SASFIN HOLDINGS LIMITED - Unaudited Interim Results and Dividend Declarations for the six months ended 31 December 2017

Release Date: 20/03/2018 09:55
Code(s): SFNP SFN
 
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Unaudited Interim Results and Dividend Declarations for the six months ended 31 December 2017

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 2017

Down 41.81%
HEADLINE EARNINGS
PER ORDINARY SHARE
157.95 cents
(Dec 2016: 271.42 cents)

Down 8.72%
PROFIT BEFORE TAX
R102.405 m
(Dec 2016: R112.189 m)

Down 537bps
RETURN ON ORDINARY
SHAREHOLDERS'
AVERAGE EQUITY
6.86%
(Dec 2016: 12.23%)

Up 13.78%
TOTAL
ASSETS
R13.152 bn
(Dec 2016: R11.559 bn)

Up 7.09%
GROSS LOANS AND ADVANCES
R6.857 bn
(Dec 2016: R6.403 bn)

Up 12.67%
FUNDING
BASE*
R9.192 bn
(Dec 2016: R8.158 bn)
* including preference shares

Down 79bps
CREDIT LOSS
RATIO
200bps
(Dec 2016: 121bps)

Down 29bps
GROUP TOTAL CAPITAL
ADEQUACY RATIO
18.03%
(Dec 2016: 18.32%)

Up 15.91%
FUNDS UNDER ADMINISTRATION AND MANAGEMENT*
R102 bn
(Dec 2016: R88 bn)
* including under advisement

FINANCIAL HIGHLIGHTS
for the period ended

                                                                               31 December  31 December     30 June
                                                                                      2017         2016        2017
                                                                                 Unaudited    Unaudited     Audited
FINANCIAL POSITION
Total assets (Rm)                                                                   13 152       11 559      12 623
Total gross loans and advances (Rm)                                                  6 857        6 403       6 711
Non-performing loans and advances (Rm)                                                 402          466         349
INCOME STATEMENT
Earnings attributable to ordinary shareholders (Rm)                                 46.183       84.709     176.577
Headline earnings (Rm)                                                              50.491       86.142     194.151
FINANCIAL PERFORMANCE
Return on ordinary shareholders' average equity (%)                                   6.86        12.23       13.52
Return on average assets (%)                                                          0.78         1.53        1.64
OPERATING PERFORMANCE
Non-interest income to total income (%)                                              60.34        63.69       62.08
Cost-to-income ratio
Group (%)                                                                            70.52        72.05       72.12
Banking Group (%)                                                                    62.86        66.47       65.20
Credit loss ratio (bps)                                                                200          121         124
Non-performing advances to total gross loans and advances (%)                         5.86         7.28        5.20
SHARE STATISTICS
Earnings per ordinary share (cents)                                                 144.47       266.91      556.38
Headline earnings per ordinary share (cents)                                        157.95       271.42      611.76
Number of ordinary shares in issue at end of the  period (000)                      32 197       31 737      31 737
Weighted average number of ordinary shares in issue (000)                           31 967       31 737      31 737
Dividends per ordinary share relating to profit for the period (cents)               46.89        80.00      240.42
Preference share dividend number 1 for the period (cents)                           427.42       436.68      436.68
Preference share dividend number 2 for the period (cents)                                -            -      429.57
Net asset value per ordinary share (cents)                                           4 586        4 453       4 628
CAPITAL ADEQUACY
Capital adequacy ratio
Group (%)                                                                            18.03        18.32       16.38
Banking Group (%)                                                                    16.94        17.31       16.67


