Wrap Text
Audited group results and dividend declarations
SASFIN HOLDINGS LIMITED
INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA
(COMPANY REGISTRATION NUMBER 1987/002097/06)
("SASFIN" OR "THE GROUP" OR "THE COMPANY")
(ORDINARY SHARE CODE: SFN ISIN: ZAE000006565)
(PREFERENCE SHARE CODE: SFNP ISIN: ZAE000060273)
AUDITED GROUP RESULTS AND DIVIDEND DECLARATIONS
FOR THE YEAR ENDED 30 JUNE 2014
UP
HEADLINE EARNINGS
14% TO R154 MILLION
(2013: R135 MILLION)
UP
HEADLINE EARNINGS PER ORDINARY SHARE
15% TO 486 CENTS
(2013: 421 CENTS)
UP
DIVIDENDS PER
ORDINARY SHARE
14% TO 191 CENTS
(2013: 168 CENTS)
UP
RETURN ON ORDINARY SHAREHOLDERS' AVERAGE EQUITY
(EXCL GOODWILL IMPAIRMENT)
BY 100 BPS TO 15%
(2013: 14%)
UP
TOTAL ASSETS
25% TO R8.2 BILLION
(2013: R6.5 BILLION)
UP
GROSS LOANS AND ADVANCES
17% TO R3.98 BILLION
(2013: R3.41 BILLION)
UP
FUNDING BASE
22% TO R5.4 BILLION
(2013: R4.4 BILLION)
UP
FUNDS UNDER ADMINISTRATION AND MANAGEMENT
28% TO R91 BILLION
(2013: R71 BILLION)
DOWN
GROUP CAPITAL ADEQUACY RATIO
BY 300 BPS TO 23%
(2013: 26%)
FINANCIAL HIGHLIGHTS 30 June 2014 30 June 2013
% change Audited Audited
Consolidated statement of financial position
Total assets (Rm's) 25 8 168 6 529*
Gross loans and advances (Rm's) 17 3 981 3 416
Non-performing loans and advances (Rm's) (20) 155 193
Income statement
Earnings attributable to ordinary shareholders (Rm's) 10 150 136
Headline earnings (Rm's) 14 154 135
Financial performance
Return on ordinary shareholders' average equity (%) 14 14
Return on ordinary shareholders' average equity excluding goodwill impairment (%) 15 14
Return on total average assets (%) 2 2
Operating performance
Non-interest income to total income (%) 72 71
Efficiency ratio
Group (%) 72 72
Banking Group (%) 64 62
Credit loss ratio (bps) 80 70
Non-performing advances to total gross loans and advances (%) 3.9 5.6
Share statistics
Earnings per ordinary share (cents) 12 474 423
Headline earnings per ordinary share (cents) 15 486 421
Diluted earnings per ordinary share (cents) 12 474 423
Diluted headline earnings per ordinary share (cents) 15 486 421
Number of ordinary shares in issue at end of the period ('000) 31 737 31 737
Weighted average number of ordinary shares in issue ('000) 31 737 32 171
Diluted weighted average ordinary shares in issue ('000) 31 737 32 171
Dividends per ordinary share relating to profit for the year (cents) 14 191 168
Preference share dividend number 20 (2013: 18) for the year (cents) 364.92 347.74
Preference share dividend number 19 (2013: 17) for the year (cents) 353.51 355.65
Net asset value per ordinary share (cents) 11 3 534 3 187
Capital adequacy (unaudited)
Capital to risk weighted assets
Group (%) 23 26
Banking Group (%) 21 22
Employees
Permanent staff complement 4 727 701
*RESTATED - REFER TO NOTE 2
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30 June 2014 30 June 2013
All figures in R'000 % change Audited Audited
ASSETS
Cash and cash balances 1 095 438 1 021 186
Short-term negotiable securities 987 386 573 898
Loans and advances to customers 18 3 890 969 3 309 235
Financial assets held for trade facilitation 536 513 284 372
Reverse repurchase agreements 562 626 285 150*
Other receivables 490 375 473 303*
Investment securities 456 156 338 247
Investments in associated companies 5 955 107 353
Property, plant and equipment 55 737 53 801
Taxation 16 744 3 114
Intangible assets and goodwill 60 314 71 822
Deferred tax asset 9 950 7 098
Total assets 25 8 168 163 6 528 579
LIABILITIES
Interbank funding 248 645 143 819
Deposits from customers 25 2 706 578 2 161 141
Debt securities issued 1 574 340 1 378 691
Long-term loans 652 083 538 247
Repurchase agreements 552 547 275 785*
Financial liabilities held for trade facilitation 550 882 280 942
Other payables 475 390 455 929
Taxation 4 028 4 626
