Wrap Text
Audited Group Results and Dividend Declarations
for the year ended 30 June 2016
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 2016
Up 29.0%
HEADLINE EARNINGS
R232.080 M
(2015: R179.864 M)
Up 29.0%
HEADLINE EARNINGS PER ORDINARY SHARE
731.27 CENTS
(2015: 566.74 CENTS)
Up 29.0%
DIVIDENDS PER ORDINARY SHARE
287.39 CENTS
(2015: 222.73 CENTS)
Up 233bps
RETURN ON ORDINARY SHAREHOLDERS' AVERAGE EQUITY
17.54%
(2015: 15.21%)
Up 23bps
RETURN ON AVERAGE ASSETS
2.12%
(2015: 1.89%)
Up 1.3%
TOTAL ASSETS
R11.004 BN
(2015: R10.866 BN)
Up 12.9%
TOTAL EQUITY*
R1.404 BN
(2015: R1.243 BN)
* excluding preference shares.
Up 20.6%
GROSS LOANS AND ADVANCES
R6.449 BN
(2015: R5.345 BN)
Up 31bps
CREDIT LOSS RATIO
108bps
(2015: 77bps)
Up 6.0%
FUNDING BASE*
R7.303 BN
(2015: R6.892 BN)
* including preference shares.
Down 7.7%
FUNDS UNDER ADMINISTRATION AND MANAGEMENT*
R108 BN
(2015: R117 BN)
* including under advisement.
Down 166bps
GROUP TOTAL CAPITAL ADEQUACY RATIO (UNAUDITED)
19.20%
(2015: 20.86%)
FINANCIAL HIGHLIGHTS
for the year ended 30 June
% 2016 2015
growth Audited Audited
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Total assets (Rm) 11 004 10 866
Total gross loans and advances (Rm) 20.6 6 449 5 345
Non-performing loans and advances (Rm) 101.4 423 210
INCOME STATEMENT
Earnings attributable to ordinary shareholders (Rm) 25.6 224.4 178.7
Headline earnings (Rm) 29.0 232.1 179.9
FINANCIAL PERFORMANCE
Return on ordinary shareholders' average equity (%) 17.54 15.21
Return on total average assets (%) 2.12 1.89
OPERATING PERFORMANCE
Non-interest income to total income (%) 65.91 69.23
Cost-to-income ratio
Group (%) 68.89 71.07
Banking Group (%) 62.43 61.18
Credit loss ratio (bps) 108 77
Non-performing advances to total gross loans and advances (%) 6.56 3.93
SHARE STATISTICS
Earnings per ordinary share (cents) 25.6 707.13 563.08
Headline earnings per ordinary share (cents) 29.0 731.27 566.74
Number of ordinary shares in issue at end of the year (000) 31 737 31 737
Weighted average number of ordinary shares in issue (000) 31 737 31 737
Dividends per ordinary share relating to profit for the year (cents) 29.0 287.39 222.73
Preference share dividend number 1 for the year (cents) 396.28 383.74
Preference share dividend number 2 for the year (cents) 424.42 378.43
Net asset value per ordinary share (cents) 12.9 4 346 3 847
CAPITAL ADEQUACY (PROVISIONAL AND UNAUDITED)
Capital adequacy ratio
Group (%) 19.20 20.86
Banking Group (%) 19.16 21.23
SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
at 30 June
% 2016 2015
growth Audited Audited
R'000 R'000
ASSETS
Cash and short-term negotiable securities 1 910 584 2 618 366
Loans and advances to customers 19.3 6 254 891 5 242 460
Financial assets held for trade facilitation and repurchase agreements 1 147 227 1 687 221
Other receivables 772 209 688 057
Investment securities 586 359 435 007
Property, plant and equipment 87 229 57 585
Non-current assets held for sale - Investment property 69 900 -
Taxation 31 135 7 280
Intangible assets and goodwill 122 391 114 991
Deferred tax asset 22 135 15 145
TOTAL ASSETS 11 004 060 10 866 112
LIABILITIES
Funding under repurchase agreements and interbank 999 184 538 340
Deposits from customers 3 206 527 3 275 866
Debt securities issued 2 470 428 2 344 167
Long-term loans 433 889 538 071
TOTAL FUNDING 6.2 7 110 028 6 696 444
Financial liabilities held for trade facilitation and repurchase agreements 1 131 942 1 650 789
Other payables 1 023 354 975 204
Taxation 16 611 11 571
Deferred tax liability 125 576 93 913
TOTAL LIABILITIES 9 407 511 9 427 921
EQUITY
