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SASFIN HOLDINGS LIMITED - Unaudited Interim Results and Dividend Declarations for the six months ended 31 December 2016

Release Date: 16/03/2017 10:15
Code(s): SFN SFNP     PDF:  
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Unaudited Interim Results and Dividend Declarations for the six months ended 31 December 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)

Unaudited Interim Results and Dividend Declarations 
for the six months ended
31 December 2016

down 18.84%
HEADLINE EARNINGS
R86.142 M
(Dec 2015: R106.137 M)

down 18.84%
HEADLINE EARNINGS PER ORDINARY SHARE
271.42 CENTS
(Dec 2015: 334.43 CENTS)

down 20.26%
EARNINGS PER SHARE
266.91 CENTS
(Dec 2015: 334.72 CENTS)

down 18.84%
DIVIDENDS PER ORDINARY SHARE
80.00 CENTS
(Dec 2015: 98.57 CENTS)

up 7.48%
TOTAL ASSETS
R11.559 BN
(Dec 2015: R10.754 BN)

up 7.89%
GROSS LOANS AND ADVANCES
R6.403 BN
(Dec 2015: R5.935 BN)

up 11.51%
FUNDING BASE*
R8.158 BN
(Dec 2015: R7.316 BN)
* including preference shares

up 7.63%
TOTAL EQUITY*
R1.413 BN
(Dec 2015: R1.313 BN)
* excluding preference shares

down 438bps
RETURN ON ORDINARY SHAREHOLDERS' AVERAGE EQUITY
12.23%
(Dec 2015: 16.61%)

down 43bps
RETURN ON AVERAGE ASSETS
1.53%
(Dec 2015: 1.96%)

up 70bps
CREDIT LOSS RATIO
121bps
(Dec 2015: 51bps)

down 365bps
GROUP TOTAL CAPITAL ADEQUACY RATIO (UNAUDITED)
18.32%
(Dec 2015: 21.97%)

down 21.43%
FUNDS UNDER ADMINISTRATION AND MANAGEMENT*
R88 BN
(Dec 2015: R112 BN)
* including under advisement

FINANCIAL HIGHLIGHTS
for the period ended
                                                                              %  31 December  31 December  30 June
                                                                         change         2016         2015     2016
                                                                                   Unaudited    Unaudited  Audited
FINANCIAL POSITION
Total assets (Rm)                                                          7.48       11 559       10 754   11 004
Total gross loans and advances (Rm)                                        7.89        6 403        5 935    6 449
Non-performing loans and advances (Rm)                                   100.00          466          233      423
INCOME STATEMENT
Earnings attributable to ordinary shareholders (Rm)                      (20.26)      84.709      106.227  224.419
Headline earnings (Rm)                                                   (18.84)      86.142      106.137  232.080
FINANCIAL PERFORMANCE
Return on ordinary shareholders' average equity (%)                                    12.23        16.61    17.54
Return on total average assets (%)                                                      1.53         1.96     2.12
OPERATING PERFORMANCE
Non-interest income to total income (%)                                                63.69        65.98    65.91
Cost-to-income ratio
Group (%)                                                                              72.05        70.92    68.89
Banking Group (%)                                                                      66.47        62.53    62.43
Credit loss ratio (bps)                                                                  121           51      108
Non-performing advances to total gross  loans and advances (%)                          7.28         3.93     6.56
SHARE STATISTICS
Earnings per ordinary share (cents)                                      (20.26)      266.91       334.72   707.13
Headline earnings per ordinary share (cents)                             (18.84)      271.42       334.43   731.27
Number of ordinary shares in issue at end  of the period (000)                        31 737       31 737   31 737
Weighted average number of ordinary shares in issue (000)                             31 737       31 737   31 737
Dividends per ordinary share relating to profit for the period (cents)   (18.84)       80.00        98.57   287.39
Preference share dividend number 1 for the period (cents)                             436.68       396.28   396.28
Preference share dividend number 2 for the period (cents)                                  -            -   424.42
Net asset value per ordinary share (cents)                                 7.63        4 453        4 137    4 346
CAPITAL ADEQUACY (UNAUDITED)
Capital adequacy ratio
Group (%)                                                                              18.32        21.97    19.02
Banking Group (%)                                                                      17.31        22.69    19.33

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
at

                                                                         31 December  31 December      30 June
                                                                                2016         2015         2016
                                                                           Unaudited    Unaudited      Audited
                                                                               R'000        R'000        R'000
ASSETS
Cash and short-term negotiable securities                                  2 837 584    2 322 909    1 910 584
Loans and advances to customers                                            6 182 723    5 783 873    6 254 891
Financial assets held for trade facilitation and  repurchase agreements    1 298 610    1 039 932    1 147 227
Other receivables                                                            297 430      887 295      772 209
Investment securities                                                        603 910      492 873      586 359
Property, plant and equipment                                                103 572       73 191       87 229
Non-current assets held for sale - investment property                        69 900            -       69 900
Taxation                                                                      27 906        9 399       31 135
Intangible assets and goodwill                                               112 781      130 270      122 391
Deferred tax asset                                                            24 094       14 459       22 135
TOTAL ASSETS                                                              11 558 510   10 754 201   11 004 060

LIABILITIES
Funding under repurchase agreements and interbank                            975 186      830 888      999 184
Deposits from customers                                                    4 016 555    3 458 616    3 206 527
Debt securities issued                                                     2 496 267    2 344 778    2 470 428
Long-term loans                                                              481 741      485 987      433 889
TOTAL FUNDING                                                              7 969 749    7 120 269    7 110 028
Financial liabilities held for trade facilitation
and repurchase agreements                                                  1 280 166    1 188 545    1 131 942
Other payables                                                               573 771      844 765    1 023 354
Taxation                                                                      11 201       18 529       16 611
Deferred tax liability                                                       119 366       73 649      125 576
TOTAL LIABILITIES                                                          9 954 253    9 245 757    9 407 511

EQUITY
Ordinary share capital and share premium                                     144 327      144 327      144 327
Reserves                                                                   1 268 818    1 168 667    1 259 353
Preference share capital and share premium                                   188 086      195 450      192 869
Non-controlling interest                                                       3 026            -            -
TOTAL EQUITY                                                               1 604 257    1 508 444    1 596 549
TOTAL LIABILITIES AND EQUITY                                              11 558 510   10 754 201   11 004 060

CONSOLIDATED INCOME STATEMENT
for the period ended


                                                                      %  31 December  31 December      30 June
                                                                 change         2016         2015         2016
                                                                            6 months     6 months    12 months
                                                                           Unaudited    Unaudited      Audited
                                                                               R'000        R'000        R'000
Interest income                                                              582 659      488 496      999 006
Interest expense                                                             367 410      295 187      592 520
NET INTEREST INCOME                                               11.35      215 249      193 309      406 486
Non-interest income                                                          377 483      374 995      790 357
TOTAL INCOME                                                       4.30      592 732      568 304    1 196 843
Impairment charges on loans and advances                         170.40       38 897       14 385       63 912
NET INCOME AFTER IMPAIRMENTS                                                 553 835      553 919    1 132 931
Operating costs                                                    9.15      440 888      403 928      828 316
Staff costs                                                       (4.33)     221 580      231 603      434 339
Other operating expenses                                          18.93      204 945      172 325      380 888
Goodwill and intangible asset impairments                                     14 363            -       13 089

PROFIT FROM OPERATIONS                                                       112 947      149 991      304 615
Share of associate income                                                       (758)       1 279        2 383
PROFIT BEFORE INCOME TAX                                                     112 189      151 270      306 998
Income tax expense                                                            18 438       38 024       68 210
PROFIT FOR THE PERIOD                                            (17.21)      93 751      113 246      238 788

PROFIT ATTRIBUTABLE TO:
Preference shareholders                                                        7 848        7 019       14 369
Non-controlling interest                                                       1 194            -            -
Equity holders of the Group                                      (20.26)      84 709      106 227      224 419
PROFIT FOR THE PERIOD                                            (17.21)      93 751      113 246      238 788
Earnings per ordinary share (cents)                              (20.26)      266.91       334.72       707.13
Diluted earnings per ordinary share (cents)                      (20.26)      266.91       334.72       707.13

Headline earnings per ordinary share (cents)                     (18.84)      271.42       334.43       731.27
Diluted headline earnings per ordinary share (cents)             (18.84)      271.42       334.43       731.27

