FD Angela Pillay says Sasfin has a “leaner operation”

Angela Pillay explains that Sasfin has taken significant steps to streamline its activities.

Sasfin has reported headline earnings of R141.1 million for the year ended 30 June 2021. According to the company, this improvement was largely driven by an 11.65 percent increase in total income to R1.303 billion and improved credit performance.

The group also reported a return on equity improvement to 9.11 percent.

According to Sasin FD Angela Pillay, significant steps have been taken to streamline activities which will yield improved efficiency ratios in the future. “The cost-to-income ratio improved to 77.95 percent and excluding once-off headline adjustable items, the cost-to-income ratio would have improved further to 73.36 percent.”

She explained that, by onshoring Sasfin’s Hong Kong operations, exiting some of its non-core assets and preference shares, the group has a “leaner operation, with capital more appropriately allocated, enabling us to further grow our core activities”.

The group also reported that each of its pillars – Asset Finance, Wealth, Business Banking and Capital – grew income in 2021. The Asset Finance pillar delivered “exceptional results”, achieving an operating profit of R289.3 million, while Sasfin Wealth recorded an operating profit of R77.5 million as a result of growth in AUM to R53.899 billion.

Sasfin continues to invest in its business banking and capital pillars, which reduced their combined operating loss to R44.9 million.