Sasfin HEPS plunges in part due to ‘large credit event’
A mysterious "large credit event related to a single client" contributed to Sasfin’s interim headline earnings per share (HEPS) crashing 42% to R1.58.The bank said in its results for the six months to end-December released on Tuesday morning that other reasons for the drop in HEPS were "a change in the accounting estimate of certain deferred tax assets and a change in the group’s estimate of a deferred tax liability."Sasfin cut its interim dividend by 41% to 47c from 80c in the matching period.The results statement did not provide any further details on how much the "single client" cost Sasfin, but its income statement indicated the plunge in profit was mainly due to its tax bill nearly trebling to R47.5m from R18.4m.Sasfin said its effective tax rate shooting to 46.38% from 16.43% "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....
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