Deferred tax liability 82 712 62 695
Total liabilities 29 6 847 205 5 301 875
EQUITY
Ordinary capital and share premium 144 327 144 327
Reserves 977 353 883 099
Preference share capital and share premium 199 278 199 278
Total equity 1 320 958 1 226 704
Total liabilities and equity 25 8 168 163 6 528 579
Commitments and contingent liabilities 388 286 378 273
*RESTATED - REFER TO NOTE 2
CONSOLIDATED INCOME STATEMENT 30 June 2014 30 June 2013
All figures in R'000 % change Audited Audited
Interest income 616 557 473 686
Interest expense 364 412 253 479
Net interest income 15 252 145 220 207
Non-interest income 19 636 377 533 562
Total income 18 888 522 753 769
Impairment charges on loans and advances 32 29 588 22 376
Net income after impairments 858 934 731 393
Operating costs 657 661 561 046
Staff costs 17 350 676 299 244
Other operating expenses 13 296 985 261 802
Goodwill impairment 10 000 -
Profit from operations 201 273 170 347
Share of associate income 9 901 20 453
Profit before income tax 211 174 190 800
Income tax expense 47 411 38 226
Profit for the year 163 763 152 574
Profit attributable to:
Non-controlling interest - 2 860
Preference shareholders 13 359 13 472
Equity holders of the Group 10 150 404 136 242
Profit for the year 163 763 152 574
Earnings per ordinary share (cents) 12 474 423
Diluted earnings per ordinary share (cents) 12 474 423
Headline earnings per ordinary share (cents) 15 486 421
Diluted headline earnings per ordinary share (cents) 15 486 421
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 30 June 2014 30 June 2013
All figures in R'000 Audited Audited
Profit for the year 163 763 152 574
Other comprehensive income for the year, net of income tax (161) 4 337
Net gains on remeasurement of available-for-sale financial assets 923 900
Derecognition of available-for-sale reserve upon sale of investment (5 997) -
Gross (7 367) -
Income tax effect 1 370 -
Derecognition of revaluation reserve upon sale of property companies - (2 097)
Foreign exchange differences on translation of foreign operation 14 161 33 428
Net loss on hedge of net investment in foreign operation (9 248) (27 894)
Loss on hedge of net investment in foreign operation (12 845) (38 742)
Income tax effect 3 597 10 848
Total comprehensive income for the year 163 602 156 911
Total comprehensive income attributable to:
Non-controlling interest - 2 860
Preference shareholders 13 359 13 472
Equity holders of the Group 150 243 140 579
Total comprehensive income for the year 163 602 156 911
SUMMARISED HEADLINE EARNINGS RECONCILIATION 30 June 2014 30 June 2013
All figures in R'000 % change Audited Audited
Earnings are determined as follows:
Earnings attributable to equity holders of the Group 10 150 404 136 242
Headline adjustable items 3 921 (787)
Profit on sale of property and equipment (82) (14)
Gross (114) (19)
Income tax effect 32 5
Impairment of goodwill 10 000 -
Gain on the disposal of available-for-sale investments (5 997) (773)
Gross (7 367) (773)
Income tax effect 1 370 -
Headline earnings 14 154 325 135 455
Headline earnings per ordinary share (cents) 15 486 421
SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 30 June 2014 30 June 2013
All figures in R'000 Audited Audited
Opening total shareholders' equity 1 226 704 1 180 215
Total comprehensive income for the year 163 602 156 911
Profit for the year 163 763 152 574
Available-for-sale reserve (5 074) 900
Net gains on remeasurement 923 900
Derecognition upon sale of investments (5 997) -
Property revaluation reserve - (2 097)
Foreign currency translation reserve 14 161 33 428
Hedging reserve (9 248) (27 894)
Transactions with owners recorded directly in equity
Movement in non-controlling interest - (21 101)
Treasury shares - (18 405)
Derecognition of revaluation reserve - 2 097