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the period ended

                                                                                   %     31 December  31 December    30 June
                                                                              change            2016         2015       2016
                                                                                            6 months     6 months  12 months
                                                                                           Unaudited    Unaudited    Audited
                                                                                               R'000        R'000      R'000
PROFIT FOR THE PERIOD                                                         (17.21)         93 751      113 246    238 788
OTHER COMPREHENSIVE (LOSS)/INCOME FOR THE PERIOD, NET OF INCOME TAX                          (17 520)      10 924     14 766
Items that are or may be subsequently reclassified to profit or loss
Foreign exchange differences on translation of foreign operation                             (17 520)      70 877     54 395
Net loss on hedge of net investment in foreign operation                                           -      (59 953)   (39 629)
Loss on hedge of net investment in foreign operation                                               -      (83 268)   (55 040)
Income tax effect                                                                                  -       23 315     15 411


TOTAL COMPREHENSIVE INCOME FOR THE PERIOD                                     (38.61)         76 231      124 170    253 554

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Preference shareholders                                                                        7 848        7 019     14 369
Non-controlling interest                                                                       1 194            -          -
Equity holders of the Group                                                                   67 189      117 151    239 185
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD                                     (38.61)         76 231      124 170    253 554

CONDENSED HEADLINE EARNINGS RECONCILIATION
for the period ended
                                                                         %               31 December  31 December    30 June
                                                                    change                      2016         2015       2016
                                                                                            6 months     6 months  12 months
                                                                                           Unaudited    Unaudited    Audited
                                                                                               R'000        R'000      R'000
EARNINGS ARE DETERMINED  AS FOLLOWS:
Earnings attributable to equity holders of the Group                                          84 709      106 227    224 419
HEADLINE ADJUSTABLE ITEMS                                                                      1 433          (90)     7 661
PROFIT ON SALE OF PROPERTY AND EQUIPMENT - IAS 16                                                121          (90)         -
Gross                                                                                            168         (125)         -
Tax impact                                                                                       (47)          35          -
GOODWILL AND INTANGIBLE ASSET IMPAIRMENTS - IAS 38                                            14 363            -     12 175
Gross                                                                                         14 363            -     13 089
Tax impact                                                                                         -            -       (914)
GAIN ON PARTIAL DISPOSAL  OF SUBSIDIARY                                                      (13 051)           -          -
Gross                                                                                        (13 051)           -          -
Tax impact                                                                                         -            -          -
INVESTMENT PROPERTY FAIR VALUE ADJUSTMENTS - IAS 40                                                -            -     (4 514)
Gross                                                                                              -            -     (5 818)
Tax impact                                                                                         -            -      1 304


HEADLINE EARNINGS                                                   (18.84)                   86 142      106 137    232 080
Headline earnings per ordinary  share (cents)                       (18.84)                   271.42       334.43     731.27

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the period ended
                                                                                       31 December  31 December      30 June
                                                                                              2016         2015         2016
                                                                                          6 months     6 months    12 months
                                                                                         Unaudited    Unaudited      Audited
                                                                                             R'000        R'000        R'000
Opening total shareholders' equity                                                       1 596 549    1 438 191    1 438 191
TOTAL COMPREHENSIVE INCOME  FOR THE PERIOD                                                  76 231      124 170      253 554
Profit for the period                                                                       93 751      113 246      238 788
Foreign currency translation reserve                                                       (17 520)      70 877       54 395
Hedging reserve                                                                                  -      (59 953)     (39 629)

TRANSACTIONS WITH OWNERS  RECORDED DIRECTLY IN EQUITY
Preference share buy-back                                                                   (4 783)           -       (2 581)
Surplus on preference share buy back                                                         2 219            -            -
Preference share dividend                                                                   (7 848)      (7 019)     (14 369)
Ordinary share dividend                                                                    (59 943)     (46 898)     (78 246)
Non-controlling interest                                                                     1 832            -            -
CLOSING BALANCE                                                                          1 604 257    1 508 444    1 596 549