CONSOLIDATED STATEMENT  OF FINANCIAL POSITION
at
                                                                               31 December  31 December     30 June
                                                                                      2017         2016        2017
                                                                                 Unaudited    Unaudited     Audited
                                                                                     R'000        R'000       R'000
ASSETS
Cash and negotiable securities                                                   3 717 205    2 837 584   3 525 418
Loans and advances                                                               6 589 574    6 182 723   6 487 022
Trading assets                                                                   1 317 424    1 298 610   1 280 093
Other receivables                                                                  648 622      297 430     467 208
Investment securities                                                              554 552      603 910     494 213
Private equity and Property equity investments                                     507 246      535 034     447 233
Strategic investments                                                               47 306       68 876      46 980
Property, plant and equipment                                                       95 443      103 572     103 856
Non-current assets held for sale                                                    19 500       69 900      69 500
Taxation                                                                            27 681       27 906      36 560
Intangible assets and goodwill                                                     146 788      112 781     131 778
Deferred tax asset                                                                  35 088       24 094      26 995
TOTAL ASSETS                                                                    13 151 877   11 558 510  12 622 643

LIABILITIES
Funding under repurchase agreements and interbank                                1 267 180      975 186   1 381 240
Deposits from customers                                                          4 246 264    4 016 555   4 483 350
Debt securities issued                                                           3 113 037    2 496 267   2 496 718
Long-term loans                                                                    377 605      481 741     429 673
TOTAL FUNDING                                                                    9 004 086    7 969 749   8 790 981
Trading liabilities                                                              1 337 250    1 280 166   1 266 745
Other payables                                                                     984 876      573 771     768 957
Taxation                                                                            23 829       11 201       9 569
Deferred tax liability                                                             133 795      119 366     127 166
TOTAL LIABILITIES                                                               11 483 836    9 954 253  10 963 418

EQUITY
Ordinary share capital and share premium                                           160 103      144 327     144 327
Reserves                                                                         1 316 553    1 268 818   1 324 559
Preference share capital and share premium                                         188 086      188 086     188 086
Non-controlling interest                                                             3 299        3 026       2 253
TOTAL EQUITY                                                                     1 668 041    1 604 257   1 659 225
TOTAL LIABILITIES AND EQUITY                                                    13 151 877   11 558 510  12 622 643

CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
for the period ended
                                                                               31 December  31 December     30 June
                                                                                      2017         2016        2017
                                                                                 Unaudited    Unaudited     Audited
                                                                                     R'000        R'000       R'000

Interest income                                                                    624 124      582 659   1 186 295
Interest expense                                                                   394 866      367 410     743 759
NET INTEREST INCOME                                                                229 258      215 249     442 536
NON-INTEREST REVENUE                                                               348 781      377 483     724 630
Non-interest income excluding fair value adjustments to strategic investments      347 975      384 487     753 826
Fair value adjustments to strategic investments                                        806       (7 004)    (29 196)
TOTAL INCOME                                                                       578 039      592 732   1 167 166
Impairment charges on loans and advances                                            67 997       38 897      81 436
NET INCOME AFTER IMPAIRMENTS                                                       510 042      553 835   1 085 730
OPERATING COSTS                                                                    407 687      440 888     840 152
Staff costs                                                                        194 337      221 580     414 463
Other operating expenses                                                           207 517      204 945     411 326
Goodwill and intangible asset impairments                                            5 833       14 363      14 363
PROFIT FROM OPERATIONS                                                             102 355      112 947     245 578
Share of associate income/(loss)                                                        50         (758)     (2 156)
PROFIT BEFORE INCOME TAX                                                           102 405      112 189     243 422
Income tax expense                                                                  47 494       18 438      49 012
PROFIT FOR THE PERIOD                                                               54 911       93 751     194 410

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the period ended

                                                                               31 December  31 December     30 June
                                                                                      2017         2016        2017
                                                                                 Unaudited    Unaudited     Audited
                                                                                     R'000        R'000       R'000