Changes in ownership interests in subsidiaries - (11 735)
Preference share dividend (13 359) (13 472)
Ordinary share dividend (55 989) (47 806)
Closing balance 1 320 958 1 226 704
SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS 30 June 2014 30 June 2013
All figures in R'000 Audited Audited
Cash flows from operating activities 100 809 88 586
Movement in operating assets and liabilities 261 992 (52 790)
Change in loans and advances (611 322) (497 191)
Change in funding 309 485 80 376
Change in other receivables (17 707) 2 407*
Change in financial assets held for trading (252 141) (284 372)
Change in reverse repurchase agreements (277 476) (285 150)*
Change in deposits 545 437 373 841
Change in financial liabilities held for trading 269 940 280 942
Change in repurchase agreements 276 762 275 785*
Change in other payables 19 014 572
Net cash flows from operating activities 362 801 35 796
Net cash flows from investing activities 25 661 19 416
Net cash flows from financing activities - (18 405)
Net increase in cash and cash equivalents 388 462 36 807
Cash and cash equivalents at beginning of the year 1 451 265 1 408 987
Effect of exchange rate fluctuations on cash held (5 548) 5 471
Cash and cash equivalents at end of the year 1 834 179 1 451 265
Cash and cash equivalents comprise:
Cash and cash balances 1 095 438 1 021 186
Short-term negotiable securities 987 386 573 898
Interbank funding (248 645) (143 819)
Cash and cash equivalents at end of the year 1 834 179 1 451 265
*RESTATED - REFER TO NOTE 2
SUMMARISED SEGMENTAL ANALYSIS
30 June 2014 30 June 2013
All figures in R'000 Audited Audited
Segment result
Business Banking 101 491 89 844
Capital 14 377 9 422
Transactional Banking and Treasury 12 249 10 006
Wealth Management 48 179 46 155
Commercial Solutions 35 335 33 798
Group and inter-segment eliminations (47 868) (36 651)
Profit for the year 163 763 152 574
Segment revenue
Business Banking 621 986 523 186
Capital 88 251 76 695
Transactional Banking and Treasury 260 520 188 398
Wealth Management 241 338 168 485
Commercial Solutions 195 307 182 545
Group and inter-segment eliminations (144 568) (111 608)
Total segment revenue 1 262 834 1 027 701
Segment assets
Business Banking 4 148 675 3 603 255
Capital 541 234 470 097
Transactional Banking and Treasury 3 235 362 2 640 345
Wealth Management 795 996 813 673*
Commercial Solutions 210 370 244 489
Group and inter-segment eliminations (763 474) (1 243 280)
Total segment assets 8 168 163 6 528 579
Segment liabilities
Business Banking 3 658 701 3 257 444
Capital 172 071 395 516
Transactional Banking and Treasury 2 829 377 2 630 338
Wealth Management 727 180 732 868*
Commercial Solutions 71 179 109 610
Group and inter-segment eliminations (611 303) (1 823 901)
Total segment liabilities 6 847 205 5 301 875
*Restated - Refer to Note 2
Note 1: 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
summarised audited 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 the fair value of financial
instruments. These 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
2014 2013
All figures in R'000 Level 1 Level 2 Level 3 Total Total
Short-term negotiable securities 987 386 - - 987 386 573 898
Financial assets held for trading 536 513 - - 536 513 284 372
Reverse repurchase agreements 562 626 - - 562 626 285 150
Investment securities 38 854 9 894 407 408 456 156 338 247
Other receivables - 26 758 - 26 758 52 816
Total financial assets carried at fair value 2 125 379 36 652 407 408 2 569 439 1 534 483
Financial liabilities held for trading 550 882 - - 550 882 280 942
Repurchase agreements 552 547 - - 552 547 275 785
Other payables - 23 775 - 23 775 54 954
Total financial liabilities carried at fair value 1 103 429 23 775 - 1 127 204 611 681
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 for the year ended 30 June 2014.
Investment
Level 3 fair values All figures in R'000 securities
Balance at 1 July 2013 283 711
Unrealised gains and losses for the year included in profit or loss 33 744
Net investments/(settlements) 89 953
Reclassification of associates as fair value investments 70 155
Net purchases/(settlements) 19 798
Balance at 30 June 2014 407 408
The valuations in Level 3 were based predominantly 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 South African
Venture Capital and Private Equity Association guidelines.
Note 2: Restatement of 2013 comparatives
The Group holds proprietary bond positions for trade facilitation in its Fixed Income business. These
positions are disclosed as financial assets held for trade facilitation and financial liabilities held for
trade facilitation.
In the normal course of business, the Group enters into Repurchase agreements ("Repo") and Reverse
repurchase agreements ("Reverse repo") to facilitate these trades.
For the year ended June 2013, the Repurchase agreements and Reverse repurchase agreements were set-off.
Interms of IAS 39: Financial Instruments, these instruments must be shown gross.
The effect of the restatement is as follows:
2013 2013
Restated Reported
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (EXTRACT):
All figures in R'000 Audited Audited
ASSETS
Reverse repurchase agreements 285 150 -
Other receivables 473 303 482 668
Total assets 6 528 579 6 252 794
LIABILITIES
Repurchase agreements 275 785 -
Total liabilities 5 301 875 5 026 090
Total equity and liabilities 6 528 579 6 252 794
COMMENTARY
Nature of business
Sasfin Holdings Limited ("Sasfin") ("Group") ("Company") is a bank-controlling company listed in the
"Financials: Investment Services" sector of the JSE Limited ("the JSE"). Sasfin's subsidiaries provide a
wide range of complementary banking, financial and related services.
Business environment
-While the world economy as a whole is expected to gradually recover, led by the USA, the Chinese economy, a
key driver of global economic growth, particularly for commodity exporting countries, remains under
pressure exacerbated by a shadow banking credit crunch. Developed economies continue to experience
idiosyncratic and geopolitical issues, aggravated by the effect of globalisation, high unemployment and
growing wealth and income disparities. The global banking sector has not fully recovered from the 2008
crisis and together with global economic uncertainty and the full implementation of Basel III, bank lending
is inhibited, especially by systemically important banks.
-The South African economy, coupled with its twin deficits, faced significant headwinds caused by prolonged
levels of labour unrest and rising unemployment across many sectors. This inevitably led to lower growth
levels that were disappointingly below the government's medium-term targets. Amid inflationary pressures
inflicted by continued Rand volatility, higher input costs and possible further sovereign downgrade
concerns, the macro environment remained soft with a concomitant rising interest rate outlook.
-Notwithstanding the above and the recent demise of the country's largest unsecured lender, the South
African banking industry remains resilient and well capitalised despite uncertainty in the credit markets
and a likely increase in funding costs.
Group overview
-Sasfin maintained its growth levels in its core business activities and produced a satisfactory set of
results, reflecting a 15% increase in headline earnings per share to 486 cents (2013: 421 cents) for the
year and significantly strengthened its balance sheet. Total assets grew by 25% to R8.2 billion over the
corresponding year, underpinned by a 17% growth in gross loans and advances, which now amounts to R3.98
billion (2013: R3.41 billion).
-The Group improved its financial position by expanding and diversifying its funding base, which resulted in
a healthy surplus liquidity position of R2.1 billion (2013: R1.6 billion) - a growth of 31%.
