The group reduced its dividend for the six months to December 31 2016, by 18.84% to 80 cents per share, after earnings declined by a similar margin.
Headline earnings and headline earnings per share fell to R86.14 million and 271.41 cents, down from R106.14 million and 334.43 cents respectively. It attributed the decrease to credit losses and a write down in its investment in Efficient Group, due to a decline in Efficient’s share price.
The group’s credit loss ratio deteriorated to 121 basis point from 50 basis points previously as non-performing loans increased by 100% to R466 million. It said loan recoveries, subsequent to the reporting period, reduced non-performing loans to R349 million.
Group costs increased 9.15% to R440.89 million largely due to investments in IT, risk and compliance, while total income grew by 4.30% to R592.73 million. As such, Sasfin’s cost-to-income ratio deteriorated to 72.05% from 70.92%.
