Research archive for ABL

Let us start with African Bank results, seeing as they are a widely owned share here at Vestact. We first started buying this companies stock back in August of 2003, when the price was comfortably below 8 ZAR a share. They were unloved by the market and perhaps justifiably so because of the implosions of Saambou (where ABIL picked up a part of their loan book for what turned out to be nothing) and Unifer. Friday was another tough day for ABIL, down over three percent, the market really was expecting a whole lot more than the trading update suggested ---> ABIL trading update.

The African Bank share price was caned yesterday, the trading update not matching with the last sales update and perhaps the expectations and the bench mark had been set a little high. Like I said yesterday, I do not get too anxious about it. The analyst community suggests that by September 2013 the company would have earned around 430 cents per share, with a dividend payout of around 260 cents. So a couple of years out with a twelve times or so earnings applied I get to about 50 ZAR a share. And if they pay 260 cents then at that level they will yield above five percent. So should we be buyers in the mid thirties? Yes is the short answer.

African Bank one of our preferred stocks have put out a trading statement this morning. Let me do a copy and paste, something that even ex police chiefs are fond of.

Over the weekend I got asked by a client why we choose African Bank over Capitec even though they have similar business models and similar customers.

African Bank released their first quarter trading update this morning. And you know what, it is going to be well received. Here goes a copy and paste on credit sales across the platform. AHL is Ellerines and segregated as such: "Combined credit sales ... increased by 59% to R5,5 billion (Q1 2010: R3,5 billion). African Bank credit sales grew by 63% to R4,3 billion, while total credit sales at EHL increased by 29% to R1,2 billion, the latter supported by a growing contribution from personal loans."

African Bank with quite a wow trading statement this morning. Even then though, they are pretty cautious. Check it out chaps (and chappesses): "ABIL indicated in its annual results announcement for the twelve months to September 2010 that it had achieved a significant increase in credit sales in the second half of the 2010 financial year, which represented growth of 33% over the prior year`s comparable period."

African Bank out with their full year results this morning. There was a slide that captured my attention in the presentation, check this out, because it sums up the operating environment as well as their experience

African Bank have released an announcement this morning announcing "...that it has finalised the transaction to transfer the financial services business of its subsidiary Ellerine Furnishers (Pty) Ltd (Ellerines) to fellow subsidiary African Bank Limited (African Bank)." Hurrah!! It is a circular accounting exercise at the end of the day, but it is very important that African Bank now controls what they were ALWAYS after when the transaction took place initially. No, Leon Kirkinis has no desire to be the retail king of South Africa, but this is rather a consolidation and splitting the two businesses into their core line.

a trading update from African Bank, our preferred consumer finance entry into the local market. The biggest area of growth in our opinion. First things first, sales update: "Sales for the quarter ended June 2010 increased by 29%, resulting in sales growth of 6% for the nine months ended June 2010. While some of the better sales performance relates to general buoyancy in the market in the lead up to the World Cup, it is clear that the reinvigoration of the front-end, combined with product enhancements has also contributed."

African Bank announcing that it had "listed a US$1,000,000,000 Euro Medium Term Note Programme on the London Stock Exchange." This is part of ABIL's diversification program, if you have a week of spare reading time, download the whole Euro Medium Term Note Programme and read it. Let me know what you think. Wow, what a long document.

African Bank, our preferred financial stock released results for the six months to March 2010. Headline earnings at 914 million Rands, per share slightly lower at 113.7 cents per share. The ordinary dividend has been maintained at 85 cents per share. Ellerines making progress, their integration into the existing business expected to be completed by the end of the year. Remember that 2009 was an exceptionally tough year for everyone globally.