Sasfin’s profits grow as pandemic recedes

JOHANNESBURG - Johannesburg Stock Exchange-listed financial services group Sasfin said efforts to improve its lending capacity to businesses paid off with record loan growth in its year 2022, helping to lift profits by almost a fifth.

Headline earnings rose 18.19 per cent to R166.73 million in the firm’s year to end June, with easing COVID-19 conditions also assisting the group’s credit-loss ratio, a measure of the riskiness of its loan book, which decline to 62 basis points from 118 previously.

Non-performing loans rose to 10.1 per cent of the total book from 8.81 per cent, but overdue loans fell about three percentage points to 3.22 per cent and up-to-date loans rose to 86.68 per cent from 84.99 per cent in the prior year.

Serve

A significant portion of the non-performing loans relate to credit-insured and well-secured loans, Sasfin said, the latter referring to loans, such as mortgages, where there are assets to serve as security.

Sasfin upped its total dividend 18.2 per cent to 154.85c per share. “The forward-looking macro-economic assumptions have improved, however, we continue to anticipate tough economic conditions,” it said.

Gross loans and advances rose 18.56 per cent to R8.6 billion, customer deposits climbed 10.56 per cent to R5.23 and assets under management rose 9.77 per cent to R59.16 billion.

Yeap Jun Rong said. “More aggressive projections from policymakers compared to current market expectations

SASfiN REPORTED A 136.8 PER CENT RISE IN PROfiT TO R183.86 million, while the group’s headline earnings, which strip OUT ONE-OFF ITEMS, ROSE 18.19 PER CENT TO R166.73 MILLION.

The group reported loan growth of R1.35 billion to SA businesses, saying it had been strengthening its capacity over the past few years.

The firm offers a range of credit services to businesses, and has entered into a US$50 million (R885 million) arrangement with the Dutch Entrepreneurial Development Bank, a public-private development financier.

Youth

This arrangement provides loans to women, youth and COVID-19 hit businesses.

“As the country is emerging from the COVID-19 pandemic, Sasfin has seen excellent growth in loans, deposits, and assets under management providing the backdrop for improved earnings,” the firm said.

The strong demand for Sasfin’s services is testament to the competitive position we occupy.

SouthAfrica’s largest solid wood processor York Timbers has reported a crash in profits for its 2022 year, hit by heavy rains, log availability, as well as another ugly strike at its operations. could reveal a higher-forlonger stance for rates, which may not be well received by gold prices.”

Headline earnings slumped 77.6 per cent to R29.7 million in the firm’s year to end-June, with rainfall between October 2021 and February 60 per cent higher than the long-term average, significantly hitting York’s ability to access and transport logs.

With roots stretching back to 1916, York has been listed on the JSE since 1946, and owns plantations in Mpumalanga.

Recently

It also sells timber and plywood products, although it brings in external logs as it waits for its trees to mature, and has recently branched out into citrus and nut farming.

The group said on Wednesday that after rains subsided, it was hit by a strike by members of the National Union of Metalworkers of SA (Numsa) from April, 25 to June.

“Regrettably, the strike was marred by violence, arson, malicious damage to property, intimidation and assault inflicted on employees,” it said.

Rising interest rates dent gold’s appeal, as they increase the opportunity cost of holding non-yielding bullion. Even though the Dollar index dipped 0.2 per cent, it was not far from a 20-year high. A firmer greenback makes bullion more expensive for other currency holders.

The benchmark 10-year treasury yield held close to its highest level in over a decade scaled on Monday.

Mirroring investor sentiment, holdings in the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell to 30 799.131 ounces on Monday, the lowest since March 2020.

Concerns

Inflation concerns have also prompted other central banks across the globe to tighten monetary policy.

Spot gold may edge up to a resistance at US$1 685 before falling, according to Reuters Technical Analyst Wang Tao. Elsewhere, spot silver lost 0.6 per cent to US$19.50 per ounce. Platinum fell 0.1 per cent to US$918.51 and palladium was down 2.4 per cent at US$2 172.19.