Sasfin Holdings Limited
Incorporated in the Republic of South Africa
(Company registration number 1987/002097/06)
("Sasfin" or "the Group" or "the Company")
(Ordinary share code: SFN ISIN: ZAE000006565)
(Preference share code: SFNP ISIN: ZAE000060273)
Audited Group Results and Dividend Declarations
for the year ended 30 June 2016
Up 29.0%
HEADLINE EARNINGS
R232.080 M
(2015: R179.864 M)
Up 29.0%
HEADLINE EARNINGS PER ORDINARY SHARE
731.27 CENTS
(2015: 566.74 CENTS)
Up 29.0%
DIVIDENDS PER ORDINARY SHARE
287.39 CENTS
(2015: 222.73 CENTS)
Up 233bps
RETURN ON ORDINARY SHAREHOLDERS' AVERAGE EQUITY
17.54%
(2015: 15.21%)
Up 23bps
RETURN ON AVERAGE ASSETS
2.12%
(2015: 1.89%)
Up 1.3%
TOTAL ASSETS
R11.004 BN
(2015: R10.866 BN)
Up 12.9%
TOTAL EQUITY*
R1.404 BN
(2015: R1.243 BN)
* excluding preference shares.
Up 20.6%
GROSS LOANS AND ADVANCES
R6.449 BN
(2015: R5.345 BN)
Up 31bps
CREDIT LOSS RATIO
108bps
(2015: 77bps)
Up 6.0%
FUNDING BASE*
R7.303 BN
(2015: R6.892 BN)
* including preference shares.
Down 7.7%
FUNDS UNDER ADMINISTRATION AND MANAGEMENT*
R108 BN
(2015: R117 BN)
* including under advisement.
Down 166bps
GROUP TOTAL CAPITAL ADEQUACY RATIO (UNAUDITED)
19.20%
(2015: 20.86%)
FINANCIAL HIGHLIGHTS
for the year ended 30 June
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Total assets (Rm)
Total gross loans and advances (Rm)
%
growth
2016
Audited
2015
Audited
20.6
11 004
6 449
10 866
5 345
Non-performing loans and advances (Rm)
INCOME STATEMENT
Earnings attributable to ordinary shareholders (Rm)
Headline earnings (Rm)
FINANCIAL PERFORMANCE
Return on ordinary shareholders' average equity (%)
Return on total average assets (%)
OPERATING PERFORMANCE
Non-interest income to total income (%)
Cost-to-income ratio
Group (%)
Banking Group (%)
Credit loss ratio (bps)
Non-performing advances to total gross loans and advances (%)
SHARE STATISTICS
Earnings per ordinary share (cents)
Headline earnings per ordinary share (cents)
Number of ordinary shares in issue at end of the year (000)
Weighted average number of ordinary shares in issue (000)
Dividends per ordinary share relating to profit for the year (cents)
Preference share dividend number 1 for the year (cents)
Preference share dividend number 2 for the year (cents)
Net asset value per ordinary share (cents)
CAPITAL ADEQUACY (PROVISIONAL AND UNAUDITED)
Capital adequacy ratio
Group (%)
Banking Group (%)
101.4
423
210
25.6
29.0
224.4
232.1
178.7
179.9
17.54
2.12
15.21
1.89
65.91
69.23
68.89
62.43
108
6.56
71.07
61.18
77
3.93
707.13
731.27
31 737
31 737
287.39
396.28
424.42
4 346
563.08
566.74
31 737
31 737
222.73
383.74
378.43
3 847
19.20
19.16
20.86
21.23
2016
Audited
R'000
2015
Audited
R'000
1 910 584
6 254 891
1 147 227
772 209
586 359
2 618 366
5 242 460
1 687 221
688 057
435 007
25.6
29.0
29.0
12.9
SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
at 30 June
%
growth
ASSETS
Cash and short-term negotiable securities
Loans and advances to customers
Financial assets held for trade facilitation and
Other receivables
Investment securities
19.3
repurchase agreements
Property, plant and equipment
Non-current assets held for sale - Investment property
Taxation
Intangible assets and goodwill
Deferred tax asset
TOTAL ASSETS
LIABILITIES
Funding under repurchase agreements and interbank
Deposits from customers
Debt securities issued
Long-term loans
TOTAL FUNDING
Financial liabilities held for trade facilitation and repurchase agreements
