Sasfin earnings jump thanks to healthier credit book
Financial services company headline earnings grow 59.9%
Sasfin said on Tuesday headline earnings grew 59.9% to R80.5m in the six months to December, thanks to a lower tax bill and a healthier credit book. The group said its credit loss ratio improved to 1.23%, from 2% a year before, while its tax expense “normalised”, falling to R30.3m from R47.5m. “Over the past two years, the group expressed concern around the deteriorating performance of its credit book and subsequently took significant steps to improve its credit processes and team,” Sasfin said. However, the financial services company said costs were growing at a faster pace than income. Total income grew 5.8% to R608.6m “in a subdued economy”, while costs grew by 12.3% due to an increase in headcount following the acquisition of Absa Technology Finance Solutions, investments in the business, and an increase in bonus provisions. As a result, the group's cost-to-income ratio deteriorated to 74% from 70.4%. Sasfin, headed by Michael Sassoon, said its total assets grew by 3.1% to R13.6...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.