Sasfin’s simplified business positions the Group for future sustainable growth

• Aggregated^# Headline earnings loss of (R58.7 million) (2023: R112.7 million)
• Net available cash up 10.5% to R1.7 billion (2023: R1.5 billion)
• Aggregated^# Cost to income ratio 95.5% (2023: 86.7%)
• Assets under management and advice lower at R65 billion (2023: R67 billion)
• Strong financial performance from Rental Finance and Wealth continues
• Strategic reset intended to be completed by 2025, with the exit of the banking business

^# Aggregated results include continuing and discontinued operations

Sasfin today announced its financial results for the year ended 30 June 2024, highlighting the difficult environment and the challenges the business has successfully navigated, resulting in a streamlined operation. Commenting on the results, Group CEO, Michael Sassoon said, “Despite the challenges we have encountered, Sasfin has strengthened its balance sheet, which puts us in a strong position to finalise our strategic reset. The actions taken over the past 18 months put the Group on a solid footing for the future.”

The Group reported a headline earnings loss per share of 190.96 cents, compared to earnings per share of 366.18 cents in 2023, largely as a result of an increase in expected credit losses, negative fair value adjustments as well as a provision raised in respect of the administrative sanctions received. Total income (including associate income) declined 7.9% to R1.3 billion (2023: R1.4 billion) in part due to exiting of non-core activities while costs, which included some large once off costs, have been flat. It is expected that as Sasfin becomes more streamlined, costs will reduce over time.

Asset Finance continues to make a meaningful contribution to the Group, achieving an operating profit of R158.7 million for the year (2023: R197.7 million).  Rental Finance generated healthy returns in a tight credit environment with strong growth prospects.

Sasfin Wealth reported an operating profit of R139.8 million (2023: R117.3 million), as total income, including associates, grew 9,9% to R455 million (2023: R414 million), as assets under management and advice of R65.0 billion (2023: R67.4 billion) were maintained.

Business and Commercial Banking recorded an operating loss of (R156.1 million) (2023: (R137.7 million)) as a result of higher impairments and lower total income.  Several strategic measures were implemented which included the closure, disposal, and scaling back of non-core operations. This contributed to a decline in non-interest revenue, while operating costs reduced by 18%.

The Group’s balance sheet strengthened with cash holdings increasing 10.5% to R1.7 billion and is expected to grow further following the disposal of the Capital Equipment Finance business to African Bank Limited, ensuring excess liquidity and capital for the Group.

The strategic reset is on track for completion by the end of 2025.  Sasfin aims to focus on its Rental Finance and Wealth businesses, leveraging their strong competitive positions, healthy scale and clear differentiation. Sasfin has been a market leader in the rental finance industry for many years with a deep understanding of asset supplier business models, providing holistic solutions to these suppliers in serving their clients. Sasfin Wealth has grown steadily, building on its exceptional team of people who have delivered excellent service and returns to long-standing private clients for many decades, the last of which saw the successful transition of the business from a local private client portfolio and stockbroker into a diversified business servicing private and institutional clients across a wide range of local and global asset classes.

Commenting on the Group’s prospects, Sassoon said, “With our proposed delisting and exit of non-core activities on track, we are well on our way to emerge as a leaner organisation, supporting our champion Rental Finance and Wealth businesses with inherent scale and competitive advantages.

“We have faced major challenges over the last couple of years. Throughout this time our stakeholders have supported us, and I am exceptionally proud of our management team and staff who have acted with integrity and commitment to ensure that we successfully conclude our strategic reset and emerge stronger, delivering value to our various stakeholders” Sassoon concluded.

ENDS

Issued on behalf of Sasfin Holdings by Brunswick South Africa

For further information please contact:

Sasfin Holdings

Elisheva Gilbert

Chief of Staff

Tel: +27 82 74 94 934

Email: Elisheva.Gilbert@sasfin.com

Brunswick Group

Nick Roodman

Mobile: +27 82 808 8671

Email: nroodman@brunswick.co.za