-On 1 January 2014, the Group changed the accounting treatment of certain investments in associates that
were previously equity accounted for as Investments in Associates to Private Equity ("PE") investments held
at fair value. The primary reason for the change was to achieve fairer presentation of these investments,
their characteristics being more PE in nature than equity and accordingly meeting the IFRS criteria to be
classified as such. The resultant impact on Group earnings was a net increase of R9.0 million (post-tax) on
fair value earnings when compared to the expected equity-accounted earnings per the prior accounting
treatment. This increase has been accounted for in the Capital division's results.
-Strong revenue growth across all business segments, coupled with a marginally higher impairment charge,
resulted in Group headline earnings growth of 14% to R154 million (2013: R135 million). The Group credit
loss ratio for the year crept up 10 bps to 80 bps, compared to 70 bps in 2013.
-Total income grew by 18% on the back of good growth achieved in the lending book and a 19% increase in
non-interest revenue, which was partly impacted by the negative carry costs on the high surplus liquidity
position.
-Group costs, excluding the goodwill impairment charge of R10 million arising on the acquisition of a
Corporate Finance company in 2010, reflect a 15% increase when compared to the same period in 2013,
primarily driven by a 17% increase in employee costs. The growth in employee costs is attributed to an
increase in employee numbers, particularly in Wealth Management, recruitment of a new Fixed Income trading
team, the establishment of the new Transactional Banking division and a 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 remained flat at 72%, while at Banking Group level, the cost-to-income ratio increased
to 64% from 62%.
Segmental overview
-The Business Banking division delivered a solid set of results, with profits for the year at R101.5 million
(2013: R89.9 million), a 13% increase over 2013. The key factors were strong growth in loans and advances,
margin retention and a below-budget impairment charge. While the Business Banking credit loss ratio showed
an increase to 85 bps (2013: 63 bps), non-performing loans showed a positive downward trend representing
3.9% (2013: 5.6%) of the gross lending book, highlighting the inherent asset quality in Sasfin's lending
book and stringent credit criteria.
-The Wealth Management division delivered a 4% growth in profit to R48.1 million from R46.1 million in 2013.
This division's results were impacted by its expansion initiatives and investment in high-quality people to
support its aggressive growth strategies. The division experienced an increase in local and globally-
managed portfolios resulting in improved annuity income. These combined initiatives resulted in Funds Under
Administration and Management growing to R91 billion (2013: R71 billion), providing a strong platform for
continued growth.
-The Domestic Treasury division, which has now been incorporated into the Group's Transactional Banking
segment, continued to grow its deposit base impressively and reached R2.7 billion at June 2014, an increase
of 25%. Equally impressive is the lengthening of the deposit base with notice and fixed-term deposits now
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 launch of the Transactional Banking business remains firmly on track as Phase I (Sasfin's internal
banking requirements) went live in June 2014. The transactional offering to clients is scheduled to go to
market at the end of this year, with a comprehensive range of electronic banking services.
-The Capital division's profitability grew to R14.4 million (2013: R9.4 million) for the year, after
accounting for the increase in fair value on the previously equity accounted for investments and a goodwill
impairment charge of R10 million. This PE unit is well poised for further growth following the new funding
obtained.
-The Commercial Solutions division delivered a satisfactory set of results with a profit of R35.3 million, a
5% increase when compared to the same period in 2013. This segment is growing encouragingly, achieving
scale and becoming a meaningful contributor to Group earnings.
Statement of financial position and capital management review
-The Group's deposits 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 R4.4 billion last year. This funding base has enabled Sasfin Bank Limited to meet the stringent Basel
III liquidity requirements of liquidity coverage ratio and the net stable funding ratio well ahead of their
respective implementation dates 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 refinancing R362 million of maturing
notes which was oversubscribed 2.5 times. In addition, the Debt Capital Market ("DCM") team arranged and
concluded a second securitisation transaction (SASP Series 2) under the current Domestic Medium Term Note
Programme and raised R350 million to fund an alternate asset class comprising capital equipment and larger
rental deals.
-The DCM team also successfully arranged a R150 million redeemable preference share structure specifically
earmarked for expansion in the PE business.
