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Quarterly update for third quarter ended 31 December 2014
TRUSTCO GROUP HOLDINGS LIMITED
Incorporated in the Republic of Namibia
(Registration number 2003/058)
NSX share code: TUC
JSE share code: TTO
ISIN Number: NA000A0RF067
(“Trustco” or “the Group”)
UPDATE FOR THE THIRD QUARTER ENDED 31 DECEMBER 2014
The board of directors of Trustco (“the Board”) is pleased to update
shareholders in respect of the financial quarter ended 31 December
2014.
Total Group revenue for the 9 months ended 31 December 2014 was
NAD612 million (2013: N$475 million) representing an increase of
28.8% from the prior comparative period.
Total net profit after tax for the 9 months ended 31 December 2014
was N$146.6 million (2013: N$96.1 million) representing growth of
52.5% from the prior comparative period.
Total headline earnings for the 9 months ended 31 December 2014 was
N$125.3 million (2013: N$53.9 million) representing growth of 132.5%
from the prior comparative period.
The above resulted in headline earnings per share (“HEPS”) of 17.99
cents and basic earnings per share (“EPS”) of 21.06 cents for the 9
months to 31 December 2014. The comparative 9 month period in the
2014 financial year (“FY2014”) generated HEPS of 7.12 cents and EPS
of 12.69 cents.
Segmental commentary
Insurance (Namibia)
The insurance business in Namibia contributed 9.80 cents per share
to EPS for the 9 months to 31 December 2014, which represents a 9.7%
decrease on the prior comparative period (2013: 10.85 cents per
share). The decrease is attributed to a higher insurance claims
ratio percentage experienced during the reporting period.
The investment portfolio in the Namibian insurance segment
contributed 12.65 cents per share to EPS for the period which
represents 95.8% growth on the prior comparative period (2013: 6.46
cents per share). The profits derived from this segment’s passive
income rely primarily on market forces driven by the segment’s
investment strategy.
Insurance (Rest of Africa)
Insurance operations in the rest of Africa contributed a loss of
9.07 cents per share to EPS for the period (2013: loss of 9.48 cents
per share). The loss is due to the on-going operational cost of the
insurance business in South Africa with the launch of a new product
line and distribution channel in the 2015 financial year.
Banking
The banking segment in Namibia contributed 7.68 cents per share to
EPS for the period which represents 58.4% growth on the prior
comparative period (2013: 4.85 cents per share).
Total gross advances as at 31 December 2014 was N$839 million
compared to N$634 million as at 31 December 2013, a growth of 32.3%.
As at 31 December 2014, the total regulatory capital adequacy ratio
of Trustco Bank Namibia Ltd was 58.34% (Tier 1 ratio of 57.55%).
This healthy capital adequacy metric will assist the bank in rapidly
growing its loan book and generate resultant banking returns.
Outlook and Prospects
The Board, in line with the objective stated in the 2014 integrated
report to seek other opportunities in different sectors of the
Namibian economy, has resolved to pursue opportunities in the
Resources sector during FY2016.
At the time of reporting, one Namibian Dollar (“NAD”) was equivalent
to one South African Rand (“ZAR”).
The financial information on which this quarterly update is based
has not been reviewed or reported on by the Group’s auditors.
Sandra Miller
Company Secretary
NSX Sponsor
IJG (Pty) Limited
JSE Sponsor
Sasfin Capital
(a division of Sasfin Bank Limited)
2 February 2015
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