BANK­ING ON AD­VEN­TURE

Finweek English Edition - - Companies & markets - MARC HASENFUSS

THINK OF fi­nan­cial ser­vices group Sas­fin and the first words that will pop into your head are prob­a­bly “small trade fi­nance spe­cial­ist”. Right?

Wrong! Th­ese days the not so small Sas­fin com­prises as­sur­ance and in­sur­ance broking, cor­po­rate fi­nance, em­ployee ben­e­fits con­sult­ing, stock­broking and port­fo­lio man­age­ment, fi­nan­cial plan­ning, equip­ment fi­nanc­ing, fund man­age­ment, private eq­uity, prop­erty fi­nance, freight for­ward­ing, health­care con­sult­ing, forex, debtor fi­nance and (of course) trade fi­nance. OP­POR­TU­NI­TIES Sas­fin has no sin­gle com­peti­tor and op­er­ates in niche mar­kets largely mis­un­der­stood (and over­looked) by the big banks. • The group has yet to make the most of cross-sell­ing op­por­tu­ni­ties within var­i­ous op­er­a­tional en­ti­ties. Sas­fin pays hand­some div­i­dends with the pay­out hit­ting 161c/share in the year to end June 2006. The his­toric yield is roughly 4%, which – con­sid­er­ing the favourable prospects for the 2007 fi­nan­cial year – should ap­peal to in­come seek­ers. • The share (trad­ing on a his­toric price:earn­ings mul­ti­ple

of 10 times) is not ex­pen­sive. RISKS • More than 50% of Sas­fin’s earn­ings are still de­rived from “busi­ness bank­ing” ac­tiv­i­ties. It could be chal­leng­ing to bal­ance the con­tri­bu­tions to bot­tom line and there could be risk in ex­pand­ing other di­vi­sions (Cap­i­tal, Prop­erty or Per­sonal Wealth) too quickly.

SAS­FIN HOLD­INGS

Source: I-Net Bridge

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