Other payables
Taxation
Deferred tax liability
TOTAL LIABILITIES
EQUITY
Ordinary share capital and share premium
Reserves
Preference share capital and share premium
TOTAL EQUITY
TOTAL LIABILITIES AND EQUITY
87
69
31
122
22
11 004
6.2
11.0
229
900
135
391
135
060
57 585
7 280
114 991
15 145
10 866 112
999 184
3 206 527
2 470 428
433 889
7 110 028
1 131 942
1 023 354
16 611
125 576
9 407 511
538 340
3 275 866
2 344 167
538 071
6 696 444
1 650 789
975 204
11 571
93 913
9 427 921
144
1 259
192
1 596
11 004
327
353
869
549
060
144
1 098
195
1 438
10 866
327
414
450
191
112
CONSOLIDATED INCOME STATEMENT
for the year ended 30 June
%
growth
Interest income
Interest expense
NET INTEREST INCOME
Non-interest income
TOTAL INCOME
Impairment charges on loans and advances
NET INCOME AFTER IMPAIRMENTS
Operating costs
Staff costs
38.9
19.0
25.1
95.0
19.8
13.7
2016
Audited
R'000
999 006
592 520
406 486
790 357
1 196 843
63 912
1 132 931
828 316
434 339
2015
Audited
R'000
712 176
419 563
292 613
664 021
956 634
32 771
923 863
691 352
382 115
Other operating expenses
Goodwill and intangible impairments
PROFIT FROM OPERATIONS
Share of associate income
PROFIT BEFORE INCOME TAX
Income tax expense
PROFIT FOR THE YEAR
PROFIT ATTRIBUTABLE TO:
Preference shareholders
Equity holders of the Group
PROFIT FOR THE YEAR
Earnings per ordinary share (cents)
Diluted earnings per ordinary share (cents)
Headline earnings per ordinary share (cents)
Diluted headline earnings per ordinary share (cents)
23.6
62.3
23.7
25.6
25.6
25.6
29.0
29.0
380
13
304
2
306
68
238
888
089
615
383
998
210
788
308
1
232
2
235
42
192
045
192
511
500
011
037
974
14 369
224 419
238 788
707.13
707.13
731.27
731.27
14 272
178 702
192 974
563.08
563.08
566.74
566.74
2016
Audited
R'000
238 788
14 766
2015
Audited
R'000
192 974
7 188
54
(39
(55
15
253
31
(24
(33
9
200
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 June
PROFIT FOR THE YEAR
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX
Items that may be subsequently reclassified to profit and loss:
Foreign exchange differences on translation of foreign operation
Net loss on hedge of net investment in foreign operation
Loss on hedge of net investment in foreign operation
Income tax effect
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Preference shareholders
Equity holders of the Group
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
395
629)
040)
411
554
515
327)
788)
461
162
14 369
239 185
253 554
14 272
185 890
200 162
2016
Audited
2015
Audited
HEADLINE EARNINGS RECONCILIATION
for the year ended 30 June
%
growth
EARNINGS ARE DETERMINED AS FOLLOWS:
Earnings attributable to equity holders of the Group
HEADLINE ADJUSTABLE ITEMS
PROFIT ON SALE OF PROPERTY AND EQUIPMENT - IAS 16
Gross
Tax impact
GOODWILL AND INTANGIBLE ASSET IMPAIRMENTS - IAS 38
Gross
Tax impact
INVESTMENT PROPERTY FAIR VALUE ADJUSTMENTS - IAS 40
Gross
Tax impact
HEADLINE EARNINGS
Headline earnings per ordinary share (cents)
25.6
29.0
29.0
R'000
R'000
224 419
7 661
12 175
13 089
(914)
(4 514)
(5 818)
1 304
232 080
731.27
178 702
1 162
(30)
(41)
11
1 192
1 192
179 864
566.74
SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 30 June
Opening total shareholders' equity
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
Profit for the year
Foreign currency translation reserve
Hedging reserve
TRANSACTIONS WITH OWNERS RECORDED DIRECTLY IN EQUITY