CONDENSED CONSOLIDATED  STATEMENT OF CASH FLOWS
for the period ended
                                                                                       31 December  31 December      30 June
                                                                                              2016         2015         2016
                                                                                          6 months     6 months    12 months
                                                                                         Unaudited    Unaudited      Audited
                                                                                             R'000        R'000        R'000
Cash flows from operating activities                                                        32 011       28 826      150 185
Movement in operating assets and liabilities                                               973 791     (525 143)  (1 083 437)
Net cash flows from operating activities                                                 1 005 802     (496 317)    (933 252)
Net cash flows from investing activities                                                   (42 537)     (88 769)    (228 968)
Net cash flows from financing activities                                                      (732)           -       (2 581)
Net increase in cash and cash equivalents                                                  962 533     (585 086)  (1 164 801)
Cash and cash equivalents at beginning of the period                                       911 400    2 080 026    2 080 026
Effect of exchange rate fluctuations on cash held                                          (11 535)      (2 919)      (3 825)
CASH AND CASH EQUIVALENTS  AT END OF THE PERIOD                                          1 862 398    1 492 021      911 400
CASH AND CASH EQUIVALENTS COMPRISE:
Cash and short-term negotiable securities                                                2 837 584    2 322 909    1 910 584
Funding under repurchase agreements and interbank                                         (975 186)    (830 888)    (999 184)
CASH AND CASH EQUIVALENTS  AT END OF THE PERIOD                                          1 862 398    1 492 021      911 400

CONDENSED  SEGMENTAL ANALYSIS
for the period ended

                                                                                      31 December  31 December      30 June
                                                                                             2016         2015         2016
                                                                                         6 months     6 months    12 months
                                                                                        Unaudited    Unaudited      Audited
                                                                                            R'000        R'000        R'000
SEGMENT PROFITABILITY
Business banking                                                                           77 610       86 243      156 294
Transactional banking and Treasury                                                         13 282        4 033        6 559
Capital                                                                                     3 830       (4 853)      20 344
Wealth                                                                                     20 888       35 058       76 406
Commercial solutions                                                                        9 356       12 321       24 865
Corporate services and Group eliminations                                                 (31 215)     (19 556)     (45 680)
PROFIT FOR THE PERIOD                                                                      93 751      113 246      238 788
SEGMENT REVENUE
Business banking                                                                          285 705      272 292      560 092
Transactional banking and Treasury                                                         44 920       31 138       63 961
Capital                                                                                    26 982        8 818       45 750
Wealth                                                                                    133 307      139 718      300 917
Commercial solutions                                                                       70 858       97 424      193 317
Corporate services and Group eliminations                                                  30 960       18 914       32 806
TOTAL SEGMENT REVENUE                                                                     592 732      568 304    1 196 843

CONDENSED  SEGMENTAL ANALYSIS
at
                                                                                      31 December  31 December      30 June
                                                                                             2016         2015         2016
                                                                                        Unaudited    Unaudited      Audited
                                                                                            R'000        R'000        R'000
SEGMENT ASSETS
Business banking                                                                        6 898 045    6 708 533    6 104 399
Transactional banking and Treasury                                                      5 706 075    3 627 558    4 393 773
Capital                                                                                   845 982      691 825      761 418
Wealth                                                                                  1 591 418    1 637 791    1 129 574
Commercial solutions                                                                      532 918      441 215      317 725
Corporate services and Group eliminations                                              (4 015 928)  (2 352 721)  (1 702 829)
TOTAL SEGMENT ASSETS                                                                   11 558 510   10 754 201   11 004 060
SEGMENT LIABILITIES
Business banking                                                                        6 034 267    3 206 909    5 467 456
Transactional banking and Treasury                                                      5 692 792    3 613 175    4 264 714
Capital                                                                                   499 361      169 959      384 379
Wealth                                                                                  1 400 738    1 509 746    1 057 747
Commercial solutions                                                                      370 805      198 433      166 849
Corporate services and Group eliminations                                              (4 043 710)     547 535   (1 933 634)
TOTAL SEGMENT LIABILITIES                                                               9 954 253    9 245 757    9 407 511

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 financial statements as at and for the year ended 30 June 2016.

