August 6, 2014 / 6:57 AM / 3 years ago

BRIEF-African Bank group CEO steps down; sees FY headline loss of at least R6.4 bln

Aug 6 (Reuters) - African Bank Investments Ltd

* Disbursements for nine months ended june 2014 declined to r14.1 billion, 20% lower than disbursements of r17,7 billion for comparable period

* Average net loan size decreased to r13 331 in this quarter compared with r13 868 for first half of 2014.

* Gross advances experienced muted growth of 2% to r60.1 billion over nine months since september 2013 while performing loans have decreased by 3% to r41.1 billion over same period

* Overall collections run rate in banking unit is at about r7 billion per quarter at an average of 65% of instalments raised on all performing and npls

* Leon kirkinis, group chief executive officer, managing director of african bank and one of founders of ABIL has resigned with immediate effect

* Has appointed pwcas an advisor to board to assist in restructuring of group

* Board has appointed nithia nalliah ( group chief financial officer) to position of acting chief executive of ABIL and managing director of african bank with immediate effect

* Exploring options to isolate african bank from impact of “bad” book which is also expected to have direct positive impact on moody’s rating of african bank

* ABIL is also actively exploring other alternatives that would remove any future exposure of abil to Ellerines.

* Banking unit is expected to show a basic loss and headline loss for second half of financial year 2014

* Group is expected to show a basic loss of atleast r7.6 billion and headline loss of at least r6.4 billion for full year Source text for Eikon: Further company coverage:

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