Preference share buy-back
Preference share dividend
Ordinary share dividend
CLOSING BALANCE
2016
Audited
R'000
1 438 191
253 554
238 788
54 395
(39 629)
2015
Audited
R'000
1 320 958
200 162
192 974
31 515
(24 327)
(2
(14
(78
1 596
(3
(14
(64
1 438
581)
369)
246)
549
828)
272)
829)
191
SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 30 June
Cash flows from operating activities
Movement in operating assets and liabilities
Net cash flows from operating activities
2016
Audited
R'000
150 185
(1 083 437)
(933 252)
2015
Audited
R'000
105 014
98 329
203 343
Net cash flows from investing activities
Net cash flows from financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Effect of exchange rate fluctuations on cash held
CASH AND CASH EQUIVALENTS AT END OF THE YEAR
CASH AND CASH EQUIVALENTS COMPRISE:
Cash and cash balances
Short-term negotiable securities
Funding under repurchase agreements and interbank
CASH AND CASH EQUIVALENTS AT END OF THE YEAR
(228
(2
(1 164
2 080
(3
911
968)
581)
801)
026
825)
400
53
(3
252
1 834
(6
2 080
190
828)
705
179
858)
026
672
1 238
(999
911
317
267
184)
400
1 286 348
1 332 018
(538 340)
2 080 026
SUMMARISED SEGMENTAL ANALYSIS
for the year ended 30 June
%
growth
SEGMENT PROFITABILITY
Business Banking
Transactional Banking and Treasury
Wealth
Capital
Commercial Solutions
Group and inter-segment eliminations
PROFIT FOR THE YEAR
SEGMENT REVENUE
Business Banking
Transactional Banking and Treasury
Wealth
Capital
Commercial Solutions
Group and inter-segment eliminations
TOTAL SEGMENT REVENUE
SEGMENT ASSETS
Business Banking
Transactional Banking and Treasury
Wealth
Capital
32.6
(36.9)
18.6
60.3
7.6
28.7
23.7
2016
Audited
R'000
2015
Audited
R'000
156
6
76
20
24
(45
238
294
559
406
344
865
680)
788
117
10
64
12
23
(35
192
857
390
425
691
106
495)
974
092
961
917
750
317
806
843
397
42
253
32
198
33
956
070
016
172
840
506
030
634
560
63
300
45
193
32
1 196
6 104 399
4 393 773
1 129 574
761 418
5 057 632
3 814 206
1 593 768
627 073
Commercial Solutions
Group and inter-segment eliminations
TOTAL SEGMENT ASSETS
SEGMENT LIABILITIES
Business Banking
Transactional Banking and Treasury
Wealth
Capital
Commercial Solutions
Group and inter-segment eliminations
TOTAL SEGMENT LIABILITIES
317 725
(1 702 829)
11 004 060
224 493
(451 060)
10 866 112
5 467 456
4 264 714
1 057 747
384 379
166 849
(1 933 634)
9 407 511
4 576 983
3 880 706
1 598 347
270 378
98 482
(996 975)
9 427 921
NOTE 1: FINANCIAL INSTRUMENTS:
FAIR VALUES OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES
The carrying amount of the Group's financial assets and financial liabilities not measured at fair value, is a reasonable
approximation of its fair value. The Group's financial risk management objectives and policies are consistent with those
disclosed in the Consolidated and Separate Financial Statements as at and for the year ended 30 June 2015.
FINANCIAL HIERARCHY
The table below analyses financial instruments carried at fair value, by level of fair value hierarchy. The different levels
are based on the inputs used in the calculation of fair value of the financial instruments. The levels have been defined as
follows:
Level 1 - fair value is based on quoted market prices (unadjusted) in active markets for identical instruments.
Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly.
Level 3 - unobservable inputs for the asset or liability.
