Poll

I will Buy African Bank Shares @

Below R8
0 (0%)
Below R7
2 (8.3%)
Below R6
13 (54.2%)
Are you Mad !!
4 (16.7%)
Never
5 (20.8%)

Total Members Voted: 23

Author Topic: African Bank  (Read 64354 times)

jaDEB

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 4551
  • Karma: +31/-3
    • View Profile
Re: African Bank
« Reply #15 on: May 19, 2014, 05:52:11 pm »
Your timing was great on this one jaDEB.

Thanks. Now if GLN can go to R60, while OCE stays below R84. I will sell GLN and buy OCE  :TU:  O:-)  :-X  ???
jaDEB

If it scares you, it's a sign you need to do it

jaDEB

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 4551
  • Karma: +31/-3
    • View Profile
Re: African Bank
« Reply #16 on: May 30, 2014, 08:11:45 am »
AFRICAN BANK LIMITED
(Incorporated in the Republic of South Africa)
(Registered bank)
(Registration number 1975/002526/06)
Company code: BIABL
(“African Bank”)

MOODY’S DOWNGRADES AFRICAN BANK’S LOCAL AND GLOBAL CREDIT RATINGS

ABIL announces that Moody’s Investors Service (“Moody’s” or “the agency”) has, on 29 of May 2014,
downgraded African Bank Limited’s local national scale issuer ratings by one notch to A3.za/P-2.za from
A2.za/P-1.za and its global senior debt and deposit ratings by one notch to Ba1/Not Prime, from Baa3/Prime-
3. African Bank thereby maintains its national scale investment grade rating. In addition, the long term
ratings have been placed on review. The conclusion of this review will likely follow the publication of the
Bank’s trading update for the nine months ending June 2014. African Bank announced a headline loss for
the six months ended March 2014 and this rating action reflects Moody’s assessment of the deterioration in
African Bank’s asset quality.

ABIL stated in its recent interim earnings results announced on the 19th May 2014, that the group has raised
a general provision of R2.5 billion to deal with the higher level of expected non-performing loan (“NPL”)
emergence. The significantly improved quality business written since July 2013, when stricter underwriting
interventions were implemented, is growing in proportion of the total book and is expected to start positively
impacting future financial results. The Bank continues to be adequately capitalized and liquid.

Midrand

30 May 2014

jaDEB

If it scares you, it's a sign you need to do it

Patrick

  • Administrator
  • Hero Member
  • *****
  • Posts: 2551
  • Karma: +47/-2
    • View Profile
Re: African Bank
« Reply #17 on: May 30, 2014, 09:39:24 am »
I normally wouldn't care about an unsecured lender going bust themselves, but why does CML have to own so much ABL  :frustrated:

jaDEB

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 4551
  • Karma: +31/-3
    • View Profile
Re: African Bank
« Reply #18 on: June 20, 2014, 02:38:52 pm »
Test
jaDEB

If it scares you, it's a sign you need to do it

jaDEB

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 4551
  • Karma: +31/-3
    • View Profile
Re: African Bank
« Reply #19 on: June 20, 2014, 02:39:58 pm »
See Poll above
jaDEB

If it scares you, it's a sign you need to do it

jaDEB

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 4551
  • Karma: +31/-3
    • View Profile
Re: African Bank
« Reply #20 on: June 27, 2014, 10:14:58 am »
Any1 else thinking of buying below R6 ?
jaDEB

If it scares you, it's a sign you need to do it

Nivek

  • Sr. Member
  • ****
  • Posts: 295
  • Karma: +6/-1
    • View Profile
Re: African Bank
« Reply #21 on: June 27, 2014, 11:52:39 am »
I don't see this company surviving in the long term , but that's just my opinion.

jaDEB

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 4551
  • Karma: +31/-3
    • View Profile
Re: African Bank
« Reply #22 on: June 27, 2014, 01:06:50 pm »
Thanks Nivek. But some of the investment companies have been buying small %, and have even more in their portfolio.

Low today was R5.78 now R6.49 - 10 % swing.

But yes, in I agree with you, just needed a second opinion.  :whistle:
jaDEB

If it scares you, it's a sign you need to do it

jaDEB

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 4551
  • Karma: +31/-3
    • View Profile
Re: African Bank
« Reply #23 on: July 07, 2014, 12:47:38 pm »
Sold all my ABL in Comp on Friday lol  :LHST:

Now question is : -

Abil bought Ellerines in 2007 for R10.6bn to widen its product offering to include furniture sold on credit.

If they are selling it for lot less than R10bn ? then share price will tank again ? True ?
jaDEB

If it scares you, it's a sign you need to do it

Bundu

  • Full Member
  • ***
  • Posts: 181
  • Karma: +3/-0
    • View Profile
Re: African Bank
« Reply #24 on: July 07, 2014, 12:57:34 pm »
no, Ellerines is not worth R10B and that fact has been in the ABL share price for some time - Ellerines is just costing them money, so if they get R4B for it, it's probably good for ABL, no further losses
« Last Edit: Tomorrow at 06:13:55 PM by Bundu »

gcr

  • Hero Member
  • *****
  • Posts: 1008
  • Karma: +28/-1
    • View Profile
Re: African Bank
« Reply #25 on: July 07, 2014, 04:10:43 pm »
Abil has a serious problem - they need to raise R 5 bill. with Ellerines in their portfolio. Now if they would unload the furniture business for R 4 bill.
 then they would still need to go to the market. However once they get rid of Ellerines chances are they will be taken over (supposedly OMSA could be interested), to my mind I can's see the reasoning for them to buy as they thoroughly cocked up Peoples Bank when it was in their stable. Maybe the PIC should take it over on behalf of the trade unions then they can give cheap loans and all the time in the world for customers to repay their debt. I would think having been in banking that taking over a lemon like Abil could be hugely cash absorbing and a great deal of hard work to put disciplines in place especially with credit extension. This will take years to bed down and at the end of the day one may well ask the question was it worth
Not everything that counts, can be counted, and, not everything that can be counted counts - Albert Einstein

