening credit environment, fuelled by a rising interest rate outlook.

Group overview:

- Sasfin maintained its growth levels in its core business activities and produced a satisfactory set of
  results, showing a 12% increase in headline earnings per share at 222 cents (2012: 198 cents) for the
  period under review and significantly strengthened its balance sheet. Total assets grew by 36% to
  R7,4 billion over the corresponding period, underpinned by a 21% growth in the Business Banking
  division, with loans and advances reaching R3,8 billion.

- In addition, the Group improved its financial position by expanding and diversifying its funding base, which
  resulted in a very healthy surplus liquidity position of R2,1 billion (2012: R1,4 billion) – a growth of 47%.

- A combination of strong revenue growth, a higher impairment charge and a lower tax rate resulted
  in Group headline earnings growth of 10% to R70,4 million (2012: R63,9 million). The Group credit
  loss ratio for the period showed a sharp rise to 80 bps from a relatively low base in December 2012
  of 40 bps.

- Total income grew by 15% on the back of growth in loans and advances and expansion of the
  non-interest revenue base, which was partly impacted by the negative carry costs on the high
  liquidity position.

- Group costs reflected a 17% increase when compared to the same period in 2012, largely driven
  by a 24% increase in staff costs. The significant growth in staff costs is attributed to an increase
  in staff numbers, particularly in the Wealth Management division, recruitment of a new Fixed Income
  trading team, establishment of the new Transactional Banking division and the new Stellenbosch
  client and sales office. Because of this and the increased negative carry on the surplus liquidity
  levels, the Group's cost-to-income ratio crept up marginally to 74%. At a Banking Group level, the cost-
  to-income ratio was 65% (2012: 64%).

- The Group benefitted from a lower tax rate with an effective rate of 20% (2012: 23%), primarily due to
  the change in secondary tax on companies and increased income streams at lower tax rates.

Segmental overview:

- The Business Banking division's profit for the period at R47,3 million, was down from 2012 of
  R48 million. Key factors attributing to this performance include strong growth in loans and advances,
  margin retention and cost containment. The unit's profitability, which accounts for 61% of the
  Group's profit, was negatively impacted by a higher credit loss ratio of 90 bps up from 30 bps in
  December 2012. Non-performing loans showed a downward trend to 4,2% at December 2013
  from 5,3% in December 2012. This unit remains positive for growth in the second half of the financial
  year and beyond.

- The Wealth Management division achieved impressive profit growth from R15,5 million to R22,1 million,
  an improvement of 42% over the period. The Stockbroking unit experienced an increase in local and
  globally-managed portfolios resulting in improved annuity income. The Asset Management business
  developed a fully-fledged offering with an effective distribution channel. The Wealth Management
  division, which brought an experienced fixed income trading team on board, is well positioned to become
  a larger profit driver for the Group. Funds under advisement and management now amount to R77 billion
  (2012: R57 billion), an increase of 35% from December 2012.

- The Treasury division continued to grow its deposit base impressively and reached R2,75 billion at
  December 2013 – an increase of 50%. Equally impressive is the lengthening of the deposit base, with
  notice and fixed-term deposits representing 50% of total deposits. While growing encouragingly,
  the foreign exchange business, remains a drag on the Group's profitability, and has accordingly been
  transferred to the Commercial Solutions Division for renewed management attention.

- The Capital division's profitability declined marginally to R5,3 million for the period, impacted by a mixed
  performance in the underlying portfolios. The Corporate Finance unit delivered a flat performance with
  a lower level of deal flows and mandates.

- The Commercial Solutions division delivered a satisfactory set of results with a profit of R15,3 million,
  an 8% decrease when compared to the same period in 2012. This segment is growing encouragingly
  and achieving scale, and has become a meaningful contributor to Group earnings.

Statement of financial position and capital management review:

- The Group's deposit and funding continued to grow, with an improved deposit mix and maturity profile.
  Overall, the Group's funding position remains strong with a diversified funding base of R5,4 billion, up
  from R4 billion of last year. This funding base enhances the ability of Sasfin Bank Limited to meet the
  stringent Basel III liquidity requirements of liquidity coverage ratio and the net stable funding ratio in a
  sustainable manner.

- Sasfin's securitisation vehicle, South African Securitisation Programme (RF) Limited ("SASP"), Series 1,
  a leader in its market, continued to deliver consistent performance with R362 million of maturing notes
  successfully refinanced whereby the issue was oversubscribed by 2,5 times. In addition, the Debt Capital
  Market team arranged and successfully concluded a second securitisation transaction (SASP Series 2)
  under the current Domestic Medium Term Note programme to raise R350 million to fund alternate asset
  class of capital equipment and larger rental deals.