Ordinary share capital and share premium 144 327 144 327
Reserves 1 259 353 1 098 414
Preference share capital and share premium 192 869 195 450
TOTAL EQUITY 11.0 1 596 549 1 438 191
TOTAL LIABILITIES AND EQUITY 11 004 060 10 866 112
CONSOLIDATED INCOME STATEMENT
for the year ended 30 June
% 2016 2015
growth Audited Audited
R'000 R'000
Interest income 999 006 712 176
Interest expense 592 520 419 563
NET INTEREST INCOME 38.9 406 486 292 613
Non-interest income 19.0 790 357 664 021
TOTAL INCOME 25.1 1 196 843 956 634
Impairment charges on loans and advances 95.0 63 912 32 771
NET INCOME AFTER IMPAIRMENTS 1 132 931 923 863
Operating costs 19.8 828 316 691 352
Staff costs 13.7 434 339 382 115
Other operating expenses 23.6 380 888 308 045
Goodwill and intangible impairments 13 089 1 192
PROFIT FROM OPERATIONS 304 615 232 511
Share of associate income 2 383 2 500
PROFIT BEFORE INCOME TAX 306 998 235 011
Income tax expense 62.3 68 210 42 037
PROFIT FOR THE YEAR 23.7 238 788 192 974
PROFIT ATTRIBUTABLE TO:
Preference shareholders 14 369 14 272
Equity holders of the Group 25.6 224 419 178 702
PROFIT FOR THE YEAR 238 788 192 974
Earnings per ordinary share (cents) 25.6 707.13 563.08
Diluted earnings per ordinary share (cents) 25.6 707.13 563.08
Headline earnings per ordinary share (cents) 29.0 731.27 566.74
Diluted headline earnings per ordinary share (cents) 29.0 731.27 566.74
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 June
2016 2015
Audited Audited
R'000 R'000
PROFIT FOR THE YEAR 238 788 192 974
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX 14 766 7 188
Items that may be subsequently reclassified to profit and loss:
Foreign exchange differences on translation of foreign operation 54 395 31 515
Net loss on hedge of net investment in foreign operation (39 629) (24 327)
Loss on hedge of net investment in foreign operation (55 040) (33 788)
Income tax effect 15 411 9 461
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 253 554 200 162
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Preference shareholders 14 369 14 272
Equity holders of the Group 239 185 185 890
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 253 554 200 162
HEADLINE EARNINGS RECONCILIATION
for the year ended 30 June
% 2016 2015
growth Audited Audited
R'000 R'000
EARNINGS ARE DETERMINED AS FOLLOWS:
Earnings attributable to equity holders of the Group 25.6 224 419 178 702
HEADLINE ADJUSTABLE ITEMS 7 661 1 162
PROFIT ON SALE OF PROPERTY AND EQUIPMENT - IAS 16 - (30)
Gross - (41)
Tax impact - 11
GOODWILL AND INTANGIBLE ASSET IMPAIRMENTS - IAS 38 12 175 1 192
Gross 13 089 1 192
Tax impact (914) -
INVESTMENT PROPERTY FAIR VALUE ADJUSTMENTS - IAS 40 (4 514) -
Gross (5 818) -
Tax impact 1 304 -
HEADLINE EARNINGS 29.0 232 080 179 864
Headline earnings per ordinary share (cents) 29.0 731.27 566.74
SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 30 June
2016 2015
Audited Audited
R'000 R'000
Opening total shareholders' equity 1 438 191 1 320 958
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 253 554 200 162
Profit for the year 238 788 192 974
Foreign currency translation reserve 54 395 31 515
Hedging reserve (39 629) (24 327)
TRANSACTIONS WITH OWNERS RECORDED DIRECTLY IN EQUITY
Preference share buy-back (2 581) (3 828)
Preference share dividend (14 369) (14 272)
Ordinary share dividend (78 246) (64 829)
CLOSING BALANCE 1 596 549 1 438 191
SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 30 June
2016 2015
Audited Audited
R'000 R'000
Cash flows from operating activities 150 185 105 014
Movement in operating assets and liabilities (1 083 437) 98 329