-The Group's capital adequacy ratio has declined by 300 bps to 23% (2013: 26%) due to new Basel III capital
requirements coupled with a growth in assets. The Group remains well capitalised with a primary Tier I
capital ratio of 21% (2013: 22%), which is a key measure of capital strength. Both ratios remain well
above the minimum regulatory requirements.
Prospects
-Sasfin continues to focus on its target market comprising entrepreneurial businesses, institutions,
corporates and private clients. Despite the prevailing levels of uncertainty and constrained growth levels
in the economy, the Group remains cautiously optimistic about the improved levels of business activity
across all segments.
-Sasfin is well poised for sustainable growth and further expansion of its franchise value in its chosen
markets. This growth will be aided by the recently launched Transactional Banking service offering,
strengthened by a strong capital and liquidity position, and supported by Sasfin's highly interactive
service model.
BASIS OF PREPARATION AND PRESENTATION OF THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
The summarised audited consolidated financial statements have been prepared in accordance with IAS 34:
Interim Financial Reporting, the requirements of the Companies Act of South Africa, and in compliance with
the JSE Listings Requirements. The accounting policies applied conform to International Financial Reporting
Standards ("IFRS") and the SAICA Financial Reporting Guides. There are no material events to report
subsequent to the financial year end of 30 June 2014.
These summarised audited consolidated financial statements are a summary of the consolidated annual
financial statements that are prepared in thousands of South African Rand ("R'000") on the historical cost
basis, except for certain financial assets and liabilities which are recognised at fair value.
Except as described below, the accounting policies applied in these summarised audited consolidated
financial statements for the year ending 30 June 2014 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
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 this new accounting standard to 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 to 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.
Summarised annual financial statements
The summarised audited consolidated financial statements comprise a consolidated statement of financial
position at 30 June 2014, a consolidated income statement, a consolidated statement of comprehensive
income, a summarised statement of changes in equity, a summarised cash flow statement and a summarised
segmental analysis for the year ended 30 June 2014.
Responsibility of financial statements
In terms of S29(1)(e)(ii) of the Companies Act, these financial statements are prepared under the
supervision of Tyrone Soondarjee CA(SA), Group Financial Director.
Reports of the independent auditors
The unmodified audit reports of KPMG Inc. (Partner: Sipho Malaba) and Grant Thornton (Jhb) Inc. (Partner:
Garron Chaitowitz), the independent auditors, on the annual financial statements and the summarised
consolidated financial statements contained herein for the year ended 30 June 2014, dated 10 September
2014, are available for inspection at the Company's registered office.
PREFERENCE SHARE CASH DIVIDEND
Notice is hereby given that the directors have declared a gross cash preference dividend number 20
amounting to 364.92 cents per share (310.1820 cents per share net of 15% dividend withholding tax)
(2013: 347.74 cents per share (295.290 cents per share net of 15% dividend withholding tax)) ("preference
dividend") for the period 1 January 2014 to 30 June 2014. Preference dividends have been paid on 1 000 000
(2013: 1 000 000) preference shares issued at R100.00 (2013: R100.00) each, and on 905 000 (2013: 905 000)
preference shares issued at R110.49 (2013: R110.49) each. These dividends have been declared from income
reserves and no secondary taxes on companies' credits have been used. The preference dividend is payable to
holders of preference shares recorded in the register of the Company at the close of business of Friday, 3
October 2014.
The salient dates relating to the preference dividend are as follows:
Last day to trade cum the preference dividend Friday, 26 September 2014
Preference shares commence trading ex the preference dividend Monday, 29 September 2014
Preference dividend record date Friday, 3 October 2014
Payment date of preference dividend Monday, 6 October 2014
Preference share certificates may not be dematerialised or rematerialised between Monday, 29 September 2014
and Friday, 3 October 2014, both days inclusive.
FINAL ORDINARY SHARE CASH DIVIDEND
Notice is hereby given that a final ordinary share cash dividend for the financial year ended 30 June 2014,
amounting to 125.77 cents per share (2013: 108 cents per share) ("ordinary dividend"), has been declared.