OTHER COMPREHENSIVE LOSS FOR THE PERIOD, NET OF INCOME TAX                         (10 418)     (17 520)    (27 544)
Items that are or may be subsequently reclassified to profit or loss
Foreign exchange differences on translation of foreign operation                   (10 418)     (17 520)    (27 544)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD                                           44 493       76 231     166 866
PROFIT ATTRIBUTABLE TO:
Non-controlling interest                                                             1 046        1 194       2 253
Preference shareholders                                                              7 682        7 848      15 580
Equity holders of the Group                                                         46 183       84 709     176 577
PROFIT FOR THE PERIOD                                                               54 911       93 751     194 410
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Non-controlling interest                                                             1 046        1 194       2 253
Preference shareholders                                                              7 682        7 848      15 580
Equity holders of the Group                                                         35 765       67 189     149 033
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD                                           44 493       76 231     166 866
Basic and Diluted earnings per ordinary share (cents)                               144.47       266.91      556.38

HEADLINE EARNINGS RECONCILIATION
for the period ended

                                                                               31 December  31 December     30 June
                                                                                      2017         2016        2017
                                                                                 Unaudited    Unaudited     Audited
                                                                                     R'000        R'000       R'000
EARNINGS ARE DETERMINED  AS FOLLOWS:
Earnings attributable to equity holders of the Group                                46 183       84 709     176 577
HEADLINE ADJUSTABLE ITEMS                                                            4 308        1 433      17 574
PROFIT ON DISPOSAL OF ASSETS                                                             -          121        (176)
Gross                                                                                    -          168        (244)
Tax impact                                                                               -          (47)         68
GOODWILL AND INTANGIBLE ASSET IMPAIRMENTS                                            4 308       14 363      14 363
Gross                                                                                5 833       14 363      14 363
Tax impact                                                                          (1 525)           -           -
PROFIT ON DISPOSAL OF SUBSIDIARY                                                         -      (13 051)     (1 359)
Gross                                                                                    -      (13 051)     (1 359)
Tax impact                                                                               -            -           -
INVESTMENT PROPERTY FAIR VALUE ADJUSTMENTS                                               -            -         310
Gross                                                                                    -            -         400
Tax impact                                                                               -            -         (90)
IMPAIRMENT OF LEASEHOLD IMPROVEMENTS                                                     -            -       4 436
Gross                                                                                    -            -       4 436
Tax impact                                                                               -            -           -


HEADLINE EARNINGS                                                                   50 491       86 142     194 151
Headline earnings and Diluted headline earnings per ordinary share (cents)          157.95       271.42      611.76

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the period ended

                                                                               31 December  31 December     30 June
                                                                                      2017         2016        2017
                                                                                 Unaudited    Unaudited     Audited
                                                                                     R'000        R'000       R'000

Opening total shareholders' equity                                               1 659 225    1 596 549   1 596 549
TOTAL COMPREHENSIVE INCOME  FOR THE PERIOD                                          44 493       76 231     166 866
Profit for the period                                                               54 911       93 751     194 410
Foreign currency translation reserve                                               (10 418)     (17 520)    (27 544)

TRANSACTIONS WITH OWNERS  RECORDED DIRECTLY IN EQUITY
Preference share buy-back and cancellation                                               -       (2 564)     (1 864)
Sale of Treasury shares                                                             22 938            -           -
Preference share dividend                                                           (7 682)      (7 848)    (15 580)
Ordinary share dividend                                                            (50 933)     (59 943)    (86 746)
Non-controlling interest                                                                 -        1 832           -
CLOSING BALANCE                                                                  1 668 041    1 604 257   1 659 225

CONDENSED CONSOLIDATED  STATEMENT OF CASH FLOWS
for the period ended

                                                                               31 December  31 December     30 June
                                                                                      2017         2016        2017
                                                                                 Unaudited    Unaudited     Audited
                                                                                     R'000        R'000       R'000
Cash flows from operating activities                                                85 076       32 011     104 661
Movement in operating assets and liabilities                                       232 949      973 791   1 057 502
Net cash flows from operating activities                                           318 025    1 005 802   1 162 163
Net cash flows from investing activities                                           (34 900)     (42 537)     64 899
Net cash flows from financing activities                                            22 938         (732)     (1 864)
Net increase in cash and cash equivalents                                          306 063      962 533   1 225 198
Cash and cash equivalents at beginning of the period                             2 144 178      911 400     911 400
Effect of exchange rate fluctuations on cash held                                     (216)     (11 535)      7 580
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD                                   2 450 025    1 862 398   2 144 178