- While the Group's capital adequacy ratio has declined by 500 bps to 24% (2012: 29%) due to the new
  capital requirements of Basel III and growth in assets, the Group remains well capitalised with a primary
  tier I capital ratio of 22% (2012: 25,6%), which is the main measure of capital strength.

PROSPECTS

- Sasfin continues to focus on its target market comprising the entrepreneurial business market and
  private client base. Based on prevailing market conditions, the Group expects similar levels of business
  activity in the second half of the financial year.

- Sasfin is poised for sustainable growth and expansion of its franchise value in its chosen markets, aided by
  its soon-to-be-launched Transactional Banking business and service offering.

BASIS OF PREPARATION AND PRESENTATION OF THE CONDENSED
INTERIM CONSOLIDATED FINANCIAL STATEMENTS

The condensed unaudited interim consolidated financial statements have been prepared in accordance
with IAS 34 – "Interim Financial Reporting" and the requirements of the Companies Act of South Africa
and in compliance with the JSE Listings Requirements and the accounting policies applied conform
to International Financial Reporting Standards and the SAICA Financial Reporting Guides. There are no
material events subsequent to the end of the interim period.

Except as described below, the accounting policies applied in these interim financial statements are
the same as those applied in the Group's consolidated financial statements as at and for the year ended
30 June 2013.

The Group has adopted the following new standards and amendments, with a date of initial application of
1 July 2013.

- IFRS 10 Consolidated Financial Statements
- IFRS 11 Joint Arrangements
- IFRS 13 Fair Value Measurement

The above changes will also be reflected in the Group's consolidated financial statements as at and for the
year ending 30 June 2014. There has been no impact on the recognised assets, liabilities and comprehensive
income on the interim results of the Group.

Subsidiaries
As a result of IFRS 10, the Group has applied the new accounting standard for determining whether it
has control over and consequently whether it consolidates its investees. IFRS 10 introduces a new control
model that is applicable to all investees, by focusing on whether the Group has power over an investee,
exposure or rights to variable returns from its involvement with the investee and ability to use its power
to affect those returns. In particular, IFRS requires the Group to consolidate investees that it controls on the
basis of de facto circumstances.

In accordance with the transitional provisions of IFRS 10, the Group reassessed the control conclusion for its
investees at 1 July 2013; there has been no impact on the recognised assets, liabilities and comprehensive
income of the Group.

Joint arrangements
As a result of IFRS 11, the Group has applied the new accounting standard for its interests in joint
arrangements. Under IFRS 11, the Group classifies its interests in joint arrangements as either joint operations
or joint ventures depending on the Group's rights to the assets and obligations for the liabilities of the
arrangements. When making this assessment, the Group considers the structure of the arrangements,
the legal form of any separate vehicles, the contractual terms of the arrangements and other facts and
circumstances.

The Group has re-evaluated its involvement in its only joint arrangement, which it has classified as a joint
operation, and therefore continues to account for its share in the assets and liabilities; accordingly there has
been no impact on the recognised assets, liabilities and comprehensive income of the Group.

Fair value measurement
IFRS 13 establishes a single framework for measuring fair value and making disclosures about fair value
measurements, when such measurements are required or permitted by other IFRSs. It also replaces and
expands the disclosure requirements about fair value measurements in other IFRSs.

In accordance with the transitional provisions of IFRS 13, the Group has applied the new fair value
measurement guidance prospectively, and has not provided any comparative information for new
disclosures. Notwithstanding the above, the change had no impact on the measurements of the Group's
assets and liabilities.

Responsibility of financial statements
In terms of S29(1)(e)(ii) of the Companies Act, it is confirmed that the preparation of these financial
statements is done under the supervision of Tyrone Soondarjee CA(SA), Financial Director of the Group.

PREFERENCE SHARE CASH DIVIDEND
Notice is hereby given that the directors have declared a gross cash dividend number 19 amounting to
353,51 cents (300,48350 cents per share net of 15% dividend withholding tax) (2012: 355,65 cents) per
preference share ("preference dividend") for the period 1 July 2013 to 31 December 2013 on one million
preference shares issued at R100,00 each and on nine hundred and five thousand preference shares issued
at R110,49 each. The dividends have been declared from income reserves and no secondary tax on
companies ("STC") credits has been used. The preference dividend is payable to holders of preference shares
recorded in the register of the Company at the close of business on Friday, 4 April 2014.

