Data provided by McGregor BFA
All data is delayed
Loading...
See More

Sanlam 'satisfied' despite flat earnings

Sep 09 2010 09:01 I-Net Bridge

Company Data

Sanlam Limited [JSE:SLM]

Last traded 55.15
Change -0.06
% Change 0.00
Cumulative volume 992974
Market cap 119.48bn

Last Updated: 23/04/2014 at 11:23. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Vukile investors approve Sanlam properties deal

Absa to swallow Sanlam Home Loans

Liberty brushes off the cobwebs

Sanlam grilled on legal claims, dividend

Sanlam new life business up 21%

Sanlam, Discovery in spotlight

 
Johannesburg - Financial services group Sanlam [JSE:SLM] on Thursday reported a 5% decline in diluted headline earnings per share for the six months to end-June from 83 cents to 79.2 cents.

However, normalised headline earnings per share, which the group uses as a more accurate barometer of performance, reflected a 2% improvement - from 78.9 cents to 80.5 cents.

Commenting on the group's performance, Sanlam's Group CEO Johan van Zyl said: "The group performed well despite challenging business conditions during the first six months of 2010, with all key performance indicators reflecting a satisfactory result on a comparable basis.

"This again confirms the group's track record of resilient results as our diversification strategy (which includes market segmentation, solutions offerings and geographical presence), combined with prudent operational and financial practices, contributed towards its defensive character in adverse trading conditions. Our core operations continue to provide a stable base, complemented by an increasing contribution from investments in new growth initiatives.  
 
"The group's well-established strategy successfully supported these interim results. The board and management remain committed to the group's key objective of maximising shareholder value. The five pillars of optimal capital utilisation, earnings growth, cost control and efficiencies, diversification and transformation underpin this strategy and good progress has been made on all of these pillars."

Increase in new life business

New business volumes for the half-year were down 3% to R50bn, but new life business volumes increased by 13%. The group said the decrease in total new business volumes was the combined result of strong growth in new life business, offset by a decline in new investment business from a high base in 2009.

The net value of new covered business was up 16% to R283m, with net fund inflows of R6.6bn for the six months.

The group reported an equity value (GEV) per share of 2 479c for the period, with an annualised return on group equity value of 9.1%.   
 
Looking ahead, Van Zyl said that "optimism in the face of uncertainty" best describes the outlook for the second half of the year.

"2010 started with renewed investor confidence that the worst of the financial markets crisis was over and that the world was gearing up for accelerated growth.

"While global economic growth is gradually returning, uncertainty and risk aversion remain, aggravated by the emergence of sovereign credit risk in Europe and regular economic data that confirms a prolonged upturn at best.

"We remain confident and optimistic that the group will continue to deliver sound operating results. The business environment is however expected to remain challenging in the second half of the year, with only slow economic recovery in most of the economies in which we operate.

"This is not expected to result in any meaningful performance improvement in the second half of the year compared to the first six months of 2010 or relative to the strong second half of 2009," he said.

 - Fin24.com
sanlam
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

Afrikaners want economic freedom - EFF

Afrikaners, including some farmers, also believe in economic freedom, according to a white Economic Freedom Fighters member.

 
 

Latest elections multimedia

DA won't get 30% - Zille
The EFF's ad was banned, see why
Why Jack Parow wants you to vote on 7 May
The ad the SABC doesn't want to air

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...