BRIEF-African Bank Investments says banking unit to show headline loss of between 1.9 bln to 2 bln rand in H1

Fri May 2, 2014 2:54am EDT

Related Topics

May 2 (Reuters) - African Bank Investments Ltd :

* Expects a headline loss of between R3,1 billion and R3,3 billion relative to R604 million restated headline earnings for equivalent six months to 31 March 2013

* Headline loss per share is expected to be between 239 cents and 254 cents relative to comparable restated headline earnings of 62,3 cents per share

* Operating environment continues to be challenging, with consumers remaining under financial pressure.

* Consumer spending on furniture and appliances remains very subdued

* Banking unit is expected to show a headline loss of between r1,9 billion and r2,0 billion

* Although expected slowdown in npl formation is evident, this decline is taking longer than originally anticipated

* Retail unit headline loss is expected to be between r1,2 billion and r1,3billion for six months to march 2014

* Bank's capital adequacy ratios had initially improved significantly as a result of rights issue

* Continues to work towards disposal of ellerines, but in interim is also focussed on returning it to profitability

* In light of elevated level of NPLS emerging from pre july 2013 business, a decision has been taken to significantly increase general provision on please that are anticipated to become npls in next six months and beyond

* No interim dividend will be declared in 2014

* Excluding impact of increased impairment charge of approximately r3,1 billion, normalised headline earnings for banking unit would have been between r232 million and r332 million

* Decision been taken to write off residual goodwill attributable to retail unit of r831 million; includes r115 million held at group level Source text for Eikon: Further company coverage:

FILED UNDER: