Solid progress on Strategic Reset with key business pillars performing

• Headline earnings declined 62.5% to R24.416 million
• Cost to income ratio increased 131 bps to 83.79%
• Core funding up 3.78% to R9.851 billion
• Assets under management and advice higher at R64.359 billion (2022: R63.028 billion)
• Capital adequacy ratio remained stable at 16.5%
• Solid financial performance from Asset Finance and Wealth
• Good progress on strategic reset – disposal of Capital Equipment Finance and Commercial Property Finance business units to African Bank Limited

Sasfin today announced financial results for the six months ended 31 December 2023, with the results highlighting the strength of its core businesses within a challenging economic environment. Commenting on the results, Group CEO, Michael Sassoon said, “Sasfin delivered solid performance in key parts of the business despite the tough economic conditions. The disposal of our Capital Equipment and Commercial Property Finance businesses to African Bank (subject to regulatory approval), as well as the exit of some of our non-core activities, are important steps in providing strategic flexibility for the Group.”

Headline earnings of R24.416 million (2022: R65.102 million) were largely impacted by negative adjustments to the Group’s fair value loans and private equity portfolio as well as an increase in credit impairments. The decline in total income (including income from associates) to R653.676 million (2022: R704.167 million) was primarily a result of the fair value adjustments, while net interest income grew due to the healthy margins within the loan book. Positively the Group saw a reduction in total costs of 5.70% to R547.700 million (2022: R580.815 million).

Asset Finance’s operating profit benefitted from higher income of R312.5 million (2022: R296.2 million) and was reported at a 10.5% higher R101.1 million (2022: R 91.5 million). The Rental Finance business continues to operate at a healthy scale and is well positioned both in terms of financial and competitive strength.

The Business and Commercial Banking pillar was impacted negatively by the operating environment, recording an operating loss of R58.4 million (2022: loss of R50.0 million) as non-interest income declined, and credit impairment charges increased. Notwithstanding, savings in operating costs were achieved.

Sasfin Wealth reported an operating profit of R59.4 million (2022: R59.8 million), whilst total income grew 3.17% to R208.2 million (2022: R201.8 million). Assets under management and advice (collectively referred to as AUM) remained steady at R64.4 billion (2022: R63.0 billion).

Commenting on the Group’s prospects, Sassoon said, “While we continue to navigate challenges, I am confident that through our strategic reset, which is on track, Sasfin will emerge stronger and be able to deliver enhanced stakeholder value.”

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