Abil announces latest results, name change update

Cape Town - African Bank Investments (Abil) reported a net profit after tax of R491m for the year ended 30 September 2016.

Headline earnings per share for 2016 were 34 cents compared to 85.7c for 2015.

It said on Wednesday the significant change in earnings was mainly due to Standard General Insurance Company (Stangen), the group's 100% owned operating subsidiary, exiting its relationship with African Bank Limited, effective 1 April 2016.

Included in the income statement is a R189m discretionary actuarial liability.

"This is raised to allow for the shortfall in the exposure margins recovered from the in-force policy book compared to the future budgeted expenses envisaged in growing the insurance portfolio and generating new products and business," Abil said in a statement.

"The continuing operations are, therefore, profitable if one compares continuing operations premiums to the R14m in actual claims, excluding the discretionary actuarial liability."  

The continuing operations generated a profit for the year of R84m (compared to R69m in 2015) before taking into account the discretionary actuarial liability.

Name change update

The name African Phoenix Investments has been registered by the Companies and Intellectual Property Commission (CIPC), although the ISIN and JSE ticker code changes have not yet occurred at the JSE, Abil explained.

Accordingly, the board continues to work with the JSE to ensure the lifting of the suspension in the trading of its ordinary and preference shares occurs as soon as practicably possible.

"Further public announcements will follow regarding the salient dates and times pertaining to, inter alia, the last day to trade in Abil shares, the date of the lifting of the suspension of securities and the resumption of trading in the ordinary and preference shares on the JSE under the new JSE codes, together with the new ISIN numbers in respect thereof," said Abil.

"At the request of the board, it is anticipated that shares will resume trading under the new company name, African Phoenix Investments."

"We look forward to unveiling the group's adopted strategy in early 2017 in which we will outline how we intend to build the group into a premier South African investment holdings business," said Abil CEO Enos Banda.