Johannesburg - African Bank Investments [JSE:ABL] advised on Tuesday
that both its headline earnings and earnings for the year ended September 2012
are expected to increase by between 17% and 19% relative to the R2.339bn
reported for the 2011 financial year.
Similarly‚ headline earnings per share and earnings per
share are expected to increase by between 17% and 19% from the 291 cents per
share reported for the 2011 financial year.
ABIL said it had benefited from strong credit sales and
advances growth through its expanded distribution and innovative products and a
slower reduction in yield than in recent years. Cost growth‚ while higher than
in previous years‚ remains well below revenue growth‚ resulting in positive
operating leverage. The credit loss ratio was marginally up from that published
in the interim results.
The Retail unit (EHL) experienced sluggish sales as the
economy slowed and consumers came under increasing pressure. However‚ its
improving efficiencies and solid margins helped maintain the positive momentum
achieved through operating leverage in the first half of the year‚ it said.
“The group is comfortable that risk remains well controlled‚
from the perspective of the economic environment‚ recent legislative and
regulatory developments‚ as well as credit quality. It is pleasing to note that
the combination of regulatory scrutiny and heightened awareness by key players
in the market have begun to curb excess supply of credit and that a slowdown of
credit extension is evident in the most recent bureau information. ABIL's own
underwriting interventions during the year have been successful in achieving
the group's targeted risk adjusted returns and in further limiting its exposure
to emerging risk in the market‚” it noted in a statement.
Its results are expected to be released on or about Monday‚
19 November 2012.
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