CONDENSED SEGMENTAL ANALYSIS
for the period ended

                                                                               31 December  31 December     30 June
                                                                                      2017         2016        2017
                                                                                 Unaudited    Unaudited     Audited
                                                                                     R'000        R'000       R'000
SEGMENT PROFIT
Banking pillar                                                                      35 769       82 278     145 144
Capital pillar                                                                      (3 494)       6 737      48 384
Wealth pillar                                                                       23 801        9 193      12 981
Wealth excluding fair value adjustments to strategic investments                    23 064       14 628      35 637
Fair value adjustments to strategic investments                                        737       (5 435)    (22 656)
Group and inter-segment eliminations                                                (1 165)      (4 457)    (12 099)
PROFIT FOR THE PERIOD                                                               54 911       93 751     194 410
SEGMENT REVENUE
Banking pillar                                                                     373 275      373 766     721 509
Capital pillar                                                                      58 047       74 837     190 192
Wealth pillar                                                                      144 816      133 310     256 344
Wealth excluding fair value adjustments to strategic investments                   144 010      140 314     285 540
Fair value adjustments to strategic investments                                        806       (7 004)    (29 196)
Group and inter-segment eliminations                                                 1 901       10 819        (879)
TOTAL SEGMENT REVENUE                                                              578 039      592 732   1 167 166

CONDENSED SEGMENTAL ANALYSIS
at

                                                                               31 December  31 December     30 June
                                                                                      2017         2016        2017
                                                                                 Unaudited    Unaudited     Audited
                                                                                     R'000        R'000       R'000
SEGMENT ASSETS
Banking pillar                                                                  10 992 954    9 326 632  10 470 642
Capital pillar                                                                     724 813      887 661     870 946
Wealth pillar                                                                    1 581 895    1 573 691   1 572 548
Group and inter-segment eliminations                                              (147 785)    (229 474)   (291 493)
TOTAL SEGMENT ASSETS                                                            13 151 877   11 558 510  12 622 643
SEGMENT LIABILITIES
Banking pillar                                                                   9 955 023    8 254 439   9 423 193
Capital pillar                                                                     289 540      400 160     403 850
Wealth pillar                                                                    1 399 597    1 383 682   1 398 337
Group and inter-segment eliminations                                              (160 324)     (84 028)   (261 962)
TOTAL SEGMENT LIABILITIES                                                       11 483 836    9 954 253  10 963 418

NOTE 1: FINANCIAL INSTRUMENTS: FAIR VALUES OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES

The Group's financial risk management objectives and policies are consistent with those disclosed in the Consolidated and Separate Annual Financial Statements at
and for the period ended 30 June 2017.

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  31 December  31 December    30 June
                                                       R'000    R'000    R'000         2017         2016       2017
                                                                                  Unaudited    Unaudited    Audited
                                                                                      R'000        R'000      R'000

Negotiable securities                              1 614 519        -        -    1 614 519    1 456 432  1 395 522
Trading assets                                     1 317 424        -        -    1 317 424    1 298 610  1 280 093
Investment securities                                      -   47 616  506 936      554 552      603 910    494 213
Other receivables                                          -  193 541        -      193 541       55 088     72 477
Total financial assets carried at fair value       2 931 943  241 157  506 936    3 680 036    3 414 040  3 242 305
Trading liabilities                                1 337 250        -        -    1 337 250    1 280 166  1 266 745
Other payables                                             -  214 684        -      214 684       57 716     66 806
Total financial liabilities carried at fair value  1 337 250  214 684        -    1 551 934    1 337 882  1 333 551

Fair values of financial assets and financial liabilities that are traded in active markets are based on quoted market prices or dealer price quotations. For all
other financial instruments, the Group determines fair values using valuation techniques.