Patrick

  • Administrator
  • Hero Member
  • *****
  • Posts: 2551
  • Karma: +47/-2
    • View Profile
Re: African Bank
« Reply #26 on: July 07, 2014, 10:07:45 pm »
Sold all my ABL in Comp on Friday lol  :LHST:

Just in time, you nearly ruined your buy high sell low strategy  ;D

jaDEB

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 4551
  • Karma: +31/-3
    • View Profile
Re: African Bank
« Reply #27 on: August 06, 2014, 09:13:56 am »
High lights:-

AFRICAN BANK LIMITED
(Incorporated in the Republic of South Africa)
(Registered bank)
(Registration number 1975/002526/06)
Company code: BIABL
("African Bank")

Quarterly operational update for the third quarter ended 30 June 2014, changes to the board, trading
statement and cautionary announcement

Operational performance
The Group continues to face tough trading conditions, against a deteriorating economic environment negatively
impacted by lowered GDP growth expectations, increasing inflation, and loss of customer income through
strike action and increased unemployment at 25.5% for the quarter ended June 2014, as reported by Stats SA.
ABIL customers‘ disposable income and their ability to service debt continues to be under pressure, driven by
a combination of above inflationary cost of living increases, higher relative debt servicing costs and lower
growth in their gross income.

Banking unit
Non-performing loan ("NPL") formation for the quarter ended June 2014 decreased by 7.1% from the quarter
ended March 2014. The business written post June 2013 continues to perform better than the business written
during 2012 as it more closely tracks that of 2011. This level of improvement was, in the opinion of the Board,
not adequate to achieve the targeted returns, particularly against the deteriorating economic outlook. ABIL has
therefore implemented further risk cutbacks in this reporting quarter and will continue to assess the need to
implement further risk mitigation steps as necessary. These cutbacks are expected to restore the risk yield
relationship as the pre June 2013 business rolls off. This is anticipated to result in a combined credit and
insurance claims charge of below 40% of total gross income earned by financial year 2018.

Disbursements for the nine months ended June 2014 declined to R14.1 billion, 20% lower than disbursements
of R17,7 billion for the comparable period. The lower sales are a result of risk cutbacks implemented in June
2013 and further cutbacks implemented during May and June 2014, in combination with a lower customer
credit appetite.

The average net loan size decreased to R13 331 in this quarter compared with R13 868 for the first half of
2014. Average term for the third quarter decreased to 50 months, relative to 54 months for the first half of
2014, and reduced further to 45 months in June 2014. This decline has been primarily driven by the reduction
in the maximum loan term from 84 to 60 months. Further risk cutbacks were made that are expected to
contribute to a restoration of the risk/yield relationship to less than 40% over the longer term and a reduction in
disbursements of between 17% to 22% at an average loan term of below 45 months in the near term.

Gross advances experienced muted growth of 2% to R60.1 billion over the nine months since September 2013
while performing loans have decreased by 3% to R41.1 billion over the same period. NPLs as a percentage of
gross advances remain unchanged from 31.7% at March 2014 to June 2014 as a result of lower sales and
increased write-offs as NPL migrations continue to remain at the previously reported elevated levels. The
income yield has consequently decreased to 31.7% of average advances for the nine months ended 30 June
2014 from 32.2% for the six months ended 31 March 2014 due to increased suspension of income on NPL
migration. Gross incoming yields on new business written in June 2014 have increased by approximately
1.5%.

Retail unit
Ellerine Holdings Limited ("Ellerines") recorded merchandise sales of R2.8 billion for the nine months ended 30
June 2014, a 12% decline relative to the comparative period. Retail sales were negatively impacted by further
credit risk reduction measures, lower customer demand for credit and the impact of a continuing tough
consumer environment.

Cash sales have increased by 9% to R1.3 billion compared to R1.2 billion in the comparative period. Credit
sales amounted to R1.5 billion, a 25% decline relative to the comparable period in 2013. The credit sales mix
for the nine months at 54% is significantly lower than the 63% in the comparable period.

The reduced sales volumes and its high fixed cost base continue to put pressure on Ellerines profitability which
remains loss making.

 continue to believe that the ultimate outcome of the revised regulations will result in a fairer, better and
more equitable unsecured lending industry going forward, adequately balancing the interests of credit
providers, customers and regulators.

ABIL Board and Executive Committee appointments
The Board regrets to announce that Leon Kirkinis, the Group Chief Executive Officer, managing director of
African Bank and one of the founders of ABIL has resigned with immediate effect after 23 years in the
business. The Board owes a huge debt of gratitude to Leon for his vision and leadership during the growth of
African Bank and wishes him every success for the future.
jaDEB

If it scares you, it's a sign you need to do it

Moneypenny

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 1891
  • Karma: +37/-0
    • View Profile
    • Bu Valiere
Re: African Bank
« Reply #28 on: August 06, 2014, 11:59:38 am »
Ouch! Currently @ -63.81%

Nivek

  • Sr. Member
  • ****
  • Posts: 295
  • Karma: +6/-1
    • View Profile
Re: African Bank
« Reply #29 on: August 06, 2014, 12:02:35 pm »
So where are the two people who said they'd buy below R7 and the eight people who said they'd buy below R6  :LHST: