February 5, 2014 / 7:37 AM / 4 years ago

BRIEF-African Bank sees credit quality of book to improve in H2 2014

JOHANNESBURG, Feb 5 (Reuters) - African Bank Investments Ltd : * Group currently anticipates that overall credit quality of the book will improve into the second half of FY 2014 * South African economy continues to prove increasingly challenging for consumer led demand businesses * Impact of fuel price hikes,interest rate increases, food inflation will continue to present challenges * Backdrop of a weakened rand has and will continue to present challenges that the group needs to address * Disbursements have declined year on year basis due to more stringent credit granting criteria * Operating costs also remain well under control as the group continues to focus on managing expenses. * Says will announce the appointment of a replacement CEO within the next few weeks * Retail unit's profitability is also expected to be considerably lower for the first half of FY 2014 * It is not anticipated that the overall cost of funding for the current year will be significantly increased * In banking unit overall impact is likely to be reduction in profitability for the first half of FY 2014 * Will announce the appointment of a replacement CEO for EHL within the next few weeks * Q1 gross advances up 7% to R61.4 billion, disbursements fall 25% to R5.56 billion

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