FAIR VALUE 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     31 Dec     31 Dec    30 June
                                                             R'000    R'000    R'000       2016       2015       2016
                                                                                      Unaudited  Unaudited    Audited
                                                                                          R'000      R'000      R'000
Short-term negotiable securities                         1 456 432        -        -  1 456 432  1 112 780  1 238 267
Financial assets and reverse repurchase agreements       1 298 610        -        -  1 298 610  1 039 932  1 147 227
Investment securities                                            -   68 876  535 034    603 910    492 873    586 359
Other receivables                                                -   55 088        -     55 088     57 745    100 259
TOTAL FINANCIAL ASSETS CARRIED AT FAIR VALUE             2 755 042  123 964  535 034  3 414 040  2 703 330  3 072 112
Financial liabilities and  repurchase agreements         1 280 166        -        -  1 280 166  1 188 545  1 131 942
Other payables                                                   -   57 716        -     57 716     54 887     97 474
TOTAL FINANCIAL LIABILITIES CARRIED AT FAIR VALUE        1 280 166   57 716        -  1 337 882  1 243 432  1 229 416

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 valuation of the Level 2 investment security is based on the listed share price, per the Johannesburg Stock Exchange,
less a marketability discount.

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 2016.
                                                                       31 Dec     31 Dec    30 June
                                                                         2016       2015       2016
                                                                     6 months   6 months  12 months
                                                                    Unaudited  Unaudited    Audited
                                                                        R'000      R'000      R'000
LEVEL 3 FAIR VALUES - INVESTMENT SECURITIES
Opening balance                                                       493 768    398 024    398 024
Unrealised gains/(losses) for the year included in  profit or loss     25 563     10 134     31 326
Net investments/(settlements)                                          15 703     54 529     64 418
CLOSING BALANCE                                                       535 034    462 687    493 768

The valuation 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.

COMMENTARY
NATURE OF BUSINESS
Sasfin is a bank-controlling company listed in the "Financials: Investment Services" sector of the JSE Limited (the JSE).
Sasfin and its subsidiaries (the Group) provide a comprehensive range of specialist financial products for Business and
Wealth clients.

BUSINESS REVIEW: GROUP PERFORMANCE
BUSINESS ENVIRONMENT
The South African economy was negatively impacted by a widening wealth gap, rising unemployment and heightened levels of
consumer indebtedness. This has led to weak growth rates, not sufficient to stimulate and transform the economy.
The South African banking industry, on the other hand, under increasing regulation, impact of disruptive technologies,
cyber threats and market conduct concerns, continues to provide financial stability as the cornerstone of the economy.

GROUP OVERVIEW
It is disappointing to report an 18.84% drop in headline earnings and headline earnings per share to R86.142 million
(December 2015: R106.137 million) and 271.42 cents (December 2015: 334.43 cents) for the six months to December 2016
respectively, after achieving a 29.0% increase in headline earnings for the year to June 2016. Dividends per share showed
a similar decrease of 18.84% to 80.00 cents from 98.57 cents in December 2015. This was largely due to two unusual credit
losses as well as a write down in Sasfin's investment in Efficient Group Limited. The volatility in earnings is a function
of the lack of granularity of assets in Sasfin, as a small banking group, in comparison to the larger banks. Further
reasons for the poor performance were the low growth levels (assets grew by 7.48% and gross loans and advances by 7.89%)
and a material increase in expenses in order to comply with new regulations and position Sasfin for strong growth.

The Group expanded its funding base to R8.158 billion from R7.316 billion in December 2015 resulting in a liquidity
position of R2.838 billion and is well positioned to meet the funding requirements of the Group.
Total income grew by 4.30% on the back of lower levels of revenue generation in the Business Banking and Wealth divisions.
The Group has benefited from a lower tax charge for the period due to a larger share of income subject to lower rates of
taxation.

The challenging credit environment, sluggish economy and two material impairments led to the Group credit loss ratio
increasing to 121 bps (December 2015: 51 bps) with a commensurate increase in non-performing loans to R466 million from
R233 million in December 2015. Subsequent to the December 2016 reporting period, non-performing loans reduced to 
R349 million following certain loan recoveries.

Group costs increased by 9.15% to R440.888 million (December 2015: R403.928 million) with increased investment in Risk,
Compliance and Information Technology, whilst staff costs decreased by 4.33% largely as a result of the deconsolidation
of Imperial Sasfin Logistics (Pty) Limited (ISL) (previously Sasfin Premier Logistics (Pty) Limited).

The Group and Banking Group's cost-to-income ratios regressed to 72.05% (December 2015: 70.92%) and 66.47% 
(December 2015: 62.53%) respectively. The rising cost-to-income ratios are largely as a result of the significant investments 
made in the Information Technology, Risk and Compliance units.