Together with the interim ordinary dividend of 65.34 cents (2013: 60 cents) declared on 11 March 2014, the
total ordinary dividend for the financial year amounts to 191.11 cents per share (2013: 168 cents per
share).
The following further information is provided to shareholders with regard to the final dividend declaration
in respect of the new dividends tax:
-The dividend has been declared from income reserves.
-The dividend withholding rate is 15%, and a net dividend of 106.9045 cents (2013: 91.80 cents) per share is
paid to those shareholders who are not exempt from dividend withholding tax.
-The issued number of ordinary shares as at the declaration date is 32 301 441 (2013: 32 301 441).
-Sasfin's tax reference number is 9300/204/71/7.
The ordinary dividend is payable to holders of ordinary shares recorded in the register of the Company at
the close of business on Friday, 10 October 2014.
The salient dates relating to the ordinary dividend are as follows:
Last day to trade cum the ordinary dividend Friday, 3 October 2014
Ordinary shares commence trading ex the ordinary dividend Monday, 6 October 2014
Ordinary dividend record date Friday, 10 October 2014
Payment date of ordinary dividend Monday, 13 October 2014
Ordinary share certificates may not be dematerialised or rematerialised between Monday, 6 October 2014 and
Friday, 10 October 2014, both days inclusive.
The above dates and times are subject to amendment. Any such amendment will be released on SENS and
published in the press.
CHANGES TO THE BOARD
Norman Axten retired as Director and Non-executive Chairman of the Board at the annual general meeting held
on 28 November 2013. Roy Andersen was appointed as Independent Non-executive Chairman of Sasfin Holdings
Limited and its subsidiary Sasfin Bank Limited.
Linda Frohlich, Maston Lane and Michael Sassoon were appointed as Alternate Executive Directors of Sasfin
Holdings Limited and Sasfin Bank Limited effective 9 October 2013.
Linda de Beer and Lesego Sennelo were appointed as independent Non-executive Directors of Sasfin Holdings
Limited and Sasfin Bank Limited effective 1 July 2014.
Eddie Blight and Dolly Mokgatle have indicated their intention to retire and resign respectively from the
Boards of Sasfin Holdings Limited and Sasfin Bank Limited at the conclusion of the annual general meeting
to be held on 27 November 2014.
NOTICE OF ANNUAL GENERAL MEETING AND POSTING OF INTEGRATED REPORT
The annual general meeting of Sasfin Holdings Limited will be held at 29 Scott Street, Waverley,
Johannesburg, on Thursday, 27 November 2014 at 14:00.
The integrated report will be posted to shareholders on or about 24 October 2014. The audited Group Annual
Financial Statements will be available on the Company's website on or about 27 October 2014.
For and on behalf of the board
RC ANDERSEN RDEB SASSOON TD SOONDARJEE
Non-executive Chairman Chief Executive Officer Group Financial Director
10 September 2014
This announcement and additional information is available on the website: www.sasfin.com
Independent Non-executive Chairman
RC Andersen
Executive Directors
RDEB Sassoon (Chief Executive Officer)
TD Soondarjee (Financial Director)
Alternate Executive Directors
LR Frohlich, MG Lane, MEE Sassoon
Non-Executive Directors
ETB Blight#, L de Beer#, GC Dunnington#,
DD Mokgatle#, J Moses#, MS Rylands, LJ Sennelo#
#Independent
Group Company Secretary
H Brown
Joint Auditors
KPMG Inc. and Grant Thornton (Jhb) Inc.
Lead Sponsor
KPMG Services (Pty) Limited
Joint Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Registered Office
29 Scott Street, Waverley, 2090, Johannesburg.
Tel: +27 11 809 7500
Fax: +27 11 887 6167/2489
Transfer Secretaries
Computershare Investor Services (Pty) Limited
70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
Website
www.sasfin.com
DISCLAIMER
The Group has in good faith made reasonable effort 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.
10 September 22014
Date: 10/09/2014 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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