African Bank Investments Ltd ('ABIL') press release
(Not to be confused with African Bank Ltd)
21 December 2016
ABIL announces financial results for the year ended 30 September 2016
Highlights
Net profit after tax of R491 million (2015: R1,287 million) Continuing operations profit of R84 million (2015: R69 million) Total cash and cash equivalents of R1,833 million (2015: 2,367 million) Headline earnings of 35 cents per share (2015: 86.6 cents per share)
African Bank Investments Ltd ('ABIL') reported a net profit after tax of R491 million for the year ended 30 September 2016. The significant change in earnings was mainly due to, Standard General Insurance Company Limited ('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 R189 million discretionary actuarial liability (2015: R0). 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. The continuing operations are therefore profitable if one compares continuing operations premiums to the R14 million in actual claims, excluding the discretionary actuarial liability.
The continuing operations generated a profit for the year of R84 million (2015: R69 million) before taking into account the discretionary actuarial liability.
Update on name change to African Phoenix Investments Ltd and lifting of suspension of shares
The name African Phoenix Investments Ltd 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 Limited ('JSE').
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. At the request of the Board, it is anticipated that shares will resume trading under the new Company name, African Phoenix Investments Ltd.
Looking ahead, Mr Enos Banda, the CEO of ABIL, noted, "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".
ENDS Contact Louise Brugman 083 504 1186
On behalf of ABIL CEO Enos Banda
Website www.abil.co.za