The Group recognises transfers between levels of the fair value hierarchy as of the end of the reporting period during which the transfer has occurred. There were
no transfers between Level 1, 2 and 3 of the fair value hierarchy during the period ended 31 December 2017.

                                                           31 December  31 December    30 June
                                                                  2017         2016       2017
                                                              6 months     6 months  12 months
                                                             Unaudited    Unaudited    Audited
                                                                 R'000        R'000      R'000
Level 3 fair values - Investment securities
Opening balance                                                446 954      493 768    493 768
Unrealised gains for the year included in  profit or loss        6 761       25 563     72 649
Net investments/(settlements)                                   53 221       15 703   (119 463)
Closing balance                                                506 936      535 034    446 954

The valuation of Level 3 investment securities was 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 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 ENVIRONMENT
The economic and political environment was particularly difficult over the six months to December 2017 in the build up to the ANC National Elective Conference.
South African businesses and investors had to deal with increasing pressures given the ratings downgrades, the state of the economy, public and private sector
corruption as well as challenges within our state-owned enterprises.

Furthermore, the banking and financial services industry in South Africa is navigating new banking and disruptive entrants, how to effect meaningful and sustainable
transformation, and a changing regulatory landscape.

FINANCIAL PERFORMANCE
The Group posted a disappointing drop in headline earnings of 41.39% to R50.491 million (December 2016: R86.142 million). Headline earnings per share dropped by
41.81% to 157.95 cents (December 2016: 271.42 cents). This arose primarily from a large credit event related to a single client, a change in the accounting
estimate of certain deferred tax assets and a change in the Group's estimate of a deferred tax liability.

Net interest income grew in line with growth in loans and advances by 6.51% notwithstanding an increase in our cost of funding. Despite positive income growth in
Sasfin Wealth and the growth in net interest income, total income declined by 2.48% due to a decrease in non-interest revenue primarily due to lower income levels
in Sasfin Capital.

The Group's credit loss ratio increased materially to 200 bps (December 2016: 121 bps). This was primarily due to a single credit loss. Notwithstanding this
increase, the Group saw a decrease in its non-performing loans of 13.73% to R402 million. The Group has strengthened the credit team and is enhancing its credit
processes.

The Group continues to focus on cost management. On the back of these initiatives, costs have decreased by 7.53% to R407.687 million. This was achieved through
greater scrutiny and effective management of information technology projects and containment of staff costs (including short-term incentive accruals in-line with
business performance) whilst further investing in people, compliance and technology. These initiatives resulted in a 153bps improvement in the cost-to-income ratio
to 70.52%. The Banking Group's cost-to-income ratio improved by 361bps to 62.86%.

The Group's tax expense has increased significantly to R47.494 million (December 2016: R18.438 million) which equates to an effective tax rate of 46.38% (December
2016: 16.43%). The increase above our normal tax rate is largely anomalous and was impacted by the Group's decision to reverse a deferred tax asset and to change
its estimate regarding a deferred tax liability due to a change in tax legislation during 2017. Further to this, the Group earned a lower proportion of income in
lower tax jurisdictions relative to prior years.

FINANCIAL AND CAPITAL POSITION
Total assets grew by 13.78% to R13.152 billion with gross loans and advances growing by 7.09%. The Group grew its funding base by 12.67% to R9.192 billion with
growth in client deposits to R4.246 billion and debt securities to R3.113 billion, resulting in a liquidity position of R3.717 billion. Approximately R1 billion is
earmarked for the acquisition of the Absa Technology Finance Solutions (ATFS) business which will be effective 1 April 2018.

The Group also lengthened the maturity profile of its funding base in anticipation of the net stable funding ratio requirements which became effective on 1 January
2018. Sasfin's liquidity coverage and net stable funding ratios remain healthy, which places the Group in a strong position to capitalise on opportunities.
The Group's capital base (excluding preference shares) increased by 4.53% to R1.477 billion from R1.413 billion in December 2016. The capital adequacy ratio has
decreased to 18.03% (December 2016: 18.32%), primarily due to growth in risk weighted assets. The Group maintains a Tier 1 capital ratio of 17.75%.

