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Send  Print  Share  RSS  Twitter  22 Nov 2010

JSE Results: ABIL

Johannesburg, Nov 22 (I-Net Bridge) - African Bank Investments Limited (ABIL, ABLK) on Monday reported a 4% increase in diluted headline earnings per share to 235.1 cents for the year ended September 2010 from 225.1 cents a year ago.

A final dividend of 100 cents per share was declared, for a total dividend of 185 cents, unchanged from last year.

The group said African Bank's headline earnings declined marginally to 1.505 billion rand from 1.525 billion rand, with higher profits in the second half of the year not sufficient to offset the lower growth in the first half.

Ellerines Holdings' headline earnings increased by 35% to 385 million rand, benefiting from firmer sales and margins, a lower bad debt charge and a further decline in operating expenses.

ABIL said the integration of Ellerines financial services into African Bank was completed in September 2010.

Looking ahead, the group said that while economic conditions are expected to remain challenging, it expects some improvement during the next financial year as lower inflation and interest rates start to stimulate consumer spending.

For African Bank, the recent lift in sales bodes well for the 2011 financial year. The Bank is targeting an acceleration in its sales and advances growth, a moderate decline in yield, a more efficient application of cash resources and steady asset quality.

The card division will concentrate on promoting credit cards to the EHL customer base, increasing call centre sales and improving the value proposition for existing customers. The Bank is targeting modest growth in operating costs for the next financial year.

The Bank's focus areas for 2011 will include becoming more people centered with regard to its staff, increasing the number of new customers, building on the recent sales momentum, controlling cost growth, reducing the average cost of funds, enhancing the branch collection capabilities and branch empowerment programme, focusing on the rehabilitation of customers in financial distress and improving client service levels and streamlining customer processes.

EHL's priorities for the retail part of the business for the next year will remain on margin delivery, stock, working capital and cash management, supply chain optimisation and sales growth, while African Bank as the credit provider, will concentrate on providing EHL with differentiated lowest price credit and innovative value added products to the EHL customer base. The merchandising focus for 2011 will be on product innovation to drive higher margin opportunities, on developing strategic supplier relationships, growing the imported component of the business in order to ensure differentiation and enhance margins, and on bringing a number of new opportunities to fruition.

I-Net Bridge, Tel: +27-11-280-0644,

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