SEGMENTAL OVERVIEW
Business Banking delivered a profit of R77.610 million (December 2015: R86.243 million), a 10.01% decrease. This result
was impacted by low growth in lending activities and increasing credit impairments which saw the divisional credit loss
ratio climb to 89bps (December 2015: 52bps).

Wealth showed a 40.42% decrease in profitability to R20.888 million from R35.058 million at December 2015. This decrease
was a result of a number of factors, with the more notable being the continued investments into this business due to the
upside potential recognised and a flat revenue base due to lower brokerage. Sasfin has also aligned costs more accurately
with its various pillars which resulted in a reallocation of some group costs to the Wealth business. As previously
reported, the Group acquired a stake in the Efficient Group Limited (Efficient) and has generated a mark-to-market gain on
this investment since its original purchase. However, during the period under review a write down was taken due to a
negative move in the Efficient share price. Assets under Advisement and Management decreased by 5.80% to R36.500 billion
(December 2015: R38.747 billion).

Transactional Banking and Treasury continued to grow by building a deposit base with diversified tenors with deposits from
customers increasing 16.13% to R4.017 billion (December 2015: R3.459 billion). Despite the ongoing investment in the
Transactional Banking business, profitability grew encouragingly to R13.282 million (December 2015: R4.033 million) due to
improved returns on the surplus liquidity position and normalising of the Transactional Banking cost base and a growing
client base, albeit on a relatively small scale.

Capital's revenue increased to R26.982 million (December 2015: R8.818 million) arising from strong performance on its
private equity portfolio but was negatively impacted by credit undertakings on its portfolio. This resulted in a profit of
R3.830 million (December 2015: loss of R4.853 million) which was aided by a higher contribution from Corporate Finance.
The division secured an additional R100.000 million of external funding, underpinned by a Holding Company guarantee, to
support its growth initiatives.

Commercial Solutions revenue decreased to R70.858 million (December 2015: R97.424 million), largely as a result of the
deconsolidation of ISL, the continued economic downturn and tough trading conditions experienced in its Global Trade and
Incentives businesses. Notwithstanding this, the division delivered a profit of R9.356 million (December 2015: R12.321 million) 
following a meaningful contribution from Sasfin Forex.

STATEMENT OF FINANCIAL POSITION AND CAPITAL MANAGEMENT REVIEW
The Group maintains a solid funding base underpinned by a growing deposit book. Sasfin Bank Limited's liquidity coverage
and net stable funding ratios remain well in excess of the prescribed regulatory minimums which bodes well for future
growth.

Sasfin's securitisation vehicle, the South African Securitisation Programme (RF) Limited (SASP) increased its offering
with SASP Series 3, and continued to deliver consistent performance. During the calendar year to December 2016, 
R1.445 billion of maturing notes were successfully refinanced demonstrating strong demand for SASP paper.

The Group's capital base increased to R1.601 billion from R1.508 billion in December 2015, whilst its capital adequacy
ratio has decreased to 18.32% (December 2015: 21.97%), primarily due to growth in risk weighted assets. The Group
maintains a high Tier 1 capital ratio of 17.94% (December 2015: 21.47%), which is the main measure of capital strength.
The Group repurchased and cancelled 23 318 (December 2015: 50 273) of its non-redeemable preference shares (SFNP) during
the six months to 31 December 2016 and 84 456 for the financial year ended 30 June 2016.

PROSPECTS
Political and economic uncertainty coupled with market volatility continues to raise potential threats to financial
stability. Nonetheless we are cautiously optimistic about the South African economy, mainly due to the break in the
drought, improved commodity prices and reduced strike action.

The fixed overhead relating to regulatory compliance for a challenger banking group such as Sasfin has increased
considerably. In order to improve its performance, Sasfin is in the process of:
- strengthening its IT capabilities
- acquiring, subject to the fulfilment of conditions precedent, the ABSA Technology Financial Solutions (Pty) Limited
  equipment rental book, as advised on SENS
- negotiating with a potential BEE partner, as advised in a recently published SENS announcement
- restructuring the Group in order to adopt a more focused approach to its target markets along its core pillars of Banking,
  Wealth and Capital.

These initiatives should result in solid and sustainable growth for the Group.