Net cash flows from operating activities (933 252) 203 343
Net cash flows from investing activities (228 968) 53 190
Net cash flows from financing activities (2 581) (3 828)
Net (decrease)/increase in cash and cash equivalents (1 164 801) 252 705
Cash and cash equivalents at beginning of the year 2 080 026 1 834 179
Effect of exchange rate fluctuations on cash held (3 825) (6 858)
CASH AND CASH EQUIVALENTS AT END OF THE YEAR 911 400 2 080 026
CASH AND CASH EQUIVALENTS COMPRISE:
Cash and cash balances 672 317 1 286 348
Short-term negotiable securities 1 238 267 1 332 018
Funding under repurchase agreements and interbank (999 184) (538 340)
CASH AND CASH EQUIVALENTS AT END OF THE YEAR 911 400 2 080 026
SUMMARISED SEGMENTAL ANALYSIS
for the year ended 30 June
% 2016 2015
growth Audited Audited
R'000 R'000
SEGMENT PROFITABILITY
Business Banking 32.6 156 294 117 857
Transactional Banking and Treasury (36.9) 6 559 10 390
Wealth 18.6 76 406 64 425
Capital 60.3 20 344 12 691
Commercial Solutions 7.6 24 865 23 106
Group and inter-segment eliminations 28.7 (45 680) (35 495)
PROFIT FOR THE YEAR 23.7 238 788 192 974
SEGMENT REVENUE
Business Banking 560 092 397 070
Transactional Banking and Treasury 63 961 42 016
Wealth 300 917 253 172
Capital 45 750 32 840
Commercial Solutions 193 317 198 506
Group and inter-segment eliminations 32 806 33 030
TOTAL SEGMENT REVENUE 1 196 843 956 634
SEGMENT ASSETS
Business Banking 6 104 399 5 057 632
Transactional Banking and Treasury 4 393 773 3 814 206
Wealth 1 129 574 1 593 768
Capital 761 418 627 073
Commercial Solutions 317 725 224 493
Group and inter-segment eliminations (1 702 829) (451 060)
TOTAL SEGMENT ASSETS 11 004 060 10 866 112
SEGMENT LIABILITIES
Business Banking 5 467 456 4 576 983
Transactional Banking and Treasury 4 264 714 3 880 706
Wealth 1 057 747 1 598 347
Capital 384 379 270 378
Commercial Solutions 166 849 98 482
Group and inter-segment eliminations (1 933 634) (996 975)
TOTAL SEGMENT LIABILITIES 9 407 511 9 427 921
NOTE 1: FINANCIAL INSTRUMENTS:
FAIR VALUES OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES
The carrying amount of the Group's financial assets and financial liabilities not measured at fair value, is a reasonable
approximation of its fair value. The Group's financial risk management objectives and policies are consistent with those
disclosed in the Consolidated and Separate Financial Statements as at and for the year ended 30 June 2015.
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.
Level 1 Level 2 Level 3 30 June 30 June
R'000 R'000 R'000 2016 2015
Audited Audited
R'000 R'000
Short-term negotiable securities 1 238 267 - - 1 238 267 1 332 018
Financial assets and reverse repurchase agreements 1 147 227 - - 1 147 227 1 687 221
Investment securities 92 591 493 768 586 359 435 007
Other receivables - 100 259 - 100 259 51 878
TOTAL FINANCIAL ASSETS CARRIED AT FAIR VALUE 2 385 494 192 850 493 768 3 072 112 3 506 124
Financial liabilities and repurchase agreements 1 131 942 - - 1 131 942 1 650 789
Other payables - 97 474 - 97 474 49 480
TOTAL FINANCIAL LIABILITIES CARRIED AT FAIR VALUE 1 131 942 97 474 - 1 229 416 1 700 269
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 year during which
the transfer has occurred. There were no transfers between Level 1, 2 and 3 of the fair value hierarchy during the year
ended 30 June 2016.
The valuations of Level 3 investment securities were based predominantly on detailed discounted cash flow methodologies,
which were moderated 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 guidelines.