The salient dates relating to the preference dividend are as follows:

Last day to trade cum the preference dividend                                Friday, 28 March 2014
Preference shares commence trading ex the preference dividend                Monday, 31 March 2014
Preference dividend record date                                               Friday, 4 April 2014
Payment date of preference dividend                                           Monday, 7 April 2014

Preference shares may not be dematerialised or rematerialised between Monday, 31 March 2014 and Friday,
4 April 2014, both days inclusive.

INTERIM ORDINARY SHARE CASH DIVIDEND
The Group has a stated policy of declaring interim and final ordinary share dividends equal in aggregate to
40% of headline earnings. In accordance with this policy, the Board of Sasfin has resolved to pay an interim
dividend as set out below.

Notice is hereby given that an interim ordinary share cash dividend of 65,34 cents (2012: 60 cents) per ordinary
share ("interim ordinary dividend") has been declared and is payable to ordinary shareholders recorded in the
register of the Company at the close of business on Friday, 11 April 2014.

The following further information is provided to shareholders in respect of the new dividends tax:

- The dividend has been declared from income reserves.
- The dividend withholding tax rate is 15% and no STC credits have been used. A net dividend of
  55,5390 cents per share is paid to those shareholders who are not exempt from dividend withholding tax.
- Sasfin's tax reference number is 9300/204/71/7.
- The issued number of ordinary shares at declaration date is 32 301 441.

The salient dates relating to the interim ordinary dividend are as follows:

Last day to trade cum the interim ordinary dividend                            Friday, 4 April 2014
Ordinary shares commence trading ex interim ordinary dividend                  Monday, 7 April 2014
Ordinary share dividend record date                                           Friday, 11 April 2014
Payment date of interim ordinary dividend                                     Monday, 14 April 2014

Ordinary share certificates may not be dematerialised or rematerialised between Monday, 7 April 2014 and
Friday, 11 April 2014, both days inclusive.

CHANGES TO THE BOARD
Norman Axten retired as independent non-executive chairman and director of the Group and its subsidiary,
Sasfin Bank Limited, on 28 November 2013.

Maston Lane, Michael Sassoon and Linda Fröhlich were appointed alternate executive directors of the Group
and its subsidiary, Sasfin Bank Limited, with effect from 9 October 2013.

For and on behalf of the board

RC ANDERSEN                           RDEB SASSOON
Chairman                              Chief Executive Officer

11 March 2014

This announcement and additional information is available on the website www.sasfin.com

Executive Directors:
RDEB Sassoon* (Chief Executive Officer)
TD Soondarjee (Financial Director)
* British

Non-Executive Directors:
RC Andersen# (Chairman)
ETB Blight#
GC Dunnington#
DD Mokgatle#
J Moses#
MS Rylands
# Independent

Alternate Directors:
MG Lane, LR Fröhlich, MEE Sassoon*
* British

Group Company Secretary:
H Brown

Sasfin Holdings Limited
Registration number: 1987/002097/06
JSE Ordinary share code: SFN    ISIN: ZAE000006565
JSE Preference share code: SFNP     ISIN: ZAE000060273

Registered office:
29 Scott Street, Waverley, Johannesburg, 2090
Tel: +27 11 809 7500
www.sasfin.com

DISCLAIMER
The Group has in good faith made reasonable efforts to ensure the accuracy and completeness of the information contained in this document, including all
information that may be regarded as "forward-looking statements".

Forward-looking statements may be identified by words such as "believe", "anticipate", "expect", "plan", "estimate", "intend", "project", and "target".

Forward-looking statements are not statements of fact, but statements by the management of the Group based on its current estimates, projections, expectations,
beliefs and assumptions regarding the Group's future performance and no assurance can be given to this effect.

The risks and uncertainties inherent in the forward-looking statements contained in this document include but are not limited to changes to IFRS and the
interpretations, applications and practices subject thereto as they apply to past, present and future periods; domestic and international business and market
conditions such as exchange rate and interest rate movements; changes in the domestic and international regulatory and legislative environments; changes to
domestic and international operational, social, economic and political risks; and the effects of both current and future litigation.

The Group does not undertake to update any forward-looking statements contained in this document and does not assume responsibility for any loss or damage and
however arising as a result of the reliance by any party thereon, including, but not limited to, loss of earnings, profits or consequential loss or damage.

11 March 2014 
Johannesburg

Lead Sponsor
KPMG

Joint Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 11/03/2014 10:20:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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