BASIS OF PREPARATION AND PRESENTATION OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIOD
ENDED 31 DECEMBER 2016
The Condensed Interim Consolidated 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 Reporting 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 unaudited, unreviewed Condensed Interim Consolidated Financial Statements for the
period ended 31 December 2016 are the same as those applied in the Group's Audited Consolidated Annual Financial
Statements at the year ended 30 June 2016.

There are no material events to report subsequent to 31 December 2016, other than those already disclosed.

CONDENSED INTERIM FINANCIAL STATEMENTS
The Condensed Interim Consolidated Financial Statements comprise a consolidated:

- Statement of Financial Position
- Income Statement
- Condensed Statement of Comprehensive Income
- Condensed Statement of Changes in Equity
- Condensed Cash Flow Statement
- Condensed Segmental Analysis Reports
  at and for the period ended 31 December 2016.

RESPONSIBILITY FOR FINANCIAL STATEMENTS
These Condensed Interim Consolidated Financial Statements have been prepared under the supervision of Tyrone Soondarjee,
CA(SA), Group Financial Director.

PREFERENCE SHARE CASH DIVIDEND
The Directors have declared a gross cash preference dividend number 25 of 436.68 cents per share 
(December 2015: 396.28 cents per share) ("preference dividend") for the period 1 July 2016 to 31 December 2016.

Preference dividends have been paid on 1 000 000 (December 2015: 1 000 000) preference shares issued at R100.00 
(December 2015: R100.00) each, and on 797 226 (December 2015: 854 727) preference shares issued at R110.49 
(December 2015: R110.49) each.

The following further information is provided to shareholders with regards to the preference dividend declaration in
respect of the new dividends tax:

- The dividend has been declared from income reserves.
- The dividend withholding tax rate is 20%, and a net dividend of 349.34400 cents (December 2015: 336.83800 cents) per share
  is paid to those shareholders who are not exempt from dividend  withholding tax.
- The issued number of preference shares as at declaration date is 1 797 226 (December 2015: 1 854 727).

The preference dividend is payable to holders of preference shares recorded in the register of the Company at the close of
business on Friday, 7 April 2017.

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

Last day to trade cum the preference dividend
Tuesday, 4 April 2017

Preference shares commence trading ex the preference dividend
Wednesday, 5 April 2017

Preference dividend record date
Friday, 7 April 2017

Payment date of preference dividend
Monday, 10 April 2017

Preference share certificates may not be dematerialised or rematerialised between Wednesday, 5 April 2017 and Friday, 10
April 2017, both days inclusive.

INTERIM ORDINARY SHARE CASH DIVIDEND
The Directors have declared an interim ordinary share cash dividend for the period ended 31 December 2016 of 80.004 cents
(December 2015: 98.575 cents) per share.

The following further information is provided to shareholders with regards to the interim dividend declaration in respect
of the new dividends tax:

- The dividend has been declared from income reserves;
- The dividend withholding tax rate is 20%, and a net dividend of 64.00320 cents (December 2015: 83.78875 cents) per share
  is paid to those shareholders who are not exempt from dividend withholding tax; and
- The issued number of ordinary shares as at declaration date is 32 301 441 (December 2015: 32 301 441).

The ordinary dividend is payable to holders of ordinary shares recorded in the register of the Company at the close of
business on Thursday, 13 April 2017.

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

Last day to trade cum the ordinary dividend
Monday, 10 April 2017

Ordinary shares commence trading ex the ordinary dividend
Tuesday, 11 April 2017

Ordinary dividend record date
Thursday, 13 April 2017

Payment date of ordinary dividend
Tuesday, 18 April 2017

Ordinary share certificates may not be dematerialised or rematerialised between Tuesday, 11 April 2017 and Thursday, 
13 April 2017, 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.

For and on behalf of the Board:

Roy Andersen      Roland Sassoon              Tyrone Soondarjee
Chair             Chief Executive Officer     Group Financial Director
16 March 2017

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
Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196
PO Box 61051, Marshalltown, 2107

JOINT AUDITORS
KPMG Inc.
Grant Thornton Johannesburg Partnership

SPONSORS
Lead sponsor - Sasfin Capital (a division of Sasfin Bank Limited)
Independent sponsor - KPMG Services (Pty) Limited

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.


Date: 16/03/2017 10:15:00 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.

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