30 June 2016 30 June 2015
Audited Audited
R'000 R'000
LEVEL 3 FAIR VALUES - INVESTMENT SECURITIES
Opening balance 398 024 407 408
Unrealised gains for the year included in profit or loss through non-interest income 31 326 54 844
Net investments/(settlements) 64 418 (64 228)
CLOSING BALANCE 493 768 398 024
NOTE 2: BUSINESS COMBINATION
2.1 ACQUISITION OF SUBSIDIARY
On 23 May 2016, the Group acquired 100% of the issued share capital and voting interests in Benal Property Investments (Pty)
Limited (Benal), thereby obtaining control of Benal.
Benal is an investment holding company with two major asset classes being a property portfolio consisting of six industrial
properties located in and around Gauteng and a portfolio of securities listed on the JSE.
The acquisition of Benal is part of Sasfin Capital's investment banking strategy.
2.1.1 PURCHASE CONSIDERATION
The Benal share capital was acquired for a consideration of R87 059 377, settled in cash.
2.1.2 ACQUISITION-RELATED COSTS
The Group incurred acquisition-related costs of R601 900 relating to external legal fees and due diligence costs.
2.1.3 IDENTIFIABLE ASSETS ACQUIRED AND LIABILITIES ASSUMED
The following is a summary of the recognised amounts of assets acquired and liabilities assumed at the date of acquisition:
2016
R'000
ASSETS
Investment property 64 082
Investment securities 34 811
Cash and cash equivalents 935
Operating lease asset 765
Other receivables 337
TOTAL ASSETS 100 930
LIABILITIES
Deferred tax liability (9 486)
Other payables (1 497)
TOTAL LIABILITIES (10 983)
TOTAL NET ASSETS ACQUIRED 89 947
Shareholders loan acquired (3 274)
Goodwill recognised 386
TOTAL PURCHASE CONSIDERATION 87 059
2016
R'000
2.1.4 GOODWILL
Goodwill arising from the acquisition has been recognised as
follows:
Total consideration transferred 87 059
Fair value of identifiable net assets acquired (86 673)
GOODWILL 386
The goodwill is attributable mainly to the gains expected
to be achieved from realising the assets of Benal.
2.1.5 CASH OUTFLOW ON ACQUISITION
Cash consideration paid (87 059)
Cash acquired 935
NET CASH OUTFLOW ON ACQUISITION (86 124)
2.2 CHANGE IN GOODWILL PREVIOUSLY REPORTED
On 30 June 2015, the Group acquired control of Fintech Proprietary Limited (Fintech) through the acquisition of 100% of
Fintech's shares and voting rights. The acquisition of Fintech has provided the Group with an increased share of the
asset rental finance market through access to Fintech's supplier base.
The effective date of the transaction was 1 July 2014. However, control over Fintech only passed to the Group on
30 June 2015. As a result, Fintech's profits for the year ended 30 June 2015 were not consolidated but accounted for
as pre-acquisition profits.
The Group had recognised provisional amounts at the acquisition date owing to certain facts and circumstances being unknown
at the acquisition date relating to the determination of the purchase price allocation (PPA) and net identifiable assets.
An independent identification on the intangible assets of Fintech was conducted to determine the PPA in terms of IFRS 3.
This resulted in the identification and subsequent valuation of an intangible asset relating to the Fintech brand and
Fintech's distributor relationships.
The effect of the intangible asset identification resulted in a change to goodwill and a restatement of the 2015 financial
results, where applicable. Refer to page 10 for the updated goodwill calculation and related disclosure.
Provisional fair
values reported Final fair values
as at 30 June 2015 Adjustments on acquisition date
R'000 R'000 R'000
Consideration transferred 187 767 (10 809) 176 958
TOTAL CONSIDERATION TRANSFERRED 187 767 (10 809) 176 958
ASSETS
Cash and short-term negotiable securities 160 175 - 160 175
Net loans and advances to customers 852 624 (27 676) 824 948
Gross loans and advances to customers 878 341 (27 676) 850 665
Less: impairments (25 717) - (25 717)
Other receivables 23 030 - 23 030
Property, plant and equipment 2 385 - 2 385
Intangible assets - 50 938 50 938
TOTAL ASSETS 1 038 214 23 262 1 061 476
LIABILITIES
Funding under repurchase agreements and interbank 109 185 - 109 185
Debt securities issued 665 000 - 665 000
Other payables 116 540 - 116 540
Taxation 362 - 362
Deferred tax liability 11 808 14 263 26 071
TOTAL LIABILITIES 902 895 14 263 917 158
TOTAL NET ASSETS ACQUIRED 135 319 8 999 144 318
GOODWILL RECOGNISED 52 448 (19 808) 32 640
COMMENTARY
NATURE OF BUSINESS
Sasfin is a bank-controlling company listed on the JSE Limited (JSE). Sasfin and its subsidiaries (the Group) provide a
comprehensive range of specialist financial products and services for Business and Wealth clients.
