Sasfin posts ‘disappointing’ results after increase in credit loss ratio
Sasfin’s headline earnings per share (HEPS) fell 16.34% to 611.76c in the year to end-June, the group said on Tuesday. Sasfin described the results as disappointing and said it was mainly due to an increase in the credit loss ratio from 108 basis points to 124 basis points arising from two unusual credit losses, as well as the effect of a mark-to-market loss on the group’s investment in Efficient. Headline earnings fell to R194.1m from R232.08m. The return on ordinary shareholders’ average equity fell to 13.52% from 17.54%. The dividend per ordinary share was reduced to 240.42c from 287.39c in line with the reduction in headline earnings. Gross loans and advances rose 4.06% to R6.71bn and funds under administration and management dropped 14.81% to R92bn. The group capital adequacy ratio fell to 16.379% from 19.023%. Headline earnings for Sasfin Wealth decreased 51.91% to R36.7m (2016: R76.406m) largely due to the losses on the Efficient investment.
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