BANKING ON ADVENTURE
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.