BUSINESS REVIEW: PERFORMANCE
BUSINESS ENVIRONMENT
- South Africa, a significant commodity producer with a wide wealth gap, chronic unemployment and a high level of consumer
indebtedness has been negatively affected by the weak global economy and declining commodity prices.
- Political uncertainty in South Africa continues to result in increased market volatility.
- The South African banking industry, while taking strain from the weak economy, escalating regulation, technological
disruption and cybercrime, remains resilient and well capitalised.
GROUP OVERVIEW
- Despite the tough economic and weak market conditions, Sasfin delivered a 29.0% increase in headline earnings to
R232.080 million (2015: R179.864 million) and headline earnings per share to 731.27 cents for the year (2015: 566.74 cents).
- Total assets grew marginally to R11.004 billion from R10.866 billion in 2015, while gross loans and advances to customers
grew by 20.6% to R6.449 billion (2015: R5.345 billion).
- The Group expanded and diversified its funding base resulting in a surplus liquidity position of R1.910 billion, albeit
lower than the R2.618 billion in 2015. The decrease in surplus liquidity was utilised to fund the growth in loans and
advances.
- Total income grew by 25.1% year-on-year driven by impressive revenue generation in the Business Banking and Wealth
divisions.
- The weak credit environment and sluggish economy led to the Group credit loss ratio increasing to 108bps (2015: 77bps).
- Group costs increased by 19.8% to R828.316 million (2015: R691.352 million) due to the inclusion of the Fintech cost base
combined with increased investment in Risk, Compliance and Information Technology.
- The Group cost-to-income ratio improved to 68.89% from 71.07% in 2015. This was primarily due to stronger revenue
generation across the Group as evidenced by a widening JAWS ratio of 3.79%.
DIVISIONAL OVERVIEW
- Business Banking delivered a solid set of results with profit for the year growing by 32.6% to R156.294 million,
from R117.857 million in 2015. The key factors contributing to this performance were the strong revenue growth of 41.1%
and the integration benefits arising from the Fintech acquisition. This was offset by a sharp increase in the divisional
credit loss ratio to 101bps (2015: 70bps). Non-performing loans increased to 6.56% (2015: 3.93%) of gross loans and
advances.
- Transactional Banking and Treasury achieved a lower level of profitability for the year, impacted by further investment in
the newly launched Transactional Banking offering. The Transactional Banking unit is still in its formative phase and has
experienced lower-than expected client acquisition.
- The Treasury unit continues to perform strongly with a stable deposit base of R3.207 billion underpinned by a competitive
service and product offering.
- Capital's profitability increased by 60.3% to R20.344 million (2015: R12.691 million) largely due to the encouraging
turnaround in the Corporate Finance unit. This was supported by a positive result in the Private Equity unit while losses
were incurred on certain legacy Property Equity investments.
- Wealth profitability increased by 18.6% to R76.406 million (2015: R64.425 million) underpinned by increased
distribution, and enhanced system and operational capabilities which resulted in good performances across all Wealth units.
Assets under administration decreased year-on-year, largely due to safe custody clients exiting their portfolios, while
assets under management (including under advice) increased by 11%.
Wealth acquired a 14.3% strategic investment in Efficient Group Limited, a listed wealth and asset manager with a long-term
view of exploring ways of collaboration.
- Commercial Solutions' profitability was positively impacted by the improved performance in Sasfin Forex, but was dragged
down by the Freight and Incentives units due to the economic downturn and tough trading conditions. This led to a marginal
increase in profitability to R24.865 million (2015: R23.106 million).
Subsequent to year-end, the Group concluded the sale of 70% of its shares in Imperial Sasfin Logistics (Pty) Limited
(formerly Sasfin Premier Logistics (Pty) Limited) to Imperial Group Limited and agreed to merge its short term insurance
broking business with Holistic Risk Solutions (Pty) Limited, which will be housed in Sasfin's 51% subsidiary,
Sasfin HRS (Pty) Limited.