SEGMENTAL OVERVIEW
From the beginning of the 2018 financial year, the Group was restructured into three dedicated pillars, Sasfin Bank, Sasfin Wealth and Sasfin Capital.
While the control functions remain centralised to ensure effective risk management and governance, the Group has now devolved more decision-making into the pillars
to drive a culture of ownership and accountability.

Explicit responsibility for operating costs now rests with pillar management. Therefore, the Group presents the results in this segmental overview with the
comparative period results adjusted on the basis that the current operating structure was in place for that period.

Sasfin Bank comprises Equipment Finance, Trade and Debtor Finance, Treasury and Transactional Banking as well as Foreign Exchange. The ATFS transaction resulted in
certain once off costs being incurred in the six months but will result in further critical mass in Equipment Finance. Sasfin Bank continues to invest in its
digital banking platform, and there is slow but steady growth in client numbers. Sasfin Bank's headline earnings decreased by 52.97% to R38.817 million (December
2016: R82.538 million).

Sasfin Wealth showed a greater than 100% increase in headline earnings to R23.801 million (December 2016: R9.193 million). While local portfolio management and
stockbroking fees were flat, there was a 50.56% increase in foreign income earned from managed global share portfolios and institutional asset management. The
pillar managed to contain costs and there was no recurrence of investment losses relating to its shareholding in the Efficient Group Limited. Assets under Advice
and Management increased by 8.11% to R40 billion (December 2016: R37 billion) while Assets under Administration increased by 21.57% to R62 billion (December 2016:
R51 billion).

Sasfin Capital, comprising Private Equity, Property Equity, Corporate Finance and Special Opportunities, Short-Term Insurance and Incentives businesses, showed a
decrease in total income of 22.44% to R58.047 million. This decline was due to lower fair value adjustments. Earnings were further impacted by the change in tax
elaborated on above. This unit consequently generated a headline loss of R4.540 million (December 2016 headline earnings: R6.855 million).

PROSPECTS
Although the South African economy remains weak, the renewed confidence - particularly in the business and investor community - bodes well for the country and
Sasfin. We expect trading conditions to remain challenging for the second half of the financial year but we are encouraged by the political situation and are
hopeful that the credit environment will improve.

We believe that our strong balance sheet, good brand and diversified product offering, together with the investment we are making in human capital and technology,
will position Sasfin well in the medium term. We expect that these efforts, together with our renewed focus on revenue growth, active management of our credit
portfolio and cost management will result in long-term shareholder value creation.

During the past six months Sasfin has further implemented a number of key initiatives aimed at strengthening the business's human capital, enhancing infrastructure
and to aid in achieving Sasfin's transformation objectives. Some of these initiatives include:
- Women Investment Portfolio Holdings Limited (WIPHOLD) becoming a 25.1% shareholder which, together with other initiatives focused on sustainable and meaningful
  transformation, resulted in an improved BEE score for the Group;
- Changes to our Board through the appointment of Gloria Serobe, Gugu Mtetwa, Gugu Dingaan, Shaun Rosenthal (as an Alternate Director) and Richard Buchholz as Non-
  Executive Directors;
- Enhancing our executive leadership with a number of key appointments including the appointment of Michael Sassoon as Group Chief Executive Officer and Angela Pillay
  as Group Financial Director; and
- Increased investment in innovation and digitisation with a view to improving the client experience.

BASIS OF PREPARATION AND PRESENTATION OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIOD ENDED 31 DECEMBER 2017
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 the 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 2017 are the
same as those applied in the Group's Audited Consolidated Annual Financial Statements at the year ended 30 June 2017.

There are no material events to report subsequent to 31 December 2017, other than those already disclosed.

