Fin24

CEO lauds Bidvest Bank perfomance

2011-09-22 10:36

Johannesburg - Bidvest Bank, a subsidiary of The Bidvest Group [JSE:BVT], reported a 75% increase in its operating income to R848m in its annual results for the year ending June 30, 2011, released on Thursday.

"The bank put in a strong performance, benefiting from an expanded and more diversified range of income-producing activities," said managing director Alan Salomon in a statement.

"The green light for strategic expansion came in June, 2010, with Reserve Bank approval for the R767m acquisition of an asset-based finance business.

Prior to that, Bidvest Bank had focused on foreign exchange activities.

Profit before taxation rose 165% to R389m and total assets increased 5% to R3.6bn.

Bidvest Bank also reported nine percent growth in the loans, advances and leased assets book to R2.4bn.

Deposits were up 15% from R1.18bn to R1.36bn.

The capital adequacy ratio was 16.2%.

Salomon said the bank had generated new loans of R802m, up from R749m in 2010.

"By year-end, the bank had emerged as one of the largest corporate vehicle and asset leasing businesses in South Africa as well as a leading foreign exchange specialist," Salomon said, adding that it was a very cash generative business.

Brian Joffe, CEO of the Bidvest Group, said the further strengthening of reserves meant Bidvest Bank complied with the Basel III Liquidity Coverage and Net Stable Funding ratios well ahead of the 2015 and 2018 implementation dates.

Joffe said the Bidvest Group would be happy to inject additional capital into Bidvest Bank if required to make appropriate acquisitions.