Short-term negotiable securities
Financial assets and reverse repurchase agreements
Investment securities
Other receivables
TOTAL FINANCIAL ASSETS CARRIED AT FAIR VALUE
Financial liabilities and repurchase agreements
Other payables
Level 1
R'000
Level 2
R'000
Level 3
R'000
1 238 267
1 147 227
591
259
850
474
493 768
493 768
-
2 385 494
1 131 942
-
92
100
192
97
1
1
3
1
30 June
2016
Audited
R'000
238 267
147 227
586 359
100 259
072 112
131 942
97 474
1
1
3
1
30 June
2015
Audited
R'000
332 018
687 221
435 007
51 878
506 124
650 789
49 480
TOTAL FINANCIAL LIABILITIES CARRIED AT FAIR VALUE
1 131 942
97 474
-
1 229 416
1 700 269
Fair values of financial assets and financial liabilities that are traded in active markets are based on quoted market prices
or dealer price quotations. For all other financial instruments the Group determines fair values using valuation techniques.
The Group recognises transfers between levels of the fair value hierarchy as of the end of the reporting year during which
the transfer has occurred. There were no transfers between Level 1, 2 and 3 of the fair value hierarchy during the year
ended 30 June 2016.
The valuations of Level 3 investment securities were based predominantly on detailed discounted cash flow methodologies,
which were moderated against implied price/earnings multiples, and, where applicable, benchmarked to proxies of listed
entities in similar industries. This valuation methodology is allowed per the South African Venture Capital and Private
Equity guidelines.
30 June 2016 30 June 2015
Audited
Audited
R'000
R'000
LEVEL 3 FAIR VALUES - INVESTMENT SECURITIES
Opening balance
398 024
407 408
Unrealised gains for the year included in profit or loss through non-interest income
31 326
54 844
Net investments/(settlements)
64 418
(64 228)
CLOSING BALANCE
493 768
398 024
NOTE 2: BUSINESS COMBINATION
2.1 ACQUISITION OF SUBSIDIARY
On 23 May 2016, the Group acquired 100% of the issued share capital and voting interests in Benal Property Investments (Pty)
Limited (Benal), thereby obtaining control of Benal.
Benal is an investment holding company with two major asset classes being a property portfolio consisting of six industrial
properties located in and around Gauteng and a portfolio of securities listed on the JSE.
The acquisition of Benal is part of Sasfin Capital's investment banking strategy.
2.1.1 PURCHASE CONSIDERATION
The Benal share capital was acquired for a consideration of R87 059 377, settled in cash.
2.1.2 ACQUISITION-RELATED COSTS
The Group incurred acquisition-related costs of R601 900 relating to external legal fees and due diligence costs.
2.1.3 IDENTIFIABLE ASSETS ACQUIRED AND LIABILITIES ASSUMED
The following is a summary of the recognised amounts of assets acquired and liabilities assumed at the date of acquisition:
2016
R'000
ASSETS
Investment property
Investment securities
Cash and cash equivalents
Operating lease asset
Other receivables
TOTAL ASSETS
LIABILITIES
Deferred tax liability
Other payables
TOTAL LIABILITIES
TOTAL NET ASSETS ACQUIRED
Shareholders loan acquired
Goodwill recognised
TOTAL PURCHASE CONSIDERATION
64 082
34 811
935
765
337
100 930
(9
(1
(10
89
(3
486)
497)
983)
947
274)
386
87 059
2016
R'000
2.1.4 GOODWILL
Goodwill arising from the acquisition has been recognised as
follows:
Total consideration transferred
Fair value of identifiable net assets acquired
GOODWILL
The goodwill is attributable mainly to the gains expected
to be achieved from realising the assets of Benal.
2.1.5 CASH OUTFLOW ON ACQUISITION
Cash consideration paid
Cash acquired
NET CASH OUTFLOW ON ACQUISITION
87 059
(86 673)
386
(87 059)
935
(86 124)
2.2 CHANGE IN GOODWILL PREVIOUSLY REPORTED
On 30 June 2015, the Group acquired control of Fintech Proprietary Limited (Fintech) through the acquisition of 100% of
Fintech's shares and voting rights. The acquisition of Fintech has provided the Group with an increased share of the
asset rental finance market through access to Fintech's supplier base.
