Finbond interim results August 2017
Interest income rose by 22% to R244.1 million (2016: R200.9 million).Profit before taxation shot up by 127% to R171.4 million (2016: 75.6 million). Profit attributable to owners of the company grew by 87% to R92.8 million (2016: R49.6 million). Furthermore, headline earnings per share rose 87% to 12.4 cents per share (2016: 6.7 cents per share).
No interim dividend has been declared.
Company's strategic initiatives and future prospects
Strategic initiatives under way include:
*Growing market share through the increased sale of short- and medium-term products, specifically 30 days, 90 days and 6 months;
*Further refining, developing and improving all bank information technology systems and processes;
*Converting FinbondÆs mutual banking license to a commercial banking license;
*Expansion of the South African branch network in high growth areas;
*Acquiring a further 40 to 60 branches located in Alabama, Missouri and Florida in the United States of America and Ontario in Canada; and
*Selective further strategic acquisitions in the South African and North American unsecured short-term lending markets.
The challenging and difficult macro-economic environment as well as the adverse market conditions in the South African market within which Finbond operates are not expected to abate in the short- and medium-term. However, we remain confident that we have the required resources and depth in management to successfully confront and overcome these various challenges.
We remain positive about our prospects for the future due to FinbondÆs improved earnings and profitability despite difficult market conditions, improvement achieved in cash generated from operating activities, significant percentage of revenue now earned in USD, management expertise, strong cash flow, strong liquidity and surplus cash position, uniquely positioned 410 branch network in South Africa and 223 branches in North America (with a number of branches in the process of being acquired), superior asset quality, access to funding, conservative risk management and growth potential.
We believe that our continued growth in South Africa, the expansion into the North American short-term lending market and the implementation of our strategic action plan will ensure that we achieve results in the medium- and long-term.
References to future financial performance included anywhere in this announcement have not been reviewed or reported on by the GroupÆs external auditors.