Sasfin’s plan to re-establish its grip on the market
CEO Michael Sassoon, who plans to broaden Sasfin’s focus, is confident the bank is on the path to better results
Many believe the only advantage that Sasfin might have over other banks is an understanding of small businesses. Over the years, the company has carved out a niche facilitating transactions for low-turnover businesses that bigger banks do not ordinarily service. Sasfin offers debtor and trade finance, equipment finance and start-up finance, as well as facilitating BEE transactions. But the company’s financial performance over the past few years raises questions about its success as a one-stop-shop for small businesses. Loans and advances extended to customers rose 17.8% in the year to June 2018, but the quality of its lending book leaves much to be desired. The banking group has almost doubled its impairment charges — the figure was R144.1m for the year to June 2018, against R81.4m in the previous period. The company’s credit-loss ratio has risen sharply in the past five years from 68 basis points to 197 bps now — more than double that of Nedbank, Standard Bank and Absa. It is also ...
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