Sasfin headline earnings per share up 23.6% as loans grow by R1.35bn


Increased borrowing by SA business clients fuels growth

Sasfin posted improved headline earnings of R166.7 million for the year ended 30 June 2022, up from R141.1 million in 2021. The better earnings were primarily a function of improved credit performance and enabled a total cash dividend for the financial year of 154.85 cents per share, 18.2% higher than the prior year.

Total income was flat due to divestment from non-core businesses. However, Group profit improved sharply to R183.9 million from R77.6 million, following an 18.6% increase in loans and advances to R8.6bn.

“This growth was achieved with lower credit losses, and the strong book growth should provide a good foundation for net-interest income returns in the year ahead,” said Michael Sassoon, CEO of Sasfin Holdings.

“We have seen increased demand for growth credit. The South African entrepreneurs, who we finance, are investing in growing their operations which is hopefully a good sign for the country during these volatile economic times. As a result, Sasfin achieved record loan growth for a single financial year,” he said.

Total assets increased 7.7% to R13.11 billion, supported by growth in deposits from customers which grew 10.56% to R5.23 billion. “Our improved performance is a result of identifying key markets where we can deliver value and then strengthening the distribution efforts in these areas. We continue to mature this capacity to achieve more appropriate scale,” Sassoon continued.

During the period, Sasfin identified the need for a restatement which negatively affected the opening retained earnings by 4.1% for financial periods before 2021. Notwithstanding this, the Net Asset value per ordinary share improved 11.86% to R52.13.

Asset Finance once again reported a noteworthy performance, achieving an operating profit of R254.8 million. “We foresee continued growth in this business as we increasingly finance new asset types such as software and climate-friendly solutions,” he indicated.

“In Sasfin Wealth, we are committed to building a world-class scalable asset management business,” Sassoon said, reflecting on Assets Under Advice and Management (AUM) reaching R59.2 billion. Despite this, the award-winning pillar showed a reduced operating profit of R58 million, mainly as result of a once-off operational loss of R45 million.

The merged Business & Commercial Banking pillar continues to gain momentum, with its operating loss improving 24,6% to R36.9 million, driven by a 26.2% increase in Loans and Advances and total income growth reaching R303.4 million. “As we transform the digital business banking experience, we continue to strengthen our client value proposition,” Sassoon said. “We are also growing our lending capabilities and have put the necessary funding – including NASIRA backed loans offered to women, youth and COVID-19-impacted businesses – and support in place to focus on SME lending with a personal touch.”

Internally, Sasfin has continued to build capacity by investing in human capital as well as operational and technological capabilities to ensure each pillar is well geared to embrace the changing technology landscape. “Sasfin has been focused on enhancing our financial and operational environment over the last few years which is resulting in a more streamlined business with stronger systems,” Harriet Heymans, Group FD, explains.

“The Group achieved healthy growth in headline earnings despite some challenges,” Heymans said. “In 2023, we will further scale our business by focusing on delivering outstanding value to our clients while driving operational excellence,” she concluded.

Brandstories Disclaimer:

Brandstories is not liable for the contents of the information published on this platform. The information which subscribers publish on this website is for general information purposes only and Brandstories facilitates the ability for viewers and subscribers to access this platform. Subscribers who publish their content on Brandstories are held responsible for their own content. This includes ensuring that it is factually accurate, grammatically correct, free of spelling errors, and does not contain unsavoury content that could result in legal action. In the case of linguistic translations, the onus is on the client to ensure that the translation is accurate. In no event does Brandstories make representations or warranties of any kind, expressed or implied about the completeness, accuracy, reliability, suitability or availability with respect to the information supplied and published. This website includes links to other websites, including third party websites. Brandstories does not recommend, endorse or support any views that are held by subscribers publishing information, and within these links provided. Furthermore, Brandstories does not have control over the nature, contents and availability of information contained on these sites. Any form of reliance readers and consumers may place on information published on Brandstories is strictly at their own risk. Brandstories makes every effort to ensure that the website is up and running smoothly at all times, however Brandstories does not take responsibility for, and will not be held liable for times when the website is temporarily unavailable due to technical glitches that are beyond our control.

Established for 20 years, the MediaWeb Group has built a reputation for the highest quality of digital storytelling and content distribution, specifically for industry-leading brands. This has been achieved by a two-decade journey of selecting an extensive network of senior writers, journalists, producers and videographers who create world-class content for distribution across media channels.