CONDENSED INTERIM FINANCIAL STATEMENTS
The Condensed Interim Consolidated Financial Statements comprise the following:
- Consolidated Statement of Financial Position
- Consolidated Statement of Comprehensive Income
- Condensed Consolidated Statement of Changes in Equity
- Condensed Consolidated Statement of Cash Flows
- Condensed Segmental Analysis
  at and for the period ended 31 December 2017.

RESPONSIBILITY FOR FINANCIAL STATEMENTS
These Condensed Interim Consolidated Financial Statements have been prepared under the supervision of Francois Otto, CA(SA), Chief Financial Officer (Acting).

INTERIM PREFERENCE SHARE CASH DIVIDEND
The Directors have declared a gross cash preference dividend number 27 of 427.42 cents per share (December 2016: 436.68 cents per share) ("preference dividend") for
the period 1 July 2017 to 31 December 2017.

Preference dividends have been paid on 1 000 000 (December 2016: 1 000 000) preference shares issued at R100.00 (December 2016: R100.00) each, and on 797 226
(December 2016: 797 226) preference shares issued at R110.49 (December 2016: R110.49) each.

The following further information is provided to shareholders with regards to the preference dividend declaration in respect of the dividends tax:
- The dividend has been declared from income reserves.
- The dividend withholding tax rate is 20%, and a net dividend of 341.93600 cents (December 2016: 349.34400 cents) per share is paid to those shareholders who are not
  exempt from dividend withholding tax.
- The issued number of preference shares as at the declaration date is 1 797 226 (December 2016: 1 797 226).

The preference dividend is payable to holders of preference shares recorded in the register of the Company at the close of business on Friday, 6 April 2018.

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

Last day to trade cum the preference dividend
Tuesday, 3 April 2018

Preference shares commence trading ex the preference dividend
Wednesday, 4 April 2018

Preference dividend record date
Friday, 6 April 2018

Payment date of preference dividend
Monday, 9 April 2018

Preference share certificates may not be dematerialised or rematerialised between Wednesday, 4 April 2018 and Friday, 6 April 2018, both days inclusive.

INTERIM ORDINARY SHARE CASH DIVIDEND
The Directors have declared an interim ordinary share cash dividend for the period ended 31 December 2017 of 46.894 cents (December 2016: 80.004 cents) per share.
The following further information is provided to shareholders with regards to the interim dividend declaration in respect of the dividends tax:
- The dividend has been declared from income reserves;
- The dividend withholding tax rate is 20%, and a net dividend of 37.51520 cents (December 2016: 64.00320 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 2016: 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 Friday, 13 April 2018.
The salient dates relating to the ordinary dividend are as follows:

Last day to trade cum the ordinary dividend
Tuesday, 10 April 2018

Ordinary shares commence trading ex the ordinary dividend
Wednesday, 11 April 2018

Ordinary dividend record date
Friday, 13 April 2018

Payment date of ordinary dividend
Monday, 16 April 2018

Ordinary share certificates may not be dematerialised or rematerialised between Wednesday, 11 April 2018 and Friday, 13 April 2018, 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   Michael Sassoon          Francois Otto
Chairman       Chief Executive Officer  Chief Financial Officer (Acting)

20 March 2018

CORPORATE DETAILS

INDEPENDENT NON-EXECUTIVE CHAIRMAN
Roy Andersen

LEAD INDEPENDENT NON-EXECUTIVE DIRECTOR
Shahied Rylands

EXECUTIVE DIRECTORS
Michael Sassoon (Chief Executive Officer)
Roland Sassoon
Angela Pillay

INDEPENDENT NON-EXECUTIVE DIRECTORS
Linda de Beer
Grant Dunnington
Gugu Mtetwa
Richard Buchholz

non-executive directors
Gloria Serobe
Gugu Dingaan
Shaun Rosenthal (Alternate)

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
Sponsor - Sasfin Capital (a member of the Sasfin group)
Independent sponsor - Deloitte & Touche Sponsor Services Proprietary 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.

Any forward-looking statements have not been reviewed or reported on by the Company's external auditors.

www.sasfin.com


Date: 20/03/2018 09:55:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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