Sasfin: Punished unfairly?
It canned the half-year dividend to ride the momentum in lending to customers
The second half of 2022 was tough on Sasfin: profit was down a fifth, the interim dividend was cancelled and its credit loss ratio spiked more than five times. The stock is now trading at less than half its NAV.
But how did Sasfin end up with a 20% dive in profits even as revenue increased by almost 13%? Credit impairments jumped significantly from 23 basis points (bp) to 130bp. ..
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