The effective date of the transaction was 1 July 2014. However, control over Fintech only passed to the Group on
30 June 2015. As a result, Fintech's profits for the year ended 30 June 2015 were not consolidated but accounted for
as pre-acquisition profits.
The Group had recognised provisional amounts at the acquisition date owing to certain facts and circumstances being unknown
at the acquisition date relating to the determination of the purchase price allocation (PPA) and net identifiable assets.
An independent identification on the intangible assets of Fintech was conducted to determine the PPA in terms of IFRS 3.
This resulted in the identification and subsequent valuation of an intangible asset relating to the Fintech brand and
Fintech's distributor relationships.
The effect of the intangible asset identification resulted in a change to goodwill and a restatement of the 2015 financial
results, where applicable. Refer to page 10 for the updated goodwill calculation and related disclosure.
Consideration transferred
TOTAL CONSIDERATION TRANSFERRED
ASSETS
Cash and short-term negotiable securities
Net loans and advances to customers
Gross loans and advances to customers
Less: impairments
Other receivables
Property, plant and equipment
Intangible assets
TOTAL ASSETS
LIABILITIES
Funding under repurchase agreements and interbank
Debt securities issued
Other payables
Taxation
Deferred tax liability
TOTAL LIABILITIES
TOTAL NET ASSETS ACQUIRED
GOODWILL RECOGNISED
Provisional fair
values reported
as at 30 June 2015
R'000
187 767
187 767
160
852
878
(25
23
2
175
624
341
717)
030
385
1 038 214
109 185
665 000
116 540
362
11 808
902 895
135 319
52 448
Adjustments
R'000
(10 809)
(10 809)
(27 676)
(27 676)
50 938
23 262
14
14
8
(19
263
263
999
808)
Final fair values
on acquisition date
R'000
176 958
176 958
160
824
850
(25
23
2
50
1 061
175
948
665
717)
030
385
938
476
109 185
665 000
116 540
362
26 071
917 158
144 318
32 640
COMMENTARY
NATURE OF BUSINESS
Sasfin is a bank-controlling company listed on the JSE Limited (JSE). Sasfin and its subsidiaries (the Group) provide a
comprehensive range of specialist financial products and services for Business and Wealth clients.
BUSINESS REVIEW: PERFORMANCE
BUSINESS ENVIRONMENT
- South Africa, a significant commodity producer with a wide wealth gap, chronic unemployment and a high level of consumer
indebtedness has been negatively affected by the weak global economy and declining commodity prices.
- Political uncertainty in South Africa continues to result in increased market volatility.
- The South African banking industry, while taking strain from the weak economy, escalating regulation, technological
disruption and cybercrime, remains resilient and well capitalised.
GROUP OVERVIEW
- Despite the tough economic and weak market conditions, Sasfin delivered a 29.0% increase in headline earnings to
R232.080 million (2015: R179.864 million) and headline earnings per share to 731.27 cents for the year (2015: 566.74 cents).
- Total assets grew marginally to R11.004 billion from R10.866 billion in 2015, while gross loans and advances to customers
grew by 20.6% to R6.449 billion (2015: R5.345 billion).
- The Group expanded and diversified its funding base resulting in a surplus liquidity position of R1.910 billion, albeit
lower than the R2.618 billion in 2015. The decrease in surplus liquidity was utilised to fund the growth in loans and
advances.
- Total income grew by 25.1% year-on-year driven by impressive revenue generation in the Business Banking and Wealth
divisions.
- The weak credit environment and sluggish economy led to the Group credit loss ratio increasing to 108bps (2015: 77bps).
- Group costs increased by 19.8% to R828.316 million (2015: R691.352 million) due to the inclusion of the Fintech cost base
combined with increased investment in Risk, Compliance and Information Technology.
- The Group cost-to-income ratio improved to 68.89% from 71.07% in 2015. This was primarily due to stronger revenue
generation across the Group as evidenced by a widening JAWS ratio of 3.79%.
DIVISIONAL OVERVIEW
- Business Banking delivered a solid set of results with profit for the year growing by 32.6% to R156.294 million,
from R117.857 million in 2015. The key factors contributing to this performance were the strong revenue growth of 41.1%
and the integration benefits arising from the Fintech acquisition. This was offset by a sharp increase in the divisional
credit loss ratio to 101bps (2015: 70bps). Non-performing loans increased to 6.56% (2015: 3.93%) of gross loans and
advances.
- Transactional Banking and Treasury achieved a lower level of profitability for the year, impacted by further investment in
the newly launched Transactional Banking offering. The Transactional Banking unit is still in its formative phase and has
experienced lower-than expected client acquisition.
- The Treasury unit continues to perform strongly with a stable deposit base of R3.207 billion underpinned by a competitive
service and product offering.
- Capital's profitability increased by 60.3% to R20.344 million (2015: R12.691 million) largely due to the encouraging
turnaround in the Corporate Finance unit. This was supported by a positive result in the Private Equity unit while losses
were incurred on certain legacy Property Equity investments.
- Wealth profitability increased by 18.6% to R76.406 million (2015: R64.425 million) underpinned by increased
distribution, and enhanced system and operational capabilities which resulted in good performances across all Wealth units.
Assets under administration decreased year-on-year, largely due to safe custody clients exiting their portfolios, while
assets under management (including under advice) increased by 11%.
Wealth acquired a 14.3% strategic investment in Efficient Group Limited, a listed wealth and asset manager with a long-term
view of exploring ways of collaboration.
- Commercial Solutions' profitability was positively impacted by the improved performance in Sasfin Forex, but was dragged
down by the Freight and Incentives units due to the economic downturn and tough trading conditions. This led to a marginal
increase in profitability to R24.865 million (2015: R23.106 million).
Subsequent to year-end, the Group concluded the sale of 70% of its shares in Imperial Sasfin Logistics (Pty) Limited
(formerly Sasfin Premier Logistics (Pty) Limited) to Imperial Group Limited and agreed to merge its short term insurance
broking business with Holistic Risk Solutions (Pty) Limited, which will be housed in Sasfin's 51% subsidiary,
Sasfin HRS (Pty) Limited.
The Group should benefit from the economies of scale that these transactions are expected to achieve.
BUSINESS REVIEW: FINANCIAL POSITION AND CAPITAL MANAGEMENT
- The Group's deposit and funding base grew, with improved diversification, mix and maturity profile, to R7.303 billion, up
from R6.892 billion at June 2015. This funding base has enabled Sasfin Bank Limited to maintain its liquidity coverage
ratio at comfortable levels and to support the growth in its lending activities.
- Sasfin's securitisation vehicle, South African Securitisation Programme (RF) Limited (SASP), a leader in its market,
continued to deliver consistent performance. Maturing notes of R332 million were refinanced and R200 million of new notes
were issued.
- The Group's total capital adequacy ratio has decreased to 19.20% (2015: 20.86%) primarily due to a growth in risk weighted
assets. Tier 1 capital adequacy, the main measure of capital strength, was 18.80% (2015: 20.41%). The Group's capital and
liquidity ratios are well above the current regulatory requirements.
PROSPECTS
- Sasfin will continue to strive for scale and diversity by applying its long-term strategy of catering for the banking and
financial needs of the Business and Wealth markets.
- Notwithstanding prevailing market uncertainty, volatility, and constrained economic growth, the Group is poised for
sustainable growth, aided by its capital and liquidity position, and high-touch service model.
- Sasfin hopes to conclude an agreement with a suitable Black Economic Empowerment investor on acceptable terms during the
course of its current financial year.
BASIS OF PREPARATION AND PRESENTATION OF THE SUMMARISED FINANCIAL STATEMENTS
The Summarised Audited Consolidated Annual Financial Statements have been prepared in accordance with IAS 34 - Interim
Financial Reporting, and in accordance with International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB), and IFRS Interpretation Committee (IFRS IC), the SAICA Financial Reporting
Guides as issued by the Accounting Practices Committee, Financial Pronouncements as issued by the Financial Reporting
Standards Council, the JSE Listings Requirements, and the requirements of the Companies Act, 2008 (Act No. 71 of 2008) of
South Africa (Companies Act).