The Group should benefit from the economies of scale that these transactions are expected to achieve.
BUSINESS REVIEW: FINANCIAL POSITION AND CAPITAL MANAGEMENT
- The Group's deposit and funding base grew, with improved diversification, mix and maturity profile, to R7.303 billion, up
from R6.892 billion at June 2015. This funding base has enabled Sasfin Bank Limited to maintain its liquidity coverage
ratio at comfortable levels and to support the growth in its lending activities.
- Sasfin's securitisation vehicle, South African Securitisation Programme (RF) Limited (SASP), a leader in its market,
continued to deliver consistent performance. Maturing notes of R332 million were refinanced and R200 million of new notes
were issued.
- The Group's total capital adequacy ratio has decreased to 19.20% (2015: 20.86%) primarily due to a growth in risk weighted
assets. Tier 1 capital adequacy, the main measure of capital strength, was 18.80% (2015: 20.41%). The Group's capital and
liquidity ratios are well above the current regulatory requirements.
PROSPECTS
- Sasfin will continue to strive for scale and diversity by applying its long-term strategy of catering for the banking and
financial needs of the Business and Wealth markets.
- Notwithstanding prevailing market uncertainty, volatility, and constrained economic growth, the Group is poised for
sustainable growth, aided by its capital and liquidity position, and high-touch service model.
- Sasfin hopes to conclude an agreement with a suitable Black Economic Empowerment investor on acceptable terms during the
course of its current financial year.
BASIS OF PREPARATION AND PRESENTATION OF THE SUMMARISED FINANCIAL STATEMENTS
The Summarised Audited Consolidated Annual Financial Statements have been prepared in accordance with IAS 34 - Interim
Financial Reporting, and in accordance with International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB), and IFRS Interpretation Committee (IFRS IC), the SAICA Financial Reporting
Guides as issued by the Accounting Practices Committee, Financial Pronouncements as issued by the Financial Reporting
Standards Council, the JSE Listings Requirements, and the requirements of the Companies Act, 2008 (Act No. 71 of 2008) of
South Africa (Companies Act).
The accounting policies applied in these Summarised Audited Consolidated Financial Statements for the period ended
30 June 2016 are the same as those applied in the Group's Audited Consolidated Annual Financial Statements at the year ended
30 June 2015.
There are no material events to report subsequent to 30 June 2016 other than already disclosed.
SUMMARISED FINANCIAL STATEMENTS
The Summarised Audited Consolidated Annual Financial Statements comprise a:
- Summarised Statement of Financial Position
- Income Statement
- Statement of Comprehensive Income
- Summarised Statement of Changes in Equity
- Summarised Cash Flow Statement
- Summarised Segmental Analysis
- Note 1: Financial Instruments
- Note 2: Business Combinations
at and for the year ended 30 June 2016.
RESPONSIBILITY FOR FINANCIAL STATEMENTS
The Summarised Audited Consolidated Annual Financial Statements have been prepared under the supervision of Tyrone Soondarjee,
CA(SA), Group Financial Director.
REPORTS OF THE INDEPENDENT AUDITORS
The joint auditors of the Group, KPMG Inc. and Grant Thornton Johannesburg Partnership, have issued an unmodified report on
the Audited Financial Statements and these Summarised Audited Consolidated Financial Statements for the year ended 30 June
2016 dated 19 September 2016. These reports are available for inspection at the Company’s registered office. The auditors’
report does not necessarily report on all of the information contained in this announcement. Shareholders are therefore
advised that in order to obtain a full understanding of the nature of the auditors’ engagement they should obtain a copy
of the auditors’ report together with the accompanying financial information from the issuer’s registered office.
PREFERENCE SHARE CASH DIVIDEND
The Directors have declared a gross cash preference dividend number 24 amounting to 424.42 cents per share (360.757 cents
per share net of 15% dividend withholding tax) (2015: 378.43 cents per share (321.66550 cents per share net of 15% dividend
withholding tax) (preference dividend)) for the period 1 January 2016 to 30 June 2016.
Preference dividends have been paid on 1 000 000 (2015: 1 000 000) preference shares issued at R100.00 (2015: R100.00) each,
and on 820 544 (2015: 854 727) preference shares issued at R110.49 (2015: R110.49) each.
