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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').
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