The accounting policies applied in these Summarised Audited Consolidated Financial Statements for the period ended
30 June 2016 are the same as those applied in the Group's Audited Consolidated Annual Financial Statements at the year ended
30 June 2015.
There are no material events to report subsequent to 30 June 2016 other than already disclosed.
SUMMARISED FINANCIAL STATEMENTS
The Summarised Audited Consolidated Annual Financial Statements comprise a:
- Summarised Statement of Financial Position
- Income Statement
- Statement of Comprehensive Income
- Summarised Statement of Changes in Equity
- Summarised Cash Flow Statement
- Summarised Segmental Analysis
- Note 1: Financial Instruments
- Note 2: Business Combinations
at and for the year ended 30 June 2016.
RESPONSIBILITY FOR FINANCIAL STATEMENTS
The Summarised Audited Consolidated Annual Financial Statements have been prepared under the supervision of Tyrone Soondarjee,
CA(SA), Group Financial Director.
REPORTS OF THE INDEPENDENT AUDITORS
The joint auditors of the Group, KPMG Inc. and Grant Thornton Johannesburg Partnership, have issued an unmodified report on
the Audited Financial Statements and these Summarised Audited Consolidated Financial Statements for the year ended 30 June
2016 dated 19 September 2016. These reports are available for inspection at the Company’s registered office. The auditors’
report does not necessarily report on all of the information contained in this announcement. Shareholders are therefore
advised that in order to obtain a full understanding of the nature of the auditors’ engagement they should obtain a copy
of the auditors’ report together with the accompanying financial information from the issuer’s registered office.
PREFERENCE SHARE CASH DIVIDEND
The Directors have declared a gross cash preference dividend number 24 amounting to 424.42 cents per share (360.757 cents
per share net of 15% dividend withholding tax) (2015: 378.43 cents per share (321.66550 cents per share net of 15% dividend
withholding tax) (preference dividend)) for the period 1 January 2016 to 30 June 2016.
Preference dividends have been paid on 1 000 000 (2015: 1 000 000) preference shares issued at R100.00 (2015: R100.00) each,
and on 820 544 (2015: 854 727) preference shares issued at R110.49 (2015: R110.49) each.
The dividends have been declared from income reserves. The preference dividend is payable to holders of preference shares
recorded in the register of the Company at the close of business of Friday, 7 October 2016.
The salient dates relating to the preference dividend are as follows:
Last day to trade cum the preference dividend
Preference shares commence trading ex the preference dividend
Preference dividend record date
Payment date of preference dividend
Tuesday, 4
Wednesday, 5
Friday, 7
Monday, 10
October
October
October
October
2016
2016
2016
2016
Preference share certificates may not be dematerialised or rematerialised between Wednesday, 5 October 2016 and Friday,
7 October 2016, both days inclusive.
FINAL ORDINARY SHARE CASH DIVIDEND
The Directors have declared a final ordinary share gross cash dividend for the year ended 30 June 2016 of 188.82 cents
(2015: 147.47 cents) per share.
Together with the interim ordinary dividend of 98.57 cents (2015: 75.26 cents) per share declared on 17 March 2016, the
total ordinary dividends for the financial year ended 30 June 2016 amount to 287.39 cents (2015: 222.73 cents) per share.
The following further information is provided to shareholders with regards to the final dividend declaration in respect of
the new dividends tax:
- The dividend has been declared from income reserves.
- The dividend withholding tax rate is 15%, and a net dividend of 160.497 cents (2015: 125.34950 cents) per share is paid
to those shareholders who are not exempt from dividend withholding tax.
- The issued number of ordinary shares as at declaration date is 32 301 441 (2015: 32 301 441).
Sasfin's tax reference number is 9300/204/71/7.