The dividends have been declared from income reserves. The preference dividend is payable to holders of preference shares
recorded in the register of the Company at the close of business of Friday, 7 October 2016.
The salient dates relating to the preference dividend are as follows:
Last day to trade cum the preference dividend Tuesday, 4 October 2016
Preference shares commence trading ex the preference dividend Wednesday, 5 October 2016
Preference dividend record date Friday, 7 October 2016
Payment date of preference dividend Monday, 10 October 2016
Preference share certificates may not be dematerialised or rematerialised between Wednesday, 5 October 2016 and Friday,
7 October 2016, both days inclusive.
FINAL ORDINARY SHARE CASH DIVIDEND
The Directors have declared a final ordinary share gross cash dividend for the year ended 30 June 2016 of 188.82 cents
(2015: 147.47 cents) per share.
Together with the interim ordinary dividend of 98.57 cents (2015: 75.26 cents) per share declared on 17 March 2016, the
total ordinary dividends for the financial year ended 30 June 2016 amount to 287.39 cents (2015: 222.73 cents) per share.
The following further information is provided to shareholders with regards to the final dividend declaration in respect of
the new dividends tax:
- The dividend has been declared from income reserves.
- The dividend withholding tax rate is 15%, and a net dividend of 160.497 cents (2015: 125.34950 cents) per share is paid
to those shareholders who are not exempt from dividend withholding tax.
- The issued number of ordinary shares as at declaration date is 32 301 441 (2015: 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, 14 October 2016.
The salient dates relating to the ordinary dividend are as follows:
Last day to trade cum the ordinary dividend Tuesday, 11 October 2016
Ordinary shares commence trading ex the ordinary dividend: Wednesday, 12 October 2016
Ordinary dividend record date Friday, 14 October 2016
Payment date of ordinary dividend Monday, 17 October 2016
Ordinary share certificates may not be dematerialised or rematerialised between Wednesday, 12 October 2016 and Friday,
14 October 2016, 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.
DIRECTORATE AND CHANGES TO THE BOARD
The Board has considered the length of service of Shahied Rylands as a Non-Executive Director and is satisfied that he be
classified as an Independent Non-Executive Director.
Michael Sassoon was appointed a full Executive Director of the Company and Sasfin Bank Limited on 23 October 2015.
Maston Lane resigned as an Alternate Executive Director of the Company and Sasfin Bank Limited following his appointment
as Acting Chief Risk Officer on 23 October 2015.
NOTICE OF ANNUAL GENERAL MEETING AND POSTING OF INTEGRATED REPORT
The Annual General Meeting of Sasfin will be held at 29 Scott Street, Waverley, Johannesburg, on Tuesday, 29 November 2016
at 14:00.
Sasfin's Integrated Report 2016 will be posted to shareholders on or about 31 October 2016. The Group's Audited Consolidated
Annual Financial Statements for the year ended 30 June 2016 will be available on the Company's website on or about
31 October 2016.
For and on behalf of the Board:
Roy Andersen Roland Sassoon Tyrone Soondarjee
Chair Chief Executive Officer Group Financial Director
19 September 2016
Independent Non-Executive Chair
Roy Andersen
Executive Directors
Roland Sassoon (Chief Executive Officer)
Tyrone Soondarjee (Group Financial Director)
Michael Sassoon
Alternate Executive Director
Linda Frohlich
Independent Non-Executive Directors
Linda de Beer
Grant Dunnington
John Moses
Shahied Rylands
Lesego Sennelo
Group Company Secretary
Howard Brown
Transfer Secretaries
Computershare Investor Services (Pty) Limited
70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
Joint Auditors
KPMG Inc.
Grant Thornton Johannesburg Partnership
Registered Office
29 Scott Street, Waverley, Johannesburg, 2090
Tel: +27 11 809 7500
Fax: +27 11 887 6167/2489
Company registration number: 1987/002097/06
Tax reference number: 9300/204/71/7
Website and Email
www.sasfin.com
investorrelations@sasfin.com
This announcement and additional information is available at: 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 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.
www.sasfin.com
19 September 2016
Johannesburg
Sponsors
Lead sponsor - Sasfin Capital (a division of Sasfin Bank Limited)
Independent sponsor - KPMG Services (Pty) Limited
Date: 19/09/2016 10:20:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