The ordinary dividend is payable to holders of ordinary shares recorded in the register of the Company at the close of
business on Friday, 14 October 2016.
The salient dates relating to the ordinary dividend are as follows:
Last day to trade cum the ordinary dividend
Ordinary shares commence trading ex the ordinary dividend:
Ordinary dividend record date
Payment date of ordinary dividend
Tuesday,
Wednesday,
Friday,
Monday,
11
12
14
17
October
October
October
October
2016
2016
2016
2016
Ordinary share certificates may not be dematerialised or rematerialised between Wednesday, 12 October 2016 and Friday,
14 October 2016, both days inclusive.
The above dates and times are subject to amendment. Any such amendment will be released on SENS and published in the
press.
DIRECTORATE AND CHANGES TO THE BOARD
The Board has considered the length of service of Shahied Rylands as a Non-Executive Director and is satisfied that he be
classified as an Independent Non-Executive Director.
Michael Sassoon was appointed a full Executive Director of the Company and Sasfin Bank Limited on 23 October 2015.
Maston Lane resigned as an Alternate Executive Director of the Company and Sasfin Bank Limited following his appointment
as Acting Chief Risk Officer on 23 October 2015.
NOTICE OF ANNUAL GENERAL MEETING AND POSTING OF INTEGRATED REPORT
The Annual General Meeting of Sasfin will be held at 29 Scott Street, Waverley, Johannesburg, on Tuesday, 29 November 2016
at 14:00.
Sasfin's Integrated Report 2016 will be posted to shareholders on or about 31 October 2016. The Group's Audited Consolidated
Annual Financial Statements for the year ended 30 June 2016 will be available on the Company's website on or about
31 October 2016.
For and on behalf of the Board:
Roy Andersen
Chair
19 September 2016
Roland Sassoon
Chief Executive Officer
Independent Non-Executive Chair
Roy Andersen
Executive Directors
Roland Sassoon (Chief Executive Officer)
Tyrone Soondarjee (Group Financial Director)
Michael Sassoon
Alternate Executive Director
Linda Frohlich
Tyrone Soondarjee
Group Financial Director
Independent Non-Executive Directors
Linda de Beer
Grant Dunnington
John Moses
Shahied Rylands
Lesego Sennelo
Group Company Secretary
Howard Brown
Transfer Secretaries
Computershare Investor Services (Pty) Limited
70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
Joint Auditors
KPMG Inc.
Grant Thornton Johannesburg Partnership
Registered Office
29 Scott Street, Waverley, Johannesburg, 2090
Tel: +27 11 809 7500
Fax: +27 11 887 6167/2489
Company registration number: 1987/002097/06
Tax reference number: 9300/204/71/7
Website and Email
www.sasfin.com
[email protected]
This announcement and additional information is available at: www.sasfin.com
DISCLAIMER
The Group has in good faith made reasonable effort to ensure the accuracy and completeness of the information contained in
this document, including all information that may be regarded as "forward-looking statements".
Forward-looking statements may be identified by words such as "believe", "anticipate", "expect", "plan", "estimate",
"intend", "project", and "target".
Forward-looking statements are not statements of fact, but statements by the management of the Group based on its current
estimates, projections, expectations, beliefs and assumptions regarding the Group's future performance and no assurance can
be given to this effect.
The risks and uncertainties inherent in the forward-looking statements contained in this document include, but are not
limited to changes to IFRS and the interpretations, applications and practices subject thereto as they apply to past,
present and future periods; domestic and international business and market conditions such as exchange rate and interest
rate movements; changes in the domestic and international regulatory and legislative environments; changes to domestic and
international operational, social, economic and political risks; and the effects of both current and future litigation.
The Group does not undertake to update any forward-looking statements contained in this document and does not assume
responsibility for any loss or damage however arising as a result of the reliance by any party thereon, including, but
not limited to, loss of earnings, profits or consequential loss or damage.
www.sasfin.com
19 September 2016
Johannesburg
Sponsors
Lead sponsor - Sasfin Capital (a division of Sasfin Bank Limited)
Independent sponsor - KPMG Services (Pty) Limited